Cempaka Business and Economy: Bank Indonesia Suspends Sales of 3-Month Debt in Bid to Cool Hot Funds

"A Summary" – Apr 2, 2011 (Kryon channelled by Lee Carroll) (Subjects: Religion, Shift of Human Consciousness, 2012, Intelligent/Benevolent Design, EU, South America, 5 Currencies, Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Middle East, Internet, Israel, Dictators, Palestine, US, Japan (Quake/Tsunami Disasters , People, Society ...), Nuclear Power Revealed, Hydro Power, Geothermal Power, Moon, Financial Institutes (Recession, Realign integrity values ..) , China, North Korea, Global Unity,..... etc.) - (Text version)

"The Timing of the Great Shift" – Mar 21, 2009 (Kryon channelled by Lee Carroll) - (Text version)

“ … Here is another one. A change in what Human nature will allow for government. "Careful, Kryon, don't talk about politics. You'll get in trouble." I won't get in trouble. I'm going to tell you to watch for leadership that cares about you. "You mean politics is going to change?" It already has. It's beginning. Watch for it. You're going to see a total phase-out of old energy dictatorships eventually. The potential is that you're going to see that before 2013.
They're going to fall over, you know, because the energy of the population will not sustain an old energy leader ..."

"Update on Current Events" – Jul 23, 2011 (Kryon channelled by Lee Carroll) - (Subjects: The Humanization of God, Gaia, Shift of Human Consciousness, 2012, Benevolent Design, Financial Institutes (Recession, System to Change ...), Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Nuclear Power Revealed, Geothermal Power, Hydro Power, Drinking Water from Seawater, No need for Oil as Much, Middle East in Peace, Persia/Iran Uprising, Muhammad, Israel, DNA, Two Dictators to fall soon, Africa, China, (Old) Souls, Species to go, Whales to Humans, Global Unity,..... etc.)

"The Recalibration of Awareness – Apr 20/21, 2012 (Kryon channeled by Lee Carroll) (Subjects: Old Energy, Recalibration Lectures, God / Creator, Religions/Spiritual systems (Catholic Church, Priests/Nun’s, Worship, John Paul Pope, Women in the Church otherwise church will go, Current Pope won’t do it), Middle East, Jews, Governments will change (Internet, Media, Democracies, Dictators, North Korea, Nations voted at once), Integrity (Businesses, Tobacco Companies, Bankers/ Financial Institutes, Pharmaceutical company to collapse), Illuminati (Started in Greece, with Shipping, Financial markets, Stock markets, Pharmaceutical money (fund to build Africa, to develop)), Shift of Human Consciousness, (Old) Souls, Women, Masters to/already come back, Global Unity.... etc.) - (Text version)

“… The Shift in Human Nature

You're starting to see integrity change. Awareness recalibrates integrity, and the Human Being who would sit there and take advantage of another Human Being in an old energy would never do it in a new energy. The reason? It will become intuitive, so this is a shift in Human Nature as well, for in the past you have assumed that people take advantage of people first and integrity comes later. That's just ordinary Human nature.

In the past, Human nature expressed within governments worked like this: If you were stronger than the other one, you simply conquered them. If you were strong, it was an invitation to conquer. If you were weak, it was an invitation to be conquered. No one even thought about it. It was the way of things. The bigger you could have your armies, the better they would do when you sent them out to conquer. That's not how you think today. Did you notice?

Any country that thinks this way today will not survive, for humanity has discovered that the world goes far better by putting things together instead of tearing them apart. The new energy puts the weak and strong together in ways that make sense and that have integrity. Take a look at what happened to some of the businesses in this great land (USA). Up to 30 years ago, when you started realizing some of them didn't have integrity, you eliminated them. What happened to the tobacco companies when you realized they were knowingly addicting your children? Today, they still sell their products to less-aware countries, but that will also change.

What did you do a few years ago when you realized that your bankers were actually selling you homes that they knew you couldn't pay for later? They were walking away, smiling greedily, not thinking about the heartbreak that was to follow when a life's dream would be lost. Dear American, you are in a recession. However, this is like when you prune a tree and cut back the branches. When the tree grows back, you've got control and the branches will grow bigger and stronger than they were before, without the greed factor. Then, if you don't like the way it grows back, you'll prune it again! I tell you this because awareness is now in control of big money. It's right before your eyes, what you're doing. But fear often rules. …”

Thursday, November 11, 2010

Bank Indonesia Suspends Sales of 3-Month Debt in Bid to Cool Hot Funds

Jakarta Globe, Dion Bisara & Muhamad Al Azhari | November 10, 2010

Jakarta. The central bank temporarily stopped selling three-month debt papers on Wednesday, a move analysts said was meant to minimize chances of a sudden reversal of “hot money” that has been flooding in.

Bank Indonesia temporarily stopped selling three-month
debt papers on Wednesday. (Bloomberg Photo/Dimas
Ardian)

Analysts and even former Finance Minister Sri Mulyani Indrawati, now a managing director at the World Bank, were concerned about the possibility of asset bubbles forming in the financial markets, especially as quantitative easing by the United States may funnel even more hot money into the economy.

Possible moves, she said, could include tying up funds for as long as a year to lessen the risk of hot money leaving the country.

Bank Indonesia and the Finance Ministry previously hinted that they believed foreign inflows remained manageable.

But on Wednesday, the day when the central bank usually holds its regular auction of debt papers, it decided to “temporarily” stop selling three-month debt papers, known as SBIs.

Instead, it offered investors six- and nine-month papers and one- and two-month term deposits.

The move, according to Difi A Djohansyah, a bank spokesman, was “aimed to shift excess liquidity into a longer tenor of papers.”

The central bank introduced term deposits, an instrument to absorb excess liquidity, in July. Unlike SBIs, such instruments are not tradeable in the secondary market, which analysts say discourages speculators.

“I think Bank Indonesia wants to reduce the burden of the open market operations by limiting the funds in SBIs,” said Eric Alexander Sugandi, an economist with Standard Chartered Bank.

But he said he was not convinced Wednesday’s move would slow down capital inflows, “because global liquidity is very ample right now. Though it would reduce the risk of a sudden reversal in the short term, and make investors consider a longer-term investment in government or corporate bonds, or in the stock market.”

The bank has recently shown concern over possible capital outflows.

BI last week also proposed a holding period for investors who buy government bonds, but did not elaborate.

In July it changed the auction from a weekly to a monthly event and imposed a one-month holding period for SBIs in a bid to lock in the funds for longer periods.

The surge in foreign cash has boosted the nation’s balance of payments surplus in the third quarter this year.

Indonesia posted a surplus of $7 billion in the three months ended in September, compared with $5.4 billion recorded in the second quarter, central bank data shows.

The nation’s foreign exchange reserves rose to $91.8 billion at the end of October from $86.5 billion a month before.

An analyst said the surplus underscored the shift in funds from countries with slow economic growth and low returns on assets to fast-growing emerging markets like Indonesia .

“Portfolio investments to Indonesia mounted to a staggering $6.1 billion, which is close to the figure in the first quarter of 2010. By our estimates, inflows into SBIs may have contributed 40 percent of that figure.

This gives a picture of the urge that policy makers face to take action against SBI inflows,” said Helmi Arman, an economist from Bank Danamon in Jakarta.

Meanwhile, the Finance Ministry did not seem concerned that inflows could reverse.

Finance Minister Agus Martowardojo told reporters on Wednesday that he did not favor capital controls and that the country’s economic fundamentals remained sound.

Rahmat Waluyanto, the director general of debt management at the ministry, said any attempt to implement capital controls “would repel investors and put our investment grade, which we expect to get next year, at risk.”

Do you think this latest central bank effort can ease outflow risk?

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Thursday, November 11, 2010

Bank Indonesia Suspends Sales of 3-Month Debt in Bid to Cool Hot Funds

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