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China is no punk!


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#1 Mr Dev

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Posted 19 October 2010 - 03:48 PM

boy it seems to me we saw a preview of the typical bully story unfolding today before our very eyes.

the 97 lb weakling who we've been kicking sand at has now had a major terminator transformation or something similar.

you could call it a full two years of working out on P-90X

raising interest rates today better be an eye-opener for the feds!
i really think their days are now numbered for the FED committee as we know it.. china is actually making them look bad at their own game.
talk about a real paridigm change that's taking place under the radar. behind closed doors it can't help but create a question in confidence
from even those working on wall street.

to think that all our flippid remarks and exaggerated predictions of financial armageddon for the US consumer and economy could actually occur in our lifetimes.

is it so hard to imagine riots on wall street when it's this obvious that our financial system needs a good colon cleansing?

how could we manage to handle higher rates up or above 7-8% interest in the US in our condition?
eeek.

:bowtie:

Edited by Mr Dev, 19 October 2010 - 03:52 PM.


.. .. ..
Mr Dev

......trading is basically a simple operation, but you have to be a genius to understand the simplicity.
.....timing,..... is ....everything !
... remember no guessing visit MrDev!

#2 jjc

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Posted 19 October 2010 - 03:55 PM

Very good observation...

Here is another data point:
China Is Said to Halt Exports to U.S. of Some Key Minerals

http://www.nytimes.c...s...tml?_r=2


http://finance.yahoo.com/q?s=mcp

#3 Douglas

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Posted 19 October 2010 - 03:59 PM

There's bigger trouble brewing with China. They have apparently quietly moved to cut off shipments of certain rare earth minerals used in tech and defense manufacturing to the U.S. as was recently done to Japan (see article at www.nytimes.com). Not sure if it's in retaliation for green tech trade tango late last week. This is about to get out of hand. This reminds me of the October mess with Baker in 1987 which caused a stock crash.

#4 iloli way

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Posted 19 October 2010 - 04:21 PM

boy it seems to me we saw a preview of the typical bully story unfolding today before our very eyes.

the 97 lb weakling who we've been kicking sand at has now had a major terminator transformation or something similar.

you could call it a full two years of working out on P-90X

raising interest rates today better be an eye-opener for the feds!
i really think their days are now numbered for the FED committee as we know it.. china is actually making them look bad at their own game.
talk about a real paridigm change that's taking place under the radar. behind closed doors it can't help but create a question in confidence
from even those working on wall street.

to think that all our flippid remarks and exaggerated predictions of financial armageddon for the US consumer and economy could actually occur in our lifetimes.

is it so hard to imagine riots on wall street when it's this obvious that our financial system needs a good colon cleansing?

how could we manage to handle higher rates up or above 7-8% interest in the US in our condition?
eeek.

:bowtie:

Is it so hard to understand that there are other counties in the world besides US of A, which some found out was discovered by Chinese before you Columbus crowds?

I see, our US history as far as we can remember started when? WWII? 50s? 60s? 70s? 80s? 90s? 2000 Millennium? or IPOD?

I am ridiculing my generation of Boomers, not dare to my kids generation because I am afraid to open a Facebook account of my own.

We Western World taught most of the lessons to the world since Industrial Revolution. Can we, do we have what it takes to stay on the throne?
PRICE IS KING; LINE RULES! - Laws Of Line (LOL) Trading Systems
Swing Those Lines: I can calculate the motion of heavenly bodies, but not the madness of people! -- Issac Newton

#5 arbman

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Posted 19 October 2010 - 04:40 PM

So China is willing to settle their US Treasury holdings at a fraction on the dollar, it seems, truly what did they really expect by pegging their currency to USD for so long? US has given China everything they asked for; a free market to export and no competition whatsoever in the expense of its own labor while accumulating more and more debt. So, now US is simply trying to become competitive by devaluing the USD and pay its debt back with the cheaper dollars. US will become poorer as a result of this orderly devaluation, but China may loose even more as it may be at the cusp of an huge property bubble of its own that's about to pop as well as its collapsing exports. At the end, the economic forces will be balanced whether they like it or not, they have to, US will be worth less and become more competitive and China's growth will be negatively effected. Can this stretch to the extent of a complete halt of relations and trade?!? TWT...

#6 selecto

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Posted 19 October 2010 - 04:46 PM

No more unobtanium for you guys until you stop debasing the dollar. :angry:

#7 jjc

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Posted 19 October 2010 - 05:25 PM

No more unobtanium for you guys until you stop debasing the dollar. :angry:


And while we are at it...
no more ecologirapenium and no more pollutonium!

#8 dowdeva

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Posted 19 October 2010 - 06:12 PM

"China is no punk..."

Take a look at this, very ominous...



#9 Rogerdodger

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Posted 19 October 2010 - 08:35 PM

Looks like you all beat me to it!

China surprised the markets today and they saw "RED"

China Sparks Wide Sell-Off
Sudden Rate Hike Spurs Fear of Drop in Giant's Growth; Emerging Currencies Pull Back

By TOM LAURICELLA in New York and ANDREW BATSON in Beijing
China surprised investors by raising interest rates Tuesday, sparking a world-wide sell-off in stocks, commodities and emerging-markets currencies as investors lowered their expectations for Chinese growth, which has been seen as a key driver of the global economy.
China's central bank announced it would raise key rates by a quarter percentage point, the first move since it cut rates in December 2008.
http://online.wsj.co...MIDDLTopStories

That's not all...
China to Halt Some Exports to U.S.
By KEITH BRADSHER
Published: October 19, 2010

HONG KONG — China, which has been blocking shipments of crucial minerals to Japan for the last month, has now quietly halted shipments of those materials to the United States and Europe, three industry officials said on Tuesday.
The Chinese action, involving rare earth minerals that are crucial to manufacturing many advanced products, seems certain to further intensify already rising trade and currency tensions with the West. Until recently, China typically sought quick and quiet accommodations on trade issues. But the interruption in rare earth supplies is the latest sign from Beijing that Chinese leaders are willing to use their growing economic muscle.
"The embargo is expanding" beyond Japan, said one of the three rare earth industry officials, all of whom insisted on anonymity for fear of business retaliation by Chinese authorities.
China mines 95 percent of the world's rare earth elements, which have broad commercial and military applications, and are vital to the manufacture of products as diverse as cellphones, large wind turbines and guided missiles. Any curtailment of Chinese supplies of rare earths is likely to be greeted with alarm in Western capitals, particularly because Western companies are believed to keep much smaller stockpiles of rare earths than Japanese companies.
http://www.nytimes.c...bal/20rare.html



#10 Mr Dev

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Posted 19 October 2010 - 08:56 PM

you've nailed a part of it.

i live in souther california.. but we are not the only state that can't repaint our highways now because the florescent minerals
mixed int the white paint from asia just happens to be unavailable!

Very good observation...

Here is another data point:
China Is Said to Halt Exports to U.S. of Some Key Minerals

http://www.nytimes.c...s...tml?_r=2


http://finance.yahoo.com/q?s=mcp



.. .. ..
Mr Dev

......trading is basically a simple operation, but you have to be a genius to understand the simplicity.
.....timing,..... is ....everything !
... remember no guessing visit MrDev!