This means that banks reduce lending, while reducing the dismantling and absorption of funds, which means that deposits are reduced.
This is a manifestation of the deterioration of the economic environment. The economic downturn, the closure of enterprises, banks can not recover a large number of funds, resulting in operational difficulties, dare not lend.
Question 2: What does China Bank mean by shrinking its statement? At present, reducing the size of the balance sheet mainly refers to reducing the size of assets, which in turn leads to a decrease in liquidity.
The central bank's table shrinking action has begun? The Bank of China has quietly started to shrink its balance sheet before the Fed has started to shrink its balance sheet. ? The balance sheet data of the central bank in March shows that the central bank has been shrinking its table rapidly. In March, the total assets of the central bank decreased by 800 billion compared with the previous month, although the foreign exchange holdings in that month only decreased by about 50 billion. In March, the central bank recovered a net liquidity of 654.38+0.33 billion in the open market, and the creditor's rights of the central bank to deposit-taking financial institutions decreased by 775 billion in the same period, the largest contraction in the past five years. ? From the scale of total assets, the total assets of Bank of China 1 at the end of the year was 34.8 trillion yuan, which dropped to 34.5 trillion yuan at the end of February and 33.7 trillion yuan at the end of March, a decrease of 1. 1 trillion yuan in just two months, with a decrease of 3%.
Question 3: Financial deleveraging, what does the central bank mean by expanding the table and shrinking the table?
Question 4: At any time, the central bank can reduce the size of its balance sheet. At present, it mainly refers to reducing the scale of assets, which in turn leads to a decrease in liquidity.
The central bank's table shrinking action has started, but the Fed's table shrinking action has not yet started, and the Bank of China's table shrinking action has quietly started. The balance sheet data of the central bank in March shows that the central bank has been shrinking its table rapidly. In March, the total assets of the central bank decreased by 800 billion compared with the previous month, although the foreign exchange holdings in that month only decreased by about 50 billion. In March, the central bank recovered a net liquidity of 654.38+0.33 billion in the open market, and the creditor's rights of the central bank to deposit-taking financial institutions decreased by 775 billion in the same period, the largest contraction in the past five years. From the scale of total assets, the total assets of Bank of China 1 at the end of the year was 34.8 trillion yuan, which dropped to 34.5 trillion yuan at the end of February and 33.7 trillion yuan at the end of March, a decrease of 1. 1 trillion yuan in just two months, with a decrease of 3%.
Question 5: What does the shrinking balance sheet of the Federal Reserve mean? 1At the beginning of 0/0, the Federal Reserve decided to launch the second round of quantitative easing (QE2) and planned to purchase about 75 billion US dollars of long-term government bonds every month before the end of June. At that time, the Federal Reserve left a hand, claiming that it would appropriately adjust its bond purchase plan according to the US economic recovery. The so-called adjustment is by no means a reduction, but an increase. In view of the current slow economic recovery in the United States, it is predicted that the Federal Reserve will be forced to start QE3 at the end of June, that is, it will continue to buy US Treasury bonds, including medium and long-term bonds, every month from July. But the author believes that it may not be.
First of all, we must understand why the Federal Reserve wants to buy US Treasury bonds. Many people will think that this is for the American economy. In fact, if you want to * * the economy by buying government bonds, you must buy more government bonds. The Fed understands that QE2 is a double-edged sword. Although buying more government bonds has a certain effect on the economy, its side effects are even greater. Some economists have calculated that if we buy 1 trillion US dollars of government bonds, it may reduce the unemployment rate by 0.2 percentage points, but it is equivalent to cutting interest rates by 1.25 percentage points, which may push up the inflation rate by 0.5 percentage points. This result is not worth the loss. The results of practice also prove that QE2 is moderate, although it has not played much role in the American economy, at least it has not made it worse.
Now America is in a hurry. On the one hand, the QE2 of the Federal Reserve is about to expire; On the other hand, the debt ceiling of the Ministry of Finance once again touched the "ceiling". The White House has to pay its debts, maintain its daily expenses, and there are many new expenditure items waiting to be spent. where is the money to come from?
These two things are actually the same thing, because the US Treasury is going to issue new bonds, and the biggest buyer is the Federal Reserve-it must lead the purchase, and investors all over the world will follow suit. If the Fed doesn't buy it, it's hard to sell US Treasury bonds at a good price. So, will the Fed launch QE3 and continue to buy US Treasury bonds? Due to the mechanism, the Federal Reserve is American, but it is not a subsidiary of the United States. Whether it will launch QE3 depends on both the expenditure of maintaining * * * * and the US dollar credit, so it may not support the US Treasury to continue issuing bonds. The author points out that the position of the Federal Reserve is intriguing on the issue of the US Treasury's application for raising the public debt ceiling. The Federal Reserve never said, "If we don't expand the public debt ceiling, America will be finished." This sensational statement stressed that "the United States urgently needs to come up with a credible long-term plan to solve the budget deficit problem." The Federal Reserve's monetary policy is to achieve "the dual policy mission of maximizing employment and maintaining price stability". Obviously, the Fed's view on the expanding scale of US debt issuance is not quite the same as that of the Ministry of Finance. It must take into account the stability of the dollar and the expansion of employment. The stability of the dollar is contradictory to opening the printing machine at will. The Federal Reserve knows better than the Ministry of Finance that the future United States will be Greece. If we simply rely on issuing bonds to survive without upper limit control, Greece will not be saved.
The United States has its own dollar strategy. Behind Obama and Bernanke is a huge American financial capital group, which determines what is the fundamental interests of the United States and formulates the dollar strategy. From a financial point of view, the United States needs a strong and stable financial system, not a run. The essence of the endless issuance of national debt is to keep printing money, and with the current huge scale of national debt in the United States, no one dares to buy it unless the Federal Reserve takes the lead. The Federal Reserve not only represents Obama, but also represents the interests of the United States, which will ultimately affect Obama. In this sense, the Federal Reserve is consistent with Obama. In collusion with each other, China had to bite the bullet and buy US Treasury bonds.
The United States relies on finance to build its country, and its fundamental interests include maintaining the stability of the international financial market. Without dollar credit, the US financial market will have no foundation and the global financial market will have no "anchor". This kind of damage is obviously greater. In order to maintain the international credit of the dollar, the Federal Reserve may acquiesce in Congress to issue more warnings to the United States. Tacit the public to criticize the United States more (the latest survey shows that 65% of Americans don't want to continue deficit finance): don't always count on the "printing machine". Of course, one thing, the Fed may be more anxious than the United States, that is, US Treasury bonds cannot default. America will shoot itself in the foot and print itself. China is the largest creditor of US Treasury bonds and should be divested. This is very important!
If the ceiling of American public debt is not raised, American national debt will default and the world will fall into a new round of financial crisis, which is definitely not in the interests of the world, nor is it >>
Question 6: When was the last time the Bank of China contracted its balance sheet? The balance sheet of the People's Bank of China shrank by 3% in February and March this year 1. 1 trillion yuan.
Question 7: What is the impact of the Fed's contraction on China? What does the balance sheet mean? I don't know if you are interested or a test. If you are interested, I will briefly talk about it. 1, the central bank's expansion and contraction of the balance sheet is essentially an American concept. Because the US Federal Reserve is a private bank, that is, the monetary policy of the central bank has great independence, * * * cannot ask the Federal Reserve to issue money indiscriminately. Therefore, if the Federal Reserve wants to issue money, the United States will issue treasury bonds, and the Federal Reserve will buy treasury bonds, and * * * will invest money in the real economy to develop the real economy. Therefore, from the balance sheet of the central bank, the currency issued by its asset side has increased, and the national debt held by its liability side has also increased. This is called expanding the balance sheet, and the popular explanation is quantitative easing. 2. The Federal Reserve has no ability to directly regulate bank loans, and it can only regulate interbank lending rates to affect loans. The result of quantitative easing is to control the quantity of high-energy money, but it has no effect on the money multiplier. Only by adjusting RRR can the Fed influence the currency multiplier. 3. As for the influence of quantitative easing, it is mainly explained from the perspective of Keynesian economics. Generally speaking, it is to curb citizens' impulse to hold money, thus stimulating investment and eventually reviving the economy. 4. The generally unstable exchange rate of the Federal Reserve. The United States is a floating exchange rate country, and the exchange rate is free to float. 5. Say a little more here. Because the essence of quantitative easing is that the Federal Reserve bought US Treasury bonds, that is to say, * * * issued a large number of treasury bonds, which will lead to the so-called * * * debt problem. Quantitative easing comes down in one continuous line with the US debt problem. 6. On the other hand, in China, because China's central bank is not independent, it will issue money indiscriminately at the request of * * *. Judging from the world economic crisis, China's M2 soared from 40 trillion to 100 trillion, the highest in the world. Of course, the amplification effect of money multiplier and the idling of capital banks must be ruled out. Judging from the current situation, China's finance has reached the brink of collapse, and the consequences will be.
Question 8: What does the Fed mean by "shrinking its balance sheet" and what is the impact on silver? Shrinking the balance sheet refers to the behavior of the central bank to reduce the scale of the balance sheet. The Federal Reserve can directly recover the base money by selling its bonds directly or stopping the reinvestment of expired bonds, which is a more severe tightening policy than raising interest rates.
The data shows that since the implementation of QE at the end of 2008, the balance sheet of the Federal Reserve has greatly expanded, from $ 2. 12 trillion to $20 14 and 10, and the balance sheet has reached a peak of $4.47 trillion.
"shrinking the table means' releasing long-term high-quality assets+recovering speculative funds', which helps to enhance the stability of the financial system." Monita's macro research team believes that table shrinkage can flexibly affect long-term interest rates and realize the undistorted upward shift of the yield curve. It will help rebuild the credibility of the dollar and reduce the negative external effects of the Fed's interest rate hike. It can also provide high-quality assets in dollars to the world, which will help alleviate the problem of lack of safe-haven assets in Europe, Japan and other countries and alleviate the impact of the Fed's interest rate hike on countries with loose currencies.
However, Monita's macro team also said that the Fed may not be arbitrary until the interest rate hike stabilizes, because compared with the interest rate hike, the instrument of table contraction is relatively strong.
What effect does it have on silver?
For investors, everyone knows such a rule: the Fed raises interest rates, the dollar rises, and gold and silver fall; If the Fed does not raise interest rates, the dollar will go down and gold and silver will go up.
Question 9: What is the power of table reduction? Reducing the balance sheet is to reduce the liabilities of banks, that is, to reduce loans, that is, to recover previous loans and close the black hole. The above is bound to take away a lot of liquidity from the market, which is more direct than raising interest rates. Why? If the interest rate is raised, the capital may not return to China immediately, and the money earned by speculation outside is much more than that of Qian Qiang with interest income, or it is unwilling to cut the meat by speculating outside and losing money. This move, compared with the death penalty order, is equivalent to an administrative order, which directly draws money from the market, so the flow of funds between markets becomes a problem, which will lead to a sudden rise in private interests. The decrease of dollar liquidity will make the dollar more valuable and appreciate, and other countries will depreciate sharply against the dollar, thus causing a long-term bear market for speculative assets in other countries. Of course, foreign capital will be realized one after another.
Question 10: What is the impact of China Bank's "shrinking table" on China's economy? If you can't shrink too much, you will release water!
Because China's economy is purely blowing soap bubbles, relying on cheap labor to attract foreign investment, and relying on printing money to support internal crazy investment, if it is released, it will be chaotic, if it is chaotic, it will be closed, and if it is closed, it will die.