Shanghai Police Officers to Begin Carrying Guns..meanwhile, in the States, well sometimes pictures are worth a thousand words. WSJ Shanghai Police Officers to Begin Carrying Guns Move Illustrates Perception Violence From Crime and Terrorism are Growing in Expanding Urban Areas By JAMES T. AREDDY CONNECT
Wage pressure continues in China as revolts spread. The workers spend 12 hour days working for crumbs to make $5 shoes for Nike who then sell them to American Welfare recipients for $120. Welcome to the global economy 2.0. If your wondering what 3.0 is
Japan expands army footprint for first time in 40 years, risks angering China ONAGUNI, Japan (Reuters) – Japan began its first military expansion at the western end of its island chain in more than 40 years on Saturday, breaking ground on a radar station on
From cnsnews.com In 2012, according to the Census Bureau, approximately 103,087,000 people worked full-time, year-round in the United States. “A full-time, year-round worker is a person who worked 35 or more hours per week (full time) and 50 or more weeks during the previous calendar
First it was Wanda’s multi-billion dollar take-over of America’s second largest theater chain. Now China’s state-owned film distribution company is getting involved directly in the production of American movies. Keep in mind , China strictly limits the introduction of foreign media into their country. They
London (AFP) – China’s annual demand for gold could jump around 20 percent by 2017 as more of its increasingly wealthy population seek new ways to make money, the World Gold Council predicted on Tuesday. The forecast by the WGC comes after China became the
Chinese crackdown on corrupt officials is having a major effect as corrupt officials that cannot flee are now jumping from buildings or drinking themselves to death. As reported in the Chinese media… At least 54 Chinese officials have died from “unnatural deaths” between Jan. 1,
Amazing footage from the recent stand-off in Nevada as local politicians, some suspect which is Harry Reid, are using Federal troops to push people off land in order to make way for a Chinese solar farm.
Dan Collins CMR “The future belongs to crowds. Movements will be massive. The streets will rise and push.” – Mao 2: Don DeLillo The streets around the world are pushing and pulling. Middle Eastern countries such as Egypt, Tunisia, Syria lay in tatters after
Shanghai Police Officers to Begin Carrying Guns..meanwhile,
in the States, well sometimes pictures are worth a thousand words.
Shanghai Police Officers to Begin Carrying Guns
Move Illustrates Perception Violence From Crime and Terrorism are
Growing in Expanding Urban Areas
By JAMES T. AREDDY CONNECT
Updated April 21, 2014 9:30 p.m. ET
SHANGHAI—Police forces here started carrying firearms for the first
time in six decades in a program several Chinese cities plan to
replicate in response to growing fears of violence from crime and
Over the weekend, more than 1,000 street-patrol officers began
carrying 9mm revolvers, Shanghai’s Public Security Bureau said.
Several other cities across China were set to begin similar
(Top: Shanghai Police begin carrying 9mm handguns)
(Bottom: Typical City police officer in the U.S.)
Wage pressure continues in China as revolts spread. The workers
spend 12 hour days working for crumbs to make $5 shoes for Nike
who then sell them to American Welfare recipients for $120. Welcome
to the global economy 2.0. If your wondering what 3.0 is , that is
the time when global wage rates are roughly the same for everyone
around the world.
Want China Times
Yue Yuen shoe strike expands from Guangdong to Jiangxi
A week after 30,000 workers from the Yue Yuen shoe factory in Dongguan
in southern China’s Guangdong province took to the streets over invalid
contracts, 2,000 workers from another of the company’s factories, located
in Ji’an in eastern China’s Jiangxi province, have also joined the strike,
reports the Hong Kong-based Oriental Daily.
Operated by the Taiwan-based Pou Chen Group, the Yue Yuen factory in
Dongguan’s Gaobu township is one of the biggest shoe factories in China and
produces footwear for more than 30 top brands such as Nike, Adidas and Reebok.
The factory currently employs more than 60,000 workers. The protest began on
Apr. 14 when workers found out that the factory had failed to pay its employees
their full social security and housing fund contributions.
A senior factory worker surnamed Li told the web portal Nanfang that he was
unable to use his permanent work contract as evidence of local residence in
order to enroll his child in a local school because he was told his contract was
not legally binding. Migrant workers like Li must present documents which prove
to the local authority that they and their family members have stayed in the
province for at least five years before their children are allowed to study in
In addition to the invalid contracts, the factory also cheated its workers in
regards to their insurance packages, with some having to pay 40,000 yuan (US$6,400)
while others only had to pay 10,000 yuan (US$1,600) for the same scheme. Following
these issues coming to light, workers decided to strike to demand that the factory
sign new contracts with them and improve their working conditions. So far, the
factory has arranged a round of negotiations with the strikers,
however a consensus has yet to be reached.
Following the action of their counterparts in Dongguan, 2,000 workers from Ji’an
decided to down tools in protest over unfair treatment on Apr. 20. The protest
has remained peaceful but many of the workers have expressed anti-Taiwanese
sentiment, the Oriental Daily said, adding that protesters have demanded that
their Taiwanese supervisors leave the country.
Japan expands army footprint for first time in 40 years,
risks angering China
ONAGUNI, Japan (Reuters) – Japan began its first military expansion
at the western end of its island chain in more than 40 years on Saturday,
breaking ground on a radar station on a tropical island off Taiwan.
The move risks angering China, locked in a dispute with Japan over nearby
islands which they both claim. Japanese Defense Minister Itsunori Onodera,
who attended a ceremony on Yonaguni island to mark the start of construction,
suggested the military presence could be enlarged to other islands in the
seas southwest of Japan’s main islands. “This is the first deployment since
the U.S. returned Okinawa (1972) and calls for us to be more on guard are
growing,” Onodera told reporters. “I want to build an operation able to
properly defend islands that are part of Japan’s territory.”
The military radar station on Yonaguni, part of a longstanding plan to
improve defense and surveillance, gives Japan a lookout just 150 km
(93 miles) from the Japanese-held islands claimed by China. Building the
base could extend Japanese monitoring to the Chinese mainland and track
Chinese ships and aircraft circling the disputed crags, called the
Senkaku by Japan and the Diaoyu by China.
The 30 sq km (11 sq mile) Yonanguni is home to 1,500 people and known for
strong rice liquor, cattle, sugar cane and scuba diving. Prime Minister
Shinzo Abe’s decision to put troops there shows Japan’s concerns about the
vulnerability of its thousands of islands and the perceived threat from China.
The new base “should give Japan the ability to expand surveillance to near
the Chinese mainland,” said Heigo Sato, a professor at Takushoku University
and a former researcher at the Defense Ministry’s National Institute for
“It will allow early warning of missiles and supplement the monitoring of
Chinese military movements.”
Japan does not specify an exact enemy when discussing its defense strategy but
it makes no secret it perceives China generally as a threat as it becomes an
Asian power that could one day rival Japan’s ally in the region, the United
States. Japan, in its National Defense Programme Guidelines issued in December,
expressed “great concern” over China’s military buildup and “attempts to change
the status quo by coercion” in the sea and air. China’s decision last year to
establish an air-defence identification zone in the East China Sea, including the
skies above the disputed Senkaku/Diaoyu islets,further rattled Tokyo. Japanese
and Chinese navy and coastguard ships have played cat-and-mouse around the
uninhabited islands since Japan nationalized the territory in 2012.Japanese
warplanes scrambled against Chinese planes a record 415 times in the year through
to March,the Defence Ministry said last week.
Tapping concern about China, Abe raised military spending last fiscal year for the
first time in 11 years to help bolster Japan’s capability to fight for islands with
a new marine unit, more longer-range aircraft, amphibious assault vehicles and
helicopter carriers. Japan’s thousands of islands give it nearly 30,000 km
(18,600 miles) of coastline to defend.
In 2012, according to the Census Bureau, approximately
103,087,000 people worked full-time, year-round in the United
States. “A full-time, year-round worker is a person who worked
35 or more hours per week (full time) and 50 or more weeks
during the previous calendar year (year round),” said the
Census Bureau. “For school personnel, summer vacation is
counted as weeks worked if they are scheduled to return to
their job in the fall.”
Of the 103,087,000 full-time, year-round workers, 16,606,000
worked for the government. That included 12,597,000 who worked
for state and local government and 4,009,000 who worked for
the federal government.
The 86,429,000 Americans who worked full-time, year-round in
the private sector, included 77,392,000 employed as wage and
salary workers for private-sector enterprises and 9,037,000
who worked for themselves.
At first glance, 86,429,000 might seem like a healthy
population of full-time private-sector workers. But then
you need to look at what they are up against.
The Census Bureau also estimates the size of the benefit-
receiving population. This population, too, falls into
two broad categories. The first includes those who receive
benefits for public services they performed or in exchange
for payroll taxes they dutifully paid their entire working
lives. Among these, for example, are those receiving
veteran’s benefits, those on unemployment and those
getting Medicare and Social Security.
The second category includes those who get “means-tested”
government benefits — or welfare. These include, for example,
those who get Medicaid, food stamps, Supplemental Security
Income,public housing, Temporary Assistance for Needy
Families, and Women, Infants Children.
Of course, it stands to reason that some people lived in
households that received more than one welfare benefit at
a time. To account for this, the Census Bureau published
a neat composite statistic: There were 108,592,000 people
in the fourth quarter of 2011 who lived in a household
that included people on “one or more means-tested program.”
Those 108,592,000 outnumbered the 86,429,000 full-time
private-sector workers who inhabited the United States in
2012 by almost 1.3 to 1. Eventually, there will be too few
carrying too many, and America will break.
First it was Wanda’s multi-billion dollar take-over
of America’s second largest theater chain. Now China’s
state-owned film distribution company is getting involved
directly in the production of American movies. Keep in
mind , China strictly limits the introduction of foreign
media into their country. They understand the power of
media to control the population. They are about to use $3.6
trillion in currency reserves to start taking control and
attempt to shape global opinion in their image.
China Film takes 1st stake in Hollywood movies
HONG KONG (AP) — China’s state-owned film distributor is
making its first investment in Hollywood movies by taking
a stake in two Legendary Entertainment productions.
China Film Co. will make an “eight-figure equity investment”
in two upcoming films, “Seventh Son” and “Warcraft,” the
Chinese unit of Legendary Entertainment said Tuesday.
The exact amount of the U.S. dollar investment was not
specified. “Seventh Son” is a fantasy adventure starring Jeff
Bridges and Julianne Moore that’s scheduled for release on
Feb. 6, 2015. “Warcraft,” based on a popular video game
series, is slated for release March 11, 2016.
If approved for release in China, China Film would distribute
the movies under current rules and regulations for foreign
films, which are limited to just 34 a year. The deal calls
for China Film to be credited on the movies.
China Film, which is planning to go public, owns stakes in
movie theater chains that make up half of the country’s box
office receipts. Its parent, China Film Group, is the
gatekeeper for foreign studios because it controls film
imports and co-productions.
The projects are the first since Legendary and China Film
teamed up about a year ago to produce global blockbusters.
It’s one of a number of recent tie-ups between companies
in the world’s two biggest movies markets.
As box-office revenue growth flattens out at home,
Hollywood studies are keen to move into China, now the
world’s second biggest movie market with $3.6 billion in
ticket sales last year. China’s leaders hope that entertainment
companies can benefit from the joint ventures by acquiring know-
how to develop their own cultural industries in order to
expand influence abroad.
Legendary Entertainment’s films include “The Dark Knight”
and “Hangover” trilogies and last year’s sci-fi action
adventure “Pacific Rim.”
London (AFP) – China’s annual demand for gold could jump
around 20 percent by 2017 as more of its increasingly
wealthy population seek new ways to make money, the
World Gold Council predicted on Tuesday.
The forecast by the WGC comes after China became the
world’s largest gold-consuming nation in 2013, overtaking
India. Annual demand for gold in the form of jewellery,
coins and bars is set to hit “at least 1,350 tonnes by
2017″, the WGC said in a report on China. That would
represent a rise of nearly a fifth from the country’s
record consumption of 1,132 tonnes last year.
“The traditional appeal of gold to the Chinese people
and consumers’ optimistic outlook for prices should
result in private sector demand from all sources climbing
to at least 1,350 tonnes by 2017,” the London-based
Gold prices slumped by a nearly a third last year as
investors abandoned the perceived safe haven investment
in favour of stocks and other riskier bets.
Chinese crackdown on corrupt officials is having a
major effect as corrupt officials that cannot flee
are now jumping from buildings or drinking themselves
As reported in the Chinese media…
At least 54 Chinese officials have died from “unnatural
deaths” between Jan. 1, 2013, and April 10, 2014, of which
23, or 42.6%, committed suicide, followed by deaths due to
over-drinking, reports China Youth Daily, the official
paper of the Communist Youth League of China.
On April 7, police in Chongqing in southwest China
confirmed that Zhou Yu, head of the Yuzhong district’s
Economic Crimes Investigation Team, committed suicide in
a hotel on April 4. Yu was once hailed as a hero for his
contribution in cracking down on gangster activities in
Chongqing, the paper said.
On April 10, reports showed that Xu Yean, a deputy head of
the State Bureau for Letters and Calls — the organization
responsible for dealing with complaints made by citizens —
was found hanged in his office on April 8.
Of the 23 reported suicides, eight jumped to their deaths
from buildings, while others chose to hang themselves or
drinking pesticides. Eight out of the 23 are believed to /
have suffered from depression.
Among the deaths, Bai Zhongren, president of the China Railway
Group — the nation’s largest construction company — had the
highest ranking. His mysterious death on April 4 at his home
has led to many questions, however the cause remains unknown.
His family said Bai had shown signs of depression before his
At least nine officials died from overdrinking and nine from
accidents. On April 7, 2013, a car accident in Xinmi city in
central China’s Henan province killed five officials from
Shan county, including the county’s legislative president
Four others died in falls from buildings, but there are no
information on whether they committed suicides, were murdered,
or fell by accident, the paper said.
Six officials died of other reasons, with only one official
being executed. On June 18, 2013, Li Xingong, former deputy
director of the general office for the Party committee of
Henan’s Yongcheng city, was executed after being found guilty
of rape and child molestation.
Amazing footage from the recent stand-off in Nevada
as local politicians, some suspect which is Harry Reid,
are using Federal troops to push people off land in order
to make way for a Chinese solar farm.
“The future belongs to crowds. Movements will be massive.
The streets will rise and push.”
– Mao 2: Don DeLillo
The streets around the world are pushing and pulling.
Middle Eastern countries such as Egypt, Tunisia, Syria lay
in tatters after there so called “Arab Spring”….only oil
rich monarchies remain propped up for the time being. The
Ukraine is now split apart with part of it being annexed by
Russia. The crowds sung and welcomed Russian troops, a
scene not to different from Hitlers invasion of the
Sudetenland in 1933. This was brought on by both internal
factors in the Ukraine and outside factors from the West.
The domestic issues in the Ukraine were the extremely poor
economy and crony capitalism. In our January issue we
highlighted the Ukraine as a potential hotspot as food prices
reached 44% of income. It is at these levels where people hit
Outside intervention is also to blame in the crisis with
recently a high level official in the U.S. admitting that
billions had been spent to overthrow the regime and try and
bring the Ukraine into the NATO fold. The American military
industrial complex despite a 20 year diversion into the
“war on terror” could never quit the Cold War. The Ukrainian
cards have yet to be played on the world stage. The Country
is $30 billion in debt and there is no way the EU or the U.S.
has or will pony up that kind of money to bailit out. So for
future headlines, we need to be wary of “Ukrainian default”
and how that will affect markets.
The start of this century has been anything but calm and
prosperous thus far. We opened up with the 9-11 terror plots
and then the American invasions of Iraq and Afghanistan.
We have seen an economic meltdown starting in 2008 that
continues with a tsunami of money printing to try and stop
the flow of the crisis. Japan and the U.S. are the major
culprits behind the global flood of liquidity which threatens
to entrench the “paper aristocracy”, which is basically
anyone with access to the printing press.
The middle-class is quickly being sucked down an economic
hole through inflation and unfettered low-cost labor moving
into the developed nations. The European Union is close to
tatters with major powers such as the U.K. ready to vote
themselves out. The southern European countries have 50%
youth unemployment going for close to a decade now and no
hope of any real economy breaking out.
In the U.S. we are in a calm before the storm. Rising
inequality and a full-stop on social mobility will take more
and more media headlines. For now, the U.S. is sedated by
dollar menus and sports,however, as the U.S. Dollar fades
as a global currency and the country wakes up to the
nightmare created by the government, the people will hit
the streets. For those of us who grew up in the Detroit,
Buffalo or the Cleveland’s of the country we have
seen the future and what de-industrialization brings.
Occupy Wall Street was just an insignificant shadow of what
is to come.
Indeed the streets will rise and push..are you ready to
Commercial rents in Beijing’s Finance Street are the
third-highest in the world behind Hong Kong’s Central
and London’s West End, Bloomberg reported, citing data
from real estate broker CBRE. The average rent on Finance
Street, near Beijing’s central business district (CBD),
topped US$80.5 (RMB 500) a square meter at the end of
2013. That compares to US$75.7 in the CBD. Despite poor
air quality, the slow rate of property development,
strong investment demand and the city’s appeal as a
financial hub has all helped raise office rents to
Its something right out of Atlas shrugged. One of the
few last functioning industries of the country that
the government has not killed off and that foreigners
are attracted to and spending money on are the gaming
tables in Las Vegas.
Of course, in Washington D.C. with so many bureaucrats
with nothing to do they are now investigating ways to
stop financial fraud and in the process kill of a city.
Of course, it was just recently reported that $6 billion
is missing from the State Department, but don’t expect
any real hope and change in that area.
Casinos shudder over possible federal requirement to
divulge source of high rollers’ gambling funds
By HOWARD STUTZ
LAS VEGAS REVIEW-JOURNAL
Word that the U.S. Treasury Department may soon
require the casino industry to report the source
of gambling funds used by their big spending high
-rollers sent a few shock waves through corporate
It wasn’t so much a rumble as it was a magnitude 7.0
The move is part of a stepped-up effort by the Treasury
Department’s Financial Crimes Enforcement Network (FinCEN)
to crack down on money laundering. Last September, FinCEN
Director Jennifer Shasky Calvery told an audience at the
Global Gaming Expo in Las Vegas that casinos could be
subjected to the same requirements as banks and other
“Every financial institution, casinos included, should be
concerned about its reputation,” she said during a speech
at the Sands Expo and Convention Center. “Integrity goes
a long way.”
A former gaming regulator said FinCEN hinted in the past
that it could force casinos to comply with Title 31 of the
Bank Secrecy Act. This is the loudest, however, the
discussion has gotten.
Reuters reported last month that FinCEN will soon announce
a requirement that casinos investigate the source of a
player’s bankroll under Title 31 of the Treasury Department’s
Bank Secrecy Act.
Casino operators have long contended gamblers will stay away
from the tables rather than be subjected to what they believe
to be an intrusion on their privacy. High-end baccarat play
kept the Strip afloat during the recession, so any disruption
in this business frightens gaming executives.
With the presence of Macau and Singapore, and the potential
rise of resorts in South Korea, Japan and other Asian markets,
the fear of lost business is worrisome along the Strip.
The day after the Reuters report, the American Gaming
Association issued a statement saying it “is actively engaged
with key federal agencies” in seeking some common ground on
the matter. “This is a serious issue that could radically
alter the way that casinos do business,” AGA President Geoff
Freeman said in the statement.
Nevada had an anti-money laundering law on the books —
Regulation 6A — but it was eliminated in 2006. Regulators
said the rule became obsolete because the federal government
took over the tracking of large cash transactions.
Fred Curry, a Washington D.C.-based partner in Deloitte
Financial Advisory Services, who consults on anti-money
laundering matters, said the casino industry is a decade
behind other financial businesses when it comes to complying
with Title 31 requirements.
Curry was a banking regulator when a similar rule was placed
on the banking industry 15 years ago. Despite dire predictions
that customers would take their business elsewhere, the banks
survived. It’s not a matter of if, but when, FinCEN places
the same onus on the gaming industry, Curry said.
“Casinos should be working now to get ready for the FinCEN
announcement and improve their anti-money laundering programs
,” Curry said. The signs are beginning to appear.
Last August, Las Vegas Sands Corp. struck a deal with federal
prosecutors and paid a $47.4 million settlement to avoid
criminal charges in connection with a money-laundering
investigation at The Venetian. Some wonder if the potential
action toward casinos by FinCEN is just an intrusive practice
under the cover of national security. The last thing the
gaming industry wants to see is a change in business policy
that harms the customer experience without providing any
meaningful law enforcement value.
Weibo, China’s answer to Twitter, has set the price
range for its public listing at between US$17 and
US$19 per share.
According to the prospectus, which Weibo filed with
the United States Securities and Exchange Commission
last week, it has priced its IPO of American Depositary
Shares (ADS) at US$17-$19 per share and the Chinese
firm plans to issue 20 million Class A shares converted
into ADS, plus an over-allotment of 3 million shares.
The company could potentially raise US$437 million based
on an IPO price of US$19 per share.
Weibo plans to use the generated capital to enhance the
visibility of its brand and award stock incentives to
outstanding employees, as well as earn additional capital.
Weibo also plans to use US$250 million of the funds raised
from the public listing to pay off the debt it owes Sina,
its parent company.
Following the public listing, Sina’s shareholding in Weibo
will drop from 77.6% to 56.9% and stocks held by Charles
Chao, CEO and president of Sina, and other management
executives will decrease to 2.5%, but Alibaba’s shareholding
in Weibo will be raised from 19.3% to 32%.
The Chinese-language Beijing Times reported that some
institutions were estimating Weibo’s valuation at US$4
billion, based on the price range of the public listing.
The market had earlier projected Weibo’s valuation at
US$3.6-$6 billion. A TH Capital report showed that the market
value of Weibo was projected at US$6.5 billion after it became
a publicly traded company.
Li Yi, secretary-general of the China Mobile Internet Industry
Alliance, stated that the valuation of US$4 billion was lower
than the market’s estimate, but he explained that it was
understandable based on Alibaba’s plan to invest in Weibo.
He also said that given the additional shares that Alibaba
planned to obtain in the future, Alibaba’s cost of investment
would increase if Weibo’s stock prices were too high.
“There will come a time when you believe everything is finished; that will be the beginning. ”
― Louis L’Amour
The development of free trade zones and the rise of the
new offshore market for the renminbi, will continue to
ensure that offshore renminbi-denominated capital grows
at a relatively fast pace.
Standard Chartered Bank has projected that the total
renminbi-denominated capital will grow by at least 40%
to 2.5 trillion yuan (US$403 billion) by the end of 2014.
In 2013, offshore renminbi-denominated assets, including
deposits, bonds and loans, nearly doubled. Major offshore
centers for the renminbi, such as Hong Kong, Singapore,
Taiwan and London reported a combined 1.2 trillion yuan
(US$193 billion) in renminbi-denominated deposits.
A growing number of offshore centers for the renminbi
have opened globally due to rising global demand and the
implementation of favorable policies. The signing of
foreign-exchange agreements with other countries has
also benefited the development of offshore centers for
At present, the People’s Bank of China, the country’s
central bank, has signed currency swap agreements with
20 economies, including Hong Kong for 400 billion yuan
(US$64 billion), Singapore for 150 billion yuan (US$24
billion) and the United Kingdom for 200 billion yuan
Ceajer Ka-keung Chan, the secretary for financial services
and the treasury in Hong Kong, stated that the renminbi’s
offshore business has to be diversified so that it can
become an international currency.
Among the offshore centers for the renminbi, Hong Kong has
the largest capital. Official data on Hong Kong showed that
renminbi-denominated deposits at local banks touched 920.4
billion yuan (US$148.4 billion) in February this year, up
by 3% from a year ago.
Since renminbi-denominated transactions have been allowed
in Taiwan since February last year, Taiwan had accumulated
renminbi-denominated deposits worth 247.1 billion yuan
(US$39.8 billion) in domestic banking units and offshore
banking units, a record high, according to Taiwanese
regulators’ statistics released on March 14.
In Asia, Singapore is also a strong competitor as its
renminbi-denominated deposits exceeded 100 billion yuan
(US$16.1 billion) last year.
China’s central bank also signed a currency swap agreement
for 350 billion yuan (US$56.4 billion), or €45 billion
(US$62.1 billion), with the European Central Bank in October
last year. China has also signed memorandum of understanding
on the renminbi’s settlement and clearing with Frankfurt and
However, renminbi-denominated transactions remain limited in
the United States, compared with other offshore renminbi
centers, and their volume is still relatively small in
comparison with other foreign currencies in the United
Being involved in the Chinese property sector since
2001 has given me insights into Chinese property that
just doesn’t exist on CNBC where people have been
calling for a crash in Chinese property since 2005.
I have said from the beginning it would not happen
and indeed prices have NEVER gone down since 2001.
I’m not saying they will not go down, everything does
at some point, but with massive home equity and 50%
of homes paid in cash, the Chinese market is still a
long way away from a crash. Chinese will continue to
park money into what they perceive as a “real asset”
as opposed to financial assets.
In London, on the other hand, we could be seeing a
great unwinding. I have just returned from 2 weeks
in the U.K. I had a chance to look at several
properties in and around London.
My findings, which would be more qualitative then
quantitative tell me that Shanghai prices are currently
only 10% that of London. Keep in mind, London is a
world-class city in every respect. However, when you
factor in location from city center, number of bedrooms,
over-all size, and general quality levels the prices
are very very high in London, especially for an economy
dependent on the financial sector and government hand-outs.
In Shanghai today, you can still buy a luxury 3 bedroom ,
200 sq. meter apartment in the city center, complete with
security, for around $700,000 U.S.D.
In London’s city center, a similar property would be well
over 5 million Pounds, maybe closer to 10 million.
Now more evidence of an upcoming unwinding,this piece
from the Telegraph…
London house price boom could ‘unravel’, warns Deutsche
Bank Investment bank warns of threat posed to UK economy
by an overheating housing market, the end of cheap money
and a rise in interest rates
London house prices could “unravel” in the face of a toxic
mix of a strengthening pound and the Bank of England rushing
through interest rate rises from next year, Europe’s largest
investment bank has warned.
Deutsche Bank has brought forward its expectations for the
Bank to increase interest rates starting from May 2015 –
raising concern among mortgage holders already struggling
to service their debt.
The German lender expects rates to increase to 1pc by the
end of next year, in a research note titled “Strong growth
not built to last”. Coupled with the end of “easy money” on
global capital markets as central banks rein in loose monetary
policies, Britain’s housing market could come crashing back
to earth as the influx of foreign buyers dries up.
UK property prices have been supported in a high value areas
such as London from a surge in Russian, Chinese and Middle
East buyers seeking an investment safe haven.
Property prices in the nation’s capital have rapidly outpaced
the rest of the country. From lows in 2009, house prices in
London have soared by almost 50pc since the economic crisis,
and are now 20pc above their pre-crisis peak, according to
Deutsche Bank research.
House prices in the rest of the UK have generally struggled to
recover post-crisis as wages have remained stagnant. Property
prices in the regions remain exposed to even small increases
in the Bank Rate that could rapidly make mortgage payments
Household finances remain stretched and exposed to any
increase in the cost of mortgage finance. A toxic combination
of rising interest rates, a strengthening of the pound and
further austerity could all result in the long run average
of growth slowing to 2pc as soon as next year, say economists
The Bank of England’s Financial Policy Committee said it
would “remain vigilant to emerging vulnerabilities” related
to the recovery in Britain’s housing market and would “take
further proportionate and graduated action if warranted.”
The Federal Reserve also has been tightening its monetary
policy by reducing the amount of bonds it buys by $20bn to
$65bn a month. The US central bank has also said it could
raise interest rates from near-zero to 1pc next year and
2.25pc the year after.
The reduction of US easy money has seen the value of Chinese
currency fall, which could see cash rich buyers pull back from
investments abroad. This could have a knock on effect for London
house prices as off-plan new development flats have proven wildly
popular with Asian buyers.
According to figures from Nationwide on Wednesday, London house
prices are now 100pc more than those elsewhere in Britain, with
the difference in price between the average home in and outside
London now £183,000.
Beijing’s build-up is leading rivals to follow suit, a trend
likely to gather pace in coming years
Everyone knows about China’s arms build-up. Beijing’s defense
budget has risen eightfold in 20 years. In that time it has
become comfortably the world’s second-biggest spender on the
military. In 2012, the country accounted for nearly 10 per
cent of global expenditure, according to the Stockholm
International Peace Research Institute, which monitors defense
spending. That was more than Russia and the UK combined,
although only a quarter of what the supposedly cash-strapped
US laid out on its armed forces, according to official figures.
Less understood, however, is the effect China’s military build-
up is having on Asia as a whole. In 2012, for the first year in
modern times, Asian states spent more on defence than European
ones. From India to South Korea and from Vietnam to Malaysia,
governments in the region are ramping up defence spending.
Even pacifist Japan, which for years has been cutting its
defense outlays, has recently started to reverse the trend as
it reorients its defence posture towards what it perceives as
a growing Chinese threat.
We highlighted a year ago, to drop U.S. network tech
companies as they were about to be weeded out of the
worlds largest I.T. market, China. The word came down
from Beijing about 30 days after the original Snowden
information broke. The big U.S. tech firms, already
50% reliant on fat, wasteful U.S. government contracts
will be pushed further and further down the rabbit hole
into supplying only the U.S. government as other nations
flee an intrusive U.S. government spy program.
Want China Times
Cyber attacks against China are on the rise as backdoors —
created by developers to access the system without being
known to users — have been detected in routers sold in
China, reports the Chinese-language Beijing Youth Daily,
citing a report released by the country’s internet security
The backdoors, which put networks and user data at risk,
have been detected in products made by various brands,
including D-Link, Cisco, Linksys, Netgear and Tenda.
Numerous applications using the Android platform have the
potential to make mobile devices vulnerable to cyber
attacks, the National Computer Network Emergency Response
Technical Team Coordination Center of China (CNCERT)
pointed out in a report covering 2013.
The report said that last year’s national information
security vulnerabilities sharing platform (CNVD) listed a
total of 7854 types of security vulnerabilities, an increase
of 15.1% compared with 2012, with the figure including 2,607
high-risk vulnerabilities, a 6.8% increase.
The CNCERT report also claimed that hardware and software
vulnerabilities in the networking kit has risen 1.5 times
since 2012. Meanwhile, after examining and analyzing the
backdoors in routers by D-Link, Cisco, Linksys, Netgear and
Tenda, the CNVD reported that hackers have been able to
launch cyber attacks through these routers.
The presence of a backdoor in commercial routers may expose
users to attacks, such as DNS hijacking, information
interception, and phishing.
The CNCERT noted that although the center issued a warning
to the router producers, some of them have yet to provide
solutions or upgrades to prevent possible attacks as of
January. The report also said there has been an “explosive”
growth in mobile malware, with 703,000 new samples found
last year, 3.3 times more than in 2012 and with most
(99.5%) prevalent on the Android platform.
As communications networks and social media accumulate huge
amount of data, they become more vulnerable to cyber attacks,
the report explained. In addition, cyber attacks designed to
steal valuable business information have become more refined
and diverse. Examples of new styles of attacks included
virus-laced emails sent to a mailing list used by targets.
For instance, if a targeted person scanned the bar code
attached to the email with a smartphone, a virus could be
downloaded that would then forward the smartphone’s terminal identification information to the attacker, the report said.
Listen to the real economy folks if you want to understand
China. Instead, the media is consonantly asking the
Wall Street crowd about what is going on in China. They have
no idea because the financial sector in China is walled-off
from Wall Street. They are very very small players in China
accounting for less than 1% of the market. They are not real
players and don’t live here.
BEIJING — Daimler AG and joint-venture partner Beijing Automotive Industry Holding Corp. will spend 1 billion euros (8.58 billion yuan) to double production capacity at their Beijing plant to keep pace with rising demand. The factory, which builds C-class sedans, E-class sedans and GLK SUVs, will be able to produce more than 200,000 autos in 2015, the Stuttgart automaker said in a statement.