Daily Archives: November 4, 2013 @ 10:18 pm (Monday)

Bank lending and state deficits

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Loans negative and states borrowing less, thanks!

Top link is the change in total credit levels y/y in the commercial banking system using monthly data points through sept 2013. The numbers are seasonally adjusted. Trend going negative (looks to have last topped off in December 2012) in conjunction with federal deficit reduction and state & local deficit reductions. The bottom link has 3 series you can click on one for state & local and one for federal and one for consolidated gvt net borrowing or lending (looking at the federal or consolidated numbers they move flat 4q 2012 to 1q 2013 but spike upwards 1q 2013 moving forward. almost at the same exact time the credit levels started going negative).

Bank credit

State borrowing

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China going western

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Warren,

The following article seems to confirm your views expressed here:

Meet Liu He, Xi Jinping’s Choice to Fix a Faltering Chinese Economy

China prepares to liberalise finance as hedge funds and estate agents salivate

“bit by bit, China’s economy – if not its political structure – is being reshaped along the lines sought by Wall Street and by American-owned transnational corporations.

Back in the late 1990s, US multinationals demanded that China accept more stringent conditions than had been imposed on other developing countries in order to secure WTO membership. Beijing accepted. Now America wants two things: China’s financial sector to be opened up to US banks and the country’s savings to boost western capital markets. More than likely, Washington will get its way, perhaps not immediately but with profound effects.”

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