QUESTION: With China selling Treasurys, wouldn't Sauda Arabia, UAE & Dubi currency "pegs" be more important then ever to "hold"? Thus oil prices must stage a sharp recovery if China "dumping" $U.S. (PETRO DOLLAR) Treasury's?

***"Chinese Oil Trader Buys Record Number of Mideast Cargoes"

By Winnie Zhu Oct 29, 2014 12:19 AM PT

China National United Oil Co., a unit of the country’s biggest energy company, bought the most ever cargoes of Middle East crude through a pricing platform in Singapore amid oil’s slump into a bear market.

The company, known as Chinaoil, purchased about 21 million barrels this month through the system used to determine benchmark prices by Platts, a unit of McGraw Hill Financial Inc. It bought more than 40 cargoes of the Dubai, Oman and Upper Zakum grades in the so-called window, according to data compiled by Bloomberg. A Beijing-based press officer for CNPC, the parent company, wasn’t immediately able to comment and asked not to be identified because of internal policy. Aastocks.com

Oct. 28 (Bloomberg)-- Standard Chartered: The the Asia-focused bank issued a second profit warning in five months and the bank posted a -16% drop in third-quarter pretax profit largely because of impairments on commercial loans due somewhat to declines in commodity prices. The shares fell to HK$128.10 as of 10:36 a.m. in Hong Kong (prices dropped -27% this year). After a decade of unbroken profit improvements, the "slowdown in Asia", plus troubles at Standard Chartered's Korean business, and subdued market activity have hit profits. Standard Chartered added that it was concerned about potential slowdowns in some of the largest Asian economies, raising China as a problem for the first time: "We remain watchful in India, in China and of commodity exposures more broadly, where we have continued to "tighten our underwriting criteria and reduce our exposures."

Standard Chartered PLC is a British multinational banking and financial services company headquartered in London. It operates a network of more than 1,700 branches and outlets across more than 70 countries and employs around 87,000 people.

www.telegraph.co.uk/.../...-warning-this-year.html

"There were 24.7 trillion yuan of bonds in China’s interbank market as of Sept. 30." Aastocks.com

"Bank Of Nanjing (601009.SH)'s Tang Zhexin said non-performing loans at banks are still growing, and the industry is still facing great pressure of non-performing loans at present." Bank of Nanjing is among the 16 listed banks out of over 1,000 domestic banks nationwide in China. Aastocks.com

"According to the report of CICC, it is expected that the People's Bank will reduce the reserve requirement ratio (RRR) for four times and cut interest rates twice next" Aastocks.com

"At least 10 trusts backed by assets (spanning coal mines in Shanxi to forests in Fujian) have had issues with repayments." Aastocks.com

Oct. 29 -- (Bloomberg): "China Shadow Banking Shifted to Insurers Alarms Moody’s"

www.bloomberg.com/.../...moody-s-china-credit.html

I like your last line. Another remedy to low rates is to allow bank profits to stem from trading. Both long and short. The writer of the article you quoted from, well he forgot to mention the "short" side of the Fed's equation as to financial sector profits. When the surf is high, the ride is of risk. The very best surfers (professional) never die even if the wave crashes.

Two surges in U.S. equity prices soon came after Russian sanctions were imposed (April & July). The flow of capital out of Russia and/or Europe may have contributed to the U.S. buying spree. Have we a comment on how that may play out as to the risk of the geopolitical sanction events increasing/decreasing and the U.S. equity buying spree? I see over $60 trillion in global equities, 20% thereabouts being U.S.. A 10% U.S. market move is about $1.2Trillion. I don't think the QE buying or corporate buy-backs were the sole movers within these 10% market moves. Where's the other $1trillion or so buying coming from? It feels much more than $20billion monthly QE buying. It feels like a Central Bank black-pool has an automated buy button or computer chip with no limit. Any thoughts as to where ALL the buying is coming from? Some thing is in trouble and many someones are running from the trouble to a buy party. It feels severe like, a liquidity run. How many insolvent banks may there be in the EU besides Bulgaria? Russia now? How many in China? I'd be curious of the total $ value of all U.S. stock purchases per month. You got such over-all figures? Over past 6 years since QE1? I believe if we scanned the monthly list we'd see an increase in $ purchases as QE3 scaled down. What or who is the pool of capital investing in the U.S. and divesting elsewhere? I see the Euro and Yen tank while certain U.S. equities implode. Money fleeing the recessionary economies and bulking-up on U.S. equities? It's not just U.S. buy-backs and QE, is it? You got some world capital numbers for us to tank (think) on? I like your daily articles. I'm looking for the pin that's 'bout going to do the popping.