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  • bee March 2014
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From Asia Confidential: quote and link

edited March 2014 in Off-Topic
Was it bee who alerted us to this weekly (?) journal? I've started tracking it.... "What we’re really witnessing is a major rebalancing of global economic trade. Prior to 2008, the US had a massive consumption bubble, financed by its current account deficit which exported U.S. dollars and fueled global trade. Since the crisis, US consumption has slowed but QE has stepped in to provide the U.S. dollar liquidity needed for world trade. With the tapering of QE, that dollar liquidity is diminishing. And emerging market currencies such as the yuan are having to adjust to reflect real US demand. With or without PBOC intervention, that was bound to happen..." And further in: (Holy cow!) " Hong Kong and Chinese residential real estate prices have doubled over the past five years, while Singapore’s are up 70%...." ....."Hong Kong banks are among the most vulnerable outside of China..." (What of HSBC, Hong Kong Shanghai Bank of Commerce? They are EVERYWHERE. I noticed one in a little podunk town south of Buffalo, even.)
http://asiaconf.com/?doing_wp_cron=1389670654.0088429450988769531250

Comments

  • Thanks for its continued posting...worth the read.

    One excerpt with highlighting:
    “…if the amounts generating by the US current account are insufficient to meet overseas nations’ needs, then these economies will…be forced to either borrow dollars (not a long term solution), flog domestic assets or run down foreign exchange reserves. Hence, when I see central bank reserves deposited at the Fed falling, I know we are getting close to a “black swan” event, as dumping these precious “savings” is, for any country, always a desperate last resort.”
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