Comments on: Disappearing into London … The latest TIC data http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/ Fri, 09 Jan 2009 00:03:03 +0000 http://wordpress.org/?v=2.6.1 By: bsetser http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106914 bsetser Thu, 17 Apr 2008 17:16:51 +0000 http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106914 if there were a plot the pboc's holdings presumably wouldn't show up in the survey ... i do think tho that there may be a "plot" to avoid disclosing the true scale of china's foreign asset growth in q1/ the true pressure on the rmb. if there were a plot the pboc’s holdings presumably wouldn’t show up in the survey … i do think tho that there may be a "plot" to avoid disclosing the true scale of china’s foreign asset growth in q1/ the true pressure on the rmb.

]]> By: Judy Yeo http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106913 Judy Yeo Thu, 17 Apr 2008 12:39:06 +0000 http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106913 Brad, nice to hear from one so sceptical of SWFs that there aint no nefarious foreign plot, hehheh, just kidding! Brad, nice to hear from one so sceptical of SWFs that there aint no nefarious foreign plot, hehheh, just kidding!

]]> By: bsetser http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106912 bsetser Wed, 16 Apr 2008 23:07:52 +0000 http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106912 Jeff H -- I don't. Until recently I wasn't even sure China made use of the Fed's custodial accounts. The scale of the recent increase in custodial holdings tho is hard to explain without some Chinese holdings there. A complete non-answer would be that China's share would be somewhat lower than Japan's share and somewhat higher than Libya or Venezuela's share ... Jeff H — I don’t. Until recently I wasn’t even sure China made use of the Fed’s custodial accounts. The scale of the recent increase in custodial holdings tho is hard to explain without some Chinese holdings there. A complete non-answer would be that China’s share would be somewhat lower than Japan’s share and somewhat higher than Libya or Venezuela’s share …

]]> By: Jeff H http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106911 Jeff H Wed, 16 Apr 2008 18:54:40 +0000 http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106911 Brad--<br><br>Do you have an estimate for how much of China's FX reserves the Fed holds for them custodially?<br><br><br><br>Thx Brad–

Do you have an estimate for how much of China’s FX reserves the Fed holds for them custodially?

Thx

]]> By: Dan http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106910 Dan Wed, 16 Apr 2008 17:22:40 +0000 http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106910 The long list of countries China is suddenly trying to move closer to seems scary to me, especially since their finance head is saying China intends to diversify away from the US. China just completed their first-ever economic and financial dialogue with the UK on Tuesday (link: http://www.chinadaily.com.cn/china/2008-04/16/content_6620017.htm). This follows a series of co-ops that have yet to really be broadcast of the MSM from what I've seen. On the 14th, the Vice Premier of China called for closer ties with Chile (link: http://news.xinhuanet.com/english/2008-04/14/content_7976622.htm). They did the same with Pakistan on Tuesday (link: http://www.chinadaily.com.cn/bizchina/2008-04/16/content_6620668.htm). China and Australia are deep in discussions over a free trade agreement (link: http://news.xinhuanet.com/english/2008-04/10/content_7954985.htm). They're doing the same with Finland on April 16th. And Sweden on April 14th. And Kazakhstan on April 12th (link: http://news.xinhuanet.com/english/2008-04/12/content_7966399.htm). And New Zealand on April 10th (link: http://www.chinadaily.com.cn/bizchina/2008-04/10/content_6607511.htm). As we've seen, Vietnam also has closer ties with China (link: http://vietnamnews.vnagency.com.vn/showarticle.php?num=03BUS120408). Peru is on 2nd round talks regarding an FTA, as of February 2008 (link: http://www.chinadaily.com.cn/bizchina/2008-02/29/content_6496945.htm).<br><br><br><br>Could China be taking these steps strategically to enable it to more firmly move away from business with the US, as it pulls out of US treasuries? Wouldn't it make more sense to do things this way, than to keep trying to pile business into a country it would be marring economically? The long list of countries China is suddenly trying to move closer to seems scary to me, especially since their finance head is saying China intends to diversify away from the US. China just completed their first-ever economic and financial dialogue with the UK on Tuesday (link: http://www.chinadaily.com.cn/china/2008-04/16/content_6620017.htm). This follows a series of co-ops that have yet to really be broadcast of the MSM from what I’ve seen. On the 14th, the Vice Premier of China called for closer ties with Chile (link: http://news.xinhuanet.com/english/2008-04/14/content_7976622.htm). They did the same with Pakistan on Tuesday (link: http://www.chinadaily.com.cn/bizchina/2008-04/16/content_6620668.htm). China and Australia are deep in discussions over a free trade agreement (link: http://news.xinhuanet.com/english/2008-04/10/content_7954985.htm). They’re doing the same with Finland on April 16th. And Sweden on April 14th. And Kazakhstan on April 12th (link: http://news.xinhuanet.com/english/2008-04/12/content_7966399.htm). And New Zealand on April 10th (link: http://www.chinadaily.com.cn/bizchina/2008-04/10/content_6607511.htm). As we’ve seen, Vietnam also has closer ties with China (link: http://vietnamnews.vnagency.com.vn/showarticle.php?num=03BUS120408). Peru is on 2nd round talks regarding an FTA, as of February 2008 (link: http://www.chinadaily.com.cn/bizchina/2008-02/29/content_6496945.htm).

Could China be taking these steps strategically to enable it to more firmly move away from business with the US, as it pulls out of US treasuries? Wouldn’t it make more sense to do things this way, than to keep trying to pile business into a country it would be marring economically?

]]> By: Guest http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106909 Guest Wed, 16 Apr 2008 15:05:14 +0000 http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106909 <br><br>Official China Daily Editorial on US Intelligence Agency involvement with Tibet Riots murdering Chinese<br><br>http://www.chinadaily.com.cn/china/2008-04/16/content_6622346.htm<br><br> Official China Daily Editorial on US Intelligence Agency involvement with Tibet Riots murdering Chinese

http://www.chinadaily.com.cn/china/2008-04/16/content_6622346.htm

]]> By: Dave Chiang http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106908 Dave Chiang Wed, 16 Apr 2008 13:37:19 +0000 http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106908 <br><br>Just speculating. Perhaps the US Central Intelligence Agency documented involvement in fomenting the Tibet Independence Riots destroying property and burning a large section of Lhasa has sometime to do with the reluctance of the China PBoC to increase US Treasury bond reserves. Prior to the Beijing Olympics, the violent riots in Tibet's capital in mid-March were a carefully staged event by US Intelligence Agencies in conjunction with US mainsteam newsmedia smear of the Chinese.<br><br>http://www.globalresearch.ca/index.php?context=va&aid=8673<br><br><br><br>The Washington Consensus is absolutely paranoid over the economic rise of China and the strategic geopolitical implications. There are deep-seated geopolitical objectives behind the US campaign against the Chinese government. In any case, the Japanese Central Bank isn't lifting a finger either after concluding that the massive US Economic imbalances are beyond the capacity of Japan's economy to bailout. And China's economic rise to shortly become the world's largest economy is all but unstoppable now.<br><br>http://www.moneymorning.com/2008/04/15/jim-rogers-chinas-economic-advance-is-all-but-unstoppable/<br><br> Just speculating. Perhaps the US Central Intelligence Agency documented involvement in fomenting the Tibet Independence Riots destroying property and burning a large section of Lhasa has sometime to do with the reluctance of the China PBoC to increase US Treasury bond reserves. Prior to the Beijing Olympics, the violent riots in Tibet’s capital in mid-March were a carefully staged event by US Intelligence Agencies in conjunction with US mainsteam newsmedia smear of the Chinese.

http://www.globalresearch.ca/index.php?context=va&aid=8673

The Washington Consensus is absolutely paranoid over the economic rise of China and the strategic geopolitical implications. There are deep-seated geopolitical objectives behind the US campaign against the Chinese government. In any case, the Japanese Central Bank isn’t lifting a finger either after concluding that the massive US Economic imbalances are beyond the capacity of Japan’s economy to bailout. And China’s economic rise to shortly become the world’s largest economy is all but unstoppable now.

http://www.moneymorning.com/2008/04/15/jim-rogers-chinas-economic-advance-is-all-but-unstoppable/

]]> By: bsetser http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106907 bsetser Wed, 16 Apr 2008 12:54:05 +0000 http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106907 Judy -- I don't think there is anything nefarious. China doesn't hide its ownership. The reallocation from the UK to China in the survey indicates that US custodians are holding the bonds for China. I think it mostly is a matter of convenience. The UK is open during the hours when SAFE wants to buy US bonds. Judy — I don’t think there is anything nefarious. China doesn’t hide its ownership. The reallocation from the UK to China in the survey indicates that US custodians are holding the bonds for China. I think it mostly is a matter of convenience. The UK is open during the hours when SAFE wants to buy US bonds.

]]> By: A. P. Simkin http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106906 A. P. Simkin Wed, 16 Apr 2008 11:56:46 +0000 http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106906 In the Japanese bop date [portfolio details] have you noticed the large amounts moving into Japanese money market paper and bonds from London? It's been going on for many months. Could this be part of the Chinese diversification? In the Japanese bop date [portfolio details] have you noticed the large amounts moving into Japanese money market paper and bonds from London? It’s been going on for many months. Could this be part of the Chinese diversification?

]]> By: Judy Yeo http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106905 Judy Yeo Wed, 16 Apr 2008 10:55:56 +0000 http://blogs.cfr.org/setser/2008/04/15/disappearing-into-london-%e2%80%a6/#comment-106905 Brad<br><br><br><br>Assuming you're referring to the routing of money through London by "Chinese" investors to buy US assets, the question as always is why? Unless it's done with intentions of en masse selling of said assets without the government taking bad press for it. That does not bode well for stability and may indicate a speculative element, as unlikely as it seems? Hopefully, I'm wrong Brad

Assuming you’re referring to the routing of money through London by "Chinese" investors to buy US assets, the question as always is why? Unless it’s done with intentions of en masse selling of said assets without the government taking bad press for it. That does not bode well for stability and may indicate a speculative element, as unlikely as it seems? Hopefully, I’m wrong

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