Staff Reporter China Money Report October 14 Minsheng Bank and Tesla today signed a cooperation agreement to build jointly 400 Power stations in 20 different cities across China. The two companies are also expected to discuss further cooperation in the field of financial services. In
China has plenty of room for policy action. The economy is growing at 7% with a “Fed funds rate” at 5%. The U.S. Fed Funds rate is of course 0%. Bloomberg China’s one-year interest-rate swaps dropped toward a 17-month low on speculation the central bank
Staff Reporter China Money Report Steel prices continue their downward spiral in China. Steel production has always been an obsession with state planned economies as it was steel output that separated the developing from the developed economies. Nowadays, steel production separates the real economies from
Want China Times Former US president Jimmy Carter was mistreated during his visit to China in September despite his contribution to the establishment of formal ties between Washington and Beijing 35 years ago, according to a scholar who was traveling with him. Orville Schell, director
China Money Reporter Staff Reporter A Stars & Strips Article brought to our attention via the site Full-Spectrum- Dominance.com has once again highlighted to the American tax payer the utter incompetence of where American tax dollars go to die. Basic scrap steel sells for $100/pound
Dr. Udo Ulfkotte , respected journalist, has confessed the following: – I was educated to lie and hide the truth from the public – I was employed to write propaganda against Russia – I was supported by the Central Intelligence Agency – I was bribed
Dan Collins CMR For most of recorded history, China has been the worlds largest economy. The country stagnated and finally crumbled under the Ming dynasty and was soon carved up by Western powers only to be followed by an invasion and attempted colonisation by Japan.
WildEast Football Spanish newspaper Marca is reporting that La Liga champions Atletico Madrid have worked out a deal with China’s richest man Wang Jianlin, head of the Wanda Group, that will see him invest in the club and get involved in the team’s management. Nothing
Want China Times BAT-man: Internet giants move into China’s movie business Staff Reporter 2014-10-08 11:42 (GMT+8) Web portal Tencent’s Sept. 17 announcement of the establishment of its new unit Tencent Movies+, which will produce seven films, including an adaptation of a novel by Nobel literature
The fashion industry is linked to the environmental devastation in the Central Asian inland sea – once the world’s fourth largest lake, the Aral sea ‘completely dried’ in August. When will the Ivory Tower academics in the U.S. start to re-examine the hypothesis of so-called
VietJet Air criticised for lingerie model photo shoot Photographs showing lingerie models posing for a Vietnamese airline in nothing but air hostess- style caps and bikinis have been criticised for being sexist. Personally…I don’t see a problem with it…no problem at all.
HAPPY HUNTING! GET THAT BITCH LEATHERFACE…GET THAT BITCH. The North Korean capital has been placed under lockdown, according to sources with Pyongyang, raising new questions about the stability of Kim Jong-un’s regime. “This sort of action suggests there has either been an attempted coup or
After a Chinese submarine and warships visited Sri Lanka, Iran and Pakistan, the Tokyo-based Yomiuri Shimbun on Sept. 27 reported that the People’s Liberation Army Navy is seeking to construct naval ports in the Indian Ocean to monitor the movements of the Indian Navy. Between
China Money Report
Minsheng Bank and Tesla today signed a cooperation agreement to build
jointly 400 Power stations in 20 different cities across China. The
two companies are also expected to discuss further cooperation in
the field of financial services.
In August, Tesla and China Unicom reached a strategic cooperation
agreement to jointly build 400 destination charge stations in 120
cities while building super charging stations in 20 cities.
Tesla and China Merchants Bank (10.36, -0.06, -0.58%) also co-
staging services for domestic buyers to purchase Tesla electric
vehicles using credit from the Merchants Bank.
As 90% of vehicles in China are already purchased cash-up-front
I wouldn’t expect to much financing deals in place on that front
,however, the people in China we talk to cannot wait to get their
hands on a Tesla.
China has plenty of room for policy action. The economy is growing
at 7% with a “Fed funds rate” at 5%. The U.S. Fed Funds rate is of
China’s one-year interest-rate swaps dropped toward a 17-month low
on speculation the central bank will ease monetary policy to
support economic growth.
Conditions are becoming ripe for a cut in borrowing costs, and the
People’s Bank of China could do more targeted easing, Fan Jianping,
chief economist at the State Information Center, said in an interview
with the Economic Information Daily published today. The central bank
provided 100 billion yuan ($16 billion) to each of the nation’s five
biggest lenders in September, following reductions in reserve
requirements for some banks in the second quarter.
The cost of one-year swaps, the fixed payment to receive the floating
seven-day repurchase rate, fell one basis point to 3.25 percent as of
4:30 p.m. in Shanghai, data compiled by Bloomberg show. The rate
touched 3.24 percent earlier, near the 3.20 percent level reached on
Sept. 29 that was the lowest since May 2013.
“The market expectation is that the economy in the fourth quarter won’t
be worse than the third quarter at least, as the central bank still has
policy options to support growth,” said Yan Yan, a Shanghai-based analyst
at China Guangfa Bank Co. “Money rates will probably remain stable at
the current level in the next couple of weeks.”
China Money Report
Steel prices continue their downward spiral in China. Steel production
has always been an obsession with state planned economies as it was
steel output that separated the developing from the developed economies.
Nowadays, steel production separates the real economies from the
paper-economies. For example, China , S.Korea, Japan and Germany still
produce steel, the U.S. and U.K. produce less steel than they did in
the 1920′s. The problem now is that China produces too much steel. What
started out as an economic growth story has turned ugly, China now
makes more steel in 6 weeks, than the U.S. does all year. China’s steel
production has reached over 50.1% of the global total. One city in
China alone, Tangshan, produces more steel than all of Europe combined.
Now with most of the large Chinese infrastructure projects in place
demand for steel is basically flat, but each provincial region of China
and even cities have targeted the funding and construction of steel plants
to help bring up their local GDP. Steel supply still increased 2.7% so
far in 2014. Now what we have is far to many steel mills with massive debt
overhang, over-capacity, and a serious supply-demand problem.Unwinding
the Chinese steel sector will be ugly.
In the first half of 2014, steel prices in China settled at 3,212 yuan
per ton, ($518/ton) equivalent to 1.6 yuan per kilogram. This price is
almost the same charged for cabbage at a grocery store.
Currently , the entire industry as a whole has only a 0.54% profit on sales.
To offset this supply/demand problem Chinese enterprises continue to
look abroad with exports up 37% in 2014.
The current weak profitability levels are in spite of steel factories
seeing lower coal and oil prices which are huge inputs into there
Going forward the government is now setting strict standards on new
construction and will no doubt try and reorganize the industry around
a few national steel titans such as Shouguang, Anyang, and Bao steel.
Plants will close, workers will have to find their way into the
service sector but until then, we can expect under-priced steel coming
out of China for at least another decade.
Want China Times
Former US president Jimmy Carter was mistreated during his visit to
China in September despite his contribution to the establishment of
formal ties between Washington and Beijing 35 years ago, according
to a scholar who was traveling with him.
Orville Schell, director of the Center on US-China Relations at the
Asia Society in New York, wrote in The New York Review of Books that
what Carter received was “chiru”–which means humiliation in Chinese.
The former president, seeking to raise funds for his Carter Center,
was given a fee to present and speak in various locations in China.
On his first stop at Renmin University of China in Beijing, Carter
was put on the panel at a global finance forum to talk about business
topics instead of speaking about the US-China relationship, as Schell
Carter, who was given a short time to present, spoke after an address
from the university president and talks from trading specialists.
Only one single question was addressed directly to him.
“Watching this former US president treated so offhandedly highlighted
how the power relationship between the two countries is shifting: it
is now not only the West that has wealth,” Schell wrote.
The Chinese side blocked a visiting scholar from delivering a speech
at the Great Hall of the People without warning and Carter’s itinerary
for Shanghai and Qingdao was changed without his approval.
Carter and China’s president, Xi Jinping, have met four times in the
past, but neither Xi nor Premier Li Keqiang showed up to greet the
90-year-old former US president. At a dinner hosted by Vice President
Li Yuanchao at the Great Hall of the People, Carter, his wife Rosalynn
and other American visitors sat at half-empty tables. They were told
that President Xi had met with Zimbabwean president and international
pariah Robert Mugabe just days earlier and was in the Great Hall of
the People toasting Malaysia’s head of state Abdul Halim Mu’adzam
Shah the very moment of the dinner.
“But Xi didn’t stop by the Carter dinner to say a word,” Schell wrote
in the article.
Schell picked up six newspapers and found that none of them had mentioned
Carter’s visit. Only the English-language China Daily carried a brief article
titled “Turkey Feast Honors China-US Relations” and it was published with
a photo not of Carter but of some student performers at the banquet.
“At one point I heard from sources close to him that Carter was upset
enough to consider just packing up and going home,” Schell wrote.
“What made the dinner in the Great Hall all the more unsettling was the feeling
that a whiff of “humiliation”–chiru–hovered over it.”
“The [Communist] Party has for many years emphasized China’s history of being
humiliated and exploited by foreign powers. To feel a gust of Chinese reaction
now coming back the other way left me wanting to leave early that night,”
Carter was president when the United States transferred diplomatic recognition
from Taipei to Beijing in 1979, a decisive moment in the history of Sino-US
relations. In this light, the former president’s reception in China appears to
be a remarkable slight.
China Money Reporter
A Stars & Strips Article brought to our attention via the site Full-Spectrum-
Dominance.com has once again highlighted to the American tax payer the utter
incompetence of where American tax dollars go to die. Basic scrap steel sells
for $100/pound in the U.S.or up to $400 a pound in China as China actually
needs it to build steel in their functioning industrial economy. Now, keep
in mind, a C-27 would have some of the best steel, aluminum, and titanium
and copper wiring you could possibly find. Yet, the Pentagon just scrapped
a fleet of C-27′s for 6 cents a pound.
We have written before that the massive government military expenditures will
not keep the country safe. The entire American society has fallen into cultural
rot where very little actually gets done outside of pushing paper. An example
would be the U.S. submarine fleet has fallen from 41 to only 14 since the end
of the Cold War yet costs to run the fleet is up 10 times.
From Stars & Stripes
WASHINGTON — Most of the C-27 transport aircraft given to the Afghanistan
military as part of a failed $486 million Defense Department program were
locally scrapped for just $32,000, federal auditors said Thursday.
The U.S. Special Inspector General for Afghanistan Reconstruction, or
SIGAR, sent letters to the Pentagon requesting all documents related to
the scrapping, reasons why it did not pursue resale, and why it did not
seek a refund from the manufacturer of the Italian-made C-27s, also known
as G222s, which were grounded last year following chronic maintenance issues.
“It has come to my attention that the 16 G222s at Kabul were recently towed
to the far side of the airport and scrapped by the Defense Logistics Agency,”
SIGAR head John Sopko wrote in the Oct. 3 letters. “I was also informed that
an Afghan construction company paid approximately 6 cents a pound for the
scrapped planes, which came to a total of $32,000.” The DOD ended the C-27
program in March 2013 after the Afghans could not maintain the aircraft or
find spare parts. SIGAR launched an investigation in December.
Sopko said he had personally seen the 16 aircraft on the tarmac at Kabul
International Airport and was told that the remaining four were taken to
Ramstein Air Base in Germany during the investigation. Since then, the DOD
appears to have destroyed the Kabul-based C-27s. The Pentagon should explain
why alternatives to scrapping the aircraft were not pursued, such as flying
the planes out of Afghanistan and reselling them abroad, Sopko said. “What
efforts were made to return the aircraft to the manufacturer or to obtain a
refund?” he wrote.
The watchdog also wants to know whether any of the parts remain intact and
maybe be recoverable. “I am concerned that the officials responsible for planning
and executing the scrapping of the planes may not have considered other possible
alternatives in order to salvage taxpayer dollars,” he wrote. The DOD and Air Force
have until Oct. 17 to respond to SIGAR, according to the letters.
SIGAR was created to oversee about $104 billion the U.S. has funneled into rebuilding
Afghanistan in the 13-year war with the Taliban and al-Qaida and has pointed to
hundreds of millions in other wasteful spending in the past. In July, the auditor
questioned DOD plans to begin sending C-130s, a similar type of transport aircraft,
to the Afghan Air Force saying there was little evidence the aircraft are needed and
last year urged the department to stop supplying the Afghans Russian-made helicopters.
Dr. Udo Ulfkotte , respected journalist, has confessed the following:
- I was educated to lie and hide the truth from the public
- I was employed to write propaganda against Russia
- I was supported by the Central Intelligence Agency
- I was bribed by billionaires
For most of recorded history, China has been the worlds largest economy.
The country stagnated and finally crumbled under the Ming dynasty and was
soon carved up by Western powers only to be followed by an invasion and attempted
colonisation by Japan. The last time China was on top was roughly 1617 before
the start of the Manchu invasions into Southern China which would eventually
cost 25 million lives and shrink the population and economy.
Today, the Chinese press is celebrating being back on top. The World Bank
has released data showing that China is now the world’s largest economy in PPP
(purchasing power parity) terms.
Anyone who has actually lived in both countries would tell you China passed
the United States long ago. China produces more steel in 6 weeks than the U.S.
does all year. They build twice as many cars and have a far more advanced
The entire U.S. economy, on the other hand, is but a ponzu scheme bleeding
massive trade deficits, government debt, and funding it through printed money.
History will note 2014 as a milestone but it is not the thing to really worry about.
What Americans need to really worry about is 2025 when the Chinese economy is twice
will be twice as large as the United States.
Spanish newspaper Marca is reporting that La Liga champions Atletico
Madrid have worked out a deal with China’s richest man Wang Jianlin,
head of the Wanda Group, that will see him invest in the club and
get involved in the team’s management.
Nothing has been officially announced by either side yet but Marca
appears certain a deal has been done. Members of Atletico’s board
visited Wang in Beijing earlier this summer and they are one of the
sides that are part of his young stars program, where Wanda bankrolls
young Chinese football talent to travel to Spain and receive training
at top clubs.
Wang’s Dalian Wanda was China’s top side during the 1990s, but he
pulled his sponsorship of the team in 1999 due to the corruption in
Chinese football. In 2011, he got back involved in the game, providing
massive funding to the Chinese Football Association to build up the
national team, including the hiring of Jose Antonio Camacho and
promoting youth football programs.
This wouldn’t be the first time Wang was (incorrectly) rumored to be
purchasing a European football side, but his involvement with the
Spanish club makes this appear more realistic than the previous talk.
Wanda has also shown interest in local side Beijing Baxy, but instead
it appears Wang will stick with his own club, registered in Beijing.
The Madrid side already has a few connections to China, one of their main
sponsors is China’s global giant, Huawei. Also, young central midfielder
Xu Xin is part of the club’s reserve side.
Want China Times
BAT-man: Internet giants move into China’s movie business
Staff Reporter 2014-10-08 11:42 (GMT+8)
Web portal Tencent’s Sept. 17 announcement of the establishment
of its new unit Tencent Movies+, which will produce seven films,
including an adaptation of a novel by Nobel literature laureate
Mo Yan, marks the entry of the three leading Chinese internet
companies into the movie business, reports the Beijing-based
Tencent’s announcement came 20 days after search engine Baidu
launched a crowd funding joint venture with Citic Trust and the
China Film Group to raise money for film productions, the
Since e-commerce firm Alibaba has also moved into the film industry
by launching crowd funding operations for movie productions, Baidu,
Alibaba and Tencent, China’s three internet bigwigs known collectively
as BAT, have all joined the bandwagon of investing in the risky, yet
alluring movie business that is already attracting venture capital.
On the internet companies’ expansion into the film business, Yu Dong,
chairman and CEO of Beijing-based Bona Film Group, said it is possible
that all movie companies will work under BAT. “In the future, Chinese
movie companies may end up as the three movie groups of BAT,” Yu said.
In addition to crowd funding, internet and technology have already been
widely adopted in movie making, the newspaper said, with the use of big
data and online ticket sales being most notable. For instance, daily deal
site Nuomi, which became fully owned by Baidu in January, is now the
search engine’s main channel for selling movie tickets, according to
Huayi Brothers Media Group president Wang Zhonglei described the closer
relations between the movie industry and the internet as a renaissance for
the film business, since the center of film production has shifted from
filmmakers to the people and more emphasis is now placed on incorporating
the response of the audience into the moviemaking process.
The rapid growth of China’s movie industry, where ticket sales surged 27.51% to
21.77 billion yuan (US$3.55 billion) in 2013, and the forecast of China replacing
the United States as the world’s largest movie market in three to five years,
presents perfect reasons for any company to move into the sector, said Huayi Brothers
Media vice president Hu Ming.
Despite the high profit margin a successful movie can bring, only 8.2% of Chinese
films in 2013 were actually profitable, the newspaper pointed out.
Moreover, the internet and the use of big data might change the process of movie making,
but a good script is still crucial for the success of a film, the newspaper said.
The fashion industry is linked to the environmental devastation in
the Central Asian inland sea – once the world’s fourth largest lake,
the Aral sea ‘completely dried’ in August.
When will the Ivory Tower academics in the U.S. start to re-examine the
hypothesis of so-called “free-trade”? Don’t expect anytime soon.
A dying rust-belt in the U.S. with empty steel mill towns and bankrupt
municipalities would not get the government to defend their citizens
then nothing will. Hell, they can’t even stop flights from Ebola hot
zones or the daily incursions of drugs and illegals from the South let
alone the implications of the rest of the world using the global trade
system against them. How does this factor into Cotton? Simple, the American
South can no longer compete in Cotton against slave labor, high taxes,
and the amount of environmental degradation allowed in foreign countries
like Uzbekistan. Instead of hitting them with tarriffs we put American
cotton farmers on subsidies.
So now back to the Aral Sea which has been consumed by a global lust of
cheap Uzbek cotton.
From the Guardian…
What do the catwalks of Paris have to do with 25,000 miles of exposed
sea bed thousands of miles to the east? While all eyes have been fixed
on designer collections and members of the front row, the true cost of the
fashion industry has been revealed in a shock announcement by NASA that
the Aral Sea in Central Asia has now completely dried up.
The Aral Sea was once the world’s fourth largest lake, home to 24 species of
fish and surrounded by fishing communities, lush forests and wetlands. While
the lake was salt water, the rivers that fed it were fresh water. In the 1950’s
the Soviet Union began using the rivers to irrigate the surrounding agricultural
area, a process that has been continued to this day by Uzbekistan’s brutal
dictator Islam Karimov.
The exposure of the bottom of the lake has released salts and pesticides into
the atmosphere poisoning both farm land and people alike. Carcinogenic dust
is blown into villages causing throat cancers and respiratory diseases.
The fashion industry is linked to this horror of dictatorships and environmental
devastation by the fact that the crop being grown with the river water is
cotton – 1.47m hectares of cotton. A hugely water intensive crop, one shirt
can use up to 2,700 litres.
The harvest of Uzbek cotton is taking place right now – it started on the 5 September
and is expected to last until the end of October. The harvest itself is also a
horror story, on top of the environmental devastation, this is cotton picked using
forced labour. Every year hundreds of thousands of people are systematically sent
to work in the fields by the government.
Campaigners have also managed to get 153 fashion brands to sign a pledge to never
knowingly use Uzbek cotton. Anti-Slavery International have worked on this fashion
campaign but acknowledge that despite successes there is still a long way to go.
“Not knowingly using Uzbek cotton and actually ensuring that you don’t use Uzbek
cotton are two completely different things,” explains Jakub Sobik, press officer
at Anti-Slavery International.
One major problem that Sobik points out is that much of the Uzbek cotton crop now
ends up in Bangladesh and China – key suppliers for European brands. “Whilst it
is very hard to trace the cotton back to where it comes from because the supply
chain is so subcontracted and deregulated, brands have a responsibility to ensure
that slave picked cotton is not polluting their own supply chain.”
There was nothing accidental about what is happening in Central Asia, a catastrophe
that has provided irrefutable evidence of the damage being done to our planet by the
fashion industry. We can either focus on Paris Fashion Week or we can act now to
save our world. But to ignore the industry’s role in the loss of the Aral Sea is to
ignore the destruction of our planet.
VietJet Air criticised for lingerie model photo shoot Photographs showing
lingerie models posing for a Vietnamese airline in nothing but air hostess-
style caps and bikinis have been criticised for being sexist.
Personally…I don’t see a problem with it…no problem at all.
HAPPY HUNTING! GET THAT BITCH LEATHERFACE…GET THAT BITCH.
The North Korean capital has been placed under lockdown, according to sources
with Pyongyang, raising new questions about the stability of Kim Jong-un’s regime.
“This sort of action suggests there has either been an attempted coup or that the
authorities there have uncovered some sort of plot against the leadership,”
Toshimitsu Shigemura, a professor at Tokyo’s Waseda University and an authority
on North Korean affairs, told The Telegraph.
“If it is a military-backed coup, then the situation in Pyongyang will be very
dangerous and I have heard reports that Kim has been moved out of the capital,”
After a Chinese submarine and warships visited Sri Lanka, Iran and Pakistan,
the Tokyo-based Yomiuri Shimbun on Sept. 27 reported that the People’s
Liberation Army Navy is seeking to construct naval ports in the Indian
Ocean to monitor the movements of the Indian Navy.
Between Sept. 7-14, a Type 039 Song-class diesel-electric submarine anchored
at Colombo in Sri Lanka to take on supplies. It is the first time a Chinese
submarine has been sent publicly to a port near the Indian Ocean. The visit
of Chinese president Xi Jinping to Sri Lanka after the submarine appeared also
indicated that Beijing is strengthening its partnership with Sri Lanka.
After its stay at Colmbo, the submarine moved on to the Gulf of Aden,
according to the PLA Navy.
The Changchun, a Type 052C guided-missile destroyer, and the Changzhou, a
Type 054A guided-missile frigate, also launched joint naval exercises with
the Iranian and Pakistan navies during their visit to Bandar Abbas and Karachi.
Those drills indicated that China is trying to expand its influence into the
region through transforming the PLA Navy into a genuine blue-water navy.
The paper said that China is discussing maritime cooperation with the
Seychelles, Mauritius, the Maldives, Sri Lanka, Bangladesh and Cambodia.
Admiral Robin K Dhowan, India’s chief of naval staff, said China is apparently
seeking allies to encircle India. Dhowan said that the Indian navy will pay
close attention to Chinese expansion in the region. If China begins to increase
its naval activities in the Indian Ocean, it is likely to become a serious
challenge to India, Dhowan said.
Life is changing in Hangzhou. A city of 8.7 million people already known for
its beautiful West Lake and silicon economy the recent IPO of Ali Ba Ba is
set to bring more riches to the city. The recent Ali Ba Ba IPO is expected
to create 10,000 multimillionaires in Hangzhou through stock holdings.
The average of 11,000 employees is expected to take home $ 4.22 million USD
or about 25.91 million yuan
Hangzhou after 1,000 years, is finally seeing its self again as a world-power.
Hangzhou was one of the world’s richest cities in ancient times and a former
capital of the Song dynasty. There is an old Chinese saying that says above are
the heavens and on earth is Hangzhou.
Reports are coming in of a mad scramble to sell luxury goods to employees of
Ali Ba Ba. A local real estate billboard recently read: Neighbours, We wish
you well with the United States market success!
Hangzhou luxury apartment developers have described it has a carnival
atmosphere, a verifiable feast with a table of pork and local BMW dealership
is offering to paint 7 series models with Ali Ba Ba logos.
Life in Hangzhou is changing.
Want China Times
A report by Solarbuzz, the photovoltaics (PV) institute of consumer market
research firm NPD, suggests that during the second quarter of the year,
the world six largest manufacturers of PV parts and components were all
The combined output of solar modules by these Chinese businesses
reached 5.2 gigawatts (GW) in the second quarter of the year, up 26%
from the previous quarter. The output accounted for 71% of the combined
output of the world’s top 20 PV makers, the report stated.
Solarbuzz attributed the increase to demand from emerging PV markets,
including Africa and the Middle East.
The potential installation volume of solar modules reached 11 GW in
Africa, while it was pegged at 1.3 GW in the Middle East, according to
another Solarbuzz report. A senior analyst at Solarbuzz said data in the
report covers all completed and under-construction solar power stations in
29 African nations and seven Middle Eastern countries.
The projects were mostly presided over by South Africa and Israel, but
there are more and more Middle Eastern and African countries beginning
to enter the PV market, the analyst said.
Citing Solarbuzz’s reports, Beijing-based Securities Daily stated that the
strategies used by Chinese PV manufacturers while exploring foreign
markets include setting up production lines abroad and outsourcing. The
Zhejiang-based Renesola Group for example, successfully expanded into
markets in Europe, Australia and India through outsourcing.
In the future, it is vital for Chinese PV businesses to secure emerging
markets, the Securities Daily said.
Despite the Middle East was once again being shrouded by gunfire and
killing, crude oil (92.73, -0.07, -0.08%) futures are still down
The American surge in domestic oil and gas production puts
OPEC’s (OPEC) dominance in jeopardy. This is partly true, but there
is one important reason is that the demand is no longer as strong
CIBC World Markets chief economist Jeff Rubin pointed out before,
the average daily oil consumption in the United States has dropped
from 21 million barrels before the financial crisis barrels fell
to 18.60 million barrels of crude oil consumption. Europe’s numbers
are also dropping. China’s numbers have also stopped growing at
such a fast pace.
“If crude oil futures ended up with its cousin the same
fate of coal, then oil prices will fall in the near future to
$40-60 U.S. dollars a barrel.
Message to the world…Don’t touch our Iranian oil imports.
Want China Times
China and Iran are preparing to launch a joint military exercise, reports the
Global Times, a tabloid under the auspices of the Communist Party mouthpiece
Warships from the People’s Liberation Army have docked at the Iranian port of
Bandar Abbas ahead of the historic drills, the first time Chinese vessels have
ventured into the Persian Gulf. Admiral Amir Hossein Azad, commander of Iran’s
First Naval Zone, said on Sept. 20 that the five-day military exercise would
entail joint rescue operations and testing the technical readiness of the
respective fleets of both sides. The exercises are aimed at “establishing peace,
stability, tranquility, and multilateral and mutual cooperation” between the
two countries, he added.
The admiral’s sentiments were reciprocated by Huang Xijiang, deputy chief of
staff of the PLA’s East Sea Fleet, who led the Changchun Type 052C destroyer
and the Changzhou Type 054A frigate in Bandar Abbas on Saturday morning, when
they were greeted by Iranian military officials and representatives from the
Chinese embassy in Iran.
Huang said in his arrival speech that the PLA Navy was visiting for “peace and
friendship,” adding that he hopes the experience can help both sides improve
their mutual learning and understanding. Both the Chinese and Iranian navy
will open up their vessels for inspections by the other side during the cultural
exchange, which will also reportedly include friendly soccer, table tennis and
The exact timeline of the imminent drills currently remain unclear, though they
will take place just days after the Iranian navy announced that they had foiled
a pirate attack on Chinese container ship in the Gulf of Aden.