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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

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

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

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

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

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.

Swiss Franc rockets…Hedgies taken out to the woodshed and shot

Europe is deflating….The Swiss banking established, normally always a pillar of private property and free capital movement have decided to stop pegging their currency which has been an affront against free markets. Hedge Funds piggy banking off government manipulation and mostly short the currency were

China’s stock market has increased $1.8 trillion in value in six months, Jim Chanos nowhere to be seen

China’s stock market swelled $1.8 trillion in value in six months as trading volumes hit records. The Shanghai Composite Index jumped 3.5 percent today for a gain of more than 60 percent since mid-July. Jim Chanos on the other hand after preaching for at least

Gold’s Relative Performance Since 2001 vs Major World Stock Markets

By Vronsky January 8, 2015 http://www.gold-eagle.com Unfortunately, very few investors in the world are cognizant of the relative performance of the gold price vis-à-vis the traditional world stock markets…as demonstrated by the chart below (2001 to 2014). It shows the percent gain or loss over

U.S. military’s Central Command hacked by ISIS and no one lost there job?

Are we really supposed to believe this? If these guys can hack Centcom can you imagine what the Russians or Chinese could do. Don’t worry, the government just happens to be ready with updated legislation to make it legal for private firms to spy on

Chinese Oil Imports up 13.4%, hit new record now at 7.2 million bpd

Something is rotten in Denmark. The world’s largest oil importer, China, is importing more oil yet oil can’t get a bid in global markets. As we said all along, the oil price is being manipulated on the global derivatives markets to attack Russia, Iran, and

China buying the Gold Dip …Again

Newly released data from the Shanghai Gold exchange continues to show physical gold getting imported through the exchange and disappearing into private homes in China. For the week ending December 19, 61 tons of gold were withdrawn. The number for the previous week was 50

China’s internet giants moving into micro-lending

Disclosure: I am a long term hold on Tencent and Alibaba. Tencent and Alibaba are both at the vanguard in freeing up capital to small players in the Chinese economy. This will be a boom as they develop their online banks. Not only the companies

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.

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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.

article-0-2084651D00000578-844_634x622

 

Swiss Franc rockets…Hedgies taken out to the woodshed and shot

Europe is deflating….The Swiss banking established, normally always a pillar
of private property and free capital movement have decided to stop pegging their
currency which has been an affront against free markets.

Hedge Funds piggy banking off government manipulation and mostly short the currency
were taken out to the woodshed and shot as the currency shot up 30% in minutes.

Untitled

0cd64e18de229bd1064157716c8d60fb8bed31d53d556f872707f71d47d85d4d

 

China’s stock market has increased $1.8 trillion in value in six months, Jim Chanos nowhere to be seen

China’s stock market swelled $1.8 trillion in value in six months as trading volumes hit records. The Shanghai Composite Index jumped 3.5 percent today for a gain of more than 60 percent since mid-July.

Jim Chanos on the other hand after preaching for at least five years of a China crash…still thinks he is right.

jim-chanos

 

Gold’s Relative Performance Since 2001 vs Major World Stock Markets

By Vronsky
January 8, 2015

http://www.gold-eagle.com

Unfortunately, very few investors in the world are cognizant of the relative performance of the gold price vis-à-vis the traditional world stock markets…as demonstrated by the chart below (2001 to 2014). It shows the percent gain or loss over 14 years:

vronsky010815-1

vronsky010815-2

Moreover, I am convinced future relative performance of the price of gold will be a mirror image of the past fourteen years. My steadfast conviction is based on the following:

- China and India are snapping up gold at these bargain basement prices

- China’s covert objective to replace the US$ reserve currency with its own gold backed Renminbi

- The Euro Union is on the verge of implosion, which will stampede their citizens to gold

- Accelerated Growth in the US Fed’s Balance Sheet

- Many country Central Banks are buying gold to diversify their foreign reserves

- US Dollar is on course to lose its global reserve currency status

- Russia’s Putin may spark World War III over the growing turmoil in the Ukraine

- Growing Global Gold Demand continues to outpace flat mining Supply. Therefore, prices must rise

- All the above will continue to pressure the US dollar lower, and conversely gold higher

- Everyday more new investors are putting their money in bullion

- Internet Communication to easily transmit gold’s message – instantly and worldwide

Hopefully, China’s and Japan’s Central Banks might someday see and comprehend the following chart, showing the relative performance of gold, US T-Bonds and the US Dollar…

vronsky010815-3

If the Chairmen of Central Banks of China & Japan could see this chart, the price of gold would soar to over $2,500 in less than a week. WHY…you ask? Here’s why!

China and Japan are the world’s largest holders of US Treasury Bonds. China has a hoard of $1.3 Trillion in T-Bonds (denominated in US Dollars). And Japan (sadly) holds $1.2 Trillion in US T-Bonds. Clearly, the above chart shows that the relative investment performance of gold vs US Treasuries since 2001:

Gold Price has soared +337% (recent correction notwithstanding), while
T-Bonds have risen a miserly +45%
But China’s and Japan’s opportunity loss does NOT stop here (i.e. The Asian nations have forsaken 292% by not having gold reserves instead of fiat US paper reserves). One must remember that all US T-Bonds are denominated in US greenbacks…which have lost -17% across the past 14 years (the chart clearly indicates this).

One wonders how soon the Directors of The Peoples Bank China and the Bank of Japan will be forced to resign due to this disgraceful financial blunder.

Full Article here

 

U.S. military’s Central Command hacked by ISIS and no one lost there job?

Are we really supposed to believe this? If these guys can hack Centcom can
you imagine what the Russians or Chinese could do. Don’t worry, the government
just happens to be ready with updated legislation to make it legal for private
firms to spy on you for the govermentt and not face legal action. Land of the
free home of the brave.

isis-flag-1024x512

 

Chinese Oil Imports up 13.4%, hit new record now at 7.2 million bpd

Something is rotten in Denmark. The world’s largest oil importer, China,
is importing more oil yet oil can’t get a bid in global markets. As we
said all along, the oil price is being manipulated on the global derivatives
markets to attack Russia, Iran, and Venezuela. The U.S. financial warfare
bureau is going after Russia in particular in an attempt to have Putin
overthrown.

The only crisis ,however, will be in Texas as jobs across the oil patch are
now disappearing day by day. This is something that is not entirely
disagreeable to the Democratic party as the Eastern printed money networks
financially attack their own hinterland.

From the WSJ
It was reported today that China imported 30.37 million metric tons of crude
oil in December, equivalent to 7.2 million barrels a day, preliminary data
from the General Administration of Customs.

Imports were 13.4% higher than the 26.78 million tons of crude shipped during
the corresponding month last year, and up around 19.5% from 25.41 million
tons in October, according to Wall Street Journal calculations.

December’s imports surpassed a previous absolute high in January of 28.16
million tons and a previous daily high in April of 6.8 million barrels a day.

images

 

China buying the Gold Dip …Again

Newly released data from the Shanghai Gold exchange continues to show physical gold
getting imported through the exchange and disappearing into private homes in China.
For the week ending December 19, 61 tons of gold were withdrawn.

The number for the previous week was 50 tons. For the week prior to that, the number
was 38 tons. Since the end of August, withdrawals from the Shanghai Gold Exchange
have been stronger compared to the trend over the first six months of the year.
For the third quarter, 480.7 tons were withdrawn compared to 387.4 tons in the
second quarter.

panda-gold-25-jan-2011

 

China’s internet giants moving into micro-lending

Disclosure: I am a long term hold on Tencent and Alibaba.

Tencent and Alibaba are both at the vanguard in freeing up capital to small
players in the Chinese economy. This will be a boom as they develop their
online banks. Not only the companies will benefit but it will unlock capital
to smaller enterprises whom have previously been shut out by China’s big -four
dominated banking system which have preferred loaning money only to state-owned
companies.

 

The retrenchment begins. U.S. to cut 15 military bases as budgets shrink

No military superpower can survive off the back of an rotted economic
carcass at home. How can a bankrupt nation with cities such as Detroit
continue to masquerade as an economic superpower while not being able to
even produce a phone or television competitively. Just ask the Soviets,
a military super power can only outlive a defunct economy by a few decades
at the most.

You are living in what will be the beginning of a decades long retrenchment of U.S. military power. With any luck, it will be a slow process and power vacuum’s will
not be created but based on what we have already seen in the Middle-east, we are
could see decades of chaos.

From the A/P
Facing tight budgets and a shrinking military, the United States said on Thursday it was ending operations at an air base in Britain and handing it and 14 other sites in Europe back to their home governments.

In the biggest move, the Pentagon said it would leave RAF Mildenhall northeast of London, home to tanker, reconnaissance and special operations aircraft, and withdraw 3,200 military personnel and their families.

Several facilities in Germany would be closed. Personnel would be withdrawn from Lajes Field in the Azores, reducing U.S. troop numbers in Portugal. About 300 troops would be shifted from Germany to Italy.

 

More iPhones sold in China than US: report

Apple is projected to have moved 69.3 million units of iPhone in fourth-quarter 2014, with China accounting for 35 percent of global sales. If accurate, it would also mean the Chinese market has surpassed the U.S. for the first time to become the biggest iPhone market for Cupertino.

 

China’s Operation Fox Hunt bags 680 economic criminals overseas

China Daily

A total of 680 fugitives suspected of economic crimes have been repatriated
to China as a result of the transnational “Fox Hunt” operation launched in July.

BEIJING – A total of 680 fugitives suspected of economic crimes have been
repatriated to China as a result of the transnational “Fox Hunt” operation
launched in July, the Ministry of Public Security said Thursday.

Of those seized, 117 had been at large for over a decade and one had been on the
run for 22 years, assistant public security minister Meng Qingfeng told a press
conference. Of the 680 suspects, 208 were involved in economic crimes involving
over 10 million yuan ($1.6 million), 74 of which were involved in cases involving
over 100 million yuan.

Overall, 390 turned themselves in, with 332 doing so after Oct 10, the date Chinese authorities announced that criminals that gave themselves up before the deadline
of Dec 1 would receive lighter punishment.

The fugitives had been hiding in 69 countries and regions, according to the ministry.
Chinese police filed coordinated investigation applications in over 90 countries and
regions, and more than 70 Chinese police teams were sent overseas to support the
operation.

China’s ongoing counter-corruption campaign aims to catch high-ranking “tigers”
and low-level “flies,” the terms assigned to officials depending on rank and
level of corruption.

The six month Fox Hunt 2014 operation, from July to Dec 31, aimed to to “block the
last route of retreat” for corrupt officials in line with the ongoing crackdown
on abuse of power.

“As long as people remain at large, the hunt will go on,” Meng said, stressing
there was “no safe haven” for suspects. The ministry urged those still evading
the authorities to hand themselves in, calling it “the only correct choice.”

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Pentagon concerned by China’s ever deadlier ICBMs

The United States has been concerned over China’s array of intercontinental ballistic missiles and ever-increasing military budget and presence, reports Huanqiu, website of the nationalistic tabloid Global Times.

China’s latest DF-31A ICBM has a range of 11,200 km and is able to attack key cities in the US. China’s ten DF-31 intercontinental ballistic missiles that have already been put into service can only hit the west coast of the US but are able to be launched within 30 minutes. The DF-31 and DF-41 missiles that China has been developing are both able to be released by multiple independently targetable re-entry vehicles (MIRVs), said the report.

What added to Pentagon’s concerns was China’s military budget, which has been growing over the past two decades and increased 5.7% to US$119.5 billion last year. The country’s growing military presence in the world and expanding economic and diplomatic interest are threatening its neighboring countries and US partners and allies, said the Pentagon.

The US has been troubled by China’s elusive military intentions, even after President Xi Jinping and his US counterpart Barack Obama met in June 2013 and agreed to improve bilateral relations, said the US government agency. China has made huge investments to modernize its strategic weapons but they are not exclusive to anti-access/area-denial capabilities The rejuvenation of its military is set to last until 049. also planned to rejuvenate its military until 2049.

20150107dongfeng41-122524_copy1

 

Chaos in Paris. (WARNING) Graphic Video:

Where is French Leadership? You bring them in, put them on welfare, they shoot
you in the head. Your country like most in Europe is dying. Wake up before its
too late. Demographics is destiny. In 100 years, France will be an Islamic state.
You have forsaken all your ancestors have left you.

History_Nostradamus_Predicts_Napoleon_V3_SF_HD_still_624x352