Archive for Uncategorized

Mongolia Elects New Prime Minister nicknamed “The Fist”

Ukhnaagiin Khurelsukh has been elected PM of Mongolia. He was selected by
the ruling Mongolia People’s Party (MPP), which took power in a landslide
election victory a little over a year ago.

In a speech following his victory, Khurelsukh pledged to “improve people’s
lives, declare discipline and rules, fight corruption and punish those who
are irresponsible”.

“My cabinet… will declare justice again,” he said, adding, “don’t come to
me with illegal acts as well as my cabinet members and don’t pressure us to
act illegally.”Ex-premier Jargaltulgiin Erdenebat was ousted in early September
by legislators who accused him of granting 800 billion tugrik (US$328 million)
in concessions to eight companies related to his cabinet ministers.

Khurelsukh, 49, started his career in the army but joined parliament as a member
of the MPP in 2000. As well as his collection of photos inspired by Russian
president Vladimir Putin, last month he earned the nickname “Fist” after a
2012 video of him punching a fellow parliamentarian went viral.

Qingdao customs catch smuggler with 600 grams of gold ingots shoved up his butt

Hong Kong’s Embarrassment of Riches Boggles the Mind

Hong Kong is well-known now for having the world’s highest property prices.

What is less well known are the massive surpluses the government has built up.
As the most of the world begins to drown in debt,Hong Kong’s surpluses are near
spinning out of control to the point of embarrassment.

Hong Kong is now promising to reduce its tax rate from the current 16.5 per cent
to below 10 per cent for all businesses.Unlike the U.S.,however, Hong Kong does not
even need to consider cutting on the expenditure side. The city-states fiscal
surplus is now so large the government doesn’t know what to do with all the money.

Hong Kong now as a surplus running at HK$185 billion a year as of the latest figures.
That is the equivalent of 7.1 per cent of gross domestic product. It comes to
HK$72,800 ($9,454) for every household in Hong Kong.

These surpluses are annual surpluses,the total government surplus is now so large
the government now tries to keep the number hidden. Officially, the figures given
by the Hong Kong Monetary Authority report show direct government deposits of
HK$ 1 trillion. These numbers do not include the savings of statutory bodies in the
government which when included takes the Hong Kong governments savings up to
HK1.98 trillion which is equivalent to 77% of GDP.

In Hong Kong,the city-state has a comprehensive social security system, with roughly
50% of apartments in the city being public and given at low or no rent to citizens.
The city-state has full medical care at only small charge to the user and one of the
world’s best and cheapest public transport systems. These are just the start of the
benefits to Hong Kong citizens.

The government in fact no longer even needs to collect personal income taxes.

What can the Hong Kong teach the rest of the world? Good governance, including low
taxes, free markets, a pegged currency to the Dollar,and good fiscal management.

Hong Kong’s riches now boggle the mind.

China to keep lead over West in developing consumer technologies, says UBS

SCMP

China will continue to lead the world in disruptive business-to-consumer technologies
as it mines the commercial benefits of its vast e-commerce and social media platforms,
according to UBS.

The country’s investments in research and development in those fields and other
disruptive technologies are on track to surpass spending by the United States
next year, analysts at the Swiss global financial services firm said.

“In a lot of these consumer-based technologies, China is far better than the West,
” said UBS equity analyst Sundeep Gantori at a briefing on the sidelines of the
company’s Disruptive Technology CEO Summit on Tuesday.

“Look at the way Chinese companies have monetised social networking apps, which is
something that global companies are still struggling with.”

Tencent Holdings, the world’s largest video game company by revenue, provides the
best example of such commercial success with its social media and messaging platforms,
WeChat and QQ, which had a combined 963 million monthly active users in the quarter
ended June 30.

Since its launch in 2011, WeChat has evolved into a must-have mobile app on the
mainland, used for an array of activities, from shopping and getting food delivered
to booking a doctor’s appointment and paying bills.

Gantori pointed out that China’s e-commerce market leads that of the United States
in the fast-growing online grocery segment.He estimated that China’s online grocery
sales have penetrated about 5 per cent of the domestic market, compared with around
1 per cent in the US.

Hui Ka Yan becomes Asia’s richest man

China No Longer Needs Cash

China Market Update

China Market Update

China’s PE fund capital exceeds 10 trillion Yuan for first time

Odds of Chinese invasion grow as China warns ‘will not accept North Korea as nuclear weapons state.’

China ‘will not accept North Korea as nuclear weapons state’, ambassador warnsChina has warned that it will never accept North Korea as a nuclear weapons state, Beijing’s ambassador to the US warned, just hours after Kim Jong-un said his country was on course to achieve that “final goal”.

Speaking at a Chinese embassy event in Washington DC, Cui Tiankai also called on Donald Trump’s administration to stop sabre-rattling against the secretive communist state.

Instead the US should “resume dialogue and negotiation” over the stand-off, he said.

“Honestly, I think the United States should be doing much more than now, so that there’s real effective international cooperation on this issue,” he told reporters.

“They should refrain from issuing more threats. They should do more to find effective ways to resume dialogue and negotiation,” he said, while adding that China would never accept North Korea as a nuclear weapons state.

His comments came within days of North Korea firing another ballistic missile over Japan that landed in the Pacific Ocean.

It came despite threats by US President Donald Trump that the communist state would feel the “fire and fury” of his armed forces unless it halted its nuclear weapons programme.

Pyongyang shrugged off the rhetoric and launched another deadly Hwasong-12 in its goal to become a nuclear power and reach an “equilibrium” of military force with the US.

Mr Trump described the move as an act of “utter contempt for its neighbours and the entire world” and warned any US response would be “effective and overwhelming”.

North Korea on Friday launched its latest ballistic missile – which travelled past Japan’s northernmost island of Hokkaido before landing in the sea.

Its leader Kim Jong-un, who was quoted by the state news agency KCNA, later said: “Our final goal is to establish the equilibrium of real force with the US and make the US rulers dare not talk about military option.”

In response, President Trump warned that American military options were robust should they be required to respond to threats from Pyongyang.

Speaking at Joint Base Andrews, the Air Force installation outside Washington, Mr Trump said: “America and our allies will never be intimidated. We will defend our people, our nations, and our civilization, from all who dare to threaten our way of life.

“This includes the regime of North Korea, which has once again shown its utter contempt for its neighbours, and the entire world community.”

China Market Update-11SEPT17

China building world’s biggest quantum research facility

SCMP

Centre could boost military’s code-breaking ability and navigation of stealth
submarines China is building the world’s largest quantum research facility to
develop a quantum computer and other “revolutionary” forms of technology that
can be used by the military for code-breaking or on stealth submarines,
according to scientists and authorities involved in the project.

The National Laboratory for Quantum Information Science will be located on a
37-hectare site next to a small lake in Hefei, Anhui province. Some time this
month developers will be invited to bid for a contract to construct the site,
according to an article in Hefei Evening News, a daily newspaper run by the city
government on Thursday.

Pan Jianwei, China’s lead quantum scientist who was playing a key role in the
project, told local officials at a briefing in May that technology developed in
the facility would be of immediate use to the armed forces, according to Anhui
Business Daily newspaper.

Quantum metrology, which measures small variations in physical parameters such
as gravity with unprecedented accuracy, could significantly improve submarines’
stealth operations. A submarine with a quantum navigation system could operate
underwater for more than three months without the need to surface for positioning
satellite signals.

After operating for 100 days underwater the captain would still be able to pinpoint
the vessel’s position in the Pacific Ocean with a margin of error of just a few
hundred metres according to Pan, who could not be immediately reached for comment.

Another key mission of the laboratory is to build the nation’s first quantum computer
that could break an encrypted message in seconds.

“Our plan is that by 2020, or maybe as soon as next year, to achieve ‘quantum
supremacy’ with calculation power one million times to all existing computers around
the world combined,” Pan was quoted as saying by Anhui Business Daily, which is run
by the provincial government.

It was unclear whether the computer could be used for code-breaking. Construction work
is expected to finish in 2 ½ years with a budget of 76 billion yuan (HK$91.6 billion).
Ground-clearing work started with approval from the central government in February,
according to the website of the Chinese Academy of Sciences, the owner of the new
facility.Guo Guoping, a quantum information researcher at the Chinese Academy of
Sciences in Hefei, said

a large facility with centralised resources could accelerate this process by pulling
together the talents of scientists from all over the nation with knowledge and
experience of multiple scientific disciplines to overcome a wide range of technical
and engineering hurdles, he said.

Guo stressed that in the national laboratory, researchers’ performance should not be
evaluated by the scientific papers they published but by their contribution to specific
project targets,such as building a general-purpose quantum computer.

“This may sound a bit old-fashioned, even Soviet-style, but it can give China a chance
to win the race,” he added.China moved a step ahead with the launch of a quantum
satellite last year and conducted a series of cutting edge experiments such as quantum
entanglement and teleportation in space. Last month the world’s longest and most
sophisticated quantum key distribution network for ultra-secure communication between
Beijing and Shanghai was successfully tested and deemed ready for official deployment
in the military, government and financial sectors.

Guo said the field had advanced rapidly, but the delivery of a code-breaking machine
by 2020 was “highly unlikely”. Over the next few years, researchers from around the
globe may be able to develop primitive quantum computers to deal with some specific
tasks. They could, for example, simulate the movement of particles at a subatomic
level to solve some physical problems that might help develop new materials or drugs.
But these are not general-purpose computers capable of code-breaking, Guo added.

Fatty Kim Sends Another missile this time directly over Japan

North Korea has fired a missile over Japan for the first time since 2009, a
startling act of defiance against the US and its allies that Japan’s Prime
Minister Shinzo Abe immediately branded “unprecedented, serious and important”.

South Korea’s Joint Chiefs of Staff said the ballistic missile travelled
around 2,700km and reached a maximum height of 550km as it flew over the
northern Japanese island of Hokkaido around 5.06am Tuesday Hong Kong time.

Trumps team can’t find tariffs. It Better Hurry or the Future belongs to the Crowds.

CMR

Don DeLillo’s prophetic 1991 novel, “Mao II”: “The future belongs to crowds.
” Movements will be massive. The street will rise and push.

It’s no secret the American worker has been dashed on the rocks of globalization.
The trifecta of global protectionism; Japan, S.Korea, and China have built up large,
advanced economies on the back of tariffs and non-tarrif trade barriers. The U.S.
rightly looked the other way to help Japan and later S.Korea get back on their feet
after the devastation of WW2 and later the Korean War. The American steel and
automotive industries took the largest hits. We are now in a 3rd decade of a
depression in American manufacturing.The production of automobiles (not sales) is
less than it was 20 years ago. The U.S. is a laughing stock when it comes to steel
production and infrastructure. Most great American cities look stuck in time.

Japanese won’t buy Korean cars and Korean’s will not buy Japanese cars. Neither one
of them will buy American.

Both countries have put massive amount of government money into displacing American
firms in new technical fields. An American shipping or shipbuilding industry, they
is none. Need Advanced machine tools? You will need to talk to the Germans or Japanese.

This caniblization of American markets is but one tool in the toolkit. Your companies
have trouble, just devalue your currency. Currency manipulation, government funded
R&D, government funded access to low interest loans and of course structural delays
at customs, not to mention outright theft of R&D. All weapons in the ongoing trade
war that America forgot to fight.

Then along came China. Twenty times the size of Japan. Free trade and global
integration were to bring the Chinese into the global order. It didn’t work.
The Chinese will politically do what is best for them and guess what, they like
the CCP.

Unlike the American allies of Japan, and South Korea the Chinese market has been
relatively open but yet tightly controlled. The banking system, oil & gas, vehicle
production, technology are all examples with government ownership and control.
Most of these areas are locked out to foreign companies. Many foreign companies
have benefited in China not just by selling into the market but by doing their
manufacturing here. In fact, half of the U.S. trade deficit with China is due to
American companies manufacturing and shipping back from China.

The American consumer has benefited greatly as the Walmart’s,Autozones,and virtually
every other company started importing every type of consumer good from China.

Under this world order the Americans have continued to live far above their means
with massive current account and trade deficits. The Dollar has stayed strong as
these Asian currencies continue to prop it up with large purchases of U.S. Treasury
Bills. The reason for that is to keep their own currencies low of course and vendor-
finance there countries products into the American market.

The issue we have now is that no system lasts for ever. America has 100m people of
working age that don’t work. The millennial class are suffering from government-
induced disasters of health care and education expenses. There is no ladder for
young people to the middle class and the middle-class is shrinking rapidly. So you
get what we have here which is people hitting the streets.

What they protest for doesn’t matter. The mobs will find a cause,any cause, to
displace the current social order.

With that being said, we recommend the U.S. solution is to just do what China does
best. Copy. Start by copying every tariff on U.S. goods in the China market and bar
access to the U.S. market which is not an open market in China. You then modify
the tax structure to fund the government through consumption taxes and not productivity.

China Market Update- 28AUG2017

China-Saudi Team Up in $20 billion Investment Fund

Article here

Video Emerges of Indian and Chinese troops clash at Pangong Tso Lake.

China Market Update

Full Article Here

China has 20 new nuclear power plants under construction including the first meltdown-proof reactor

SCMP
21AUG2017

China has 20 nuclear power plants under construction, more than any other country on earth. With Sanmen, the industry is hoping to get the nod to build more reactors at home, and even export the AP1000 technology.

At a small peninsula facing the East China Sea in Sanmen county in Zhejiang province sits the world’s most advanced nuclear reactor, and China’s clarion call to the clean energy industry.
Some day over the next two weeks, the power plant will start loading more than 100 fuel assemblies into the honeycomb core of its AP1000 reactor with a pair of robotic arms, people at the site said.
The arms will move at a snail’s pace, not only because each assembly costs more than 10 million yuan, but their fine metal rods hold millions of thumb-size uranium pallets which together can emit enough heat for more than one gigawatt of electricity, enough to power Tibet’s entire grid.

Many people are waiting with bated breath for Sanmen to go online, because the AP1000 “is a simple, genius solution to reduce the risk of nuclear meltdown,” said Xi’an Jiaotong University’s nuclear science professor Shan Jianqiang, the author of several university texts on reactor safety and operation. The commencement of Sanmen “can be a shot to the arm for the nuclear industry, which has been mired in trouble at home and abroad,” he said.

The AP1000, designed and made by Toshiba Corp’s Westinghouse Electric subsidiary, is equipped with an overhead water tank that can flush the reactor’s core and keep it cool even if every water pump ceases to function in a blackout. Hot water would rise as vapour, dissipating energy from the core’s chain reaction through a heat exchanger into the atmosphere, condense and return to the tank. As long as there is gravity, the cycle would continue without human intervention.
In plain language, the reactor is designed to be meltdown-proof.

Compared with current technology, the AP1000 reactor is theoretically 100 times safer, requires 80 per cent less piping, 85 per cent fewer control cables, and need a third fewer pumps.

Full Article here. China pips US to start world’s first meltdown