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China’s cities added 13.2 million jobs last year,U.S. has only 83 million full-time non governmental workers

In this edition of “China is collapsing” we give you one more stat to help break the mass illusion in the West that China is collapsing and “everything is awesome” in the U.S. China’s cities added 13.2 million jobs last year, according to the Ministry

Real estate investment in China up 10.5% in 201

Xinhua 2015-01-20 17:27 (GMT+8) China’s real estate investment gained 10.5% year-on-year to 9.5 trillion yuan (US$1.55 trillion) in 2014, the National Bureau of Statistics (NBS) announced on Tuesday. The growth rate was markedly down by 9.3 percentage points from 2013, the NBS data showed. Investment

Blue Horseshoe Loves Anacott steel. Alibaba sales increase 40% to $4.2 billion last quarter. Westerner stock markets tank the stock.

Welcome Ali Ba Ba to the bizarro world of manipulated Western financial markets. It was not just coincidence yesterday that an article goes all over Bloomberg claiming a conspiracy that the Chinese government is out to get Ali Ba Ba. Of course, the truth is

Hedge Fund Billionaires Prepare Their Bunkers

Finalt Hedge Fund Billionaires Prepare Their Bunkers If income equality ever leads to insurrection, the world’s wealthiest hedge fund managers will be prepared. According to Robert Johnson of the Institute of New Economic Thinking, the ultra-rich are buying up land, homes and airstrips in countries

Dutch Central Bank buying Gold, attempting to steak out of paper-financial system collapse

The Netherlands added to its gold reserves for the first time since 1998 as the ninth-biggest holder boosted assets to the highest in seven years, while Russia bought for a ninth month, International Monetary Fund data show. Bullion reserves in the Netherlands climbed to 20

Iran’s central bank stops US dollar transactions, adopts RMB

Oh shit….Thats just happened. Want China Times Iran’s central bank has announced that it will stop mutual settlements in the US dollar with other countries, with the Chinese yuan or renminbi being named as one of the alternatives. In trade exchanges with foreign countries, Iran

China to save $100b in first half of year on cheap oil.

Want China Times China can save US$100 billion from crude oil imports in the first half of the year alone if oil prices stay at their current levels, according to a Chinese academic. Lin Boqiang, director of the China Center for Energy Economics Research at

Interest Rate Hikes coming? Not in our lifetime

 

First 5MB Hard Drive being loaded onto a Plane

 

China to build $242 billion high-speed railway from Beijing to Moscow. Amtrak to expand to Danville, IL

China to build $242 billion high-speed railway from Beijing to Moscow. Not to be outdone however, Amtrak in the U.S. has announced they are studying a line between Danville,Il and the Quad Cities in Northeastern Illinois. The study’s outcome could be known within a few

Fake bank in Nanjing swindles 200 million yuan from customers

Shanghai list Fake bank in Nanjing swindles 200 million yuan from customers In what may be one of the most lucrative forms of fakery to come out of China yet, a rural cooperative posing as a bank in Nanjing, Jiangsu province reportedly managed to collect

State of the Union: All is smooth sailing.

U.S. has 89 million full-time non-government employees, (Of the 89 million, we have with 9.5m in fast food and restaurants and 12 million in retail which are considering the working poor.) We have 109 million on welfare and a total of 150m receiving benefits. Whats

Speculators Looking for Havens from Slowing Growth are Piling Into Silver

Bloomberg Silver headed for a bull market in its best start to a year in more than three decades as the European Central Bank expanded economic stimulus measures, boosting demand for the metal as a store of value. Holdings in exchange-traded products backed by the

Chinese Yuan to Follow the Swiss Franc Higher

With China’s trade surplus up a staggering 45% in 2014 and FX reserves reaching $4 trillion, its time the Chinese authorities unlock the Dollar/Yuan Peg and allow the higher living standards to be realised in China. Otherwise, the population of China will start to realise

Kenya to have high speed rail before the U.S.

While China is building high speed rail networks around the world the U.S. can only offer Kenya a drone base. While Kenyan’s are about to get high speed rail, Americans find their roads and bridges collapsing around them. Want China Times China has signed a

China’s cities added 13.2 million jobs last year,U.S. has only 83 million full-time non governmental workers

In this edition of “China is collapsing” we give you one more stat to help
break the mass illusion in the West that China is collapsing and “everything
is awesome” in the U.S.

China’s cities added 13.2 million jobs last year, according to the Ministry
of Human Resources and Social Security, the highest number this century.
Meanwhile, in due to declining U.S. labor force participation rates, the U.S.
now has only 83 million non-governmental, full-time people in the workforce.

the-lego-movie-awesome-e1392309318427

 

Real estate investment in China up 10.5% in 201

Xinhua 2015-01-20 17:27 (GMT+8)
China’s real estate investment gained 10.5% year-on-year to 9.5 trillion yuan (US$1.55 trillion) in 2014, the National Bureau of Statistics (NBS) announced on Tuesday.

The growth rate was markedly down by 9.3 percentage points from 2013, the NBS data showed.

Investment in residential buildings increased 9.2% in the last year, accounting for 67.7% of total investment in the real estate sector.

Over 1.2 billion square meters of commercial buildings were sold in 2014, down 7.6% year-on-year, and sales volume declined 6.3% from a year ago to 7.63 trillion yuan (US$1.2 trillion).

 

Blue Horseshoe Loves Anacott steel. Alibaba sales increase 40% to $4.2 billion last quarter. Westerner stock markets tank the stock.

Welcome Ali Ba Ba to the bizarro world of manipulated Western financial
markets. It was not just coincidence yesterday that an article goes
all over Bloomberg claiming a conspiracy that the Chinese government is
out to get Ali Ba Ba. Of course, the truth is actually the opposite.
That doesn’t stop the Western press from slamming Ali Ba Ba as a symptom
of a Chinese crash, only growing 40%! The horror….the Horror…

On the upside, they were able to slam the price so they can buy cheaper today.

Blue Horseshoe loves Anacott Steel

Ali Ba Ba by the numbers.

Revenue rose 40% to US$4.22 billion in the December quarter. Alibaba’s
second quarterly report card since its record-breaking US$25 billion IPO
still underscored how it has managed to outpace global rivals Amazon.com
Inc and eBay Inc by dint of its 80% share of the Chinese online commerce
market.

Ebay managed just single-digit net revenue growth in percentage terms in
the U.S. holiday shopping quarter.

Gross merchandise value (GMV), or the sum of all Alibaba’s online commerce
transactions, rose 49% to US$127 billion. Mobile GMV accounted for 42% of
total GMV, up from 36% in the September quarter.

wall_street__1987_

 

Hedge Fund Billionaires Prepare Their Bunkers

Finalt

Hedge Fund Billionaires Prepare Their Bunkers

If income equality ever leads to insurrection, the world’s wealthiest hedge
fund managers will be prepared.

According to Robert Johnson of the Institute of New Economic Thinking, the
ultra-rich are buying up land, homes and airstrips in countries like New
Zealand in order to escape an uprising by the poor.

Johnson’s audience may well have nodded knowingly—he made the remarks at
the World Economic Forum at Davos, a talkfest for some of the world’s most
well-heeled individuals. Stewart Wallis, executive director of the New
Economics Foundation, agreed with Johnson, telling CNBC Africa: “Getaway
cars the airstrips in New Zealand and all that sort of thing, so basically
a way to get off. If they can get off, onto another planet, some of them would.”

He added: “I think the rich are worried and they should be worried. I mean
inequality, why does it matter? “Most people have heard the Oxfam statistics
that now we’ve got 80, the 80 richest people in the world, having more wealth
that the bottom three-point-five billion, and very soon we’ll get a situation
where that one percent, one percent of the richest people have more wealth
than everybody else, the 99.”

66128_how-prepped-are-you_wpqcl4sp5hrctsdllz4ccbpndxncurxrbvj6lwuht2ya6mzmafma_640x360

 

Dutch Central Bank buying Gold, attempting to steak out of paper-financial system collapse

The Netherlands added to its gold reserves for the first time since 1998 as the ninth-biggest holder boosted assets to the highest in seven years, while Russia bought for a ninth month, International Monetary Fund data show.

Bullion reserves in the Netherlands climbed to 20 million ounces or 622 metric tons in December, the highest since 2007, after being unchanged at 19.7 million ounces from December 2008 through November, the IMF’s website showed. Russia, with the fifth-biggest hoard, held 38.8 million ounces last month, the most in at least two decades, the data show.

Central banks globally are adding gold to reserves after reducing holdings for about two decades from the late 1980s as they seek to diversify assets, according to Oversea-Chinese Banking Corp. Worldwide purchases would probably be 400 tons to 500 tons in 2014, the World Gold Council said in November.

goldfinger

 

Iran’s central bank stops US dollar transactions, adopts RMB

Oh shit….Thats just happened.

Want China Times

Iran’s central bank has announced that it will stop mutual settlements in the US dollar with other countries, with the Chinese yuan or renminbi being named as one of the alternatives.

In trade exchanges with foreign countries, Iran uses other currencies, including yuan, euro, Turkish lira, Russian ruble and South Korean won, Gholamali Kamyab, deputy head of the Central Bank of Iran, told the country’s Tasnim news agency.

Iran will also consider the possibility of signing bilateral monetary agreements with several countries on the use of other currencies, Kamyab said, adding that the move will ease Iran’s foreign trade and economic transactions.

This is not the first time Iran has attempted to reduce its reliance on the US dollar. Back in April 2008, an official from Iran’s Ministry of Petroleum was quoted as saying that the country had completely stopped using the dollar in foreign oil transaction settlements.

The announcement comes on the same day Chinese financiers opened up a €2 billion (US$2.25 billion) line of credit to fund four Iranian petrochemical projects. According to National Petrochemical (NPC) deputy-head Mohammad Hassan Peyvandi, the funds will be applied to the construction and transformation the Sabalan, Lordegan, Bushehr and Masjed Soleiman plants.

China has ramped up its oil and gas investments in Iran in recent years, with total Chinese funds put into the sector increasing from US$35 billion in 2010 to more than US$50 billion in 2014. Last year bilateral trade between the two countries reached US$52 billion, an increase of 35% from the previous year, while Iranian exports to China topped US$28 billion, representing about 52% of the country’s total exports.

 

China to save $100b in first half of year on cheap oil.

Want China Times

China can save US$100 billion from crude oil imports in the first half of the year alone if oil prices stay at their current levels, according to a Chinese academic.

Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, made the bold remark after oil prices fell from US$116 a barrel to less than US$50 in the past six months.

After OPEC made the surprising decision to maintain energy production levels last November, oil prices have fluctuated by as much as 36% over the last couple of months, with crude oil prices in Texas dropping to six-year lows.

With the US shale industry and Russia hit especially hard, OPEC secretary general Abdalla Salem El Badri been forced to defend his group’s decision, insisting that it was not directed at any one country. “The idea that we are at war with US shale producers or Russia is wrong,” he said. “For us it was a pure economic reason.”

Igor Yushkov, a senior analyst at Russia’s National Energy Security Fund, says the current trend will not end as the US and OPEC have not reached their respective goals and the energy industry will not yield to the government. Yushko adds that oil prices should fluctuate between US$75 and U$85 a barrel over the next two years.

US wealth manager Merrill Lynch believes that falling oil prices will provide China’s slowing economy a much needed boost. Even if the US Federal Reserve raises interest rates later this year as expected, the central banks of China and other Asian economies should still be able to stimulate growth through lowering their own interest rates.

Zhou Xiaochuan, governor of the People’s Bank of China, has commented on the benefits of lowering oil prices on the Chinese economy, saying that he hopes prices can remain stable and reasonable given that China is a major net importer of crude oil.

Central bank analyst Ma Jun has noted that an annual average fall of 10% in oil prices would increase China’s GDP by 0.12%.

International Monetary Fund vice president Zhu Min says, however, that falling oil prices could cause the governments of oil-exporting countries to go deeper into the red and spark exchange rate and stock market turmoil that might lead to a chain reaction. For net oil importers such as China and the US, falling energy prices could also lead to reduced investment and earnings, he added.

 

Interest Rate Hikes coming? Not in our lifetime

B8YSxsnCcAAxG-J

B8YUgICCcAA6NIK

 

First 5MB Hard Drive being loaded onto a Plane

First 5MB Hard Disk on a plane

 

China to build $242 billion high-speed railway from Beijing to Moscow. Amtrak to expand to Danville, IL

China to build $242 billion high-speed railway from Beijing to Moscow.

Not to be outdone however, Amtrak in the U.S. has announced they are studying
a line between Danville,Il and the Quad Cities in Northeastern Illinois. The
study’s outcome could be known within a few months, according to the Illinois
Department of Transportation.

China is planning to build a 242 billion USD high-speed rail connecting the Chinese
capital to Moscow, cutting the journey from five days to two, Beijing’s city
government announced in a Weibo post on Wednesday.

The 7,000-kilometer railway, which will travel through Kazakhstan, is going to be
three times longer than the world’s longest high-speed line from Beijing to Guangzhou.
The project was introduced last October when Russia and China signed a memorandum
of understanding over the high-speed rail link. First Vice President of Russian
Railways Alexander Misharin said the trip could be completed within 30 hours,
Bloomberg reports. Construction is expected to take eight to 10 years, according
Misharin.

high-speed-rail1

RRM_PA_12_053

 

Fake bank in Nanjing swindles 200 million yuan from customers

Shanghai list
Fake bank in Nanjing swindles 200 million yuan from customers

In what may be one of the most lucrative forms of fakery to come out of China yet, a rural cooperative posing as a bank in Nanjing, Jiangsu province reportedly managed to collect around 200 million yuan ($32.3 million) from more than 200 customers in the past year

Xinhua reports that the cooperative, convincingly fitted with LED screens, faked documents and uniformed tellers, was able to attract hundreds of customers with the promise of higher interest rates.
“It is decorated exactly the same as a bank. The shop-front, counters and the queue machine, everything makes customers believe it’s a real bank. And the manager kept trying to assure me that they were reliable. I had no doubt at the time,” a duped customer said in a CRI report.
So far, one legal representative cooperative and four “managers” of the fake bank have been detained. Police expect that more victims of the scam will surface in coming weeks.

fank-bank

 

State of the Union: All is smooth sailing.

U.S. has 89 million full-time non-government employees, (Of the 89 million, we have
with 9.5m in fast food and restaurants and 12 million in retail which are considering
the working poor.)

We have 109 million on welfare and a total of 150m receiving benefits.

Whats not to like about the U.S. economy? So get on board.. Next stop, Feudalism.

Titanic-redo

 

Speculators Looking for Havens from Slowing Growth are Piling Into Silver

Bloomberg

Silver headed for a bull market in its best start to a year in more than
three decades as the European Central Bank expanded economic stimulus
measures, boosting demand for the metal as a store of value.

Holdings in exchange-traded products backed by the metal have posted three
straight weekly gains, while U.S. government data show money managers raised
their net-bullish wagers to the highest since August. An ounce of gold bought
as much as 71.5 ounces of silver on Thursday, compared with an average of
58 in the past decade, signaling the white metal is inexpensive relative to
gold.

“Silver is enjoying safe-have bids along with gold, and there is also a lot
of physical buying” Frank McGhee, the head dealer at Alliance Financial LLC
in Chicago, said in a telephone interview. “There is a flight to safety
because of all the concerns about the economy.”

78487775

 

Chinese Yuan to Follow the Swiss Franc Higher

With China’s trade surplus up a staggering 45% in 2014 and
FX reserves reaching $4 trillion, its time the Chinese authorities
unlock the Dollar/Yuan Peg and allow the higher living standards to be
realised in China. Otherwise, the population of China will start to
realise you have created an economic system shackling them to slave
wages in low-lit factories to produce goods for foreign countries
while the plant owners and bureaucratic administrators get wealthy.

 

Kenya to have high speed rail before the U.S.

While China is building high speed rail networks around the world
the U.S. can only offer Kenya a drone base. While Kenyan’s are about
to get high speed rail, Americans find their roads and bridges
collapsing around them.

Want China Times

China has signed a deal to build a 480km railway link between Kenya’s largest
seaport of Mombasa and the capital Nairobi — the first stage of a line that
will eventually link Tanzania, Uganda, Rwanda, Burundi and South Sudan.

The railway, built at a cost of US$3.8 billion, is the first to be built in
Kenya in a century and will be designed with a transportation capacity of
25 million metric tons, based on China’s rail standards.

China is in talks with other countries concerning the construction of 20
high-speed rail projects. Under the “one belt, one road” initiative, referring
to the Silk Road Economic Belt and the 21st Century Maritime Silk Road trade
route initiatives, China will build a complex network of high-speed rail
passing through the whole of Asia.

eastafrica

african-train-3

 

General Nice Group buys largest Ore Mine in Greenland

General Nice Group, a Chinese private trading company, is taking over a large
iron ore mine in Greenland, in what will be the first project of its kind by
an Asian country in the Arctic region.

A senior adviser to General Nice, who declined to be named, told China Daily
on Monday that the project is at the very initial stage and nothing has been
nailed yet, including the deal size, which was reported to be around $2 billion.

The iron ore mine, called Isua, was owned by London Mining Plc, which went bankrupt
after iron ore prices plunged last year. The Chinese company will own the
exploration rights of Isua as it has acquired London Mining’s subsidiary in
Greenland, according to the Greenland government.

The Isua mine site is around 150 kilometers northeast of Nuuk, the capital of
Greenland. The ore contains 70 percent iron, and hence will require minimal
processing before being shipped.

logo

 

A -Share Earnings

Gerard DeBenedetto
Former CEO at An Zhong (AZ) Investment Management Shanghai

Any reputable bottom up analyst will tell you that earnings matter, whether looked at in aggregate, as a percentage of prior period, relative to earnings or price. The goal of these analysts is to select stocks that will outperform peers or benchmarks. Unfortunately there are two problems with bottom up dependency: 1) fundamentals are not a leading indicator and 2) the fastest and biggest earners dwarf all other names.

The 5 year period prior to the rally which began this summer saw the P/E ratio for the major indexes in China fall from the low 20’s to single digits all while the market lost almost half of its value. This is not to scare investors, but to demonstrate that markets can be “cheap” for a long period of time as this long decline all occurred while the P/E ratio was below the long-term average. While the large cap stocks were selling off, an entirely different phenomenon was happening in the small cap space that I’ve written about previously and I continue to recommend buying large and small cap stocks as well as the China fixed income market.

The second and perhaps less documented phenomenon is that big financial institutions are crowding out all other listed companies. Although 2014 numbers are not published for all listed companies in China, YTD through Q3 are available. Total profits for 2590 companies for three quarters of 2014 was just over 2 trillion RMB, the top 20 of these companies earned 1.3 trillion or 65% of the total earnings of ALL listed companies. As we would expect, 16 of these 20 top earning firms are financial services firms and no surprise, the top four are ICBC, CCB, Agricultural Bank and Bank of China. Contrast this with the S&P 500 in the US where the top 20 firms earn less than 35% of all earnings and the top 4 firms are a hardware provider, an energy firm, a bank and a software company.

While the CBRC continues to regulate capital requirements, product risk disclosure and foreign competition, the area where banks are free to compete is almost limitless. Everything from payment processing to structured products to all financial product distribution, banks are squeezing innovation and profitability. The business is so lucrative that the most successful technology firms are getting their own banking licenses. This is impractical for small and medium sized firms and unsustainable for entrepreneurs and innovators. Matt Taibbi famously labeled Goldman Sachs the vampire squid as it sticks its blood funnel into anything that smells like money. Perhaps the big 4 are more akin to a toll road, where the cost of avoidance is higher than that of compliance.

 

Chinese Economy goes over $10 trillion in 2014, Western Financial Press slams its slow growth of 7.4%

Dan Collins
CMR

The mainstream Western press has done a wonderful job in talking down China’s
economic progress. After-all, When they get people taking about ghost cities in
China then people aren’t talking about the ghost city/murder capitals in
America’s rust belt.

Case-in-point, Chinese GDP went over the $10 trillion dollar mark in 2014 reaching
63.646 trillion yuan yet the headlines these days are reading “Slowest growth in
24 years”.

Has China’s economy slowed? Yes, of course. When an economy reaches the size of
China’s it is not healthy to expect growth over 12%. In addition, China is
continuing to rebalance the economy from fixed asset investment towards more of a
service economy. The broad consensus in China is that real reforms are taking place
and they are for the most part viewed as positive.

China has been draining liquidity from property developers. Curbs have been in place
for 4 years now where people cannot purchase a second home. Car licence plate
quota’s have driven the licence plate price up over $10,000. Do you still expect
to grow 12%? China has locked down rapid expansion in order to balance out the
economy. The Chinese economy is spinning off innovative companies such as Ali Ba
Ba and Tencent. Importing commodities are dropping in price and boosting the
bottom lines of Chinese companies driving the stock market up 45% in 2014.

The U.S. on the other hand has not done any real reform, debt continues to
explode, trading deficits continue to expand,the working age population not
working remains above 93 million people and the country is still totally dependent
on manufactured goods from the rest of the world.The American economy has only
doubled down on the debt fuelled, money printing handing money over to the Federal
Reserve partner banks.

Today we are talking about China’s economy going over $10 trillion, it won’t be long
before we are seeing $20 trillion.

Something tells me,as China’s economy goes over $20 trillion journalists in the
U.S. will still be reporting bright American economic prospects as the rubble of
an economic system build on money printing and welfare provides the backdrop to
there story.

t1larg.anderson.cooper.cnn

 

China’s Trade Surplus rockets to $378 billion USD , up 45.9% in 2014

The U.S., U.K. and Saudi’s have been locked in an oil price war against Russia and
Iran. The U.S. and U.K. have been using their captive global banks to short oil on
the derivatives markets. The Saudi’s on their part, have refused to cut OPEC production.
These actions have seriously damaged the economies of the major oil producers such
as Russia and Iran. The North Sea oil complex and U.S. Shale industry are now also
under heavy pressure.

The winner of this showdown so far….The Chinese.

For China, the world’s major commodity importer, the oil and commodity price tumbles
have directly boosted its trade surplus. Last year, China enjoyed a trade surplus of
2.35 trillion yuan (US$378 billion), up 45.9% from 2013.

china-economy-model-530x382

 

Germany taking back more of its Gold.

Frankfurt (AFP) – The German central bank or Bundesbank said Monday that
it stepped up the repatriation of its gold reserves from overseas storage
last year.

“The Bundesbank successfully continued and further stepped up its transfers
of gold,” the central bank said in a statement.

“In 2014, 120 tonnes of gold were transferred to Frankfurt from storage
locations abroad: 35 tonnes from Paris and 85 tonnes from New York.”

Germany’s gold reserves are the second-biggest in the world after those
of the United States and totalled 3,384.2 tonnes this month, according
to the latest data compiled by the World Gold Council.

Since the transfers began in 2013, the Bundesbank said it has relocated a
total of 157 tonnes of gold to Frankfurt — 67 tonnes from Paris and 90
tonnes from New York.

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