Downgrade for US economy. Pending downgrade of US banks. Ruble gets hammered on markets & Russia hikes interest rates to 12%. And amid China’s property development Ponzi Scheme, the Gov slashes rates, suspends youth jobless data as economy signals sharper downturn.
It’s interesting & sad to see all or most Govs living in a pretend world and pushing bullshit information onto their populations. My guess, we must be really close to a sizable correction in the global economy.
Govs may have been able to hide terrible economic data “for a while” but there is no way to hide the huge spillover effect as populations, the world over, feel the extreme effects of a deepening financial crisis which there is no way out of… other than financial markets doing a HUGE reset into history-making negative territory.
And it seems that once again, the Chinese Gov is learning from the best. Like the US FED hiding Net Unrealized Gains (Losses) on Available-for-Sale Securities, Large Domestically Chartered Commercial Banks and the DTCC hiding the FTD & SWAP data; China has now decided that it too needs to hide economic data from international markets and its citizens… ‘Cause you know, gotta keep up the lies & keep people in the dark otherwise they are fucked.
Oops! Breaking News…
THEY ARE “ALL” FUCKED ANYWAYS!!
Buckle Up and stay calm. IMO, the summer party of BS Economics is over and this is going to end very badly, come this Fall.
Some links to the above…
https://www.cnbc.com/2023/08/15/fitch-warns-it-may-be-forced-to-downgrade-dozens-of-banks.html
Yes, paywall for above but here are a few snippets…
Chinese officials said they would stop reporting the country’s youth unemployment rate after months of spiraling increases, depriving investors, economists and businesses of another key data point on the declining health of the world’s second-largest economy.
The surprise move extends China’s efforts to restrict access to a variety of data on its economy and corporate landscape to outside scrutiny.
At the same time, China’s central bank unexpectedly cut a range of key interest rates, an emergency move to reignite growth after new data showed the economy slid deeper into distress last month.
China’s currency, the yuan, weakened past 7.31 a U.S. dollar in Hong Kong trading on Tuesday, touching its lowest level since November 2022. The offshore yuan has depreciated more than 5% against the dollar since the start of this year, and is near a record low.
For the first time since February, China’s headline measure of unemployment rose, climbing to 5.3%.
The jobless rate for people ages 16-24, meanwhile, had marched steadily higher for six consecutive months to hit a series of record highs, culminating in a reading of 21.3% in June. Economists had generally expected the jobless rate for that group to climb even higher through the summer, as another batch of graduates entered the labor market.
Explaining the decision to stop publishing the youth joblessness data, Fu Linghui, a spokesman for the statistics bureau, said the country has 96 million people between the ages of 16 and 24, about two-thirds of whom are students.
The People’s Bank of China said Tuesday that it lowered the interest rate on a key facility that funnels one-year loans to banks to 2.5% from 2.65% previously, at the same time shoveling the equivalent of $55.2 billion of new loans into the banking system. Such a move is usually followed within days by a reduction in bank lending rates to households and businesses.
The PBOC said it also cut the interest rate on seven-day reverse repurchase operations to 1.8% from 1.9%, having cut that short-term lending rate as recently as June. So-called repo and reverse repo transactions are key tools used by central banks, including the Federal Reserve, to manage banks’ funding needs and influence interest rates on loans to households and businesses. The PBOC said it dished out $28.1 billion of short-term loans at the new, lower rate.
Later Tuesday, the central bank said it made additional cuts to its suite of policy rates, with trims to overnight, seven-day and one-month rates on loans available from its standing lending facility, which provides emergency funding to commercial banks in exchange for high-quality collateral. The rates available on loans from the facility serve to cap short-term market interest rates. They were also last cut in June.
The cuts came in response to a drumbeat of downbeat data on China’s faltering economy. Figures last week showed weakening credit growth, crumbling exports and a year-over-year decline in consumer prices.
– More Americans are taking money out of retirement accounts early
– Inflation picks up speed again in Canada (and in most G20 countries) due to increase in gasoline prices, food and home/rental costs.