Currency

The Fingerprints of Bumbling (China)

By |2019-08-21T17:46:46-04:00August 21st, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

For a cabal of superpatient supergeniuses, the Chinese tend to play with fire quite often. According to many, the Communists have perfected the art of technocracy and are merely waiting out the impetuously free West. The dollar system will destroy itself (there’s the kernel of truth) allowing a perfectly positioned China to swoop in and [...]

China’s Big Stimulus

By |2019-05-22T11:26:25-04:00May 22nd, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Earlier this month, the People’s Bank of China (PBOC) reduced the percentage of liquid reserves some banks are required to hold. Effective May 15, the Chinese central bank estimated that the policy change would release about RMB 280 billion into the system. This RRR discount, however, was only applied to small and medium-sized banks. The [...]

February 2019 PBOC/RMB Update

By |2019-03-20T17:21:41-04:00March 20th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

This will serve mostly as an update to what is going on inside the Chinese monetary system. The PBOC’s balance sheet numbers for February 2019 are exactly what we’ve come to expect, ironically confirmed today on the domestic end by the FOMC's dreaded dovishness. Therefore, rather than rewrite the same commentary for why this continues [...]