China Halts Bank Cash Transfers

Re:China Halts Bank Cash Transfers by otoburb on Sunday January 26, 2014 @09:26PM (#7128327)

Growing up it used to be common to hear the refrain that when the USA sneezes, Canada catches a cold. This aphorism was meant to highlight Canada's heavy dependence on the USA back in the 70s and 80s.

I am not in finance and don't appreciate nor understand the full implications or consequences of China's PBOC behaviour citing nationwide system shutdowns, but I feel that we could s/USA/China and then s/Canada/USA to get the same gist and sense of uneasiness.

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Re:China Halts Bank Cash Transfers by fredgrott on Sunday January 26, 2014 @09:30PM (#7128344)

Basically, China props up its banking system just as the USA does..

The problem is they do not do it through normal banking reserve controls..

This is or might be the canary in the coal mine for the China banking system as Banking reserves should not have to be adjusted by removing access to cash as that indicates a bigger problem..

This could be related to some toxic assets on the China Banking system books

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Re:China Halts Bank Cash Transfers by panarky on Sunday January 26, 2014 @09:53PM (#7128449)

I heard a slightly different version of that saying: "When the US sneezes, the rest of the world catches a cold."

Funny how when the US credit rating was lowered, the prices of US Treasury bonds actually increased, and their yields fell. When US financial institutions went bankrupt, the value of US government securities went up.

When the Federal Reserve printed money to buy bonds, the value of the dollar actually increased. And when the Federal Reserve stopped printing money to buy bonds, the value of the dollar still increased.

Maybe the rumors of the death of America are premature, and maybe the old saying is still true.

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