AgLoop retweeted
China lacks the preconditions - limited implicit guarantees, well capitalized banks, efficient domestic markets -to open its financial account safely right now. And if it did open up quickly, outflows would likely overwhelm inflows, putting the CNY under new pressure.
AgLoop retweeted
The stability of the CNY -- and of China's BoP and reserves -- has hinged on effective outflow controls, which have limited "hot" outflows (errors and omissions and some disguised outflows in tourism) to what can be supported by China's still substantial goods surplus.
AgLoop retweeted
The Economist of course has a very different point of view, they have made the (old) argument that freeing the financial account would force China to make other reforms to its banks (& don't seem too worried about the risk of CNY weakness)
economist.com/leaders/2019/0…
AgLoop retweeted
The Economist (and many others) believe China is heading toward structural current account deficits, and those structural deficits make it safe for China to accelerate the opening of its financial account. I disagree on both counts.
cfr.org/blog/chinas-coming-c…
AgLoop retweeted
I did 5 local #covercrop and no-till meetings for the Amish community the past 3 days. Here is a planting demo.
AgLoop retweeted
Germany's economy could use a boost. And @Brad_Setser doesn't see a downside to a stimulus.
on.cfr.org/2E6efyK
AgLoop retweeted
When buying tools a farmer always wants to buy 3 of each
- 1 for the time you drop it on the ground and bury it with the disk
- 1 for the time you use some sort of oilfield pipe for xtra torque and break it
-And a third one to get you by till next trip to Harbor Freight
AgLoop retweeted
Union Reps (Ranger and I) are currently in negotiations with Management (The Boss) to give Labor (Ranger and I) a snow day tomorrow.
Has Hell frozen over yet?
#keepdreaming #snowpocalypse2019
