People’s Bank of China

The People’s Bank of China is the central bank of the People’s Republic of China. It functions in much the same way as the Federal Reserve does here in the U.S. It sets monetary policy in China and is in charge of preventing and handling financial crises. It manages all of the foreign reserves, which are made up of other bonds from countries around the world, including the U.S. Much like the Federal Reserve, the People’s Bank of China manages the treasury. It is also responsible for regulating the financial system. The People’s Bank of China issues, and is responsible for the circulation of, China’s official currency, the renminbi.


Earlier this year, I introduced a popular key indicator—the Baltic Dry Index—that measures the shipping rates of transporting bulk dry commodities worldwide. It is considered a key indicator because it gauges the demand of the basic raw material inputs that…

Never mind the eurozone and Europe, China is quickly becoming more of a sore spot, and this is a major concern given that the Chinese economy is the second largest in the world. Greece is the 29th largest and Spain…

The release of the minutes from the last Federal Reserve meeting, which took place on June 19 and 20, came with some interesting items that weren’t mentioned at all. The financial crisis around the world is continuing to worsen, and…

The Bank of International Settlements (BIS) is an institution that was established by central banks around the world. The BIS essentially is a bank for all of the world’s central banks, the aim of which is to foster financial and…

The U.S. dollar has reigned supreme as the reserve currency of the world for decades. This reserve currency status appears to be ending, albeit at a slow pace. Shifts in reserve currency don’t happen overnight, as they become entrenched in…

I know it sounds crazy, but it’s true. Investors are paying the U.S. Treasury to hold their money in exchange for participation in expected rapid inflation. Treasury Inflation Protected Securities, more commonly known as TIPS, are bonds backed by the…

The Chinese economy appears to be falling apart, fast… While GDP growth figures released by the People’s Bank of China about the Chinese economy are indicating a slowdown, there are other indicators that are flashing bright red contraction signals. When…

More bad economic news… U.S. retail sales for April rose at the slowest rate of 2012. While the retail sector was expected to continue its torrid pace of consumer spending increases in 2012, this report proves my theory: lack of…

When North America was coming out of its financial crisis, we were fortunate that the emerging markets—especially the growth in the Chinese economy and Indian economy—helped provide some of the growth that the world so desperately needed at the time.…

The London Metal Exchange (LME) has been operating for 135 years. When it was first established in 1877, Britain was the world’s superpower and the sterling the currency of choice. Today, the contracts for commodities and metals (and gold bullion)…

The plight of municipalities here in the U.S. and their struggles under the weight of enormous pension budget deficits are reaching the critical phase. In fact, many municipalities are contemplating bankruptcy, forcing me to conclude that jobs growth in the…

While one has to give China credit in its quest for accumulating gold bullion, the country is taking its approach to another level. China is home to very large gold mining companies that produce 390 tons of gold bullion every…

I've been writing about China’s desire to own more gold bullion in order to back its currency, the yuan. Naturally, if you were China and you wanted to buy gold bullion, you wouldn’t advertise it to the world or the…

Last week in PROFIT CONFIDENTIAL, I presented the facts as to why China would continue to be the largest gold bullion buyer in the world. The basis of this argument stemmed from China’s desire to see its currency, the yuan…