Friday, September 05, 2008
China’s Central Bank is in a Bind
It has been on a buying binge in the United States over the last seven years, snapping up roughly $1 trillion worth of Treasury bonds and mortgage-backed debt issued by Fannie Mae and Freddie Mac.
Those investments have been declining sharply in value when converted from dollars into the strong yuan, casting a spotlight on the central bank’s tiny capital base. The bank’s capital, just $3.2 billion, has not grown during the buying spree, despite private warnings from the International Monetary Fund.
Now the central bank needs an infusion of capital. Central banks can, of course, print more money, but that would stoke inflation. Instead, the People’s Bank of China has begun discussions with the finance ministry on ways to shore up its capital, said three people familiar with the discussions who insisted on anonymity because the subject is delicate in China. Full Monty in today's NYTimes.
By CNu at September 05, 2008
Labels: elite , establishment , helplessness
Subscribe to:
Post Comments (Atom)
Master Arbitrageur Nancy Pelosi Is At It Again....,
🇺🇸TUCKER: HOW DID NANCY PELOSI GET SO RICH? Tucker: "I have no clue at all how Nancy Pelosi is just so rich or how her stock picks ar...
-
theatlantic | The Ku Klux Klan, Ronald Reagan, and, for most of its history, the NRA all worked to control guns. The Founding Fathers...
-
Video - John Marco Allegro in an interview with Van Kooten & De Bie. TSMATC | Describing the growth of the mushroom ( boletos), P...
-
Farmer Scrub | We've just completed one full year of weighing and recording everything we harvest from the yard. I've uploaded a s...
0 comments:
Post a Comment