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
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
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
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
Stockswatch China has become a banking powerhouse. Four of the five largest banks in the world are Chinese, according to SNL Financial’s latest global bank rankings. It’s a big change from the past few years when only two Chinese banks made the top five. Beijing-based
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
One year after the launch of direct trading between the renminbi and Japanese yen, the daily trading volume between the two currencies has reached 50-100 billion Japanese yen on the Shanghai market and 15 billion yen on the Tokyo market, a combined volume double that
While the boneheads in the Western Financial press continue to talk about
Capital flight from China they are missing the real story. China is devouring
global assets across the world. Are Chinese buying real estate in the West?
Yes, of course they are, but this is not the story. The story of China’s
disappearing FX reserves is that these funds are now getting funneled into
state-owned companies to buy anything and everything in the West.
What would you rather own, more printed T-Bills or leading companies across the
– Chem China has bid $44 billion for Swiss agri business Syngenta
– Norilsk Nickel has sold a 13% percent share to a Chinese consortium
– Outbound acquisitions by Chinese companies hit their highest level on
record with $77.5 billion worth of transactions, up 91.2 percent from
the same period last year
– China’s overseas acquisitions in Europe witnessed a record high with 89.1
percent growth in value to $27.5 billion compared to the first nine months
of 2014 ($14.6 billion).
Chicago Stock Exchange Says It’s Being
Sold to Chinese-Led Group
Chongqing Casin, property and investment firm, agrees to deal Sale expected to close in second half; terms not disclosed
The Chicago Stock Exchange said a Chinese investor group agreed to acquire it, giving the buyer entry into the intensely competitive U.S. equity market.
Chongqing Casin Enterprise Group has signed a definitive agreement to acquire the company, according to a statement Friday. The deal values the Chicago Stock Exchange at less than $100 million, according to a person familiar with the matter, who asked to not be identified because the terms weren’t disclosed publicly. The exchange expects the deal to close in the second half of the year, though that will require regulatory approval.
“We’re a good fit. Our strategy is something they like and is consistent with theirs,” Chicago Stock Exchange Chief Executive Officer John Kerin said in a phone interview. “We provide technology and we’re a standalone, full-service exchange that they can grow in a manner that suits their needs.”
The acquisition would be the first of a U.S. exchange by a Chinese company. The 134-year-old bourse only handles about 0.5 percent of U.S. stock trading, but a deal gives a buyer a beachhead in the $22 trillion American equity market. There’s also the potential for growth given that regulations require trades to be routed to whichever exchange has the best price for a stock at a given moment.
Germany’s Deutsche Boerse AG wanted to buy the owner of the New York Stock Exchange in 2011, U.S. Senator Charles Schumer, a Democrat from New York, raised obstacles. Singapore’s stock exchange tried to buy Australia’s in 2010, but the Australian government barred that from happening.
That said, the Chicago Stock Exchange is a far less vital part of global finance. The New York Stock Exchange, for instance, handled 31 times more trading volume on Thursday.
Casin Group said it was attracted to the market because of the potential to “bring exciting Chinese growth companies to U.S. investors,” according to a quote in the statement from Shengju Lu, Casin’s founder and chairman.
Founded in the 1990s through a privatization of state-owned assets, Casin Group initially focused on developing real estate projects in Chongqing before expanding into the environmental and financial industries. While the firm owns stakes in banks and insurers, it has never owned an exchange. Calls to the company’s Chongqing headquarters went unanswered on Friday.
“We have reviewed CHX’s plans to improve market share through new growth initiatives and fully support them,” said Casin’s Lu, a torch bearer during the Beijing Olympic games in 2008, according to the statement.
Casin Group’s offer comes amid an unprecedented overseas shopping spree by Chinese companies. Businesses from Asia’s largest economy have announced $70 billion of cross-border acquisitions and investments this year, on track to break last year’s record of $123 billion, according to data compiled by Bloomberg.
The Chicago Stock Exchange — a subsidiary of CHX Holdings Inc. — is minority-owned by a group including E*Trade Financial Corp., Bank of America Corp., Goldman Sachs Group Inc. and JPMorgan Chase & Co., according to the company. The minority shareholders are also selling their stake, Kerin said.
The Chicago Stock Exchange was advised by GCA Savvian Advisors LLC and Sidley Austin LLP on the transaction, according to the statement. Broadhaven Capital Partners and Orrick Herrington & Sutcliffe LLP worked with Casin. Mark O’Connor, a spokesman for the exchange, declined to comment on the size of the transaction.
PARIS, Feb. 3 (Xinhua) — The Organisation for Economic Co-operation and Development (OECD) announced Wednesday that
China had spent more on research and development in absolute terms than the European Union (EU) for the first time in 2014.
OECD said China had invested 2.05 percent of its GDP (gross domestic product) in R&D (research and development) in 2014, passing the 2 percent goal set in its 2006-2010 economic plan. During the same period, the 28-member EU averaged 1.94 percent, well below the bloc’s target to spend 3 percent of GDP on R&D by 2020.
In volume terms at current prices, China’s 2014 R&D spending was equivalent to 102 percent of the EU total, and stood at to 80 percent of the U.S. level shown in 2013 OECD’s statistics.
According to OECD, China’s R&D spending has risen steadily from 0.57 percent of GDP in 1995. It surpassed Britain in 2011 and the EU in 2012, as a share of GDP. EU R&D spending has risen only gradually from 1.60 percent of GDP in 1995.
OECD noted that the 9 percent rise in China’s 2014 R&D spending was its lowest growth rate in real terms since 1996.
The data of OECD showed that South Korea spent 4.29 percent of its GDP on R&D in 2014, followed by Israel at 4.11 percent. In third place, Japan spent 3.58 percent.
In 2014, OECD countries spent an average of 2.37 percent of GDP on R&D, unchanged from 2013. Annual spending rose 2.1 percent in real terms in 2014 in the OECD area, down from 2.8 percent in 2013. Most of the growth is from business R&D (up 2.8 percent), while R&D spending in government institutions rose just 1.0 percent and R&D in higher education slipped by 0.2 percent.
Hackers moved ruble-dollar rate more than 15% in 14 minutes
Corkow Trojan malware behind more than $500 million in trades
Hackers used malware to penetrate the defenses of a Russian regional bank and move the ruble-dollar rate more than 15 percent in minutes, according to a Moscow-based cyber-security firm hired to investigate the attack.
Russian-language hackers deployed a virus known as the Corkow Trojan to infect Kazan-based Energobank and place more than $500 million in orders at non-market rates in February 2015, Group-IB told Bloomberg, without identifying individuals behind the attack. The resulting rate swing prompted a Russian central bank investigation last year into potential market manipulation.
Malicious software of the type used in the attack can open a back door into computers via seemingly legitimate websites or files and then force them to carry out hackers’ orders. Corkow, which regularly updates itself to evade detection by anti-virus programs, has infiltrated 250,000 computers worldwide and infected more than 100 financial institutions, according to Group-IB, which investigated the attack on behalf of Energobank.
“This is the first documented attack using this virus and it has potential to do much more damage,” Dmitry Volkov, the head of Group-IB’s cyber intelligence department, said by phone. “Once the malware has penetrated a local network, it is sophisticated enough to infect computers that are even not connected to the Internet.”
The Moscow Exchange has said its systems were not hacked in the incident on Feb. 27, 2015. In a separate investigation, the central bank said it found no evidence of currency market manipulation, noting the fluctuations could have been caused by traders’ mistakes.
The volatility lasted 14 minutes and caused the exchange rate to swing between 55 and 66 rubles per dollar, which “significantly differed from the prevailing market rate,” the central bank said in a statement on Dec. 17.
The bank claimed losses of 244 million rubles ($3.2 million) due to the trades, Vedomosti newspaper reported last year, citing a suit filed by Energobank in a Kazan court. There is no evidence that the hackers profited from the operation and it may have been a test to prepare for future attacks, according to Group-IB.
Energobank, the exchange and the central bank did not respond to e-mailed queries.
The virus was also used in an attack on a Russian bank card system that resulted in hundreds of millions of rubles being stolen via ATMs in August, Group-IB said.
After years wrongly selling the end of Japan and a currency crash which
never happened Mr. Bass has moved onto China. It’s no longer a secret, the
world’s speculators backed by the Fed’s printing presses are out to short
China. Wages are up, house prices are up, and Chinese companies are gobbling
up compeitors and real estate across the globe. Yet the country is
collapsing? Take a look at Detroit and tell me which country has collapsed.
Americans are totally delusional.
This guy even mentioned in the CNBC interview that “industrial production in
China is as low as the 1990’s? The country produced less than a million cars a
year in the 1990’s , and this year will reach 25 million. Clearly has not spent
much time in China if he has ever been here.
Kyle Bass: China banks months away from ‘danger territory’
Hayman Capital Management founder Kyle Bass has been ringing the alarm bells about China’s banking system and the yuan for months, and now he says the day of reckoning could be just months away.
The premise of Bass’ bet goes like this: China’s banking system has grown to $34.5 trillion, equal to more than three times the country’s GDP. The country is due for a loss cycle as cracks begin to show in its economy.
When that happens, central bankers will have to dip into China’s $3.3 trillion of foreign exchange reserves to recapitalize the banks, causing a significant depreciation in the value of the yuan, according to Bass.
On Wednesday, he said China’s export-import industry requires China to maintain $2.7 trillion in foreign exchange reserves to continue operating smoothly, citing an International Monetary Fund assessment.
“They’ll hit that number in the next five months,” he said in an interview on CNBC’s “Squawk on the Street.” “Those that think they can burn it to zero and they have many years ahead of them, they really only have a few months ahead of them before they get into a real danger territory.”
A digital marketing manager with a cosmetics company in Shanghai, for example, is likely to see his/her annual income jump to 550,000 yuan ($83,596) this year from 450,000 in 2015
Despite the expectation of slower GDP growth this year, niche professionals, especially those associated with digital technologies, are very likely to seek salary increments in the following months, according to Morgan McKinley, a global hiring company.
Its 2016 salary survey shows overall salaries in China’s private sector will increase by 5-8 percent on average this year.
Finance and accounting professionals, and those with expertise in the Internet and e-commerce are more likely to have a salary increase of up to 8 percent.
For those who work in the information technology sector, bonuses and share options will likely to be offered in compensation for long working hours in high-pressure situations, according to the report.
“Candidates who stay on top of developments in their sector and discipline, for example IT professionals who have transitioned to digital and mobile platforms, will do well in 2016,” said Rio Goh, managing director of Morgan McKinley China.
A 30 percent raise will likely be seen among e-commerce professionals in the fast moving consumer goods sector, as well as bilingual talents with experience in digital and new media, said Wang Qiang, managing director of Robert Walters, another leading hiring firm.
A digital marketing manager with a cosmetics company in Shanghai, for example, is likely to see his/her annual income jump to 550,000 yuan ($83,596) this year from 450,000 in 2015.
An e-commerce business director working at a Shanghai-based FMCG company will probably see his/her annual income increase from 900,000 yuan in 2015 to 1.1 million yuan this year, said Wang.
Based on Robert Walters’ findings, employers in Shanghai are the most generous in terms of offering salary hikes. Their peers in Beijing tend to be conservative.
While most employers in Beijing are likely to keep their staff’s salaries unchanged this year, some could even lower them quite significantly in the next few months.
For example, a finance director is likely to see his/her annual income drop to 1 million yuan this year from 1.5 million yuan in 2015.
A sales director in a Beijing-based industrial company will see his/her annual income cut to 1.8 million yuan this year from 2 million yuan in 2015.
For positions not closely related to the digital segment, hikes may still be possible, as long as the candidates have certain professional skills.
According to Hays Plc, a London-headquartered hiring firm, insurance is one of the sectors that will show most vibrancy this year, given the strong revenues and profits of Chinese insurers in the past 12 months.
In Taiwan this week discussing wages with some mainland factory owners.
There has been a quiet revolution in wages in China. One that we have spoke
about before. Chinese wages are now up to more than $1,300 USD a month in
factories such as machine shops and steel plants. Add on top of this
free meals and housing this makes wage gains for Chinese workers nothing short
of incredible. Wages in China in these plants were only $100/month 10 years ago.
Now enter the jobless of Europe, who are starting to fill the lower end jobs in
China. Sunning , China’s largest electronics company has hired foreign delivery
You see what happens when you forget to donate to the Clinton Foundation?
Kremlin asks U.S. to explain accusations on Putin
MOSCOW, Jan. 29 (Xinhua) — Russia expects the top leadership of the United States to provide an explanation of “unacceptable” statements by U.S. officials accusing Russian President Vladimir Putin of corruption, Kremlin spokesman Dmitry Peskov said Friday.
“We find the statement of my colleague in the White House unacceptable from the point of view of the general practice of international relations, and from the point of view of bilateral Russian-American relations. We believe this statement is outrageous and offensive,” the RIA Novosti news agency quoted Peskov as saying.
More of the scary Chinese “Capital Flight” as Chinese companies gobble up
assets around the globe.
China’s Zoomlion Heavy Industry Science & Technology Co confirmed on Wednesday an unsolicited takeover bid for Terex Corp, the US crane and construction machinery maker.
The deal will be vital to Zoomlion’s transformation and the implementation of the company’s global strategy, and it will help increase Zoomlion’s revenue and profits.
According to a Terex statement, Zoomlion has offered $30 per share for the company, valuing it at $3.2 billion.
The offer is twice Terex’s stock price on Monday, which closed at $15.01 per share in New York. The shares surged 37 percent on Tuesday to $20.5, pushing its market capitalization to $2.2 billion.
The Terex board said it is carefully reviewing the Zoomlion proposal to determine what course of action is in the best interests of its shareholders.
Before the Zoomlion offer, Terex had agreed to merge with Finland equipment manufacturer Konecranes to create a crane and materials handling supplier with a combined $10 billion in sales. After the merger, the company planned to change its name into Konecranes Terex Plc and move its base to Finland.
Founded in 1992, Zoomlion is mainly engaged in manufacturing high-tech equipment for the agricultural, building, energy, environmental, and transport-engineering sectors.
The first mainland construction machinery company to be listed on both the Shanghai and Hong Kong stock exchanges, Zoomlion has manufacturing bases in Italy, Germany, India and Brazil.
China’s equipment manufacturing industry was hit hard by China’s economic slowdown last year. During the first half of the year, the 18 major listed construction machinery firms reported combined operational revenue of 50 billion yuan ($7.58 billion), a 29.31 percent fall on the same period in 2014.
“China’s equipment manufacturing sector is in the mid- to downstream of the global production chain,” said Chen Chaofan, an economics professor with the School of Economics and Resource Management at Beijing Normal University.
“It needs to learn from developed countries in terms of technology and expertise and overseas purchase is a good way to strengthen production capacity,” Chen said.
Another Massive U.S. company leave the country.
Johnson Controls strikes $20bn Tyco acquisition
Johnson Controls has agreed to acquire Tyco International in a $20bn industrial tie-up that will allow the manufacturer to slash its tax bill by moving its corporate domicile from the US to Ireland.
The transaction is structured as a reverse takeover that will see Tyco shareholders own 44 per cent of the combined group, while Johnson Controls investors will hold the remainder and receive $3.9bn in cash. It values Tyco shares at $34.88, an 11 per cent premium to its closing price at the end of last week
High quality global journalism requires investment.
The new company will keep Tyco’s Irish domicile and Cork headquarters, allowing Johnson Controls to capture a lower tax rate and create “at least $150m in annual tax synergies”, the companies said. Other synergies will total at least $500m over the first three years, they added.
The deal highlights the inability of the US government to stop its large corporations from fleeing the country’s tax regime and suggests that so-called “inversion” deals remain highly attractive to companies struggling to grow their top line.
The China is crashing hyperbole has reached its zenith. Hedge fund with shorts
have been talking this book for years despite a relatively overall healthy Chinese
economy. An Economy which has seen GDP per capital go up to $8,800 per person
from only $1,000 per person in less than 12 years.
The Great American Paper Printing Illusion will end before you know it. Prepare.
Upgrading ties and boosting cooperation have been the centerpiece of President Xi’s three-nation visit to the Middle East. In Saudi Arabia, the first leg of the trip, the two countries signed a total of 14 agreements and memoranda of understanding, including massive oil deals, to speed up China-Gulf region free-trade talks.
Other deals include building a nuclear reactor, and an accord to work together on the Belt and Road Initiative. China also upgraded its diplomatic relations with Saudi Arabia to comprehensive strategic partnership, a positioning for closer cooperation in various areas.
In President Xi’s second stop in Egypt, the two sides signed 21 deals worth US$15 billion. These deals include one to build a new administrative capital, and another to develop an industrial and commercial hub around Egypt’s Suez Canal.
The two sides also signed a five-year outline document, to boost cooperation in fields, such as politics, trade and economy, as well as military and security.
The last leg was Iran, where President Xi and his Iranian counterpart have mapped out a 25-year plan to broaden relations. 17 accords were inked there. Major pacts include cooperation in nuclear energy and a revival of the ancient Silk Road trade route.
The two countries also agreed to increase bilateral trade by more than 10-fold, to US$600 billion in the next decade. China and Iran also upgraded their ties to comprehensive strategic partnership.
The Chinese vision for the Middle East unveiled by President Xi Jinping in his three-nation tour offers a fresh approach to the conflict-torn region’s thorny issues by highlighting dialogue and development as the core solution.
The Middle East has been haunted by persistent turbulence and bloodshed that have claimed hundreds of thousands of lives and displaced many others.
Addressing an audience at the Cairo-based Arab League headquarters, Xi said the key to resolving differences in the Middle East is to enhance dialogue, while the key to overcoming difficulties is to promote development, and the key to choosing the right path is ensuring it suits the national conditions.
The roots of the problems in the Middle East are complicated, with prolonged sectarian rifts, national contradictions, weak development and Western intervention all playing a part and dragging the region into crisis.
A study of history shows that force is never the right solution to problems, and zero-sum or winner-takes-all logic is inconsistent with the call of the times.
The surest way to find maximum overlap among the interests of different parties is to seek consensus and be understanding and accommodating.
China advocates resolving regional conflict through political dialogue rather than confrontation. The country has played a unique and constructive role by actively mediating between parties on regional topics such as the Iran nuclear issue.
The Chinese leader is trying to convey to the Mideast the Chinese experience of resolving issues through development.
During his trip, Xi said China supports the Arab world to solve its problems on its own through development and dialogue, adding that the process of dialogue might be long but will yield the most sustainable results.
This has been proved by China’s successful experience over the past 30 years, while Western interventions in the region based on selfish agendas have provided counterevidence.
Having achieved rapid economic and social development along an independent path with Chinese characteristics, China knows the importance of stability and a suitable path to fast growth, which are two elements critical to the development of the Middle East.
Middle Eastern countries, which are currently undergoing reform and change, urgently need guaranteed political stability and dynamic economic growth.
Identifying development as the core solution to the Middle East turmoil, Xi showed that China is a supportive and cooperative partner with the announcement of several moves to promote development in the region.
They include cooperation projects in industrial capacity, infrastructure and energy with Saudi Arabia, Egypt and Iran under the Belt and Road Initiative framework, and hundreds of millions of U.S. dollars in assistance to people in Palestine, Syria, Jordan, Lebanon, Libya and Yemen who are suffering conflict and war.
Meanwhile, the Chinese leader made it clear that his country is not looking for proxies or trying to fill any “vacuum” in the Middle East, but aspiring to build “a network of mutually beneficial partnerships.”
It is hopeful that the wisdom of China, which is trusted by Middle Eastern countries as a non-interfering country, could serve as an effective remedy for problems and herald a brighter future for the region.
BEIJING, Jan. 25 (Xinhua) — The central parity rate of the Chinese currency renminbi, or the yuan, strengthened by 15 basis points to 6.5557 against the U.S. dollar on Monday, according to the China Foreign Exchange Trading System.
Submitted by Bill Holter via Jim Sinclair’s Mineset blog,
What a tangled web the global geopolitical situation has become. Geopolitics and finance have always been interrelated but recently much more so. As many readers know, I have speculated we would be hit over the head with a “truth bomb” from the East and most likely from Mr. Putin himself. Just this week Britain has alleged Mr. Putin personally ordered a “hit” on an ex KGB agent for calling him a pedophile. Another story came out that Turkey shot down a NATO helicopter which made no press coverage at all in the West. Also, Victoria Nuland recently travelled to Russia and was refused an audience by Mr. Putin. This, after John Kerry had a meeting where he went into it saying “Assad must go” and came out saying Mr. Assad can stay … Why all of this now? I would simply say this reeks of desperation and also a VERY dangerous strategy to attack Mr. Putin personally. I say “dangerous” because it raises the likelihood of a response from him. Can you imagine the outrage were Russia to accuse president Obama or the Prime Minister Cameron of Britain for ordering the murder of someone who called them a pedophile?
Before going any further, I believe nearly ALL of what we are seeing is centered by and on the “petrodollar”. Will it survive or be replaced? In my opinion it is no longer “if”, but “when” and by “what” will it be replaced with? Just over the last two weeks we have seen three very important yet interrelated events.
First, the sanctions against Iran in place over the last 35 years were lifted. Along with this comes the ability for Iran to sell oil and they will now have access to up to $150 billion worth of assets and accounts previously frozen as reported by many credible non-government sources.
The day after, we saw 10 U.S. captured sailors on their knees as they were said to have “strayed” into Iranian water. The official U.S. account has changed at least twice. We heard “mechanical failure” at first, this is unlikely as there were reportedly two separate vessels. If one had mechanical problems, the other could have tied off and either towed it or held it steady until help could arrive. Then the story changed to “navigational” problems. This one I believe …but not the official story they “strayed” into Iranian water. Again, if it was just one boat, maybe their navigation system malfunctioned …at the same time their communications failed …MAYBE? But both boats …at the same time lost their comm and navigation systems? Probably a better chance one of these sailors winning the Powerball lottery two weeks in a row! Speculation on my part, I believe the electronics were somehow hacked or blocked just as happened with the Donald Cook in the Black Sea in late 2014.
Just a couple of days ago, President Xi of China met with Iranian leaders one day and then the Saudis the following day. We can only speculate what was discussed but surely oil was the centerpiece. Naturally China wants to make and diversify oil supply deals from them both. We have no proof but I believe it is a very good bet President Xi told the Saudis they would be expected to accept yuan for settlement instead of dollars. There is no denying, the Chinese have done everything in their power to prepare for the dollar being dumped as the world’s reserve currency. You can argue about timing, you cannot argue about “intent” as China/Russia have set up non Western clearing facilities similar to SWIFT but without any Western interference, trade deals, currency hubs, trading banks, and even gold and oil exchanges where the dollar will not be welcome.
It is not tough to tie all of this together. I ask you this, what would the world look like the day following a “truth bomb” dropped by Mr. Putin and the Chinese. Would Americans even notice if he documented several false flags or frauds embedded in U.S. finance such as outright monetization of U.S Treasuries? No, most certainly not. Americans would however notice if financial markets collapsed or were shut down. Russia and China know full well the situation in the West. It is a bankruptcy waiting to happen as everything is fractional reserve and running on maximum margin while the underlying system is shrinking and no longer supplying enough liquidity. The way I see it, the stage is truly set for a financial attack on anything and everything American. Is it implausible for the Saudis to announce they will sell oil in yuan to China? Or Iran to withdraw their funds from U.S. institutions and then bid for gold with these funds? If the East does in fact have jamming or hacking capability of Western technology, is it far fetched for them to show it very publicly in one or several situations? How would the “bookies” react if they saw a prize fighter enter one of the later rounds with his hands tied behind his back?
You can laugh at the above speculation if you choose but it is all quite plausible and actually probable if you look at where things are and what posturing has already been done leading up to this. Western markets, ALL markets are a fraud. Our Treasury market is one where the biggest buyer is “our self” …the Fed and the ESF. We have already seen $1 trillion of foreign reserves offloaded with no effect on yield nor the dollar itself and NO ACCOUNTING ANYWHERE as to “who” bought these offloaded central bank reserves. Accounting fraud and no rule of law here, nothing to see …please move along! You can laugh if you want and say Saudi Arabia will never move toward the East … Saudi Arabia is now in very dire straits financially, who do you think they will side with when Western markets melt down? Do you really believe they will go down trying to support our dollar?
The stage has already been set. The East knows the West has bankrupted. They know we have no gold left because they have it! They can see the finances of the various cities, states and federal government. They know the situation in derivatives is one giant mountain of dynamite waiting for a spark. They know our rule of law is gone and bail ins of depositor funds is next. We are monetizing their sales of Treasury securities. “We” are fooling no one except ourselves. And by “ourselves” I am talking about the vast majority of the population who have grown to rely on the government for everything. Everyone knows we are broke, yet ask anyone and the odds highly favor you will hear “the government will never let it happen”. Even if you are silly enough to believe this you must ask yourself, what are the ramifications when markets become “make believe”?
“Collapsing China’s” maritime output to go over $1 trillion USD. Meanwhile
the “economic superpower”, the U.S. is not even a player. Doesn’t build ships,
operate foreign ports, or even carry goods in the booming international trade
sector. American shipping, like steel has disappeared.
BEIJING – China’s maritime economy is expected to generate nearly 6.5 trillion yuan ($988.79 billion) in 2015, about 7 percent more than 2014, the State Oceanic Administration (SOA) announced on Friday.
The maritime economy has become an important boost to the national economy, with its total production value growing by an average 8.1 percent annually from 2011 to 2015, said SOA director Wang Hong at a national meeting on marine work.
The total production value last year is expected to account for 9.6 percent of the total gross domestic product (GDP), according to the SOA estimation.
The industry employed more than 35 million people and maritime science and technology contributed to 60 percent of the maritime economy, the SOA figures show.
To speed up maritime economic development, the government plans to coordinate the construction of high-tech and innovation industrial bases and demonstration zones, and foster emerging industries including marine biomedicine, high-end marine facilities and sea water desalination this year, Wang said.
The SOA will also push to achieve breakthroughs in core technologies concerning maritime industries and advance industrial upgrades in the next five years, he said.
Looking to further the rule of law, the country will promote legislation in the fields of resource exploration in deep seafloor areas, protection of ocean oil and gas pipelines, and the management on Antarctic activities, according to Wang.
DUBAI (Reuters) – Iran and China agreed to expand bilateral ties and increase trade to $600 billion in the next 10 years, President Hassan Rouhani said on Saturday during a visit to Tehran by Chinese President Xi Jinping.
Xi is the second leader of a U.N. Security Council member to visit Tehran after the nuclear deal Iran struck with world powers last year. Russian President Vladimir Putin visited Tehran in November.
Iran emerged from years of economic isolation this month when the United Nations’ nuclear watchdog ruled it had curbed its nuclear program, clearing the way for the lifting of U.N., U.S., and European Union sanctions.
“Iran and China have agreed to increase trade to $600 billion in the next 10 years,” Rouhani said at a news conference with Xi broadcast live on state television.
“Iran and China have agreed on forming strategic relations (as) reflected in a 25-year comprehensive document,” he said.
Iran and China signed 17 accords on Saturday, including on cooperation in nuclear energy and a revival of the ancient Silk Road trade route, known in China as One Belt, One Road.
“China is still heavily dependent on Iran for its energy imports and Russia needs Iran in terms of its new security architecture vision for the Middle East,” said Ellie Geranmayeh, policy fellow at the European Council on Foreign Relations.
“Iran plays quite an integral role for both China and Russia’s interests within the region, much more than it does for the Europeans,” Geranmayeh said.
Xi was quoted as saying by China’s Xinhua news agency: “The China-Iran friendship … has stood the test of the vicissitudes of the international landscape.”
The Chinese state-backed Global Times newspaper said in an editorial on Saturday that China hoped to improve ties with Iran as part of its sweeping plan to rebuild trade links with Europe and Asia and carve out new markets for its goods.
“China is of course considering its self interest in strengthening cooperation with Iran, especially at a time when China is in the midst of expending efforts to push forward the One Belt, One Road initiative, Iran is an important fulcrum,” the paper said.
Rouhani said the countries had also agreed to cooperate on “terrorism and extremism in Iraq, Syria, Afghanistan and Yemen”.
China signaled its support for Yemen’s government, which is fighting an Iran-allied militia, during Xi’s visit to Saudi Arabia, Iran’s rival for influence in the region, this week.
Iran has called on China to join the fight against the Islamic State militant group and play a more active role in the region.
Tehran is widely credited with convincing Russia to start its military intervention in Syria and join the fight against Islamic State.
“Although China and Russia backed U.N. sanctions against Iran on its nuclear program, they were also heavily pushing for special waivers to continue trading with Iran,” Geranmayeh said.
“Iran had a relationship both politically and economically with China and Russia for the last ten years in ways that it hasn’t had with Europe. So it’s quite natural to see it opening up first to these countries.”
The Chinese president was to meet Iran’s most powerful figure, Supreme Leader Ayatollah Ali Khamenei, later in the day.
(Reporting by Bozorgmehr Sharafedin, additional reporting by Megha Rajagopalan in Beijing; Editing by Janet Lawrence)
Hedge Funds continue to talk their books and the Western press eat
it up. Hedge Funds with short interests as well as American intelligence
services are going full-court press with their “China collapse” theory.
A theory constantly reused and upgraded for the last 15 years.
With commodities and oil demand never higher, the country is clearly
being used as a cover for general over-all economic malaise in the West.
The story of commodities is one of over-supply, not demand destruction.
Cheap, credit fueled Western economies created the oversupply of capital
which brought on to much capacity in to quick of a time.
And of course, the economic malaise in the West has nothing to do with
slave-level tax rates and Soviet style social programs which focus on
population replacement of their own countries and people.
You wonder why your citizens aren’t breeding its because mammals
struggle to breed in captivity.
In the below article, Bloomberg is now using Mark Harts genius as
evidence the Chinese Yuan is in for a 50% fall.
They also reported on his fund closing in 2012 from “extremely poor
and disappointing performance,” as Bloomberg News reports. Firm founder
Mark Hart, in a letter to clients this month, blamed government
intervention for the lack of volatility for the slide, although he also
acknowledged “taking a far too bearish stance of risk assets in general
and on the sovereign debt crises in Europe and the economic situation in
So the guy who got China wrong year after year is now sure he is right.
But of course, a U.S. debt level of $19 trillion heading to $30 trillion
is nothing to be concerned about. China has trade surpluses with the United
States in excess of $500 billion dollars annually,and an $11 trillion dollar
economy growing at least at 4-5%. Chinese PBoC rates still at 4.5% while the
Fed is at 0.25%.
Despite such low rates from the FED, and massive spikes in healthcare premiums,
the U.S. economy struggles for any growth at all. Yet the Dollar should increase
50% against the Yuan?
Keep talking your books, we will look for the news of your next fund closure.
Hedge Fund That Called Subprime Crisis Urges 50% Yuan Drop
Mark Hart, the hedge fund manager whose bets against U.S. subprime mortgages and
European sovereign debt proved prescient, said China should weaken its currency
by more than 50 percent this year.
A one-off devaluation would allow policy makers to “draw a line in the sand” at a
more appropriate level for the yuan, easing pressure on China’s foreign-exchange
reserves and removing an incentive for capital outflows, according to Hart, who’s
been betting against the currency since at least 2011. China should devalue before
its $3.3 trillion hoard of reserves shrinks much further, he said, because the
country can still convince markets it’s acting from a position of strength.
“There wouldn’t be anything underhanded about a sharp devaluation,” Hart, who runs
Corriente Advisors from Fort Worth, Texas, said in an interview on Real Vision, a
subscription video service targeting Wall Street. “Why should China be forced to
suffer deflationary effects of defending its currency when everyone else isn’t?”
Hart, whose prescription clashes with consensus forecasts for the yuan and recent
comments from senior government officials, said China would be justified in weakening
the currency after central banks in Europe and Japan fueled declines in their exchange
rates to stoke economic growth in recent years. Such a move would likely come as a
surprise to global investors, who were rattled by a drop of less than 3 percent in
the yuan last August.
A year ago, Premier Li Keqiang told the World Economic Forum that his country could avoid a hard landing. As the Swiss town of Davos prepares for the 2016 edition of the conclave, delegates such as Nobel laureate Joseph Stiglitz and Credit Suisse Group AG Chief Executive Officer Tidjane Thiam say he’s still right.
Their stance clashes with the recent sentiment in financial markets, where a sell-off of the yuan and Chinese equities sent shockwaves through commodities markets and helped wipe $5 trillion off stocks worldwide by reviving fears over the global growth outlook.
“Sentiment has likely lurched far too quickly into a bearish posture and over-hyped downside scenarios,” said Tim Adams, the U.S. Treasury’s former point-man on China and now president of the Institute of International Finance. “In the end, China will likely emulate every major economy and muddle through.”
Investors are increasingly concerned about China as a report on Tuesday is poised to show its economy grew last year at the weakest pace since 1990. Further spooking investors is a debt overhang estimated at $28 trillion, currency weakness that risks spurring competitive devaluations elsewhere, and equities’ decline into a bear market.
With China now the world’s No. 2 economy and responsible for about 15 percent of global output, the worry is that its troubles will spread to other nations as it cuts imports of commodities and manufactured goods. A weaker yuan also threatens to deal another disinflationary blow.
Some economists counter that there’s reason for optimism as Chinese consumers are still spending, property prices are stabilizing, demand for exports has picked up and there is plenty of room for fiscal and monetary stimulus if required. Though growth is indeed fading, China is on track to expand 6.5 percent this year, according to the median estimate of economists surveyed by Bloomberg.
“There’s always been a gap between what’s happening in the real economy and financial markets,” said Stiglitz, a professor at Columbia University who will be in Davos. “What’s happening in China is a slowdown by all accounts,” he said, “but it’s not a cataclysmic slowdown.”
To Adam Posen, president of the Peterson Institute for International Economics, the situation is akin to the U.S. savings and loans crisis in the 1980s, which hurt but didn’t cripple the economy. Chinese citizens still have savings, the country has little debt denominated in foreign currency, and banks are displaying no signs of instability, he said.
“I really think people are over-reacting,” Posen, a former Bank of England policy maker, told Bloomberg.
Even under more adverse conditions in China, the spillover will be limited to about 0.2 percentage point of GDP in the U.S., Europe and Japan, Goldman Sachs Group Inc. economists said in a report this month.
Some argue that the pain will ultimately pay off as China shifts to a more sustainable expansion focused on consumption and services rather than investment and manufacturing.
“Yes there will be growing pains, yes they’re changing their model from export-led capital intensive growth to consumerism, but I think they’ll manage,” Credit Suisse’s Thiam said Jan. 12. “I went to China first in 1984 — anybody who’s been to China in 1984 can only be a China bull.”
Government estimates of debt over the next decade have gone from adding
$1.5 trillion in debt to $9.4 trillion due to recent tax legislation.
That will put the country up over $30 trillion in debt assuming there
are no further recessions.
This is the decade of no return.
Seems blowing up peoples countries and importing their poor and putting
them on benefits is no longer working. We have also tried closing all our
factories and letting the world scam us out of jobs in the “free trade”
system. World’s highest tax rates…not seeming to help either. Cramming
people into “universities” and loading them with debt has failed as well.
If this doesn’t get better soon we may have to go back to that old free
market economics crap.
WASHINGTON (AP) — A government report released Tuesday estimates that this
year’s budget deficit will rise to $544 billion, an increase over prior
estimates that can be attributed largely to tax cuts and spending increases
passed by Congress last month.
The estimate from the Congressional Budget Office also sees the economy growing
at a slower pace this year than it predicted just a few months ago. It projects
the economic growth will slow to 2.7 percent this year; it foresaw 3.0 percent
growth in 2016 in last summer’s prediction.
Over the coming decade, CBO predicts deficits totaling $9.4 trillion. That’s up
$1.5 trillion from its August estimate, with much of the increase mostly due to
last month’s tax legislation, which permanently extended several tax cuts that
Congress had typically renewed temporarily.
But the picture over the long run is more dire, CBO says in its report. As deficits
rise over the decade and the national debt grows, interest rates are likely to be
forced up, economic growth could slow, and policymakers may have no choice but to
raise taxes and cut spending more sharply than if they acted now.
Deficits would rise to about 5 percent of gross domestic product within 10 years,
CBO expects, and the resulting debt could cause big economic problems.
“Such high and rising debt would have serious negative consequences for the
nation,” CBO said.