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
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
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
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
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
American GDP: The Fantastic Fiction of American Economic Strength By Dan Collins Is the U.S. economy still the most powerful in the world? That is what we are told as the United States does have by far the world’s largest Gross Domestic Product (GDP). In
Youtube, Facebook, and Twitter are all blocked in China. They have algorithms in place to disrupt Google service as well which makes it very annoying even using Google here. You get many dead links when the algo’s are working. Despite blocking American companies in China,
As seen from the video, a man purposely drives his car into the consulate smashing
into the gate and sending one guard flying back like a rag doll. Reasons for the
incident have not been released.
With the U.S. taking reducing its nuculear weapon systems it will eventually
be reveled that China has become the #1 global thermonuclear power. What then?
Full Spectrum Dominance.com
Washington can’t be complacent about its relationship with an antagonistic nuclear power. We’ve known that for more than thirty years, since the Pentagon sponsored a highly classified war game called Proud Prophet.
Conducted in 1983, the game was designed to test the strategy Washington had honed for more than a decade. The United States had always relied on deterrence to prevent war between the superpowers. But, if deterrence failed, the West needed a Plan B—and they had one. If NATO and the Warsaw Pact actually started to trade shots, the alliance strategy would be to manage the conflict: demonstrate resolve, hold its ground and de-escalate the confrontation. It sounded plausible—in theory.
Proud Prophet put Plan B to the test. It used a put-up or shut-up scenario, pitting Moscow against Washington in a mock shooting war. The results were terrifying. Tit-for-tat ended in an all-out nuclear exchange obliterating mankind.
Now, Beijing is not Moscow. And that’s what makes the lesson of Proud Prophet so scary when contemplating modern-day, nuclear-armed China. Managing escalation with the Soviet Union was easy compared to managing potential escalation with China. One reason for that is because the competition between the United States and U.S.S.R. was relatively symmetrical. In many ways, the hard-power strengths of the two powers mirrored each other.
Additionally, East and West lived in separate camps. There was scant economic interaction between the two sides. We mostly talked among ourselves. They (mostly) talked to themselves. Yet, in Proud Prophet’s relatively simple two-player competition, once escalation started, it quickly spun out of control.
The U.S.-Chinese relationship is the polar opposite. The economies and public spheres overlap in a complex, foot-tripping web. Both sides have looked at mastering asymmetrical advantages to constrain and manage the other. If they ever started actually shooting at each other, managing that messy relationship would become nearly impossible. Just like Proud Prophet, it would lead to a horror show.
An easy answer to the conundrum would be to adopt the same policy as the great powers did during the Cold War. After all, Proud Prophet never became a reality show. In fact, Proud Prophet confirmed what both sides already suspected: there was no good Plan B once the shooting started. As the global confrontation dragged on, both superpowers accepted as conventional wisdom that a direct military conflict—much less any exchange of nuclear weapons—was unacceptable.
Still, the fact that the Cold War stayed cold is small assurance for those responsible for managing the fate of humanity thirty years later. If any leader had made a strategic misjudgment, it would not have been pretty. Historians still debate, for example, how seriously Moscow took another U.S. exercise: Able Archer. That 1983 NATO exercise took the alliance to the brink of nuclear exchange. According to some accounts, the Kremlin pretended to freak out hoping to send a message to President Reagan that he shouldn’t act too much like the cowboy he played in the movies. Others still hold that the Kremlin briefly feared the U.S. president was about to “go cowboy” and launch a preemptive nuclear attack.
Relying on deterrence alone, hoping everyone gets the memo that firing nuclear weapons is a no-no, is no way to run a planet. Conversely, we know that President Obama’s road to nuclear zero is going nowhere. There is no getting rid of nuclear weapons anytime soon. A credible, modernized nuclear arsenal paired with missile defenses will remain an essential part of protecting and defending the United States for many years to come. Still, in the end, all nuclear weapons are really good for is reminding others that fighting nuclear wars is a bad idea.
When the Reagan White House realized that, if deterrence failed, Plan B was no good either, the administration opted for a “cost-imposing strategy.” It moved from managed competition to outracing the Soviet Union—counting on the wheels coming off when the Soviets tried to keep up with the full-court pressure of U.S. military upgrades, hardline diplomacy and a resurgent American economy.
The Soviet Union collapsed, and the world lived another day. That was then. But there is no reason to think that strategy can stave off Armageddon a second time. Washington needs to wake up. To avoid a scenario where the United States faces the prospect of a managed military conflict with China, Washington will have come up with a game changer now.
A Chinese mining billionaire said to have links with disgraced former security tsar Zhou Yongkang and who once launched a bid for Australia’s Sundance Resources was executed for multiple murder on Monday, a court said.
Liu Han, his younger brother Liu Wei and three accomplices were condemned to death in May for “organising and leading a mafia-style group”, murder and other crimes.
Their appeals were unsuccessful and all five were put to death on Monday, the Xianning Intermediate court in the central province of Hubei said on its verified account on China’s Twitter-like Sina Weibo.
The five met with their “close relatives” before the execution, the court said in a separate posting.
“The executed criminals’ legal rights were fully protected,” it added.
Liu Han led private company Hanlong, which is based in the southwestern province of Sichuan and launched a takeover bid of more than $1 billion for Sundance, a listed Australian iron ore firm, in 2011.
But the deal collapsed in 2013 after the Chinese firm failed to follow through. Chinese media reports said at the time that Liu Han had been detained.
Sichuan is one of the power bases of Zhou, who once enjoyed vast power as China’s security chief but whose targeting in a corruption investigation was announced in July.
The influential business magazine Caixin has reported that Liu Han once had dealings with a businessman believed to be Zhou’s son. State media have also hinted that the gang had connections to central government officials.
Zhou was handed over to prosecutors in December.
The official announcement of the long-rumoured probe into Zhou made him the most senior member of the Communist Party to be investigated since the infamous Gang of Four — a faction that included the widow of founding leader Mao Zedong — were put on trial in 1980.
It no longer matters what the numbers say in U.S. Dollars as the currency
loses its reserve status and is quickly becoming just another currency.
Want China Times..
China’s National Bureau of Statistics (NBS) recently publicized a report containing statistics on the nation’s economic performance in 2014, including foreign-trade figures, which were only denominated in renminbi, without including, for the first time, US-dollar equivalents.
Tables of US dollar-denominated statistics on foreign trade, however, are still available on the NBS website, showing that China’s foreign trade topped US$4.3 trillion in 2014, including US$2.3 trillion in exports and US$2 trillion in imports.
The practice underscores efforts by the Chinese government to promote the internationalization of the renminbi, pushing for the use of the currency as a vehicle for international-trade settlement and cross-border financial investments, before its inclusion in the forex reserves of various countries.
Despite constant improvement of the renminbi’s international status, China’s currency still lags far behind the US dollar, in terms of the amount in circulation worldwide, as over half of international payments are still denominated in US dollars. Therefore, it is advisable to have China’s economic figures denominated in both renminbi and US dollars, to facilitate research by local people and foreigners.
(Li Mengzhou is president of Fortune China Information Network. Translated by Want China Times.)
Want China Times
China has achieved a technological breakthrough that could help introduce pulse weapons to the People’s Liberation Army’s arsenal, reports the Global Times, a tabloid under the auspices of the Communist Party mouthpiece People’s Daily.
According to the report, the Xian Institute of Optics and Precision Mechanics of the Chinese Academy of Sciences has successfully developed a third-generation X-ray pulsar simulation source. The technology, which can create an X-ray pulsar source in X-ray tubes to generate arbitrary waveform pulses, officially passed evaluation tests on Jan. 17.
The evaluation committee found that the creation’s performance indicators were at an advanced international level and concluded that it is an advanced technology with original and practical applications that could lead to important economic and social benefits.
An X-ray pulsar consists of a magnetized neutron star in orbit with a normal stellar companion and is a type of binary star system. They are a class of astronomical objects that are X-ray sources displaying strict periodic variations in X-ray intensity with ranges that can vary from microseconds to several minutes.
As a natural beacon, X-ray pulsars have important applications in aerospace, astronomy, science and engineering. In terms of military applications, simulated X-ray pulsars may help China develop new weapons that can challenge America’s dominance in the electromagnetic pulse (EMP) weapons sphere.
Traditional non-nuclear EMPs weapons produce a short burst of electromagnetic energy to disrupt or damage electronic equipment. Nuclear EMP weapons, which have been dubbed “the second atomic bomb,” have a much wider range of impact as they produce an abrupt pulse of electromagnetic radiation resulting from a nuclear explosion. The electromagnetic pulse from non-nuclear EMP weapons come from within the weapon, while nuclear weapons generate EMP as a secondary effect. In terms of military applications, a nuclear EMP would be delivered via a nuclear warhead detonated hundreds of kilometers above the Earth’s surface.
EMP weapons have begun to find more practical applications in top militaries around the world. During the 1991 Gulf War, the US carried and used EMP weapons on its E-8 Joint Stars aircraft to disrupt electronic command systems, which international analysts believe was one of the main advantages the US had over its enemy. In July 1992, high-powered microwave weapons were named as one of six key future arms technologies by the US Congress, with the US Navy, Army and Air Force each putting forth a high-powered microwave weapons development plan.
In March 1999, the US used microwave weapons during the NATO bombing of Yugoslavia, causing communication in certain areas to be disrupted for more than three hours. EMP weapons were then used to sever Iraqi state television broadcast signals in March 2003 during the Iraq War.
Apart from the US and Russia, countries developing high-powered microwave weapons include England, France, Germany and Japan.
Good way to lose your job if your a CEO is to tell the truth on the U.S.
economy. Clifton better get his CV together because the first rule of the
unemployment club is WE DONT TALK ABOUT THE REAL UNEMPLOYMENT RATES.
The biggest threat to a corrupt regime is when truth moves away from the “conspiracy theory” fringes and into the mainstream. Which is why we thank Jim Clifton, Chairman and CEO of Gallup, for daring to tell the truth to those who care to listen.
Posted first on LinkedIn
The Big Lie: 5.6% Unemployment
Here’s something that many Americans — including some of the smartest and most educated among us — don’t know: The official unemployment rate, as reported by the U.S. Department of Labor, is extremely misleading.
Right now, we’re hearing much celebrating from the media, the White House and Wall Street about how unemployment is “down” to 5.6%. The cheerleading for this number is deafening. The media loves a comeback story, the White House wants to score political points and Wall Street would like you to stay in the market.
None of them will tell you this: If you, a family member or anyone is unemployed and has subsequently given up on finding a job — if you are so hopelessly out of work that you’ve stopped looking over the past four weeks — the Department of Labor doesn’t count you as unemployed. That’s right. While you are as unemployed as one can possibly be, and tragically may never find work again, you are not counted in the figure we see relentlessly in the news — currently 5.6%. Right now, as many as 30 million Americans are either out of work or severely underemployed. Trust me, the vast majority of them aren’t throwing parties to toast “falling” unemployment.
There’s another reason why the official rate is misleading. Say you’re an out-of-work engineer or healthcare worker or construction worker or retail manager: If you perform a minimum of one hour of work in a week and are paid at least $20 — maybe someone pays you to mow their lawn — you’re not officially counted as unemployed in the much-reported 5.6%. Few Americans know this.
Yet another figure of importance that doesn’t get much press: those working part time but wanting full-time work. If you have a degree in chemistry or math and are working 10 hours part time because it is all you can find — in other words, you are severely underemployed — the government doesn’t count you in the 5.6%. Few Americans know this.
There’s no other way to say this. The official unemployment rate, which cruelly overlooks the suffering of the long-term and often permanently unemployed as well as the depressingly underemployed, amounts to a Big Lie.
Want China Times
Two Chinese arms dealers will account for nearly a quarter of total production in the international missile market over the next five years, based on figures in a report from Russia’s Military-Industrial Courier.
The report estimated that there will a total of be 201,507 missiles entering the US$66.3 billion global arms market over the next five years.
In terms of production volume, China North Industries Corporation, better known as Norinco, leads the pack with an estimated 29,423 units, or 15% of total missiles manufactured. In second place is America’s Raytheon with 22,658 units, while China Precision Machinery Import-Export Corporation (CPMIEC) comes in third with 18,380 units. Together, the two Chinese companies will account for 24% of total missile production in the world between now and 2019.
In terms of the monetary value of transactions, however, the top spots are occupied by US companies, with Raytheon leading the way with US$10.1 billion and Lockheed Martin coming in second with US$5.5 billion. Third place China Aerospace Science and Technology Corporation is only marginally behind with just around US$5.5 billion as well, while CPMIEC ranks fourth with US$4.7 billion.
American analysts predict that the scale of the long-range attack missile market will increase from the current US$1.2 billion to US$1.5 billion by 2019, with sales expected to reach 19,000 units and US$6.6 billion over the next five years. Lockheed Martin will lead this portion of the market with estimates sales of US$1.4 billion, predominantly due to its AGM-158 joint air-to-surface standoff missile exports to countries like Australia, Finland and Poland.
In the air-to-air missile market, total sales over the next five years is estimated to be 22,600 units and US$7.8 billion, with Raytheon and London-based MBDA as market leaders thanks to the huge demand from the US military. MBDA is also expected to do well as its Meteor beyond-visual-range air-to-air missile hits the market this year.
Surface-to-air missiles will see a reduction in production but an increase in price. Raytheon will lead this section of the market, with Lockheed Martin and MBDA rounding out the top three. Surface-to-air missiles are expected to emerge in more non-American markets, predominantly Europe, Russia, Israel, China and Japan.
The value of the anti-ship missile market will reach US$5.6 billion within five years. Russia and China will lead this segment of the market despite relatively low exports, largely because many market players are still equipped with Western-manufactured missiles. Leading exporters in this sector will be MBDA and Boeing.
The US will be able to strengthen its position in the anti-ship missile market if missiles developed under America’s offensive anti-surface warfare weapons development program can become a reality following a planned tender in 2017. By 2018, however, Brazil’s Avibras Industria Aeroespacial Turkey’s Aselsan will be launching their own new missiles into the market.
The anti-tank missile market is currently in a transition phase as production of old models are being cut down to make way for new weapons. The US, for example, does not wish for a large-scale decommissioning of its AGM-114 Hellfire missile and intends for the air-to-surface missile to be gradually replaced by joint air-to-ground missiles. France’s new portable middle-range and long-range anti-tank missiles have also just entered the international market.
Over the next five years, this segment of the market is expected to have a total scale of US$5.3 billion, with sales of more than 109,000 missile units. Lockheed Martin and Raytheon are expected to account for 30% of sales.
Want China Times
China plans to sell HQ-9 surface-to-air missiles to its Central Asian neighbors of Uzbekistan and Turkmenistan to reduce the price it has to pay the two countries for natural gas, reports Kanwa Defense Review, a Chinese-language military magazine based in Canada, on Jan. 25.
In the past, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan were once the main production area for Soviet weapon systems during the Cold War era. Kazakhstan for example was a producer of torpedoes, missiles and other naval weaponry systems. In total, 11% of the Soviet Union’s artillery and 18% of its tanks were produced in Kazakhstan. It was also responsible for manufacturing nuclear weapons for Moscow. Uzbekistan was the only state in the region capable to design and produce military aircraft.
After the collapse of Soviet Union, the five new nations began to sell those weapons systems to overseas markets. China was one of the buyers. In 1997, China was reported to have purchased 40 VA-111 Shkval torpedos from Kazakhstan.
Uzbek state-run Chkalov Tashkent Aircraft Production Corporation then helped China purchase 34 Il-76MD transports and four Il-78MK refueling aircraft from Russia in 2005.
China eventually stopped purchasing weapons systems from Central Asian countries as it found the quality fade due to lack of resources. Then in a turn of events, after having lost the capability to develop their own weapon systems, all five former Soviet states began looking to China for help.
Since natural gas produced in Uzbekistan and Turkmenistan is vital to China’s development, the country is willing to sell advanced weapon systems such as the FD-2000, an export version of the HQ-9 missile, to its western neighbors as a way to get better deals. Yet there is a catch. If China successfully convinces both nations to purchase FD-2000s, they will then have to purchase Chinese radars, early warning aircrafts and even fighter jets to coordinate with the air defense system.
The Kanwa Defense Review said that China at least sold one Wing Loong-1A unmanned aerial vehicle to Uzbekistan. Its test flight took place in 2012. China is trying to sell Wing Loongs and FC-1/JF-17 multirole fighters to Turkmenistan and Azerbaijan as well. Some of the weapons may be sold with the assistance of Pakistan or another third party. For instance, Azerbaijan received its WS-1 multiple rocket via Turkey.
The United Nations Conference on Trade and Development (UNCTAD) announced on
Jan. 30 that China overtook the United States to become the top destination
for foreign direct investment (FDI) in 2014.
The United States used to lead the world’s economy in this respect, which made
the country the major venue of mergers and acquisitions among corporations.
However, this situation changed when the net FDI inflow in the United States
fell by approximately two-thirds last year, according to the website of
Shanghai-based China Business News.
The United States has attracted US$86 billion in FDI in 2014, which showed a
sharp decline from the US$230.8 billion recorded in 2013, while FDI in China
totaled US$127.6 billion last year.
The global FDI for 2014 fell by 8% from a year earlier to US$1.3 trillion,
which marked the second-lowest level since 2008. The UNCTAD said that
the drop in FDI worldwide reflected a range of factors, such as a fragile
global economy, policy uncertainty, and geopolitical risks.
Among the countries that experienced these unfavorable factors, Russia
suffered a significant retreat in FDI, which fell by 70% from a year earlier
to US$19 billion.
China’s cities added 13.2 million jobs last year,U.S. has only 83 million full-time non governmental workers
In this edition of “China is collapsing” we give you one more stat to help
break the mass illusion in the West that China is collapsing and “everything
is awesome” in the U.S.
China’s cities added 13.2 million jobs last year, according to the Ministry
of Human Resources and Social Security, the highest number this century.
Meanwhile, in due to declining U.S. labor force participation rates, the U.S.
now has only 83 million non-governmental, full-time people in the workforce.
Xinhua 2015-01-20 17:27 (GMT+8)
China’s real estate investment gained 10.5% year-on-year to 9.5 trillion yuan (US$1.55 trillion) in 2014, the National Bureau of Statistics (NBS) announced on Tuesday.
The growth rate was markedly down by 9.3 percentage points from 2013, the NBS data showed.
Investment in residential buildings increased 9.2% in the last year, accounting for 67.7% of total investment in the real estate sector.
Over 1.2 billion square meters of commercial buildings were sold in 2014, down 7.6% year-on-year, and sales volume declined 6.3% from a year ago to 7.63 trillion yuan (US$1.2 trillion).
Blue Horseshoe Loves Anacott steel. Alibaba sales increase 40% to $4.2 billion last quarter. Western stock markets tank the stock.
Welcome Ali Ba Ba to the bizarro world of manipulated Western financial
markets. It was not just coincidence yesterday that an article goes
all over Bloomberg claiming a conspiracy that the Chinese government is
out to get Ali Ba Ba. Of course, the truth is actually the opposite.
That doesn’t stop the Western press from slamming Ali Ba Ba as a symptom
of a Chinese crash, only growing 40%! The horror….the Horror…
On the upside, they were able to slam the price so they can buy cheaper today.
Blue Horseshoe loves Anacott Steel
Ali Ba Ba by the numbers.
Revenue rose 40% to US$4.22 billion in the December quarter. Alibaba’s
second quarterly report card since its record-breaking US$25 billion IPO
still underscored how it has managed to outpace global rivals Amazon.com
Inc and eBay Inc by dint of its 80% share of the Chinese online commerce
Ebay managed just single-digit net revenue growth in percentage terms in
the U.S. holiday shopping quarter.
Gross merchandise value (GMV), or the sum of all Alibaba’s online commerce
transactions, rose 49% to US$127 billion. Mobile GMV accounted for 42% of
total GMV, up from 36% in the September quarter.
Hedge Fund Billionaires Prepare Their Bunkers
If income equality ever leads to insurrection, the world’s wealthiest hedge
fund managers will be prepared.
According to Robert Johnson of the Institute of New Economic Thinking, the
ultra-rich are buying up land, homes and airstrips in countries like New
Zealand in order to escape an uprising by the poor.
Johnson’s audience may well have nodded knowingly—he made the remarks at
the World Economic Forum at Davos, a talkfest for some of the world’s most
well-heeled individuals. Stewart Wallis, executive director of the New
Economics Foundation, agreed with Johnson, telling CNBC Africa: “Getaway
cars the airstrips in New Zealand and all that sort of thing, so basically
a way to get off. If they can get off, onto another planet, some of them would.”
He added: “I think the rich are worried and they should be worried. I mean
inequality, why does it matter? “Most people have heard the Oxfam statistics
that now we’ve got 80, the 80 richest people in the world, having more wealth
that the bottom three-point-five billion, and very soon we’ll get a situation
where that one percent, one percent of the richest people have more wealth
than everybody else, the 99.”
The Netherlands added to its gold reserves for the first time since 1998 as the ninth-biggest holder boosted assets to the highest in seven years, while Russia bought for a ninth month, International Monetary Fund data show.
Bullion reserves in the Netherlands climbed to 20 million ounces or 622 metric tons in December, the highest since 2007, after being unchanged at 19.7 million ounces from December 2008 through November, the IMF’s website showed. Russia, with the fifth-biggest hoard, held 38.8 million ounces last month, the most in at least two decades, the data show.
Central banks globally are adding gold to reserves after reducing holdings for about two decades from the late 1980s as they seek to diversify assets, according to Oversea-Chinese Banking Corp. Worldwide purchases would probably be 400 tons to 500 tons in 2014, the World Gold Council said in November.
Oh shit….Thats just happened.
Want China Times
Iran’s central bank has announced that it will stop mutual settlements in the US dollar with other countries, with the Chinese yuan or renminbi being named as one of the alternatives.
In trade exchanges with foreign countries, Iran uses other currencies, including yuan, euro, Turkish lira, Russian ruble and South Korean won, Gholamali Kamyab, deputy head of the Central Bank of Iran, told the country’s Tasnim news agency.
Iran will also consider the possibility of signing bilateral monetary agreements with several countries on the use of other currencies, Kamyab said, adding that the move will ease Iran’s foreign trade and economic transactions.
This is not the first time Iran has attempted to reduce its reliance on the US dollar. Back in April 2008, an official from Iran’s Ministry of Petroleum was quoted as saying that the country had completely stopped using the dollar in foreign oil transaction settlements.
The announcement comes on the same day Chinese financiers opened up a €2 billion (US$2.25 billion) line of credit to fund four Iranian petrochemical projects. According to National Petrochemical (NPC) deputy-head Mohammad Hassan Peyvandi, the funds will be applied to the construction and transformation the Sabalan, Lordegan, Bushehr and Masjed Soleiman plants.
China has ramped up its oil and gas investments in Iran in recent years, with total Chinese funds put into the sector increasing from US$35 billion in 2010 to more than US$50 billion in 2014. Last year bilateral trade between the two countries reached US$52 billion, an increase of 35% from the previous year, while Iranian exports to China topped US$28 billion, representing about 52% of the country’s total exports.
Want China Times
China can save US$100 billion from crude oil imports in the first half of the year alone if oil prices stay at their current levels, according to a Chinese academic.
Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, made the bold remark after oil prices fell from US$116 a barrel to less than US$50 in the past six months.
After OPEC made the surprising decision to maintain energy production levels last November, oil prices have fluctuated by as much as 36% over the last couple of months, with crude oil prices in Texas dropping to six-year lows.
With the US shale industry and Russia hit especially hard, OPEC secretary general Abdalla Salem El Badri been forced to defend his group’s decision, insisting that it was not directed at any one country. “The idea that we are at war with US shale producers or Russia is wrong,” he said. “For us it was a pure economic reason.”
Igor Yushkov, a senior analyst at Russia’s National Energy Security Fund, says the current trend will not end as the US and OPEC have not reached their respective goals and the energy industry will not yield to the government. Yushko adds that oil prices should fluctuate between US$75 and U$85 a barrel over the next two years.
US wealth manager Merrill Lynch believes that falling oil prices will provide China’s slowing economy a much needed boost. Even if the US Federal Reserve raises interest rates later this year as expected, the central banks of China and other Asian economies should still be able to stimulate growth through lowering their own interest rates.
Zhou Xiaochuan, governor of the People’s Bank of China, has commented on the benefits of lowering oil prices on the Chinese economy, saying that he hopes prices can remain stable and reasonable given that China is a major net importer of crude oil.
Central bank analyst Ma Jun has noted that an annual average fall of 10% in oil prices would increase China’s GDP by 0.12%.
International Monetary Fund vice president Zhu Min says, however, that falling oil prices could cause the governments of oil-exporting countries to go deeper into the red and spark exchange rate and stock market turmoil that might lead to a chain reaction. For net oil importers such as China and the US, falling energy prices could also lead to reduced investment and earnings, he added.
China to build $242 billion high-speed railway from Beijing to Moscow. Amtrak to expand to Danville, IL
China to build $242 billion high-speed railway from Beijing to Moscow.
Not to be outdone however, Amtrak in the U.S. has announced they are studying
a line between Danville,Il and the Quad Cities in Northeastern Illinois. The
study’s outcome could be known within a few months, according to the Illinois
Department of Transportation.
China is planning to build a 242 billion USD high-speed rail connecting the Chinese
capital to Moscow, cutting the journey from five days to two, Beijing’s city
government announced in a Weibo post on Wednesday.
The 7,000-kilometer railway, which will travel through Kazakhstan, is going to be
three times longer than the world’s longest high-speed line from Beijing to Guangzhou.
The project was introduced last October when Russia and China signed a memorandum
of understanding over the high-speed rail link. First Vice President of Russian
Railways Alexander Misharin said the trip could be completed within 30 hours,
Bloomberg reports. Construction is expected to take eight to 10 years, according
Fake bank in Nanjing swindles 200 million yuan from customers
In what may be one of the most lucrative forms of fakery to come out of China yet, a rural cooperative posing as a bank in Nanjing, Jiangsu province reportedly managed to collect around 200 million yuan ($32.3 million) from more than 200 customers in the past year
Xinhua reports that the cooperative, convincingly fitted with LED screens, faked documents and uniformed tellers, was able to attract hundreds of customers with the promise of higher interest rates.
“It is decorated exactly the same as a bank. The shop-front, counters and the queue machine, everything makes customers believe it’s a real bank. And the manager kept trying to assure me that they were reliable. I had no doubt at the time,” a duped customer said in a CRI report.
So far, one legal representative cooperative and four “managers” of the fake bank have been detained. Police expect that more victims of the scam will surface in coming weeks.