China Denies Military Exercise Aimed at U.S.

China denied on Tuesday media reports that an artillery drill in the East China Sea was in response to a planned military exercise between South Korea and the United States. The 6-day, live ammunition exercise starting on Wednesday in the East China Sea off China’s coast was seen by some analysts as a “response to [...]

China Commodities Undercut US Dollar

By: Jim Willie CB, GoldenJackass.com China is directing their mountain of reserves away from acquired mining firms and toward managed hedge funds. This is a new direction for Beijing, clearly in response to the refusal by Rio Tinto to permit a $19 billion stake from the Chinese aluminum giant Chinalco. They were frustrated and angered [...]

Zoellick Says China May Diversify Currency Reserves

World Bank President Robert Zoellick said China may seek to diversify its foreign currency holdings over time, moving away from U.S. dollar reserves. “Over time I could see China moving to some further diversification of its reserves,” Zoellick said at a conference today in Montreal. Still, he said, “China has been very sensitive about maintaining [...]

Geithner & China: Who Are You Fooling?

Treasury Secretary Tim Geithner’s trip to Asia has been heralded as a sales trip aimed at convincing the Chinese to keep buying U.S. Treasuries and thereby finance U.S. deficits. Such headlines are, in my humble opinion, an insult to the Chinese. Over and over again, we fall victim of the temptation to believe that Chinese [...]

Peter Navarro On The China Problem

In another surprisingly unmoderated interview on CNBC, UC Irvine professor Peter Navarro brings some relevant insight on why the Chinese problem is much more than the simplified question of whether or not they will keep buying Treasuries. Also, the commentary on Chinese students laughing in Geithner’s face is always refreshing, and shockingly uncensored for a [...]

Gold Spikes To $900/oz As US China Tension Rises

Gold spiked to within two dollars of $900/oz in holiday leaden Asian trading as saber rattling between US and Chinese officials regarding the manipulation of the yuan ratcheted the tension in global capital markets. Last week Treasury Secretary-designate Timothy Geithner stated that China was a currency manipulator sending shock waves through the financial markets as [...]

MAN to Sell Stake in Unprofitable China Bus Venture for 1 Euro (Bloomberg)

Jan. 23 (Bloomberg) — MAN AG , Europe’s third-largest truckmaker, plans to sell its 50 percent stake in an unprofitable China bus venture for 1 euro ($1.30), its Chinese partner said in a statement to Shanghai’s stock exchange today. Read more….

Will Obama Increase Pressure on China Regarding the Yuan?

Chinese could see more pressure for yuan appreciationAmong the mumblings that circulate in Washington about foreign currency exchange is the regular lament that China is a currency manipulator. Although this is said quietly, and any real pressure on the Chinese to allow yuan appreciation is rarely brought to bear.But will that change with the Barack [...]

Obama’s New Strategy on China is USD Negative

The US dollar and the Japanese Yen, the two lowest yielding G10 currencies continue to be the two best performing. It is important to remember that the dollar and the Yen are not rallying because investors have grown more optimistic about those currencies but because they are more pessimistic about the outlook for the US [...]

Gold price closes sharply higher in Hong Kong (People’s Daily)

Gold price surged 233 HK dollars to close at 7,888 HK dollars per tael in Hong Kong on Wednesday, according to the Bank of China (Hong Kong). The price is equivalent to 854.25 U.S. dollars a troy ounce, up 25.26 U.S. dollars at Wednesday’s exchange rate of one U.S. dollar against 7.751 HK dollars. &$ [...]