BACKDOC: SOUNDS LIKE HE IS PROMOTING THE REGAN SUPPLY SIDE ECONOMICS TO CHINA! HEE HEE
OneWildRide: Bernanke: A Fresh Approach to Fiscal Stimulus Is China's Only Solution to the Impossible Trinity
Former Fed Chair Ben Bernanke offered a solution to the problem that's long vexed Chinese policymakers and spurred turmoil in financial markets.
As economic growth in China moderated and capital outflows picked up steam, market participants have become focused on how the world's second-largest economy will resolve the so-called "impossible trinity."
Under the Mundell-Fleming model, an economy can choose only two of three following options at the same time: a fixed exchange rate, independent monetary policy, and an open capital account.
The liberalization of China's capital account coupled with recent measures to ease monetary policy have left Beijing in the unsustainable position of being in defiance of this impossible trinity. Attempts to bolster the economy via monetary accommodation have increased the incentive for capital to flow out of the country, which is a negative for the currency.
BACKDOC: TWO TRADING SYSTEMS, TWO PAYMENT SYSTEMS! THE GOLDEN TRIANGLE SHOULD JUST ABOUT COMPLETE NOW!
Mountainman: I believe WHAT we are "SEEING" Here is an ALTERNATIVE Move by the Chinese in Order to COMPETE and COMPLETE Transactions w/Out having to Deal thru the SWIFT System Only......If their New System takes Off well and Brings CUSTOMER SATISFACTION.......We very Well could See The GOLDEN TRIANGLE/ BRICS Partners Using The Yuan and Other CURRENCIES thru China's CIPS !!!!!!!!......IMO
Thunderhawk: Major Russian Bank Links to China's CIPS International Payment System
Russia's VTB Bank has been successfully connected to Chinese-based Cross-Border Inter-Bank Payments System (CIPS), the bank said on Wednesday.
"VTB has been linked up to the system via correspondent banks and has successfully completed test operations in late 2015. We are monitoring the development of the introduction of the next phase of the CIPS, which is supposed to increase the operational efficiency of transactions," VTB's press office said in a statement.
In October, Beijing launched the CIPS, also known as the China International Payments System, as alternative to the western SWIFT (Society for Worldwide Interbank Financial Telecommunication) payment system.
The system's first phase provides clearing and settlement services, according to the People’s Bank of China. Its launch is said to remove hurdles to the yuan’s internationalization by reducing transaction costs and processing times.
The second optimization phase will extend transaction times by three hours, accounting for time zone differences, VTB said. The bank, which is Russia's second-largest in terms of assets, added that it welcomes any improvement in cross-border payments using the yuan.
In early 2015, VTB President Andrey Kostin said that the bank may join the Chinese payment system, adding that there are no plans to deactivate SWIFT as well.
China has been seeking to internationalize its currency, with the CIPS vying to overtake SWIFT in the region. Up to 19 major banks were named as direct participants in CIPS, with 38 Chinese banks and up to 140 foreign financial institutions named as indirect participants. Developed and administered by the People’s Bank, the system operates from 9 am to 8 pm Beijing time (01:00-12:00 GMT).
BACKDOC: CHINA WILL TAKE IT ON THE CHIN HERE IN A BIG WAY. AS I'VE SAID MANY TIMES CHINA WILL CONTINUE TO BE MARGINALIZED BY TPP!
REALIZE FOLKS THIS IS A CURRENCY WAR. TRADE AND SHIPPING WILL BE THE NEW CONTROL OVER COUNTRIES CURRENCIES BY ITS DIRECT IMPACT OF GDP!
NO LONGER WILL COUNTRIES BE ABLE TO DEVALUE THEIR CURRENCIES TO GET A TRADE ADVANTAGE AS THEY HAVE BEEN DOING FOR YEARS!
CHINA IS THE BIGGEST PROBLEM WITH THIS. THAT WILL BE HISTORY! NO WONDER THEY ARE SCRAMBLING TO CONTROL THE SOUTH CHINA SEA! VIETNAM IS GOING TO PUT A MAJOR HURT ON THEM ECONOMICALLY! DOC IMO
Mountainman: When ONE decides to Be "KING of the MOUNTAIN".........ONE better (THINK) Long and Hard "BEFORE" they get "FROGGY".......LOL..........as far as..... TPP over CHINA, and the Host of Countries A Part of this TPP DEAL.....[KNOW] the DOLLAR is still "KING"......but CHINA will have a Dog in this FIGHT w/ The NEW SILK ROAD......but "THAT" Bite won't have the TEETH needed.....though they will have a Very Lucrative "ROAD" they Travel On!!!!!!!!......And These (TRADE/COMPETITION) "FLEA MARKETS" will [Continue] as The GLOBAL MONETARY OLYMPICS Continue !!!!!!!!.........IMO
Thunderhawk: The impact of TPP on China's textile and garment industry
February 4, 2016, the United States, Japan, Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam in Auckland 12 countries signed the Trans-Pacific Partnership Agreement (TPP). TPP between Member States will reduce or remit import duties textile and clothing 10,000 kinds of commodities. Affected by this, the competitiveness of China's textile and clothing will be significantly weakened.
In the United States and Japan to weaken the competitiveness of the market. 2015 10 months, China's exports of textile and clothing products 234.98 billion US dollars, the proportion of exports to the United States, Japan reached 23.5%.
TPP member countries Vietnam, Mexico, is the largest competitor in the US and Japanese markets. After the entry into force of the Agreement, TPP member enterprises can enjoy zero tariff treatment FTA in the US and Japan. In Vietnam, for example, textiles and clothing will be able to enjoy 12-32% of the tax breaks, the market share is expected to export to the United States and Japan and other countries and regions will be doubled, while China's export enterprises need to pay import duties in accordance with the reference rate, significant increase in cost comparisons.
In cotton shirt, for example, China's export enterprises in the import tariff rates higher than the US and Japan TPP member countries from 7.4 to 19.7 percent, significantly weaken the competitiveness.
BACKDOC: DOING THE QE ALLOWS THE DEBT TO BE EQUALIZED AMONG ALL THE MEMBERS THIS IS CRAZY!
IT DOESN'T MATTER HOW THE DEBT WAS INCURRED OR BY WHO! THEY SIMPLY CONTINUE TO DEVALUE THE CURRENCY TO HANDLE THE DEBT FROM GREECE AND ANY OTHER PROBLEM!
ITS KINDA LIKE A MASSIVE CURRENCY SWAP AMONG ALL MEMBERS. DOC IMO
Thunderhawk: Backdoc Alert
Strategists: ECB has to cut rates, expand QE
While the European Central Bank is expected to announce further interest rate cuts Thursday, some strategists see opportunity in the Continent's equities.
Luciano Siracusano, WisdomTree's chief investment strategist, told "Closing Bell" on Wednesday that he sees the ECB extending the duration of quantitative easing because it's essential.
"It's necessary because they still have a debt problem. They still have an inflation problem. They still have a growth problem," Siracusano said.
"The government, frankly, is not getting it done and neither are the private corporations. You're not seeing enough private sector investment. So, they may continue to do more of what they started," he added.
Luca Paolini, Pictet Asset Management's chief strategist, also told "Closing Bell" on Wednesday that while the ECB is likely to expand QE, his firm sees "catch-up potential" in Europe.
"We like Europe because it's effectively lagging the U.S. by three to four years," Paolini said, "We think that the economy in Europe is actually quite as strong as the U.S.; GDP growth is 2 percent, same as in the U.S."
Mountainman: Well W/ "MANY" Companies Realizing that Markets and ECONOMIES are RESPECTIVELY "RETRACTING" Downward.......It's No Wonder WHY???......These "CORPORATE GIANTS" are ALSO Going thru their Own Downsizing In their Investment Portfolios.....
I Believe Strongly that They (SEE) a MAJOR CHANGE on the Near HORIZON and It's TIME to HEDGE their Investments and "FUTURE" POSITIONS for the Coming [GLOBAL TRANSITION]!!!!.......
However I am Finding More Of these BIG Companies Are Well Aware to the "NEW ASSET" Backed System that is Moving Forward Day by day......and They are Preparing for it Now!!!!!!!!...........
......Don't Worry though Tons Of INFRASTRUCTURE Rebuilding will be in (DEMAND) as PROJECTS GLOBALLY find NEW VALUES/CONTRACTS w/ A Purpose.......thus the"NEED" of said EQUIPMENT will find it's USE Very Soon!!!!!!!!.........IMO
Purifiers: World situations... and "War"... is a game of "CHESS" with many masters at the helm... the decades have taught "MASTERS" (the 12) what to show the peoples of all nations... (VIA... Media)... what they want you to see... the goings on in the world...
It is not as it "APPEARS" IMO...
That is sad to say... but TRUE...
If we only follow MEDIA, and do not research (by the way... that internet option is being hampered as I type this) then we only get false impressions of what is going on world wide...
If you are a "MASTER"... of CHESS... you know how to deceive your opponent into thinking about things that are FALSE... as opposed to REAL... and it becomes "VERY BELIEVABLE IN THE WHOLE SCENARIO"
If we citizens of the "US of A" knew what was really going on with our international status... monetarily... and how we "REALLY" interact with other nations... there would be a "REVOLUTION BEFORE THE SUN RISES IN THE MORNING"...