China: "please don't talk about our screwed-up banking system"

Nobody panic. That's an order.

China really, really doesn't want people talking about its economic woes. The FT:

In a directive written last week and transmitted over the past few days to newspapers and television stations, local propaganda departments of the Communist party instructed reporters to stop “hyping the so-called cash crunch” and to spread the message that the country’s markets are well stocked with money.

Clearly there's no better way to get reporters talking about something than telling them not to, so here's a quick primer on the country's cash crunch.

Two weeks ago, money market rates in China rose rapidly to double digits, causing interbank lending to freeze up; the scene was alarmingly reminiscent of the Western credit crunch, and many feared that the country was about to have its own Lehman moment.

Fears were stoked by the central bank's refusal to intervene, apparently influenced by a political desire to "correct" the bank's behaviour. A scheduled auction the day after the rate spike would have provided the perfect opportunity to inject extra cash into the economy, but nothing happened.

Eventually, Beijing capitulated, and, on 25 June, committed to bailing out any and all failing banks, ensuring, at least for now, that the market interest rates will decline rapidly. That's not a long-term solution – that would involve boosting the liquidity of Chinese banks such that they aren't at risk of collapsing in the first place – but it preserves the banking system for the time being.

Still, the stock market did not respond happily to the turmoil. Falling ten per cent over a week, it dropped a further six per cent on the day the central bank promised action, although the announcement reversed the trend and it clawed back most of that day's losses. That seems to be the motivation for the media blackout, one of the first in the country to be targeted at the financial press. The FT reports some of the contents of the directive:

First, we must avoid malicious hype. Media should report and explain that our markets are guaranteed to have sufficient liquidity, and that our monetary policy is steady, not tight.

Second, media must strengthen their positive reporting. They should fully report the positive aspect of our current economic situation, bolstering the market’s confidence.

Third, media must positively guide public opinion. They should promptly and accurately explain in a positive manner the measures taken by and information from the central bank.

Translation: if anyone does a Robert Peston, heads will roll.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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“Trembling, shaking / Oh, my heart is aching”: the EU out campaign song will give you chills

But not in a good way.

You know the story. Some old guys with vague dreams of empire want Britain to leave the European Union. They’ve been kicking up such a big fuss over the past few years that the government is letting the public decide.

And what is it that sways a largely politically indifferent electorate? Strikes hope in their hearts for a mildly less bureaucratic yet dangerously human rights-free future? An anthem, of course!

Originally by Carly You’re so Vain Simon, this is the song the Leave.EU campaign (Nigel Farage’s chosen group) has chosen. It is performed by the singer Antonia Suñer, for whom freedom from the technofederalists couldn’t come any suñer.

Here are the lyrics, of which your mole has done a close reading. But essentially it’s just nature imagery with fascist undertones and some heartburn.

"Let the river run

"Let all the dreamers

"Wake the nation.

"Come, the new Jerusalem."

Don’t use a river metaphor in anything political, unless you actively want to evoke Enoch Powell. Also, Jerusalem? That’s a bit... strong, isn’t it? Heavy connotations of being a little bit too Englandy.

"Silver cities rise,

"The morning lights,

"The streets that meet them,

"And sirens call them on

"With a song."

Sirens and streets. Doesn’t sound like a wholly un-authoritarian view of the UK’s EU-free future to me.

"It’s asking for the taking,

"Trembling, shaking,

"Oh, my heart is aching."

A reference to the elderly nature of many of the UK’s eurosceptics, perhaps?

"We’re coming to the edge,

"Running on the water,

"Coming through the fog,

"Your sons and daughters."

I feel like this is something to do with the hosepipe ban.

"We the great and small,

"Stand on a star,

"And blaze a trail of desire,

"Through the dark’ning dawn."

Everyone will have to speak this kind of English in the new Jerusalem, m'lady, oft with shorten’d words which will leave you feeling cringéd.

"It’s asking for the taking.

"Come run with me now,

"The sky is the colour of blue,

"You’ve never even seen,

"In the eyes of your lover."

I think this means: no one has ever loved anyone with the same colour eyes as the EU flag.

I'm a mole, innit.