HANGZHOU – Two brothers and their father were sentenced to death on Monday for cheating 15,000 investors out of over $1.1 billion in east China’s Zhejiang province. Ji Wenhua, president of the Yintai Real Estate and Investment Group, was sentenced to death for the crime
Dan Collins CMR “Gold going to $7,000″, an article today in the Chinese media is going viral and one of the most viewed articles in the financial press. The article references American Jim Rickards and his concept of comparing inflation-adjusted gold prices. Most Chinese economists
It’s not uncommon for the large Wall Street banks to combine in shorting an entire years supply of minded silver in a single day.The same goes for all commodities. Endless paper printing getting funneled to Wall Street has destroyed all real price discovery. Capitalism fails
Chanos is back! His short China thesis is very long in the tooth but as it goes with most ego maniacs he cannot accept failure or that fact that he might be wrong. Being wrong on an entire country where you have never visited and
Dan Collins CMR When I moved to China back in 1998 I was surprised to learn how highly the Chinese thought of America. Of course China was a much poorer place back then but coming from the Detroit area I couldn’t fathom where was all
You have to laugh at the whole “China will collapse crowd” on CNBC and even respected sites like Zero Hedge. Personally, I love the Zerohedge stuff. They understand the ponzi-financial fraud-money printing-welfare state economy that now envelops the West. But China is a real economy,
D.Collins CMR China’s cloud computing market is expected to be worth 37.2 billion yuan (US$6 billion) in 2017 as demand for the service grows, the Chinese-language China Securities Journal reported on Friday. Some American tech companies are watching the largest and fastest I.T. market in
Breaking News today that a Chinese vessel as rammed and sunk a Vietnamese fishing boat. All countries in the South China Sea and East China Sea are using fishing boats in a game of cat-and-mouse to challenge each other on their respective areas. This time
Scared of losing the Chinese tourist dollar, France has relented to China and will allow Chinese police on the streets of Paris. More signs of the benefits of third-world immigration into the West to the point where cultural breakdown has occurred and law and order
Gold has been flowing East for a decade. When the West wakes up to the fact that their gold is gone, they will no longer have sound money with which to back a currency. The world has only been off a gold standard since 1971
From the China Daily… BEIJING – China will lower banks’ reserve requirement ratio (RRR) by 0.5 percentage points starting May 18, the country’s central bank announced Saturday. The cut, the second of its kind this year, will drop the RRR for the country’s large financial
Is China tweaking its numbers on GDP? Probably. For twenty years Chinese GDP roughy came in right on the governments target. This would be an almost magical performance record considering economists in the West can predict absolutely nothing. For years, China most likely lowered GDP
Japan will learn the hard way that destroying your currency is not an viable economic strategy. Shanghai Daily JAPAN posted a record 1.63 trillion yen (US$17.4 billion) trade deficit in January as rising exports trailed surging imports of crude oil and gas due to rising
American GDP: The Fantastic Fiction of American Economic Strength By Dan Collins Is the U.S. economy still the most powerful in the world? That is what we are told as the United States does have by far the world’s largest Gross Domestic Product (GDP). In
Youtube, Facebook, and Twitter are all blocked in China. They have algorithms in place to disrupt Google service as well which makes it very annoying even using Google here. You get many dead links when the algo’s are working. Despite blocking American companies in China,
War is Coming. Get ready for it. Shots will be fired. The U.S. Navy will
get hit in the South China Sea. Alarm bells will sound all across the region.
Japan will rearm at an astounding pace but with an old, geriatric population
this will not be a repeat of WW2 where they blitzkrieged the region. There are
millions and millions of Chinese living in Japan that will provide a fifth column
into the country. The Chinese living there will be deported. In retaliation,
Japanese business in Mainland China will be nationalized or sold off to Chinese
investors.Bad blood will ensue, and you can expect a Chinese invasion on mainland
Japan which will be successful as the country is old and disarmed.
Russia and China have formed into a significant military block. The world
will then have to choose between the U.S. and China/Rus. One country cannot
support themselves and has started war after war for decades. The other country
can build infrastructure for you, loan you money, and buy your products on a fair
trade weighted balance. Does the U.S. really want the nations of the world to make
that choice? To stare into that abyss? As Neitszhe said, sometimes when you stare
into the abyss the abyss stares back.
China accused the United States on Thursday of threatening to sow “chaos” in
the Asia-Pacific region by inciting countries whose territorial claims in the
South China Sea clash with those of Beijing.
It is the latest round in a war of words over the area, where tensions are
mounting and rhetoric escalating.
China is rapidly building artificial islands in the disputed waters, and US
Defense Secretary Ashton Carter on Wednesday demanded an “immediate and
lasting halt to land reclamation by any claimant”.
Beijing’s foreign ministry spokeswoman Hua Chunying told a regular briefing:
“If the major powerhouse of world economic growth is thrown into chaos, will
that serve the interests of the American side?”
The countries that make up the Asia-Pacific Economic Cooperation forum account
for more than 50 percent of global GDP and nearly half of world trade.
The South China Sea is a major shipping route for international trade.
Want China Times
James Fanell, the former director of the US Pacific Fleet’s intelligence and information, predicted China will eventually have about 415 warships including four aircraft carriers and 100 submarines in the near future while attending a two-day conference held by the US Naval War College’s China Maritime Studies Institute in Newport, Rhode Island last week, reports the Defense News.
The event was held to discuss the PLA Navy’s shipbuilding progress and challenges. It concluded that the PLA Navy is making achievements and will continue to grow. Most experts and scholars attending the conference agreed that the PLA Navy has devoted more resources to develop new vessels including destroyers, frigates and submarines armed with with the capability to hit and destroy enemy warships.
“Both surface vessels and subs seem to be largely focused on anti-surface warfare,” said Andrew Erickson, one of the experts attending the event. “That doesn’t mean they’re not working to progress in new directions, but it doesn’t seem to have borne as much fruit that we can easily see.” A lot of the anti-ship missiles equipped by the Chinese warships or submarines have ranges far in excess of similar missiles in service with the US Navy.
With such a large number of long-range surface-to-surface missiles in hand, the PLA Navy is altering politics and strategies throughout the Asian theater. “The PLA Navy will continue to expand for the next 15 years,” said Fanell. He added that the PLA Navy’s active defense in the near seas are going to grow while far seas operations will increase. At the same time, Fanell believes that more goodwill deployments will take place.
Along with continued improvements in modular construction, the use of robotics and virtual 3D manufacturing, and a growing preference for indigenous designs of improving quality, Fanell said that the PLA Navy can certainly increase the number of surge deployments and ballistic missile submarine patrols. More carrier strike groups will be established as well. To accomplish this task, China needs about 415 warships by year of 2030.
Fanell said those 415 warships include 99 submarines, four aircraft carriers, 26 corvettes, 73 amphibious ships, three missile craft, and 102 destroyers and frigates. China’s Type 052D guided-missile destroyer may not be as good as the US Navy’s Arleigh Burke-class destroyer, but Fanell believes that it is good enough for the PLA Navy since it is fitted with a vertical launch system, the YJ-18 anti-ship missile and an active array radar system.
By Charles Gray Source:Global Times Published: 2015-5-27
From decaying roads and bridges to airports that are, in the words of US Vice President Joseph Biden, comparable to “some third-world country,” US infrastructure is increasingly decrepit. Despite the country’s economic might, the American Society of Civil Engineers (ASCE) rated US overall infrastructure with a D+ grade in 2013 and estimated that about $3.6 trillion would be needed in order to effectively update and expand the nation’s infrastructure by 2020.
The challenge facing the country is a daunting one. Roads, sewage treatment systems, water networks, dams and electrical grids have all faced increasing demand in the face of an ever-growing population, while infrastructure funding has plunged to historic lows. In part, these declines were due to the 2008 recession, when state and local governments struggled with massive funding shortfalls. However, even before the recession, many experts were sounding the alarm over decaying infrastructure.
Today, the US spends under 2 percent of its annual GDP on infrastructure compared to 5 percent in Europe and 9 percent in China. While other nations roar ahead, the American people find their own government unable to maintain its position in the face of this growing infrastructure deficit.
In many cases, this decaying infrastructure can produce a serious danger to public safety. For example, the ASCE has claimed that in 2013 there were 2,000 dams that were considered deficient and potentially posed a serious threat to local populations if they failed. Similarly, improperly maintained roads and bridges can pose an immediate threat to the individuals using them.
In some cases, rural agencies have made the dramatic decision to strip the asphalt from their roads in favor of gravel surfaces, leaving them with roads little different from those that graced the nation before the rise of the automobile. In fact, it is possible that the recent Amtrak accident was due to the organization’s chronic underfunding. Experts have cited the lack of a “positive train control” system that might have prevented the derailment.
Additionally, the potential damage to US long-term economic prosperity produced by a failing national infrastructure is an extremely serious issue. Anyone who has endured an interminable delay in a traffic jam can attest to the lost productivity created by infrastructure failings. Businesses can face lost productivity due to power or water failures, as well as the potential for costly shipping delays due to overcrowded roads, ports and airports. At worst, such problems could convince a business that it might be wiser to relocate rather than continue to endure ever-worsening conditions.
Unfortunately, solving this issue is more easily said than done. In addition to funding issues, responsibility for maintaining and expanding US infrastructure is often handled by a confusing mixture of local, state and federal authorities. Especially in an era of tight budgets, a jurisdiction may find itself having to choose between deferring maintenance to existing infrastructure and adding new infrastructure improvements to keep up with the region’s population growth.
Monetarily, the congress continues to refuse to raise the gasoline tax, which has required a number of short-term funding solutions in order to ensure that the Highway Trust Fund does not go broke even at its current inadequate spending levels. Yet it’s true that raising the gas tax would be unpopular among many Americans, especially those who have yet to fully recover from the recent recession and face long daily commutes. Other tax increases or funding methods have also been stymied by opposition from a variety of groups.
How can the US rebuild its infrastructure? Perhaps the first step is in recognizing that nothing comes for free. The need to maintain current infrastructure while adding new dams, roads, electrical grids and sewage systems will require increased funding levels. In this case, America’s traditional dislike of taxes should be counteracted by the fact that investing in the nation’s infrastructure can pay dividends for decades to come. Ultimately, a nation with a decaying infrastructure is a nation that cannot remain competitive. The US must accept that maintaining an adequate national infrastructure is a goal that is well worth the added cost.
The capability of the PLA Navy’s Type 054A guided-missile frigate to take on the littoral combat ships of the US Navy was discussed in a piece by the Sina Military Network on May 22.
The USS Fort Worth, a Freedom-class littoral combat ship, had a run-in with the Yancheng, a PLA Navy’s Type 054A guided-missile frigate, while patrolling near the disputed Spratly islands in the South China Sea on May 11. The encounter indicated that Type 054A was unable to chase a littoral combat ship designed to be faster and maneuverable. The Sina report said however that it is not necessary for a modern frigate to defeat its enemy with speed and maneuverability.
The article said that it is up to the frigate’s missiles, radar, electronic warfare systems and helicopters to determine the outcome of the confrontation. After the introduction of anti-ship missiles since the end of World War II, a modern destroyer or frigate can destroy an enemy warship without having visual contact, the piece said.
China’s brokers have raised more capital this year than in the past three combined — and more than half the $14bn proceeds are being ploughed straight back into financing the equity boom that enabled them to tap the markets in the first place.
The frenzied rallies in Shanghai and Shenzhen this year have been largely fuelled by margin lending where loans to invest in the market are secured against the stocks purchased.
Margin-financed long positions in the onshore A-Share market now total Rmb1.9tn, or $307bn — up 84 per cent this year, and four times the level this time last year,according to Macquarie analysts. The sharp rise has stoked fears it could reverse almost as quickly: if the value of margin-financed portfolios were to fall, lenders would demand more collateral or reduce the size of loans, either of which could trigger forced selling.
Yet more than half of the $9.5bn of equity raised in Hong Kong this year by brokers will be used to finance more margin loans, according to the companies’ filings.
Still more funds will soon be added to the financing pool after Huatai Securities on Friday priced its initial public offering in Hong Kong at the top end of the range, raising a further $4.5bn. If its underwriters exercise an option to sell more shares when it begins trading on June 1, Huatai could raise a further $700m, making it the biggest IPO in Hong Kong since AIA raised $20bn in 2010, according to Dealogic.
“Brokers are the perfect stock in this market — they’re a leveraged derivative on what’s going on in China,” said one equities banker, who described the mainland rally as a “state-sanctioned bull run”.
The Shanghai Composite closed last week at a seven-year high, up 44 per cent this year amid trading volumes that topped $150bn on Friday. Shenzhen, home to start-ups, tech stocks and biotech groups among others, has nearly doubled and hit its fifth record high in as many days on Friday.
Huatai has already said that 60 per cent of the proceeds from listing will go towards margin financing, in line with its rivals who have already tapped the Hong Kong markets.
Chinese investors opened almost 5m new share trading accounts in the first two weeks of May alone, Macquarie said.
Tapping international investors via Hong Kong has been brokers’ preferred route. GF Securities raised $4.1bn in a Hong Kong IPO in March while China Galaxy Securities sold new shares worth $3.1bn in a private placement in April. At least half of each of those funds will go into the brokers’ lending businesses, including margin financing.
“This capital is being immediately redeployed, there’s no cash drag and they’re not accumulating a war chest,” said one banker involved in the deals.
Haitong Securities, which has been clear about its international expansion plans, also raised $4.2bn in a private placement this month — of which 60 per cent is earmarked for margin finance.
Citic Securities is widely expected to tap the market via a private placement with plans to raise more than $4bn.
On May 12, 2015, I reported China’s Silk Road economic project would include gold business. A month prior to that Shanghai Gold Exchange (SGE) chairman Xu Luode had “proposed to integrate gold market development into the strategic development plan of the Silk Road”. Shortly after, in early May it was announced gold mining company Polyus in Russia’s largest gold deposits at Natalka in the Magadan’s Kolyma district would cooperate with China’s largest mining company China National Gold Group Corporation in resource exploration, technical exchanges and materials supply. The first gold business activity along the new Silk Road was reality. Little did we know about any additional plans the Chinese have in store regarding gold and the new Silk Road.
Today we got a glimpse of what could be a global game changer, China is planning to launch “a 100 billion yuan fund led by the SGE, …which will in turn facilitate gold purchase for the central banks of member states to increase their holdings of the precious metal.” This was just published by news outlet Xinhua in China mainland. Xinhua also published an important article in late 2013 in which it said, “it’s perhaps a good time for the befuddled world to start considering building a de-Americanized world… a self-serving Washington has abused its superpower status and introduced even more chaos into the world by shifting financial risks overseas, instigating regional tensions amid territorial disputes, and fighting unwarranted wars under the cover of outright lies… As a result, the world is still crawling its way out of an economic disaster thanks to the voracious Wall Street elites”. It’s being thought these articles are written indirectly by the Chinese government.
It’s no secret it has been in the interest of the US to remove gold from the international monetary system to leverage their paper money power. Gold still is the US dollar hegemony’s Achilles heel. Is China now attacking the US by quickly strengthening ties with Asian and European countries through the Asian Infrastructure Investment Bank (AIIB), develop the new Silk Road and implementing gold as a financial center piece in these projects? We do know China has been buying A LOT of gold recently, has setup an international gold exchange (SGEI) – to trade gold in renminbi – and is likely setting up a new monetary system that includes gold. In my post PBOC Gold Purchases: Separating Facts from Speculation we could read a few clues from media written in Chinese. Toady we got a clue written by the Chinese in English, for the world to read. From Xinua:
Britain’s military ready to go down to 50,000. Smaller than the New York
City Police department. That would be mean a British army will be smaller
than they have had since the 1960’s. Their aircraft are a generation old and
the country is without an aircraft carrier. These are the results of the
total loss of its manufacturing bases take-over by its financial sector.
As reported by Japan’s news media, the Japanese government plans to earmark US$100 billion for investing in infrastructure projects in Asia in the next five years, with the investment scale rivaling the authorized initial capital of the China-initiated Asian Infrastructure Investment Bank (AIIB). But many observers doubt whether Japan is financially and technically capable of carrying out the plan, given its government’s heavy financial burden and its aging population, according to the Shanghai-based China Business News (CBN).
“In my opinion, the US$100 billion investment capital won’t come from the government, but from general commercial financing channels. This is because private bodies in Japan boast huge amounts of financial assets, and the government can, at most, provide a certain interest subsidy or lending guarantees,” Professor Chen Jianan of the School of Economics, Fudan University, told the CBN.
Chen’s view is seconded by Pan Xiaoming, an assistant researcher at the Shanghai Institutes for International Studies, who opined that Japanese business conglomerates may be the behind-the-scenes suppliers of the investment funds, with the Japanese government only serving as a bridge for them.
Ding Yifan, a researcher at the Development Research Center of the State Council, also said that Japan’s Asian infrastructure investment plan is largely designed to counter the China-led AIIB project, but can’t do well in this regard. “The AIIB is a multilateral financing platform and its initial capital of US$100 billion can be expanded, whenever needed, by member states. But Japan’s ability to satisfy the US$100 billion capital need is quite limited, let alone offering more capital, given the fact that one fourth of the government’s fiscal budget is earmarked for repaying debts,” Ding said.
Ding also questioned if Japan is more technically capable of handling international infrastructure construction projects than China. He said that of the world’s seven largest bridges, three were completed by China in recent years, and China is now also the world’s No.1 constructor of freeways.
But in order to ease the existing tremendous shortage of funds to finance infrastructure construction projects in Asia, any new measure or initiative in this regard should be welcomed, according to He Yafei, deputy director of Overseas Chinese Affairs Office under the State Council. “The Japanese move may be meant to compete with China, but it will be conducive to Asian infrastructure construction no matter whatever purposes are behind it, so we should maintain an open attitude toward it,” He told the CBN.
For the moment, of the G-7 members, only the US and Japan have failed to join the AIIB. Earlier, the US expressed its willingness to cooperate with the AIIB, but it seems that Japan has ruled out joining or cooperating with the AIIB after launching its 5-year Asian infrastructure investment plan.
In fact, the CBN reported, that it’s not a sudden inspiration of Japan to launch the plan. On May 3, Taro Aso, Japan’s Minister of Finance, said at a seminar hosted by the Asian Development Bank (ADB) and held at Baku, capital of Azerbaijan, that the Japanese government will join forces with private enterprises to boost investment in Asian infrastructure and establish a framework of cooperation between Japan’s government-affiliated bodies, such the Japan International Cooperation Agency, and the ADB.
While the U.S. talks, China builds islands. While the U.S. try’s to round-up
allies in Asia to contain China at the Straights of Malacca they start building
a new canal through Thailand. China is undergoing a renaissance in all areas,
economic, cultural, and national.
Its time to bring China in as a global partner or suffer the fate of Britain
after the World War 2 which means going through an extended period of poverty
and shortages as well as losing your empire.
In our increasingly volatile and multipolar world, there’s one state with a true plan, according to Eurasia Group president Ian Bremmer.
“The only country in the world with a global strategy right now is China — and I think that that should unnerve us,” Bremmer told Business Insider in a sit-down interview.
Bremmer argues that while Washington hasn’t had a defined foreign policy strategy for the last quarter century, China has decided both an economic and a military strategy for itself in the medium to long-term.
“The Chinese do want to compete with us economically globally. They want to compete with our standards, they want to compete with our influence, they want to compete with our architecture that we’ve created, and they’re doing that through the BRICS Bank, and the AIIB, and through the Silk Road Initiatives — you name it,” he said.
“Over a trillion dollars being spent — no one else comes close. And it’s a real strategy. It will certainly be overreach in some places, but overall, I suspect it will work.”
However, having a foreign policy strategy is not the same thing as dominating every country in every single arena.
As Bremmer points out, “China has decided that militarily they cannot compete with the United States over the medium term, maybe even in the long-term. Outside of Asia they can’t.”
Interestingly, China’s medium-term economic and military strategies could lead to an “asymmetric world” over the next decade. A world in which Beijing has the economic upper hand, while the US remains the military powerhouse, according to former Australian Prime Minister Kevin Rudd in his summary report on “The Future of US-China Relations Under Xi Jinping.”
Consequently, it’s that much more important that Washington clearly define its foreign policy agenda in a world where the US isn’t far and away the only major power (as was the case in the years immediately following the collapse of the Soviet Union).
South African billionaire Koos Bekker has spent 15 years riding the rocket of the Chinese Internet thanks to one really smart — or really lucky — investment. Now he’s trying to do it again.
In 2001 Naspers Ltd., the media group he chairs, put $32 million into a then-obscure Web company called Tencent. Its stake today is worth $66 billion — roughly equal to Naspers’ entire stock market capitalization. To prove he’s capable of more successes like Tencent, Bekker is scouring the globe in search of new tech deals .
“What we’ve done over the years is take huge risks,” Bekker said over a cup of Rooibos tea in Naspers headquarters, 19 floors above Cape Town’s harbor. The task now, he said, is “to find the countries where the gaps still exist because in many countries the good opportunities have been taken.”
American decline has seeped into all aspects of American society. Obvious signs
are empty factory towns, burning cities filled with people going on the 3rd and
generation of welfare and an all-out civilian invasion of the southern border.
The American military is not immune to this national cultural sickness that has
been apparent in American society since the 1960’s.
Now the Chinese press has published a detailed account laughing at the American
insistence to sell Japan F-35’s which as they say in the article can only achieve
cruise speeds of Mach 0.5 while a large Boeing passenger plane can achieve Mach
0.8. This is the same aircraft that American allies such as Australia criticized
for its combat capabilities and were quoted as saying “if push came to shove,
they would be clubbed to death like a baby seal by Russian and Chinese fighter jets.”
The F-35 is a disaster, but as the country has already spent $1 trillion in developing
it the project goes forward. Its a clear sign of the cultural sickness of zero
accountability. 9-11 happens, and you get promoted. 100 million people of working age
without jobs, and you tell people you have a 5% unemployment rate. Collapse the financial
system with fake profits for years, you get bailed out and get more money.
Until the country wakes out of its cultural morass I’m afraid the world will continue to
become a little more Chinese year after year.
From Want China Times
As the US is refusing to sell Japan the Lockheed Martin F-22 Raptor fighter, the Japan Air Self-Defense Force (JASDF) will have to settle for the Lockheed Martin F-35 Lightning II instead, according to an analysis piece posted on Sina’s military news web portal.
The F-35 will still allow the JASDF entry into the stealth fighter club, however. China is likely to respond to the Japanese fighter upgrade with appropriate measures of its own, said the website.
F-35 Overall Analysis
There is already a dearth of articles concerning the Joint Strike Fighter (JSF) research and development projects and profiles of the F-35, so the article on the Sina web portal focused on maneuverability, stealth and sensors and electromagnetic interference. From an overall design perspective, the F-35 has a similar conventional aerodynamic configuration to the F-22. Its main wings differ from the delta wing of the medium bomber version of the F-22, in that they take a trapezoid mid-wing configuration, with the back sweep angle of the leading edge of the main wings at 35 degrees and the trailing edge front sweep angle at 15 degrees. The twin tailfins are canted outward at an angle of 25 degrees. The backsweep angle on the horizontal plane of projection is 35 degrees too. The weapons bay has four pylons and on anti-aircraft missions it typically carries two AIM-120 air-to-air missiles and two AIM-9 Sidewinder short-range air-to-air missiles; when striking ground targets, it typically carries two AIM-120 missiles and two 907 kilogram guided bombs. The F-35 has improved stealth capability in terms of scattering head-on radar; its diverterless suspersonic inlets (DSI) are located on either side of the front of the body of the plane and it has no moving components and the serpentine inlet hides the face of the entire engine.
According to an article entitled The Analysis of Aerodynamic and Stealth Characteristic of F-35 Fighter in the Chinese journal Aircraft Design, at subsonic speed, the F-35’s lift coefficient at an angle of attack of 30 degrees and a speed of Mach 0.3 can reach 1.6, while its lift-drag ration at an angle of attack of 5 degrees and a speed of Mach 0.5 can reach a maximum of 16. As the angle of attack increases, however, the lift-drag ration falls sharply. At an angle of attack of 10 degrees, for example, the lift-drag ratio falls to 8. This is why the F-35 has been able to improve on cruise capabilities at Mach 0.5, useful for long range ground attacks at medium speeds. However, this optimal cruise speed is a little slow for subsonic air-to-air combat, as even large Boeing passenger planes have a cruise speed of around Mach 0.8. The F-35 is more reliable at a 30 degree angle of attack at subsonic speeds, a major improvement on third-generation aircraft, but because the lift-drag ratio falls rapidly with an increasing angle of attack, the stability of turns for the F-35 is dependent upon a strong engine.
In terms of transonic flow, the lift coefficient of the F-35 is 1.7 at an angle of 35 degrees and a speed of Mach 1.1, the lift-drag ratio at an angle of attack of 5 degrees and a speed of Mach 0.9 can reach a maximum of 8. Third generation aircraft are designed with transonic maneuverability as a priority, but this is clearly not the F-35’s strong point, even though its maximum lift coefficient approaches the 1.8 of France’s Dassault Rafale. Its lift-drag ratio is poorer, however, as its lift coefficient improves, this explains why the cross-sectional area of the body of the plane is quite large, although the back sweep angle of the wings is smaller, which improves subsonic flight, it also leads to heightened resistance in transonic flight. The maximum angle of attack of the F-35 at transonic speeds is still quite large, however, at a maximum of 35 degrees.
Want China Times
China has the ability to crash the unstable US dollar with 30,000 tons of gold reserves, says Chinese economic observer Jin Zihou.
In a commentary posted online, Jin noted that former US Federal Reserve chair Alan Greenspan once said that the renminbi could become unexpectedly powerful in today’s financial system if Beijing would convert its US$4 trillion in foreign reserves into gold.
With the US dollar growing more unstable and China being America’s largest creditor, Beijing could potentially crash the US dollar with 30,000 tons of gold, Jin said.
The US dollar still accounts for 60% of global foreign reserves, though there are many countries hoping to become less reliant on the US dollar. If China really wants to challenge America’s place in the global trade and finance markets, it will have to do so via a significant amount of gold, Jin said.
Bloomberg estimates that since the last official announcement in April 2009, gold reserves held by China’s central bank may have doubled to 3,510 tons. This would make China the second largest keeper of gold in the world behind the United States’ 8,133.5 tons.
However, Alasdair Macleod, head of research for GoldMoney, states that China could have easily piled up 25,000 tons of gold between 1982 and 2003, meaning its gold reserves could have exceeded 30,000 tons by now.
It is suspected that China could be preparing the release an update of its gold reserves because the country’s decision-makers appear to be trying to push the yuan into the International Monetary Fund’s special drawing rights basket along with the US dollar, the euro, the Japanese yen and the pound sterling.
Beijing’s attempts to internationalize the renminbi have been relatively successful, having already signed currency swap agreements with around 28 countries and establishing a yuan trading center in Zurich, Switzerland. China has also encouraged Hong Kong and London to develop into renminbi offshore markets and pushed for the Shanghai Cooperation Organisation to promote non-US-dollar trade settlements across Asian countries.
According to Duowei News, a US-based political news outlet, China is clearly preparing to brace itself from the fall of the US dollar by storing up gold reserves. It is not the only one, with the IMF still holding 2,814 tons of gold in reserves and Russia doubling its gold reserves since 2005.
If China really has 30,000 tons of gold then the renminbi will be backed by a powerful shield, Duowei said. Even if it doesn’t, no one disputes that China has been collecting gold on a large scale and that its influence and position in global financial markets have grown significantly, Duowei added.
Citing estimates by the Organization for Economic Co-operation and Development (OECD), Duowei says that the Chinese economy is set to overtake the US by 2016. This historical change could see the yuan replace the US dollar as the world’s No. 1 reserve currency, Duowei said.
That said, this is unlikely to happen overnight, Duowei warned, noting that China’s financial infrastructure is insufficiently developed and the likelihood that China has nowhere near the 30,000 tons of gold as suggested. China may now the world’s largest producer of gold with 440 tons per year and the Chinese government may be buying a lot of gold around the world, but there is simply not enough gold to go around given the high demand among Asian countries and the fact that the rest of the world only produces 2,260 tons of gold a year, Duowei added.
A Chinese tycoon has reportedly signed a contract for 15 years with Japanese porn star Takizawa Rola, also known as Misaki Rola, reports US-based Chinese-language news outlet Duowei.
Rola was seen with a man in a white leopard’s mask with whom she was apparently intimate at a online game launch event in Beijing on May 7. The man is believed to be an entertainment magnate whose identity has not been revealed and the patron behind Takizawa Rola’s show business contract in China for the next 15 years.
It is said that the half-Russian, half-Japanese adult video performer will work as the man’s personal assistant while further developing her career in the Chinese entertainment field.
The 23-year-old porn star became an internet phenomenon in 2012 after she uploaded images and videos of herself onto social media. She later released several adult films and soon became widely known in Asia. Like Sora Aoi, another popular adult video performer, she has turned the focus on her career to the Chinese market in recent years and has made appearances in online game-adapted movies and has been a spokesperson for several smartphone games.
Shares in Hanergy Thin Film Power plunged 47 per cent before they were suspended in Hong Kong after the Chinese solar equipment supplier’s chairman missed the company’s annual meeting.
After a vicious reversal of a share price surge which had made chairman Li Hejun one of the richest men in China, HTF’s shares were halted on Wednesday at HK$3.91, having opened at HK$7.32. The suspension was requested by the company pending an announcement. No other information was given.
Hanergy’s public relations firm confirmed that Mr Li, who is the company’s majority shareholder, did not attend Wednesday’s annual meeting in Hong Kong, although other senior executives, including Frank Dai Mingfang, chief executive, and Eddie Lam, finance director, did attend.
“Chairman Li did not attend the AGM,” said TL Chow, an external spokesman for Hanergy. “He had something to do.”
Mr Chow did not say where Mr Li might be, and Mr Li did not respond to request for comment.
David Webb, a corporate governance activist in Hong Kong, said it was unusual, but not unknown, for chairmen to miss AGMs “It’s a positive thing if a chairman does attend given he probably has the deciding vote on the date of the AGM in the first place,” he said.
The previous surge in shares of HTF, which sells equipment used to make solar panels, had made Mr Li one of the richest men in China on paper. As recently as last month he was buying more shares, taking his holdings to almost the 75 per cent limit allowed in Hong Kong.
Before Wednesday’s collapse, HTF’s shares had gained 315 per cent in the past six months.
That had given HTF a market capitalisation of $40bn, a valuation more than six times higher than its largest competitor — US-listed First Solar — and more than the rest of the Chinese solar sector combined.
An investigation by the Financial Times in March found that the price gains in Hanergy stock consistently occurred during the final 10 minutes of trade.
In addition to its sharp stock market gains and an unusual pattern of price movements, HTF’s considerable reliance on its parent company for sales had been questioned by analysts. HTF’s parent — Mr Li’s privately held Hanergy Group — had also waited for long periods of time before settling the sales booked by its subsidiary.
The share rally had left the company trading on 95 times its earnings of the past 12 months, according to S&P Capital IQ data, and had puzzled analysts. No single explanation for the gains had been put forward, but the shares might have been unwittingly boosted by short sellers, according to bankers.
The bloodletting has just started…because they had to be clever and hack
Chinese and Russian government. You had them hacked and still lost your
industrial base and world economic leadership to China and Crimea to the
Russians. Pretty poor performance.
China tensions ‘hurting US tech groups’
Political tensions with China and Russia mean that US tech companies are facing protracted pressure in what had been two of their most promising growth markets, the chief executive of Cisco Systems has warned.
“Until our countries get along better, we’re not going to see an improvement,” John Chambers said in an interview with the FT. Mr Chambers, who is due to step down in late July after 20 years at the helm, was speaking after the US networking company reported quarterly earnings showing a return to steady growth, driven mainly by sales at home.
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A collapse in IT demand in emerging markets has been one of the biggest headwinds for Cisco and other US tech companies in the past two years, as volatile economic conditions and political rivalry have contributed to a sharp pullback in spending. While some commentators initially claimed Cisco was more exposed than others, it quickly became clear that all American IT companies faced the same pressures, Mr Chambers said.
The fall-off in demand coincided with a global backlash over revelations by former National Security Agency contractor Edward Snowden about US surveillance. The disclosures, which included a photograph of US agents appearing to open a box of Cisco equipment while it was being shipped to a customer, fed fears about the existence of “back doors” and other vulnerabilities in US IT equipment and led to renewed efforts in China to promote local IT champions.
On Wednesday, Cisco reported that orders for its internet routers, switches and other equipment in China fell by 20 per cent during the latest quarter, contributing to an overall decline of 6 per cent in Bric countries.
By introducing larger and more heavily armed vessels into service, China is turning its coast guard into the nation’s second navy, according to a US naval intelligence as cited on US military website Strategy Page.
China built, launched or put into commission at least 60 warships in the year 2014. Such a trend is likely to continue between 2015 and 2016, according to the report.
Under China’s naval buildup plan, the PLA Navy will have several aircraft carriers, 26 destroyers, 52 frigates, 20 corvettes, 85 missile armed patrol boats, 56 amphibious vessels, 42 mine warfare ships and nearly 500 auxiliary craft, of which 10% are large seagoing ships.
China has successfully combined four of its five maritime police organizations into one unified Coast Guard Bureau, said the report. China once needed more than one coastal patrol organization because of the Communist state tradition to have multiple security organizations keep an eye on each other to ensure loyalty to the party. The old system only brought inefficiency and confusion, spurring the eventual consolidation of most of China’s maritime security organizations.
Several months of effort were taken to repaint hundreds of maritime security ships. While ships from the coast guard, which is a paramilitary outfit, are installed with heavier armament, others are sea-going vessels designed for maritime policing. The establishment of China’s new Coast Guard Bureau reflects the classic tactic of asserting its claims over the disputed South China Sea by avoiding the use of naval vessels.
Dozens of new seagoing warships are being built for the new Coast Guard, and many of the patrol vessels are carrying weapon systems such as missiles and torpedoes. Moreover, China is creating new bases for its Coast Guard Bureau in the over the disputed South China Sea through its new land reclamation program. From the Chinese perspective, it finally has chance to exercise its “traditional rights” over the seas in its vi