tag:blogger.com,1999:blog-6704573462403312459.post555792597325645062..comments2024-03-28T06:53:23.473-04:00Comments on Moneyness: Data visualization: The People's Bank of China balance sheetJP Koninghttp://www.blogger.com/profile/02559687323828006535noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6704573462403312459.post-15267701521824251582012-11-07T13:25:35.357-05:002012-11-07T13:25:35.357-05:00OK. #3 makes sense to me now.
BTW: I mentioned yo...OK. #3 makes sense to me now.<br /><br />BTW: I mentioned your name in a comment over at Uneasy Money. I'm hoping you might weigh in over there.Mike Sproulhttp://www.csun.edu/~hceco008/realbills.htmnoreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-15920136461109061982012-11-06T14:05:36.020-05:002012-11-06T14:05:36.020-05:00Yup, your spam filter is definitely tougher than a...Yup, your spam filter is definitely tougher than average. On the other hand you are definitely the KING of data visualization.<br /><br />I'm still thinking about your answer #3Mike Sproulhttp://www.csun.edu/~hceco008/realbills.htmnoreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-11565178703685625462012-11-05T18:30:50.182-05:002012-11-05T18:30:50.182-05:00Sorry about that Mike. Is the filter really worse ...Sorry about that Mike. Is the filter really worse at my blog than at other blogger sites?<br /><br />Those answers make sense to me. Another one is:<br /><br />3) Even though its overpaying for forex assets, when it retires yuan deposits and currency through sterilization, it is underpaying for those yuan. So the full round-trip results in a wash. Most people believe that the PBoC not only forces its banks to subscribe to sterilization bonds, but makes them do so at bad rates. Financial repression, so to say.JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-51488064018054179922012-11-05T18:09:19.982-05:002012-11-05T18:09:19.982-05:00Two answers:
1) If it is overpaying, but we don...Two answers:<br />1) If it is overpaying, but we don't know by how much, then for all we know the liabilities are falling in value at exactly the rate that the loss of assets implies.<br />2) A bank with positive net worth can lose lots of assets without affecting the value of its currency. (The currency is, after all, a first and paramount lien on the bank's assets.) But a bank with positive net worth can still make its currency lose value just by reducing the rate at which it will buy back its currency. <br /><br />Dang! That spam filter of yours keeps locking me out!Mike Sproulhttp://www.csun.edu/~hceco008/realbills.htmnoreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-35550549394103855342012-11-05T14:56:05.515-05:002012-11-05T14:56:05.515-05:00Here's the riddle. If one accepts the fact tha...Here's the riddle. If one accepts the fact that the PBoC is undervaluing its currency, then it is effectively purchasing assets at too high of a price. So why aren't its liabilities decreasing in value at a faster rate?JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.comtag:blogger.com,1999:blog-6704573462403312459.post-45029909958242050452012-11-05T10:56:51.286-05:002012-11-05T10:56:51.286-05:00From 2002 to 2012, the chinese price level rose fr...From 2002 to 2012, the chinese price level rose from 93 to 122, while your chart shows paper money and deposits of financial institutions rising by multiples of that. Sounds like PBoC money might be backed by PBoC assets!Mike Sproulhttp://www.csun.edu/~hceco008/realbills.htmnoreply@blogger.com