China Vice Finance Minister: Mainland eyes boost from ‘superpower’ Federal Reserve

China continues to shudder and it appears to be increasingly fearful. With the Saudis rattling their debt sabers, Europe looking at another summer of crisis (of various kinds), and just a general sense of instability in world economy and geopolitics, China hopes that the Fed will take the Red Dragon “into consideration.”

There is no doubt that China will be and is considered as Minister Zhu knows very well.

I’d love to know what the minister knows about the real Chinese economy.

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Fed ‘Stimulus’ Has Made Inequality Worse, Hurt Economic Growth

What is explained here by a former vice president of the Federal Reserve Bank of Dallas is what we have said now for years. The Fed’s actions post-Crash have exacerbated wealth inequality and generally skewed the financial system even more toward the already wealthy. If one had assets pre-2008 chances are one has done reasonably well over the last 6 years or so. For those without assets pre-2008 it’s been a whole different game.

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Canada Just Warned That Negative Interest Rates Are Coming

As we’ve said before, we live in fascinating economic times. (Not always the most fun though.)

This should be interesting. It is widely thought that the Federal Reserve will move to raise rates a bit this month. Meanwhile Canada, our largest trading partner appears to be moving in the opposite direction. (Along with Europe.)

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The Fed is never going to raise rates (?), Economy facing headwinds from overseas, Job participation rate 38 year low

As we’ve said China is driving things economically right now. The Federal Reserve doesn’t want to say it. It wants everyone to think that though our boat is leaking it is unlikely to leak as much as the rest of the the world’s economic “boats.” And right now that may be true. But we are still taking on water. The Great Economic Experiment post 2008 is failing, as many of the more market oriented have long predicted, and now the American central bank has very few options.

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GE, bailed out by taxpayers, mad that it may not get subsidized loans through Ex-Im Bank any longer, Takes jobs overseas

Thanks for the tax dollars suckers!

GE is one of the great American crony companies. Jeff Immelt, once head of Obama’s “jobs council” and current CEO of General Electric, has played the crony game extremely well. First in securing emergency financing courtesy of the American taxpayers because it screwed up royally. And then he was able to exploit various Obama era boondoggles which funneled money GE’s way on an ongoing basis. (Think wind turbines etc.)

Now Mr. Immelt is stamping his feet because it looks like GE may permanently lose the the sweetheart deals it has at the taxpayer underwritten Export Bank.

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China Central Bank Head at G20 : The Chinese bubble has popped

We are pretty much obliged to run this one. Of course it has popped. It’s been deflating for months. Really longer than that though the Shanghai Stock Exchange didn’t reflect it for a while. And it’s not like the Chinese pop is over, it’s got plenty more to go. Lots of “fun” is still ahead of us.

People who care about the world economy and world politics should look closely at China. It is a classic case of “

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China likely to drag the world into global recession, Citigroup says

Actually not totally true.

China is, as we say, The Ultimate Crony Capitalist State. Business and government are an amalgam. Long a crony paradise where a premium was placed on compliance and government favor and not on real pricing.

It looks like reality is finally starting to hit however.

About 6 months ago I was talking to a China energy markets analyst and he explained the complexities of implementing a carbon tax regime in the country to me.

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