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reneged Topic in The Credit Debacle Catalog

Chinese state firms reneging (1); openly reneging (1); simply renege (1).

Wed 2009-10-07 10:31 EDT

Beijing's derivative default stance rattles banks

Reuters

For banks that are hoping to sell more derivatives hedges in China, the world's fastest-expanding major economy and top commodities consumer, the danger goes beyond the immediate risk to existing contracts to the longer-term precedent that suggests Chinese companies can simply renege on deals when they like...Air China, China Eastern and shipping giant COSCO -- among the Chinese companies that have reported huge derivatives losses since last year -- had issued almost identical notices to banks.

Beijing's derivative default stance rattles banks.

Wed 2009-09-16 19:19 EDT

Why Default on U.S. Treasuries is Likely | Library of Economics and Liberty

Jeffrey Rogers Hummel

Almost everyone is aware that federal government spending in the United States is scheduled to skyrocket, primarily because of Social Security, Medicare, and Medicaid. Recent "stimulus" packages have accelerated the process. Only the naively optimistic actually believe that politicians will fully resolve this looming fiscal crisis with some judicious combination of tax hikes and program cuts. Many predict that, instead, the government will inflate its way out of this future bind, using Federal Reserve monetary expansion to fill the shortfall between outlays and receipts. But I believe, in contrast, that it is far more likely that the United States will be driven to an outright default on Treasury securities, openly reneging on the interest due on its formal debt and probably repudiating part of the principal. Treasury default considered likely.

default; economic; liberties; libraries; likely; U. S. treasuries.

Jesse's Café Américain Tue 2009-09-01 14:56 EDT

Chinese State-Owned Companies Object to Face-Rippings, Wall Street Indignant

Jesse

After one too many face-rippings by the merry Pranksters of Wall Street, China's state-owned companies have run to their government to complain about the fraudulent nature of their derivatives contracts. Chinese state firms reneging on fraudulent derivative contracts.

Chinese State-Owned Companies Object; Face-Rippings; Jesse's Café Américain; Wall Street Indignant.

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