Comments on: And now, the rest of the story: long-term portfolio flows have fallen by more than the trade deficit http://blogs.cfr.org/setser/2009/07/20/and-now-the-rest-of-the-story-long-term-portfolio-flows-have-fallen-by-more-than-the-trade-deficit/ Thu, 14 Oct 2010 13:09:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Pax Americana http://blogs.cfr.org/setser/2009/07/20/and-now-the-rest-of-the-story-long-term-portfolio-flows-have-fallen-by-more-than-the-trade-deficit/#comment-133676 Pax Americana Tue, 28 Jul 2009 21:00:33 +0000 http://blogs.cfr.org/setser/?p=5935#comment-133676 Even so the US Deficit is projected to come in at $350b in 2009,and will add 2.5% to GDP,and as for the Decoupling theory, the world still needs American consumer spending. seems to me Brad the chinese as you have mentioned before are reweighting into short term T/bonds, in the eventual desire of exiting their us Assets,and using and activly encouraging the use of the RMB in their international trading. Even so the US Deficit is projected to come in at $350b in 2009,and will add 2.5% to GDP,and as for the Decoupling theory, the world still needs American consumer spending.
seems to me Brad the chinese as you have mentioned before are reweighting into short term T/bonds, in the eventual desire of exiting their us Assets,and using and activly encouraging the use of the RMB in their international trading.

]]> By: Brad Setser: Follow the Money » Blog Archive » The problem with relying on the dollar to produce a real appreciation in China … http://blogs.cfr.org/setser/2009/07/20/and-now-the-rest-of-the-story-long-term-portfolio-flows-have-fallen-by-more-than-the-trade-deficit/#comment-133620 Brad Setser: Follow the Money » Blog Archive » The problem with relying on the dollar to produce a real appreciation in China … Mon, 27 Jul 2009 19:13:38 +0000 http://blogs.cfr.org/setser/?p=5935#comment-133620 [...] foreigners pulled funds out of the US. The dollar soared. As the crisis abated though, demand for US financial assets fell and Americans regained their appetite for the world’s financial assets. Not surprising, over [...] [...] foreigners pulled funds out of the US. The dollar soared. As the crisis abated though, demand for US financial assets fell and Americans regained their appetite for the world’s financial assets. Not surprising, over [...]

]]> By: And now, the rest of the story: long-term portfolio flows have fallen by more than the trade deficit | Mortgage Loans Equity .Net - Home Mortgage, Home Loans, Home Equity & Mortgage refinancing http://blogs.cfr.org/setser/2009/07/20/and-now-the-rest-of-the-story-long-term-portfolio-flows-have-fallen-by-more-than-the-trade-deficit/#comment-133504 And now, the rest of the story: long-term portfolio flows have fallen by more than the trade deficit | Mortgage Loans Equity .Net - Home Mortgage, Home Loans, Home Equity & Mortgage refinancing Wed, 22 Jul 2009 20:00:43 +0000 http://blogs.cfr.org/setser/?p=5935#comment-133504 [...] Read more here - And now, the rest of the story: long-term portfolio flows have fallen by more than the trade deficit [...] [...] Read more here – And now, the rest of the story: long-term portfolio flows have fallen by more than the trade deficit [...]

]]> By: Links 7/22/09 | Froogalizer.com http://blogs.cfr.org/setser/2009/07/20/and-now-the-rest-of-the-story-long-term-portfolio-flows-have-fallen-by-more-than-the-trade-deficit/#comment-133479 Links 7/22/09 | Froogalizer.com Wed, 22 Jul 2009 11:03:39 +0000 http://blogs.cfr.org/setser/?p=5935#comment-133479 [...] And now, the rest of the story: long-term portfolio flows have fallen by more than the trade deficit Brad Setser [...] [...] And now, the rest of the story: long-term portfolio flows have fallen by more than the trade deficit Brad Setser [...]

]]> By: bsetser http://blogs.cfr.org/setser/2009/07/20/and-now-the-rest-of-the-story-long-term-portfolio-flows-have-fallen-by-more-than-the-trade-deficit/#comment-133462 bsetser Wed, 22 Jul 2009 00:36:33 +0000 http://blogs.cfr.org/setser/?p=5935#comment-133462 glory, clever. i couldn't resist commenting on the anderlini story glory, clever.

i couldn’t resist commenting on the anderlini story

]]> By: Bill http://blogs.cfr.org/setser/2009/07/20/and-now-the-rest-of-the-story-long-term-portfolio-flows-have-fallen-by-more-than-the-trade-deficit/#comment-133461 Bill Wed, 22 Jul 2009 00:36:23 +0000 http://blogs.cfr.org/setser/?p=5935#comment-133461 Pardon my ignorance. Where does monetized debt get added to these figures? Pardon my ignorance. Where does monetized debt get added to these figures?

]]> By: Cedric Regula http://blogs.cfr.org/setser/2009/07/20/and-now-the-rest-of-the-story-long-term-portfolio-flows-have-fallen-by-more-than-the-trade-deficit/#comment-133460 Cedric Regula Wed, 22 Jul 2009 00:24:23 +0000 http://blogs.cfr.org/setser/?p=5935#comment-133460 So I guess this must mark the end of China's dollar peg. They can get out of T-Bills at face value, but this should make the dollar drop some. So they lose something in FX. But if you are going on a shopping spree maybe you need dollars? Or maybe you need to trade dollars for all those different kind of Pesos and other commodity currencies? Will they buy anything in Euroland? Office space in London? This should be really weird! Maybe we end up with countries that buy things with dollars to spend? Stranger things have happened. So I guess this must mark the end of China’s dollar peg.

They can get out of T-Bills at face value, but this should make the dollar drop some. So they lose something in FX. But if you are going on a shopping spree maybe you need dollars? Or maybe you need to trade dollars for all those different kind of Pesos and other commodity currencies? Will they buy anything in Euroland? Office space in London?

This should be really weird! Maybe we end up with countries that buy things with dollars to spend? Stranger things have happened.

]]> By: Cedric Regula http://blogs.cfr.org/setser/2009/07/20/and-now-the-rest-of-the-story-long-term-portfolio-flows-have-fallen-by-more-than-the-trade-deficit/#comment-133457 Cedric Regula Tue, 21 Jul 2009 22:03:44 +0000 http://blogs.cfr.org/setser/?p=5935#comment-133457 Nino I read McCulley once and a while, and used to think he was pretty good at econ analysis, but after reading that article, I think he lost his mind. Krugman has even renounced Krugman's Japanese recovery plan. But McCulley just embraced it. The only thing I can figure is pimco went short their entire portfoilio of treasuries. Nino

I read McCulley once and a while, and used to think he was pretty good at econ analysis, but after reading that article, I think he lost his mind.

Krugman has even renounced Krugman’s Japanese recovery plan.

But McCulley just embraced it. The only thing I can figure is pimco went short their entire portfoilio of treasuries.

]]> By: Nino http://blogs.cfr.org/setser/2009/07/20/and-now-the-rest-of-the-story-long-term-portfolio-flows-have-fallen-by-more-than-the-trade-deficit/#comment-133456 Nino Tue, 21 Jul 2009 21:49:03 +0000 http://blogs.cfr.org/setser/?p=5935#comment-133456 http://media.pimco-global.com/pdfs/pdf/GCB%20Focus%20July%2009_US%20Email-Web%20FINAL.pdf?WT.cg_n=PIMCO-US&WT.ti=GCB%20Focus%20July%2009_US%20Email-Web%20FINAL.pdf "While it is true, as Keynes intoned, that we are all dead in the long run, I see no reason to die young from orthodoxy-imposed anorexia." http://media.pimco-global.com/pdfs/pdf/GCB%20Focus%20July%2009_US%20Email-Web%20FINAL.pdf?WT.cg_n=PIMCO-US&WT.ti=GCB%20Focus%20July%2009_US%20Email-Web%20FINAL.pdf

“While it is true, as Keynes intoned, that we are all dead in the long run, I see no reason to die young from orthodoxy-imposed anorexia.”

]]> By: Cedric Regula http://blogs.cfr.org/setser/2009/07/20/and-now-the-rest-of-the-story-long-term-portfolio-flows-have-fallen-by-more-than-the-trade-deficit/#comment-133455 Cedric Regula Tue, 21 Jul 2009 21:48:18 +0000 http://blogs.cfr.org/setser/?p=5935#comment-133455 Wen will Wen ever get any respect? Nobody ever listens to the little guy. Today the big news was Ben said interest rates will stay low for a considerable period of time! Treasuries rallied big on the news. He also said his exit strategy is to not dump long term assets on the market. Good for another gain in Ts&MBS Didn't say anything about buying a bunch of T-Bills from the Chinese??????? Does Wen just make this stuff up? Wen will Wen ever get any respect? Nobody ever listens to the little guy.

Today the big news was Ben said interest rates will stay low for a considerable period of time! Treasuries rallied big on the news.

He also said his exit strategy is to not dump long term assets on the market. Good for another gain in Ts&MBS

Didn’t say anything about buying a bunch of T-Bills from the Chinese???????

Does Wen just make this stuff up?

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