I though it was a stupid idea – but that is me

All for the sake of maintaining a good relationship with their major trading partner.

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Chart courtesy of Bloomberg – click to enlargen

Emerging Markets bond holdings.

A few sales – In my post on 19th August ‘No one learns any lessons’

https://millermatters.wordpress.com/2015/08/19/no-one-learns-any-lessons/

My comment was that ‘anyone with any common sense would just dump Yuan – and convert to USD.’

To quote – ‘Problem is though – all central banks are holding Yuan and USD around 50:50 in their portfolios – to sell or not to sell – compromise a trading position and good relations with China – or just sell and save your own country.

Well – idiots are in control – so expect all countries to support China – at their peril.

Instead of allowing the market to be the adjudicator – the government is attempting to prove that the currency is ‘strong’ and maintain this impression.’

So we have a few emerging markets dumping USD Treasuries – including China in and effort to maintain the stability of the Yuan.

All is not good – next is to be a reduced trade figure – just to confirm everyone is going down the same plug hole ….

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Yes – a one way trip.

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