Comments on: China Signals End of Stockpiling http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling.html Mon, 23 Nov 2009 09:23:14 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: VG Chicago http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling.html#comment-49726 VG Chicago Wed, 01 Jul 2009 00:47:04 +0000 http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling/#comment-49726 Yeah, I'm feeling really guilty for not buying more cheap, worthless, poorly-manufactured Chinese plastic junk, so that that totalitarian, oppressive, communist country can enjoy a 25% growth. I just hate to think that given their decreased economic growth, the Chinese government is now unable to expor its murderous Marxist ideology to vulnerable nations.<br /><br />But I promise to drive to Walmart immediately and stock up on as much Made in China garbage as I can possibly fit in my Lexus. I'll do it right away...lOL<br /><br />Vinny G. -- clear-minded, wise, insightful, and, above all: pro-American 'til the bitter end Yeah, I'm feeling really guilty for not buying more cheap, worthless, poorly-manufactured Chinese plastic junk, so that that totalitarian, oppressive, communist country can enjoy a 25% growth. I just hate to think that given their decreased economic growth, the Chinese government is now unable to expor its murderous Marxist ideology to vulnerable nations.

But I promise to drive to Walmart immediately and stock up on as much Made in China garbage as I can possibly fit in my Lexus. I'll do it right away…lOL

Vinny G. — clear-minded, wise, insightful, and, above all: pro-American 'til the bitter end

]]> By: freude bud http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling.html#comment-49718 freude bud Tue, 30 Jun 2009 17:07:49 +0000 http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling/#comment-49718 Beijing also indicated that it had finished stockpiling oil on June 1--the head of the National Energy Administration appeared to say that China's SPRs were full. Two days later, <a href="http://blogs.wsj.com/chinajournal/2009/06/03/oil-tanks-have-never-been-so-sexy-%E2%80%93-views-from-a-visit-to-china%E2%80%99s-spr/" rel="nofollow">Denis McMahon at the WSJ & a bunch of his peers were taken to inspect some--usually national secret--crude tanks farms, apparently to verify that they were, indeed full.</a><br /><br />Two weeks later, Platts calculated implied oil demand in China for May was up a full 5.96% from May 2008. Crude imports were up 3.55% from a year previous. Last Saturday, the NDRC raised the prices of diesel and gasoline by about 11% ... we're talking $3.20+/gallon, well into the range where the price hits US driving demand ... should have some effect in China.<br /><br />Markets, OTOH, appear, so far, to think this is but noise ... maybe to depress prices so the buying can continue, dunno. Beijing also indicated that it had finished stockpiling oil on June 1–the head of the National Energy Administration appeared to say that China's SPRs were full. Two days later, Denis McMahon at the WSJ & a bunch of his peers were taken to inspect some–usually national secret–crude tanks farms, apparently to verify that they were, indeed full.

Two weeks later, Platts calculated implied oil demand in China for May was up a full 5.96% from May 2008. Crude imports were up 3.55% from a year previous. Last Saturday, the NDRC raised the prices of diesel and gasoline by about 11% … we're talking $3.20+/gallon, well into the range where the price hits US driving demand … should have some effect in China.

Markets, OTOH, appear, so far, to think this is but noise … maybe to depress prices so the buying can continue, dunno.

]]> By: Shanky http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling.html#comment-49714 Shanky Tue, 30 Jun 2009 16:35:14 +0000 http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling/#comment-49714 Oh boy Cramer is gonna be pissed. You mean th Chinese economy is not rebounding and in full recovery mode. You mean they were just stockpiling raw materials. I can't believe he's wrong again. Well, there goes another 1000 youtube emails to discredit him. Crud. LOL Oh boy Cramer is gonna be pissed. You mean th Chinese economy is not rebounding and in full recovery mode. You mean they were just stockpiling raw materials. I can't believe he's wrong again. Well, there goes another 1000 youtube emails to discredit him. Crud. LOL

]]> By: plschwartz http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling.html#comment-49709 plschwartz Tue, 30 Jun 2009 15:16:21 +0000 http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling/#comment-49709 Yves:<br />It seems part of the (American?)human condition to believe that the enemy is always smarter then we are. In this case the Chinese, who must have secret plans within its economic moves. <br />My answer is that Chinese economic planners are as dumb as ours have been.<br />Perhaps it was the Western commentators who woke them up to the realization that the stimulus money was going into commodity speculation. Like our TARP money was being used to create more losses for the IBs.<br />To China's credit they are trying to plug that leak. Yves:
It seems part of the (American?)human condition to believe that the enemy is always smarter then we are. In this case the Chinese, who must have secret plans within its economic moves.
My answer is that Chinese economic planners are as dumb as ours have been.
Perhaps it was the Western commentators who woke them up to the realization that the stimulus money was going into commodity speculation. Like our TARP money was being used to create more losses for the IBs.
To China's credit they are trying to plug that leak.

]]> By: Richard http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling.html#comment-49707 Richard Tue, 30 Jun 2009 14:33:24 +0000 http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling/#comment-49707 If China is serious about decreasing its exposure to the dollar while at the same time continuing to run a large surplus with the U.S., then commodities have been one place to dump the excess dollars. Again, China is confronting the dilemma of its own policies, and like everyone else in similar situation, it blames the foreigners (U.S., now Australia) for the pain that results. I am not throwing stones since this has been the U.S. reaction to its own policy dilemmas since 1919, except for a brief period of relative enlightenment between 1944 to 1960. If China is serious about decreasing its exposure to the dollar while at the same time continuing to run a large surplus with the U.S., then commodities have been one place to dump the excess dollars. Again, China is confronting the dilemma of its own policies, and like everyone else in similar situation, it blames the foreigners (U.S., now Australia) for the pain that results. I am not throwing stones since this has been the U.S. reaction to its own policy dilemmas since 1919, except for a brief period of relative enlightenment between 1944 to 1960.

]]> By: "DoctoRx" http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling.html#comment-49699 "DoctoRx" Tue, 30 Jun 2009 13:12:40 +0000 http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling/#comment-49699 Methinks China makes large profits trading the markets, using its import clout and share of voice to game the markets. Methinks China makes large profits trading the markets, using its import clout and share of voice to game the markets.

]]> By: bosunj http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling.html#comment-49696 bosunj Tue, 30 Jun 2009 11:36:51 +0000 http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling/#comment-49696 China is punishing Australia for blocking the sale of mines to China. China is also sending a message to others who are considering similar moves. The Aussies gave in to US pressure and are going to pay a very high price. As they should. China is punishing Australia for blocking the sale of mines to China. China is also sending a message to others who are considering similar moves. The Aussies gave in to US pressure and are going to pay a very high price. As they should.

]]> By: Glen http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling.html#comment-49694 Glen Tue, 30 Jun 2009 10:30:44 +0000 http://www.nakedcapitalism.com/2009/06/china-signals-end-of-stockpiling/#comment-49694 I read this this morning as well and was dumbfounded that Ozz resource companies were kept rising and the market kept climbing. It was like no one was taking any notice. The only thing I could put it down to was Chinese posturing in the wake of commodities contracts that are currently being negotiated and the big miners refusing to accept a 40% price reduction in iron ore. <br /><br />There are major ramifications in this statement for commodity exporting nations especially Australia and when coupled with the various market comments about Chinas pending reduction in commodity purchases due to storage capacity, manufacturing slow downs etc makes this a "sit up and take notice" statement. Guess we'll see soon enough. I read this this morning as well and was dumbfounded that Ozz resource companies were kept rising and the market kept climbing. It was like no one was taking any notice. The only thing I could put it down to was Chinese posturing in the wake of commodities contracts that are currently being negotiated and the big miners refusing to accept a 40% price reduction in iron ore.

There are major ramifications in this statement for commodity exporting nations especially Australia and when coupled with the various market comments about Chinas pending reduction in commodity purchases due to storage capacity, manufacturing slow downs etc makes this a "sit up and take notice" statement. Guess we'll see soon enough.

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