tag:blogger.com,1999:blog-3758330678390419129.post448012679537315202..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: The Risk of Financial Instability in ChinaRobert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-3758330678390419129.post-67656211489124564142012-05-23T14:58:10.373-04:002012-05-23T14:58:10.373-04:00Could someone please explain to me how the above C...Could someone please explain to me how the above China Instability Risk post relates to the post earlier this week with regard to China going directly to Treasury/Fed (cannot remember which)to purchase US Treasury bills? Also, China has for some time now supposedly cut way back on its purchase of US Debt, so I cannot wrap my head around what difference it would make to pay the Primary Dealers a Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-44464187702313213532012-05-23T14:48:00.179-04:002012-05-23T14:48:00.179-04:00"In which case, forget about Greece and the e..."In which case, forget about Greece and the euro. China’s capital outflow problem is the real ticking time-bomb for markets."<br /><br />http://ftalphaville.ft.com/blog/2012/05/16/1002681/why-chinas-rmb-exodus-is-the-story/<br /><br />But what happens if the strategy fails? What happens if foreigners decide the last thing they want is yuan exposure (due to China economic bubble fears), Bob Englishhttps://www.blogger.com/profile/14790005723107501043noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-57486114827346481252012-05-23T14:19:19.514-04:002012-05-23T14:19:19.514-04:00If China unwinds, so to does its support of the gl...If China unwinds, so to does its support of the global economy in terms of playing the role of a major lender. The world's central bankers will be faced with the prospect of a global depression that could easily exceed that of the 1930s depression. What makes the thought of depression even worse is the fact that so many people around the world today depend on their government for their Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-85852457460315669862012-05-23T13:26:35.851-04:002012-05-23T13:26:35.851-04:00Historically, the Chinese are so paranoid about ma...Historically, the Chinese are so paranoid about maintaining order and avoiding chaos yet they contribute to the seeds of their own destruction by inflating. They are a long lived society that could have patiently used their enormous saving population to fund their growth. And they chide the West for being short-sighted.Anonymousnoreply@blogger.com