China crude drop only 8%

Posted on February 11, 2009 @ 8:43 am (Wednesday) by WARREN MOSLER

Not nearly enough to dislodge the Saudis from being the swing producer and price setter now that the Great Mike Masters Inventory Liquidation has run its course.

Beware an even modest recovery that increased crude consumption.

China’s Net Crude Imports Decline to Lowest in a Year

by Wang Ying

Feb 11 (Bloomberg) — Crude-oil imports dropped by 8 percent to 12.82 million tons from a year earlier while overseas shipments of the fuel more than doubled, rising 156 percent to 450,000 tons, the customs said today.

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Clinton to China

Posted on February 11, 2009 @ 8:38 am (Wednesday) by WARREN MOSLER

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This should be an interesting exchange:

China Needs US Guarantees for Treasuries, Yu Says

by Belinda Cao and Judy Chen

Feb 11 (Bloomberg) — In talks with Clinton, China will ask for a guarantee that the U.S. will support the dollar’s exchange rate and make sure China’s dollar-denominated assets are safe,” said He in Beijing. “That would be one of the prerequisites for more purchases.

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Obama, the FDIC, and private capital

Posted on February 11, 2009 @ 8:34 am (Wednesday) by WARREN MOSLER

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The FDIC claims the banks are solvent, and valuing their portfolios as required by law, or they could close them down as they are charged to do, also by law.

If Obama believes his FDIC officers and bank examiners are liars, he should take action against them at once.

If he believes the FDIC to be capable and truthful, then what is this about:

Obama Says US Has ‘No Easy Out’ of Banking Crisis

by Edwin Chen

Feb 10 (Bloomberg) — Some banks haven’t been transparent about assets on their books, Obama said. Now they must “just be clear about some of the losses that have been made, because until we do that we’re not going to be able to attract private capital into the marketplace.”

And the emphasis now seems to be on attracting private capital, hence with this claimed reason banks aren’t raising private capital.

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