As Kate of SDA would say, "It's probably nothing"...
15 JAN 2014: The question now is whether the [Chinese] central bank can further slow the growth of credit and the money supply without causing a slump in housing prices or a sharp slowdown in the credit-dependent corporate sector...
10 APR 2014: Chinese importers have defaulted on at least 500,000 tons of U.S. and Brazilian soybean cargoes worth around $300 million, the biggest in a decade, as buyers struggle to get credit amid losses in processing beans...
11 APR 2014: China has rejected nearly 1.45 million tonnes of U.S. corn shipments since late last year...[costing] grain companies $427 million...
Hang on folks and say your prayers! Our central bankers are drag-racing down a mountainside and we're all hand-cuffed to the back bumper!
Could be several things at play here. China is in a real economic and social mess. But this could be their way of showing the weak-kneed and begging US just who runs the show.
ReplyDeleteSo we have a situation where the Chinese buyers of soybeans can't get the credit necessary to buy. But in North America a farmer has no problem getting the credit necessary to expand to meet the Chinese demand. What could go wrong?
ReplyDeleteWell like the old saying goes, free credit can't buy happiness!
ReplyDeleteConfucius say, "Ah, So! China maybe f***** up, but mehwika toarry f*****!
ReplyDelete