China banks told to halt lending to US banks

Scott Free

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May 9, 2007
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China banks told to halt lending to US banks


BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.

The Hong Kong newspaper cited unidentified industry sources as saying the instruction from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.

"The decree appears to be Beijing's first attempt to erect defences against the deepening U.S. financial meltdown after the mainland's major lenders reported billions of U.S. dollars in exposure to the credit crisis," the SCMP said.
A spokesman for the CBRC had no immediate comment. (Reporting by Alan Wheatley and Langi Chiang; editing by Ken Wills)

Source

Is this a major non-confidence vote in the US currency or are the Chinese looking to cash in on the subsequent fire sale?

Either way this might very well prevent the bailout from working. :-?
 

Socrates the Greek

I Remember them....
Apr 15, 2006
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China banks told to halt lending to US banks


BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.

The Hong Kong newspaper cited unidentified industry sources as saying the instruction from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to U.S. banks but not to banks from other countries.

"The decree appears to be Beijing's first attempt to erect defences against the deepening U.S. financial meltdown after the mainland's major lenders reported billions of U.S. dollars in exposure to the credit crisis," the SCMP said.
A spokesman for the CBRC had no immediate comment. (Reporting by Alan Wheatley and Langi Chiang; editing by Ken Wills)

Source

Is this a major non-confidence vote in the US currency or are the Chinese looking to cash in on the subsequent fire sale?

Either way this might very well prevent the bailout from working. :-?

If China stops credit to the US, US will need money to buy oil from the Arabs.............we all know when credit is limited, mobility takes a big hit...... this is a financial storm never experienced in the past 50 years facing the US.
 

Scott Free

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May 9, 2007
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It's going to hit us too.

I expect it won't stop until we have world war. The US has no choice. It's that or civil war. I just can't imagine Americans starving to death quietly.
 

Socrates the Greek

I Remember them....
Apr 15, 2006
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It's going to hit us too.

I expect it won't stop until we have world war. The US has no choice. It's that or civil war. I just can't imagine Americans starving to death quietly.

The civil war may take place if the 1.4Trilion is what the looks of the final cost is and doesn't fix the problem people realizing that this is taxpayer dollars, we may see a revolt in the US.
Banks will close the doors no deposits no lending.......It will be a nightmare, as it all ready is a category 1 financial storm, it may go to a category 5 were gas stations will have no gas to sell being the US will not be able to purchase from world markets crude oil..........Bad times ahead.....
 

Lester

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Sep 28, 2007
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This is a major blow to the US , How they gonna pay their bills without China buying US securities-Other countries may see this the beginning of a run and do a pre-emptive sell off of whatever U.S assets they hold. China is only the first one out of the gate.
 

Socrates the Greek

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Apr 15, 2006
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This is a major blow to the US , How they gonna pay their bills without China buying US securities-Other countries may see this the beginning of a run and do a pre-emptive sell off of whatever U.S assets they hold. China is only the first one out of the gate.

I would imagine some European country s are some of the creditors as well, Japan is facing similar problems there. I think Japan has a current interest rate or .05%
Their economy has been in the tank for the longest time......
Interesting how power shifts mach like siting on the poker table.....today rich and tomorrow sell the Escalade SUV to pay for the mortgage payments for a year....who would think that outcome in the land of the free.
 
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Praxius

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Dec 18, 2007
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It's going to hit us too.

I expect it won't stop until we have world war. The US has no choice. It's that or civil war. I just can't imagine Americans starving to death quietly.

Indeed... if they're going down by their own foolish actions, I wouldn't expect anything less then them taking everybody else with them.

In regards to the big multi-billion dollar bailout they're planning down south, I heard on the radio this morning about one politician "Getting down on one knee and begging them not to let the public know just how badly the talks went"

I wonder what that means....... I'll try and dig for some official information in regards to this sometime today.
 

Zzarchov

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Aug 28, 2006
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Id like to point out, unlike Canada and most nations, the USA is about (or was recently) 90% self sufficient.

Worst case scenario they tighten their belt and go isolationist. Thats not exactly a new thing either.
 

Praxius

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Dec 18, 2007
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Jesus Christ, what a bunch of fear mongers you guys are.:roll:

I haven't been wrong about how this is all playing out yet.... I knew it was only a matter of time before China started to do this..... at the very least contemplate it.

It's got nothing to do with fearmongering, as I'm not fearful of any of it.... it's just simple reality in which I've already expected and prepared for.

It's more sad then anything.

Tell you what... like the Global Warming thing.... if none of the above ever happens, then I'll owe you a coke.
 

darkbeaver

the universe is electric
Jan 26, 2006
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RR1 Distopia 666 Discordia
The Chinese know a sucking deal when they see one. For that matter most of the rest of the world has zero confidence in the ability of the American economy to be salvaged, Americans are the laughing stock of the free world as we watch them help the robbers loot the US treasury and leave a toilet paper IOU in the vault.
 

darkbeaver

the universe is electric
Jan 26, 2006
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It's the graphic Praxius drawing a scene, really quite good communications Socrates, anyway the boomerang idea is ok but I like the poison seed analogy. This trouble was a result of financial gardening from seeds planted in Chacogo after all. That Friedman guy is going to get dug up and hung with the rest of them. He convinced a generation of economists to believe in south sea bubbles apparently. He was a very bad man, a wicked man possibly a psycopath or maybe even a witch. Lot of that going arround these days, thank god for fundementalist prime ministers who know what to say to the flock to prevent the wholesale tar and feathering of bankers in Canada. But our bankers are nice DarkBeaver you say, nonsence, we should get rid of them anyway you can't train them they'll always be wild ravenous animals, even if they've had all thier shots you still can't trust them especially arround nice fluffy fat accounts. So as a preventative measure we should imprison our bankers as a public safety measure till this crisis is brought under control, they will have nice clean straw pallets and recreation areas set aside in a reserve type setting with a small 18 golf course, they will not be allowed balls though, as a precaution.
 
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jimmoyer

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Apr 3, 2005
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Do all you guys accept this news as a matter of faith, as a matter of your own belief system ?

Let's check the claim of this news artice that Chinese regulators are telling chinese bankers not to lend any more to the United States.

Hmmm...

I wonder what helping the US crash will do to their huge investments in America?

I think the truth is more interesting than this latest urban myth.