Archive for Uncategorized

World Sleep Walks into Disaster as world’s second largest country just occupied the world’s largest.


As the American media dedicates 90% of its media time in open sedition
again their Democratically elected leader, the world is sleep walking
into catastrophe. The world’s second largest country, India with
1.3 Billion people just occupied a country,China, with 1.4 Billion.
2.7 billion people are now locked in a military stand-off over a small
swath of useless land.

( As we speak, the threats grow more vitriolic. Troops are getting put into

The Chinese government has shown huge restraint thus far.It is now known as
the Doklam transgression. India has occupied the disputed territory. China
is ready to send its own troops in to displace them as they did in 1962.

India’s position is that Doklam is territory in dispute between China and
Bhutan, and it has been invited there by Bhutan, its protectorate state.

Furthermore, it claims China’s road construction in Doklam poses a strategic
threat to the “chicken’s neck,” referring to the 27-kilometer-wide Siliguri
Corridor to the south of Doklam that connects the northeastern part of India
with the rest of the country.

This road in Doklam has been there for at least a decade under firm Chinese

China is now threatening that India is harboring terrorists by supporting the
Dalai Lama. They have publicly claimed the Dalai Lama after fleeing to India
in 1959 became a CIA henchman supporting and organizing terrorist bombings
through the Tibetan Youth Congress, the armed wing of the Dalai Lama’s regime
in exile.

China is now threatening to give a second lesson to India. Let’s hope the
shooting does not start and the situation does not escalate. The U.S. has no
media left to even cover the situation and put public pressure on both Nuclear
powers to remain calm.

The world could be sleepwalking into disaster.

Didi Chuxing, SoftBank invest 2 bln USD in Southeast Asia’s taxi-hailing giant Grab

China Market Update-25JUL2017

China’s Increase in U.S. Treasury Holdings Signal Stronger RMB


China’s holdings of US Treasuries climbed to $1.1 Trillion in May signaling that
the Bank of China is once again increasing Treasury purchases to hold down the
currency.Both China and Japan are in a tight competition to buy up U.S. debt and
keep domestic currencies lower. China’s Treasury reserves now stand at $1.1tn and
Japan’s reserves stand at $1.11tn. The only question is which country can print
more fiat currency to take and retain the title of the largest holder of U.S. debt.

Clearly, when comparing domestic economies and cities such as Wuhan vs Memphis,
Guangzhou vs Cleveland,Detroit vs….any Chinese city, the world has clearly
changed.The U.S. economy is only a shadow of its former self with over-inflated GDP
numbers propped up by insane healthcare costs, massive financial leverage and a
double counting of imported manufacturing components without “Value-add” deductions.
The U.S. is now dependent on an underpaid shadow workforce of illegal aliens while
millions of Americans have been sidelined onto dependency of government handouts.

After decades of U.S. current account deficits the U.S. dollar may be overvalued by
more than several hundred percent when compared with the RMB. The U.S. with a
national debt upwards of $20tn now and future liabilities in the hundreds of
trillions there will come a time, when the U.S. Dollar comes under intense, sustained
long term pressure and reaches parity with the RMB.

The only question is “shennme shihou” (i.e when).

Apple to build massive data centre at China’s new hi-tech hub in Guizhou province

South China Morning Post
Bien Perez

The facility, estimated to house more than 30,000 server cabinets, is part of Apple’s US$1bn investment programme in one of the country’s poorest areas Apple is looking to double down on its business in mainland China by establishing a data centre in Guizhou province to comply with rigid cybersecurity laws, while supporting Beijing’s efforts to develop one of the country’s poorest areas into a world-class hi-tech hub.

The 41-year-old technology giant, which counts the mainland as its second-biggest market after the United States, said it has partnered with Guizhou-Cloud Big Data Industry Co (GCBD), a government-backed data centre developer and operator, to build the facility in that southwestern province.

The data centre project forms part of a US$1-billion investment programme that Apple has drawn up for the province, according to a Reuters report on Wednesday that cited an Apple spokesman.

“Apple’s new data centre in Guizhou could potentially cover an area of up to 1 million square feet (92,903 square metres), or a total capacity of more than 30,000 server cabinets, supported by 150 megawatts of critical load capacity,” Jabez Tan, the research director at Toronto-based Structure Research, told the South China Morning Post.

Apple imposes 30 per cent tax on China’s digital content creators [1]

Tan said the estimates for Guizhou’s most high-profile international investor were based on recent data centre developments in the province by e-commerce powerhouse Alibaba Group Holding, as well as telecommunications network operators China Mobile, China Unicom and China Telecom.

“The Guizhou provincial government has been offering a set of incentives, including discounts on electricity from the area’s plentiful supply of hydropower, which has resulted in cloud computing and data centre firms establishing test sites and pilot programmes there,” he said.

New York-listed Alibaba, which owns the Post, signed a framework agreement with the Guizhou provincial government in 2014 to set up an industrial base for its cloud computing business and so-called big data operations.

Hon Hai Precision Industry, the world’s largest contract electronics manufacturer known by its Foxconn trade name, had set up a factory and 46,451 sq m data centre in an industrial zone just outside the provincial capital of Guiyang. The Taiwanese company is the main supplier for Apple’s iPhone.

Apple unveils ‘HomePod’ smart speaker, in bid to challenge Amazon and Google [2]

Data centres are secure, temperature-controlled facilities used to house large-capacity servers and data storage systems, and equipped with multiple power sources and high-bandwidth internet connections.

These facilities are used by enterprises to remotely store large amounts of data, manage their business applications and host cloud computing operations. Cloud services enable companies to buy, lease or sell software and other digital resources online on demand, just like electricity from a power grid.

“The addition of this data centre [in Guizhou] will allow us to improve the speed and reliability of our products and services, while also complying with newly passed regulations,” Apple said in a statement. “These regulations require cloud services be operated by Chinese companies, so we’re partnering with GCBD to offer iCloud.”

China Market Update-16JUL2017

Chinese Scientists Crack the “Mojo Hand” Winning Boys Luck


The Mojo Hand, or winning boys luck, is an old Voodoo ritual. It’s basically
a magical charm bag intended to give the holder “Mojo”, or winning boys luck.

Now, Chinese scientists may have cracked the code to winning in a recent
experience by stimulating the pre-frontal cortex of mice and giving them the
“Winning hand.”

Global Times

Chinese researchers may have revealed the secret of why animals increase their
probability of victory after previous winnings, a phenomenon known as the “winner

In a study published Thursday in the US journal, Professor Hailan Hu’s research
group from Zhejiang University in China reported identifying for the first time a
neural circuit in the brains of mice that plays a role in social dominance.

Stimulating brain cells in this circuit, known as dorsalmedial prefrontal cortex
(dmPFC), significantly boosted a mouse’s chance of becoming the “winner” during
aggressive encounters with other mice.

“Getting to the top of social hierarchy is often not a matter of body size or brute
strength, but rather determined by intrinsic mental factors such as grit, as well as
extrinsic factors such as history of winning. For example, social dominance can be
reinforced by a phenomenon known as the ‘winner effect,'” Hu said. “However, the
neural mechanism that mediates these intrinsic and extrinsic factors was poorly

For the study, Hu’s team performed a standard social dominance test that put male
mice in a tube to face each other. Usually the subordinate animal would retreat and
back out of the tube.

Then, the researchers recorded how much each one engages in certain behaviors such
as push initiation, push-back, resistance, retreat, or stillness. By monitoring
individual brain cells in the dmPFC during such tests, they found a particular subset
became more active during both push and resistance behaviors.

In mice with an established social rank, the researchers inhibited this subset of
dominance brain cells using a drug and found within hours, these mice engaged in
significantly fewer and shorter pushes and push-backs, but in more retreats.

Next the researchers used optogenetics to stimulate the dmPFC cells continuously
during a social dominance encounter.

This instantaneously induced winning against previously dominant opponents with a
90 percent success rate, without affecting the motor performance or anxiety level.

“Importantly, dmPFC activation does not seem to boost dominance by enhancing basal
aggression level or physical strength, but rather by initiating and maintaining more
effortful behaviors during social competition,” Hu said.

The findings could have important implications for treating psychiatric diseases,
the researchers said.

“Considering that an excess or lack of dominance drive is associated with many
personality disorders and mental problems, our results might shed light on the
treatment of these psychiatric diseases,” the study said.

China Buying Up World’s Ports after Announcing “Blue Economic Passages”


In 2016, Greece signed a €368.5 million deal to sell the operator of Piraeus
port to the Chinese shipping group COSCO. The acquisition has gone quite well
for both the Chinese side and the Greek side as the Port has expanded dramatically
and is being more efficiently run by the Chinese side.

China spent over $9 billion in 2016 buying up Ports. Recently the policy is
accelerating with China now purchasing over $20bn in 2017.

Several months ago , China put forward plans for three ocean-based “blue economic
passages” that will connect Asia with Africa, Oceania, Europe and beyond, in a bid
to advance maritime cooperation under the Belt and Road Initiative.

The China-Indian Ocean-Africa-Mediterranean Sea blue economic passage, will run
westward via the South China Sea to the Indian Ocean, and link with the China-
Indochina Peninsula Economic Corridor, and connect with the China-Pakistan, and
Bangladesh-China-India-Myanmar economic corridors.

The China-Oceania-South Pacific passage will run southward via the South China
Sea into the Pacific Ocean, while another economic passage is also envisioned
linking Europe via the Arctic Ocean.

Four separate initiatives are set for Malaysia, with Chinese company investments
scheduled for the $7.2bn Melaka Gateway, the $2.84bn Kuala Linggi Port, the
$1.4bn Penang Port and the $177m Kuantan port projects, according to company
announcements.Ningbo Zhoushan Port plans to invest $590m into the Kalibaru project,
an expansion of Tanjung Priok, in Indonesia.

Some may be skeptical of China’s eagerness of building these new economic
partnerships. It just so happens that major investments are going into countries
with dispute claims in the South China Sea. One would also notice that once the
One-Belt, One-Road plan is implemented the U.S. Navy will no longer be able to
choke off oil supplies into China at the straights of Malacca.

The old World War 2 era strategies are no longer going to be able to hold.

The world has enter a new Economic Hot War. America is being left far behind as the
world slowly is engulfed by Chinese economic power. The U.S. surrendered this fight
when they let go of their industrial heartland to the mercantilist economies of
Europe and Asia.

China Market Update-10JUL2017

Chinese city to launch ‘unhackable’ quantum network

Stephen Chen

Tests on system in Jinan in Shandong province complete and service for nearly
200 users to begin next month, state-run media report China’s first citywide
commercial communications system using “unhackable” quantum technology is
expected to be up and running next month, mainland media reported on Sunday.

Tests on the system in Jinan in the east province of Shandong had been
completed and the network would start operations next month to provide
extremely secure communication for nearly 200 users, state-run China Central
Television reported.

Zhou Fei, assistant to the director at the Jinan Institute of Quantum Technology,
said the first users would be in the government, military, finance and
electricity sectors.

“This is a milestone for quantum communication in China and the world,” CCTV
quoted Zhou as saying.The quantum network uses particles of light to encrypt
information. If a third party tries to intercept the information, the particles
change characteristics, making it impossible to steal the information without
alerting the network. It is understood to be impossible for any computer to
decipher a message encrypted by a quantum key.

China built its first large-scale quantum communication network in Hefei, Anhui
province, in 2012, according to People’s Daily. Work finished last year on the
world’s longest land-based quantum link between Beijing and Shanghai, while a
number of other big cities including Wuhan, are also building their own quantum

Though also as touted commercially viable, these systems were at least in part
sharing existing optical fibre lines with traditional telecommunications networks.
The “hybrid” structure might compromise security in some cases.

But the Jinan network was an “exclusive” system dedicated to quantum communications,
CCTV reported. The information exchange between two users was protected by more than
4,000 qubits per second to achieve “absolute secrecy”.

The network had more than 50 rounds of tests at terminals in Jinan government
agencies and various Communist Party offices. The users were spread across several
hundred square kilometres, and the test results were “satisfactory”, the report said.

China last month announced its quantum satellite has successfully distributed a pair
of entangled photons to two stations on land.

China to invest 5.5 Billion Euro in Serbian Infrastructure

Who needs Europe or the U.S.? China is propelling Eastern Europe forward with
advanced transportation networks. Recent negotiations in Belgrade over Chinese
Investment cover a broad range of new projects. Eastern Europe is on the cusp
of revitalization unlike anything they have seen since the end of the Cold War.
The new Chinese trains in Europe will travel 200km/hour.The Chinese are building
a bridge over the Danube and Corridor 11, i.e., the highway that will connect
Serbia with Montenegro and allow access to the Adriatic sea which will be one end
point for the Eurasian Belt-Road project.

Serbian labor is now cheaper than China.Expect Chinese companies to flock to
low-cost industrial zones in Serbia and other Eastern European countries.

Even as Airbnb doubles down on China, Chinese unicorn Tujia widens the war to Asia

Why China is set to spend $411 Billion on 5G networks

China Market Update-04JULY2017

China Market Update- 26JUNE2017

Number of rich Chinese rises nearly nine-fold in decade, survey suggests


Number of rich Chinese rises nearly nine-fold in decade, survey suggests
Chinese with at least 10 million yuan in investable assets hit 1.6 million
in 2016, but growth in the private wealth market will slow this year,
according to report

The number of rich people in China has risen nearly nine times in a decade,
a private survey released on Tuesday showed, as strong growth in the world’s
second-largest economy spurred wealth creation.

Chinese with at least 10 million yuan (US$1.47 million) of investable assets
hit 1.6 million in 2016, up from 180,000 in 2006, according to the 2017 China
Private Wealth Report by Bain Consulting and China Merchants Bank.
The overall value of the private wealth market increased to 165 trillion yuan
last year, growing 21 per cent annually from 2014 to 2016.

But the growth rate of China’s private wealth market is expected to decline
to 14 per cent in 2017 to a total size of 188 trillion yuan.

About 120,000 “high net worth individuals” had at least 100 million yuan worth
of investable assets, up from less than 10,000 people in 2006.

The percentage of rich with overseas investment increased to 56 per cent in 2017,
up from 19 per cent in 2011, but the overall percentage of assets invested
overseas has stabilised since 2013.

The top five destinations for investment were Hong Kong, the United States,
Australia and Canada although Hong Kong’s popularity fell 18 per cent and the
US dropped three per cent from 2015 to 2017.

People surveyed said their top three reasons for investing overseas were to
diversify investment risks, to capture market opportunities of overseas investments
and to migrate.

China’s wealthy are concentrated in major cities and coastal areas, the survey
found, but now 22 Chinese provinces have at least 20,000 high net worth individuals .
Most of the people surveyed said their top priorities. were “wealth preservation”
and “wealth inheritance”, in contrast to 2009 when nearly half polled said “wealth
creation” or “quality of life” were their main goals.

You Don’t just Kill an American-Expect Retaliation over Death of American Student

China appears to have failed at containing the missile launches from the
Hermetic, despotic Gulag-state known as North Korea. “Fatty Kim” as he is
known in China has most likely crossed the line with sending back an American
student who was jailed and beaten for a year for trying to steal a poster.
That student died of his injuries.

If we know anything about Trump is that he is a man of action. North Korea
can no longer be coddled. Trump today sent out a tweet that carries an
ominous warning.

Fatty Kim’s regime will fall. The only question is will China preempt a
U.S. strike with an invasion or will the U.S. send a Tomahawk into one of
Kim’s pleasure gardens. This is probably what he wants, he needs a war to
keep power. Expect Trump to give him one.

China Market Update

China bounced an ‘unhackable’ quantum signal between cities

The field of quantum cryptography, which seeks to transmit encrypted information using entangled quantum particles like photons, could help lay the groundwork for tomorrow’s quantum networks but it faces a significant physical hurdle: entangled photons are crazy hard to transmit long distances. Even in fiber optic cables, they can only go about 150 miles before completely degrading. But a team of researchers from the Chinese Academy of Sciences may have the solution. You just have to send the photons 745 miles into space.

Though the idea of using satellite relays to shunt entangled photons into space and back has long been considered, it wasn’t until last August that the nation sent up its first such orbiter, the $100 million Quantum Experiments at Space Scale. It is reportedly equipped with a laser-and-mirror system as well as a special crystal that can encode data and encryption keys onto photons as they travel back to Earth.

Even without the ground-based obstacles that conventional quantum networks and experiments have to contend with, spotting these photons on their way back from orbit is no easy feat. The crystal can generate as many as 6 million pairs of photons at any given time however the two designated ground stations, which are located 750 miles apart, are only able to detect around one par per second. “It’s a challenging task,” physicist Chao-Yang Lu, told Wired. “It’s like you have to clearly see a human hair from 300 meters away.”

Lu and his team hope that this successful experiment, which has recently been published in the Journal Science (paywall), could pave the way for more secure encryption systems. In theory, you’d first encode an encryption key based on the characteristics of a photon stream and send that to your message’s recipient. You’d then encrypt your message with that key and send it on as well.

If someone tries to intercept, decode or even observe the key while in transit, the laws of quantum mechanics dictate that the key itself would change. So even if they intercepted the key and the message, both would be useless. The current state of the technology isn’t quite sensitive enough to do that yet but that’s essentially the goal.

ECB to Hold RMB as a Reserve Currency

If your looking for reasons why the RMB has strengthened this year look
no further than the European Central Bank whom is now buying the currency

The ECB invested €500m of its reserves in renminbi- denominated assets
during the first half of this year, reflecting China’s importance as one
of Europe’s largest trading partners, the bank said on Tuesday.

While the €500m amount is just a sliver of the ECB’s €68bn forex reserves,
the purchase of renminbi assets reflects the growing acceptance in Europe
of China’s status as a global economic superpower. That number is sure to
grow in the future and could one day

The ECB is the most powerful central bank to date to invest in renminbi.