China

According to China Daily, China owns $1.13 trillion of US debt. China has $3.20 trillion in foreign exchange reserves.

The Chinese trade surplus has dwindled. But pressure to revalue the Yuan remains. Video below

Great graphic constructed by Mobile Phone Tracker coming to us via Nicholas Jackson of The Atlantic. We were surprised that only $7.00 goes to Foxconn to manufacture each unit. Here are some of Jackson’s favorite “facts and figures” of the…

In a February 2010 Casey Report article titled Is China’s Recovery a Fraud?, my thesis was the $2.1 trillion stimulus package rolled out by Chinese authorities after the 2008/2009 financial crash was leading to enormous malinvestment. As…

Our macro takeaway from the call is that Europe is rolling over. No normal September bounce from the seasonally slow August. The company also notes what they see as a temporary slowdown in China. Alcoa missed and the stock got hammered…

Judging from this chart drawn up by the Financial Times, it would seem that Turkey is winning the currency wars and China is losing them.

Today’s Yum! Brands’ earnings conference call was dominated by China. Management talked a lot about commodity inflation running around 8 percent and 20% labor inflation, which they do not yet see abating. This doesn’t square with the…

Turning to foreign sources of capital will only aggravate the problem from which Europe already suffers. Even assuming that developing countries are willing to take on risks that Europeans find prohibitive, their help will not improve…

Below is a video of my appearance on RT International last night discussing the recent bill to authorise sanctions against the Chinese for currency manipulation. I see this bill as all about the politics and little about the economics.

US national elections are 13 months away and not coincidentally, the Congress is looking at a new measures to encourage China to re-value the yuan. While there is little doubt that the yuan in under-valued, though reasonable people may…