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Posted: 1/26/2014 7:11:23 PM EDT
[Last Edit: 1/26/2014 8:16:13 PM EDT by The_Macallan]




China Halts Bank Cash Transfers





The People’s Bank of China, the central bank, has just ordered commercial banks to halt cash transfers.


.


.


.




In short, there will be a three-day suspension of domestic renminbi transfers.  There will also be a suspension, spanning nine calendar days, of conversions of renminbi to foreign currency.

View Quote





The specific reason given—"system maintenance” at the central bank—is preposterous.  It
is not credible that during the highest usage period in the year—the
weeklong Lunar New Year holiday beginning January 31—the central bank
would schedule an upgrade and shut down cash transfers.




A better explanation is that the country’s banking system is running dry.  


.


.


.
Banks are evidently scrambling for cash.  They have, in the past, resorted to desperate maneuvers at the ends of calendar quarters to meet regulatory requirements.  The current crunch is even more alarming because it cannot be occurring for quarter-end reasons.






Something is very wrong in China at the moment.  Banks’ apparent need to conserve cash, coming just weeks after the last incident, looks ominous.















So... what's going on?
ETA: Okay so now the link at Forbes is now dead, but they still run the headline on Forbes homepage.
 
Link Posted: 1/26/2014 7:13:29 PM EDT
Rumor is China's preparing to default on loans.

The timing with HSBC and Lloyd's seems a bit odd though..
Link Posted: 1/26/2014 7:16:06 PM EDT
in before "It's happening gif".
Link Posted: 1/26/2014 7:17:13 PM EDT
What possible implications could this have here in the US?  Should I care?
Link Posted: 1/26/2014 7:17:34 PM EDT
_
Link Posted: 1/26/2014 7:18:13 PM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By superbowtie:
What possible implications could this have here in the US?  Should I care?
View Quote


What if we can't borrow money when the budget runs out next month?
Link Posted: 1/26/2014 7:18:43 PM EDT
[Last Edit: 1/26/2014 7:21:22 PM EDT by callgood]
Link Posted: 1/26/2014 7:19:22 PM EDT
They ain't got no money, then we ain't got no money...


Back to bartering for shit...
Link Posted: 1/26/2014 7:21:41 PM EDT
Stop all rubber dog turd shipments, stat.
Link Posted: 1/26/2014 7:21:41 PM EDT
Stop all rubber dog turd shipments, stat.
Link Posted: 1/26/2014 7:21:58 PM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By Spata:


What if we can't borrow money when the budget runs out next month?
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By Spata:
Originally Posted By superbowtie:
What possible implications could this have here in the US?  Should I care?


What if we can't borrow money when the budget runs out next month?


What if Chase, BoA, all of them put an arbitrary limit on the amount of transfers?

Is there anything under our laws preventing them from doing such a thing? asking because I don't know.
Link Posted: 1/26/2014 7:22:50 PM EDT
Apparently that is not true. . . go to this site, and read the comments. . .it's down towards the bottom. .



http://www.market-ticker.org/
Link Posted: 1/26/2014 7:23:17 PM EDT
Hmm.   My father is in China right now.
Link Posted: 1/26/2014 7:27:25 PM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By leatherface_y2k:


What if Chase, BoA, all of them put an arbitrary limit on the amount of transfers?

Is there anything under our laws preventing them from doing such a thing? asking because I don't know.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By leatherface_y2k:
Originally Posted By Spata:
Originally Posted By superbowtie:
What possible implications could this have here in the US?  Should I care?


What if we can't borrow money when the budget runs out next month?


What if Chase, BoA, all of them put an arbitrary limit on the amount of transfers?

Is there anything under our laws preventing them from doing such a thing? asking because I don't know.


Assuming such a law existed, do you really think Holder's DoJ would enforce it in "a time of crisis"?
Link Posted: 1/26/2014 7:30:08 PM EDT
[Last Edit: 1/26/2014 7:37:45 PM EDT by L_JE]
I was expecting to see a zerohedge.com source, and was ready to dismiss.

Seeing that it's a Forbes link, I'm now interested, but it's not loading.  In the meantime, is this a Gordon Chang article?


ETA:
Yup, it's a Gordon Chang article.  I'm now going to return to my regularly scheduled programing.
Link Posted: 1/26/2014 7:39:15 PM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By L_JE:
I was expecting to see a zerohedge.com source, and was ready to dismiss.

Seeing that it's a Forbes link, I'm now interested, but it's not loading.  In the meantime, is this a Gordon Chang article?
View Quote




No, There is no stoppage of cash transfers in China

Zerohedge

"Because of the Lunar New Year, the next banking day is Feb 7th"
Link Posted: 1/26/2014 7:47:34 PM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By pighelmet:
Stop all rubber dog turd shipments, stat.
View Quote

You can say that again
Link Posted: 1/26/2014 7:50:53 PM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By Spata:


What if we can't borrow money when the budget runs out next month?
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By Spata:
Originally Posted By superbowtie:
What possible implications could this have here in the US?  Should I care?


What if we can't borrow money when the budget runs out next month?


We have presses
Link Posted: 1/26/2014 8:16:53 PM EDT

Discussion ForumsJump to Quoted PostQuote History
Originally Posted By L_JE:


I was expecting to see a zerohedge.com source, and was ready to dismiss.



Seeing that it's a Forbes link, I'm now interested, but it's not loading.  In the meantime, is this a Gordon Chang article?





ETA:

Yup, it's a Gordon Chang article.  I'm now going to return to my regularly scheduled programing.
View Quote




Who's Gordan Chang?
 
Link Posted: 1/26/2014 8:58:01 PM EDT
[Last Edit: 1/26/2014 9:00:30 PM EDT by tisfortexas]
http://en.wikipedia.org/wiki/Gordon_G._Chang

Gordon Gekko Chang
Link Posted: 1/26/2014 9:01:00 PM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By The_Macallan:


Who's Gordan Chang?



 
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By The_Macallan:
Originally Posted By L_JE:
I was expecting to see a zerohedge.com source, and was ready to dismiss.

Seeing that it's a Forbes link, I'm now interested, but it's not loading.  In the meantime, is this a Gordon Chang article?


ETA:
Yup, it's a Gordon Chang article.  I'm now going to return to my regularly scheduled programing.


Who's Gordan Chang?



 

Frequent guest interview on the John Batchelor Show and always has some great insights on the Asian markets.
Link Posted: 1/26/2014 9:05:42 PM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By The_Macallan:


Who's Gordan Chang?



 
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By The_Macallan:
Originally Posted By L_JE:
I was expecting to see a zerohedge.com source, and was ready to dismiss.

Seeing that it's a Forbes link, I'm now interested, but it's not loading.  In the meantime, is this a Gordon Chang article?


ETA:
Yup, it's a Gordon Chang article.  I'm now going to return to my regularly scheduled programing.


Who's Gordan Chang?



 

even better question

Who is the poster Tyler Durden at ZeroHedge?
Link Posted: 1/26/2014 9:08:09 PM EDT
Tomorrow could be an interesting trading day.
Link Posted: 1/26/2014 9:32:47 PM EDT


Tough times.  Why the changes all the sudden?

I don't trust the Chinese at all.
Link Posted: 1/26/2014 9:35:27 PM EDT
Didn't the Brits just do the same thing a couple days ago??
Link Posted: 1/27/2014 5:24:59 AM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By The_Macallan:


Who's Gordan Chang?

View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By The_Macallan:
Originally Posted By L_JE:
I was expecting to see a zerohedge.com source, and was ready to dismiss.

Seeing that it's a Forbes link, I'm now interested, but it's not loading.  In the meantime, is this a Gordon Chang article?


ETA:
Yup, it's a Gordon Chang article.  I'm now going to return to my regularly scheduled programing.


Who's Gordan Chang?



His articles about the Chinese economy tend to fall on the alarmist side.  I enjoy his articles, but they need to be taken with a bag of salt.

The stuff at zerohedge is worse, much worse.
Link Posted: 1/27/2014 5:27:55 AM EDT


China is not in trouble.  Their government and banks own nearly 1 TRILLION of our debt.  

Our Treasury bond prices are at highs (good) right now so they could raise hundreds of Billions in a nanosecond.
Link Posted: 1/27/2014 5:32:13 AM EDT
Originally Posted By The_Macallan:

[url= style='font-size: 10pt;']China Halts Bank Cash Transfers[/span][span style='font-size: 10pt;'] [/span][/url]

The People’s Bank of China, the central bank, has just ordered commercial banks to halt cash transfers.
.
.
.
In short, there will be a three-day suspension of domestic renminbi transfers.  There will also be a suspension, spanning nine calendar days, of conversions of renminbi to foreign currency.
View Quote

The specific reason given—"system maintenance” at the central bank—is preposterous.  It is not credible that during the highest usage period in the year—the weeklong Lunar New Year holiday beginning January 31—the central bank would schedule an upgrade and shut down cash transfers.

A better explanation is that the country’s banking system is running dry.  
.
.
.

Banks are evidently scrambling for cash.  They have, in the past, resorted to desperate maneuvers at the ends of calendar quarters to meet regulatory requirements.  The current crunch is even more alarming because it cannot be occurring for quarter-end reasons.

Something is very wrong in China at the moment.  Banks’ apparent need to conserve cash, coming just weeks after the last incident, looks ominous.





So... what's going on?





ETA: Okay so now the link at Forbes is now dead, but they still run the headline on Forbes homepage.



 
View Quote



I have been at an ATM there (China) many times and you literally are withdrawing the money the guy before you deposited.
Link Posted: 1/27/2014 5:44:47 AM EDT
I never heard the term renminbi before, just yuan.
Link Posted: 1/27/2014 5:47:08 AM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By DarkNite:
I never heard the term renminbi before, just yuan.
View Quote


Most call it RMB. Yuan means one dollar or one RMB so it is translated like the US uses the Dollar.
Link Posted: 1/27/2014 5:48:31 AM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By redseacraft:


China is not in trouble.  Their government and banks own nearly 1 TRILLION of our debt.  

Our Treasury bond prices are at highs (good) right now so they could raise hundreds of Billions in a nanosecond.
View Quote



Owning someone elses debt is only good if that someone else can pay the debt.   Right now we can't pay our debts
Link Posted: 1/27/2014 5:51:07 AM EDT
Anyone find it odd that both forbes and cnn have posted and pulled negative articles about china over the last few days?
Link Posted: 1/27/2014 5:54:40 AM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By Spata:
Anyone find it odd that both forbes and cnn have posted and pulled negative articles about china over the last few days?
View Quote


Someone is trying to roil the markets perhaps.
Link Posted: 1/27/2014 6:03:08 AM EDT
Bank Holiday, coming to a bank near you soon!
Link Posted: 1/27/2014 6:12:40 AM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By killuminati:
Bank Holiday, coming to a bank near you soon!
View Quote

Link Posted: 1/27/2014 6:21:31 AM EDT
What's wrong with a Bank Horiday?  
Link Posted: 1/27/2014 6:23:33 AM EDT

Discussion ForumsJump to Quoted PostQuote History
Originally Posted By GoCart-Mozart:


in before "It's happening gif".
View Quote


I'm so tired of seeing that stupid .gif.



 
Link Posted: 1/27/2014 6:26:45 AM EDT
[Last Edit: 1/27/2014 6:31:40 AM EDT by 74HC]
China is a communist country with party ownership of the bank, currency, and exchange rate.  They can just print more money if they do not have cash on hand.

There is a trade war going on for the last five years or so. It's being fought in currency exchange rate.  Countries are devaluating their currencies.  This is why our dollar has not crashed and our economy soured on hyperinflation.  China needs to print money to keep up with Obama.
Link Posted: 1/27/2014 6:33:00 AM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By Spata:


What if we can't borrow money when the budget runs out next month?
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By Spata:
Originally Posted By superbowtie:
What possible implications could this have here in the US?  Should I care?


What if we can't borrow money when the budget runs out next month?

Better get ur refund quick
Link Posted: 1/27/2014 6:47:01 AM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By LurchAddams:
What's wrong with a Bank Horiday?  
View Quote


It's a clue of something bigger unfolding
Link Posted: 1/27/2014 6:50:50 AM EDT
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By TacticalHeater:



Owning someone elses debt is only good if that someone else can pay the debt.   Right now we can't pay our debts
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By TacticalHeater:
Originally Posted By redseacraft:


China is not in trouble.  Their government and banks own nearly 1 TRILLION of our debt.  

Our Treasury bond prices are at highs (good) right now so they could raise hundreds of Billions in a nanosecond.



Owning someone elses debt is only good if that someone else can pay the debt.   Right now we can't pay our debts

IIRC, the Chicoms bought 2000 metric tons of gold last year.

They could set up a website and go retail.
Link Posted: 1/27/2014 7:00:45 AM EDT
our new rulers











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