IFR Asia 858 – August 23, 2014 | By Lianting Tu Wealth-management assets in China’s banking sector jumped more than 23% in the first half of this year, but most of these are either invested in low risk securities or cash, not risky shadow banking
Fin Alt The former chairman of China’s largest private bank has raised more than US$8 billion for a private equity fund, instantly making it one of the country’s largest. Dong Wenbiao’s China Minsheng Investment Corp. launched in Shanghai last week with 50 billion yuan (US$8.1
Yao Chen has more followers on Weibo (China’s version of Twitter & Facebook) than the population of Britain. That’s 71 million followers. 5% of the population of China is following her on Weibo and hang on her every word. Her blog is focused on helping
Want China Times Russian media say China has become one of the few nations capable of building a high-definition Earth observation satellite after it launched its first, and with existing weapons the system may be one of the most powerful in the world, reports Duowei,
Dan Collins CMR The S&P 500 benchmark hit a new all-time high today surpassing 2,000 for the first time. The P/E multiples of the listed companies continue to expand as earnings for corporate America stay relatively flat. The trillions of printed Dollars must of course
Shanghai to San Francisco in 100 minutes by Chinese supersonic submarine China has moved a step closer to creating a supersonic submarine that could travel from Shanghai to San Francisco in less than two hours. New technology developed by a team of scientists at Harbin
While the Mexican military spends its time supporting human and drug smuggling into the American Southwest; on the other side of the world North Korea has lined up tanks to stop its impoverished people from escaping. Thats the difference between two superpowers, the new strong
India is building a new 62-billion-rupee (US$1.02 billion) mountain strike corps to counter China along the China-India border in the northeastern part of the country, according to a report from the New Delhi-based Hindustan Times. The report said General Dalbir Singh Suhag, Chief of the
Shanghai Daily OFFSHORE investors are rallying behind China’s undervalued equities by plowing billions of dollars into Hong Kong’s exchange-traded funds denominated in the yuan currency. As a scheme to allow more foreign inflows into Chinese stocks draws near, fund managers are wagering on a sustained
Dan Collins CMR An article appeared in Bloomberg several days ago that cross-border investment outflow from the U.S. hit a new record as China and Japan reduced their holdings of Treasuries and private investors abroad sold bonds and notes. June had a very strong sell
Want China Times Japan is reportedly considering selling arms to members of the Association of Southeast Asian Nations in response to China’s growing influence in the region and aggressiveness in asserting maritime claims. Tokyo has decided to hold a seminar late September to meet diplomatic
According to the South Korean, “Chosun Ilbo” news outlet, North Korea has recently published a new batch of 5,000 Won Currency notes with the portrait of the “Dear Leader Kim Il Sung. The North Korean press stated that the new notes were not intended to
Industrial production in Italy is down to 1980 levels. Its GDP has collapsed almost 10% back to the year 2000 level. That won’t stop policy makers from fixing the GDP numbers. Just add in drugs, prostitution, and arms trafficking.
Dan Collins CMR The purge continues. Communist Oligarchs continue to battle it out in the worlds largest nation. Billionaires and millionaires are falling by the minute. If your on the wrong side of Premiere Xi Jinping then your on the run. And unlike Russian oligarch
Printing money can’t save an economy and spending money won’t win the
Despite the gloomy production statistics of the U.S. economy such as the
loss of 65,000 factories in ten years, or 1 out of 2 households now getting
a check from the government, Americans are at least secure in their military
supremacy. Or are they?
It is an iron rule of history going back five centuries that as productive
economies shift, military power follows. The Soviet military power lasted
several decades after its economy failed to function, the U.S. is following
the same course.
Indeed, recent evidence suggests the country is becoming a paper tiger
capable of destroying groups of men carrying AK47′s but not being up to the
task against serious rivals. I often talk about the implications if the U.S.
was to go to war against China, and the fact that it could not win. The
welfare dependent population combined with a oligarch corptocracy is quickly
finishing off the last vestiges of American culture than built the country.
The last stages are setting in which are national bankruptcy, foreign invasion,
and currency collapse.
Nothing makes the case more on the illusion of American military supremacy
than reports surfacing of the F-35 Joint Strike Fighter. America’s highest
tech , brand new fighter jet which cost $1 trillion has a slower top speed,
and slower climb rate compared to the older F-16. It can’t fight, climb, or run,
and against Chinese and Russian designs would be clubbed to death like a baby
seal as one Australian military analyst put it. The new F-35 is of course the
result of a monopoly contract given to 1 military defence contractor. Nothing
makes it more evident, that just focusing on how much the U.S. spends on defence
should not make you feel comfortable.
F’d: How the U.S. and Its Allies Got Stuck with the World’s Worst New Warplane
The F-35 Joint Strike Fighter — a do-it-all strike jet being designed by Lockheed
Martin to evade enemy radars, bomb ground targets and shoot down rival fighters —
is as troubled as ever. Any recent tidbits of apparent good news can’t alter a
fundamental flaw in the plane’s design with roots going back decades.
Owing to heavy design compromises foisted on the plane mostly by the Marine Corps,
the F-35 is an inferior combatant, seriously outclassed by even older Russian and
Chinese jets that can fly faster and farther and maneuver better. In a fast-moving
aerial battle, the JSF “is a dog … overweight and underpowered,” according to
Winslow Wheeler, director of the Straus Military Reform Project at the Project on
Government Oversight in Washington, D.C.
Want China Times
After the Chinese government acknowledged the existence of the DF-41
nuclear solid-fueled road-mobile intercontinental ballistic missile, the
Nanning Evening News said that more advanced missiles will be revealed
in the near future.
The information regarding the DF-41 was accidentally released in a report
from the official website of the Shaanxi Environmental Monitoring Center.
The paper said the names of various other types of new missiles including
the DF-26, the HQ-1 and the HQ-26 were also mentioned in the report. This
suggests that more missile systems will soon be revealed to the public,
according to the paper.
Richard Fisher, an expert in Chinese military development from the
International Assessment and Strategy Center, said China has used Aug. 1,
the 87th anniversary of the founding of the People’s Liberation Army, as an
opportunity to demonstrate its military capability to the world. By doing
this, Fisher said the Chinese government will inspire in its citizenry a
sense of national pride. If the report is accurate, Fisher believes that
PLA is going to commission the DF-41.
The DF-41 is estimated to have an operational range of between 12,000km and
15,000km, which also makes it the missile with the longest range in the world.
The top speed of a DF-41 is estimated to be Mach 25. US observers believe the
weapon will be capable of carrying multiple warheads and claim it could be
used to carry out a surprise attack that could knock out an enemy’s arsenal
and limit its counterstrike capabilities.
One politician who has it right. The U.S. needs structural reform, not
money printing. Firstly, you cannot tax foreign earnings, secondly you
need to lower the tax rate.
The tax code is 5 times the size of the bible with the highest rates in
the world, yet we collect no taxes. These are things we should have been
working on long ago especially since 2008 when the economic system slapped
the country in the face. Instead, we just used the crisis as an excuse for
sending more money to bankers.
One wonders if Americans will ever wake up to the fact that their shackles
of debt come from banks who have legal authority to print currency. If we
are printing , why not just print it ourselves and divert the money into
infrastructure or job creation industrial projects. That would be to rational,
but instead we must feed the banks and the houses of speculation.
Elon Musk: Artificial intelligence will be ‘more dangerous than nukes’
Billionaire entrepreneur and inventor Elon Musk took to Twitter over the weekend
to sound the alarm about the dangers of artificial intelligence, which he says
could be more of a threat to humans than the nuclear era. “We need to be super careful
with AI,” he tweeted, adding that artificial intelligence is “potentially more
dangerous than nukes.”
Worth reading Superintelligence by Bostrom. We need to be super careful with AI.
Potentially more dangerous than nukes. — Elon Musk (@elonmusk) August 3, 2014
Musk was referring to the book ‘Superintelligence: Paths, Dangers, Strategies,’
by Nick Bostrom, which poses questions about how humans will be able to handle
computers containing advanced intelligence.
Musk followed that tweet with another, speculating that humans are willingly
ushering in what could be their own demise at the hands of robot domination.
“Hope we’re not just the biological boot loader for digital superintelligence.
Unfortunately, that is increasingly probable.”
Hope we’re not just the biological boot loader for digital superintelligence.
Unfortunately, that is increasingly probable — Elon Musk (@elonmusk) August 3, 2014
Tesla-founder Musk, 42, has invested in artificial intelligence ventures in order
to push for positive results from AI, he has said.
“I think there is potentially a dangerous outcome there,” he told CNBC of
artificial intelligence. “There have been movies about this, you know, like
Terminator,” he added. “There are some scary outcomes. And we should try to make
sure the outcomes are good, not bad.”
China has begun expanding the world’s deepest underground lab in southwest
China’s Sichuan Province, where scientists have been conducting experiments
on mysterious “dark matter”.
The second-phase construction of the Jinping Underground Laboratory,
located at 2,400 meters under the surface of Jinping Hydropower Station,
was launched on Friday by Tsinghua University and Yalong River Hydropower
Development Company, the university told Xinhua on Saturday.
The construction, scheduled to be completed by the end of 2015, will
increase the lab’s space to 120,000 cubic meters, allowing more experiments
to be carried out simultaneously, the university said.
The Jinping lab, opened in December 2010, provides a “clean” space for for
scientists to pursue the invisible substance known as dark matter.
Researchers said the extreme depth helps block most cosmic rays that mess
with the observation.
The lab has accommodated a project called China Dark Matter Experiment,
whose results were published in scientific journal Physical Review D in 2013.
Scientists are still searching for evidence to prove the existence of the
hypothetical dark matter, which account for over a quarter of the universe’s
mass-energy balance but have not been directly detected.
Vietnam has ordered fishing boats to be armed with machine guns.
Previously, these fishing boats have been easy prey for Chinese
naval vessels as as they run off the fishermen with water cannon.
The next encounters will not be so easy, Chinese naval ships
if fired upon will blow these fishing boats out of the water which
will of course lead to higher and higher levels of confrontation.
Vietnam are using the fishing fleets as pawns, will China take
From Global Times
The Vietnamese government has issued an order stipulating that
boats under the jurisdiction of the country’s fishery law
enforcement command should be equipped with weapons. The
regulation will be effective as of Sept. 15, 2014 despite China’s
announcement that the mission of the oil rig is “complete” and that
it will be removed. According to the order, pistols, submachine
guns and bullets will be allocated to members of the forces, and
every boat will be equipped with light machine guns, machine guns
and 14.5 mm caliber machine guns.
Want China Times
China has recently agreed to join in the construction of a railway
linking the Atlantic and the Pacific oceans, running through the world’s
most important shipping routes, including Pakistan, Myanmar, the Silk
Road economic belt and Greece’s Piraeus Port, the Guangzhou-based Southern
On July 23, China’s president, Xi Jinping, ended his 10-day visit to
Argentina, Brazil, Venezuela and Cuba. During the visits, China, Brazil
and Peru jointly announced that the three nations will launch a railway
project linking the Atlantic and Pacific oceans. This is the largest
railway project launched by Chinese leaders during their overseas trips.
The rail would begin from the coastal cities of Peru and end on Brazil’s
coast, extending more than 3,000 kilometers.
Want China Times
Zhou Yongkang, the retired Communist Party heavyweight whose graft
investigation was announced this week, is alleged to have had affairs
with more than 400 women, our sister newspaper China Times reported
on July 30.
Rumors circulating concerning the country’s former public security tsar
include charges of corruption, attempting to murder Xi Jinping, now
president, and defection. What can be confirmed is that the state newswire
Xinhua announced at 6pm on July 29 that the party’s Central Commission for
Discipline Inspection has officially established an investigation into Zhou.
It was noted that Xinhua’s report did not refer to Zhou as “comrade,”
suggesting he is no longer one who enjoys the protection of belonging.
China Times repeated claims of investigators who said Zhou owns at least
six “private residences” for him to “have fun with different women” in Beijing.
The 71-year-old man was alleged to have had sex in a car with CCTV anchor
Ye Yingchun on Nov. 29, 2013, two days before he was arrested and detained.
Zhou recently underwent surgery for bladder cancer, the paper claimed.
China Times reported claims that Zhou began to have extramarital affairs
from 1999, when he was the party secretary of Sichuan province. He would
allegedly be supplied with women by officials who wished him to use his
influence in their favor.
Jia Xiaoye, (pictured below) a CCTV anchor who became Zhou’s second wife,
is alleged to have been a “gift” from Li Dongsheng, former vice minister
of public security and former vice president of CCTV, although the 43-year-
old former anchor for CCTV claimed she met Zhou via regular news interviews.
After he was made head of the Central Politics and Law Commission in 2007,
it is alleged that Zhou had sex in his office, and former Chongqing party
secretary Bo Xilai and Bo’s police chief Wang Lijun were said to be his “pimps.”
Zhou is also alleged to have engaged in wife-swapping activities with his
colleagues or subordinates. He was also reported to have had an affair with
Bo’s wife Gu Kailai. Gu was jailed in 2012 for the murder of British businessman
Neil Heywood, while Wang was jailed the same year in part for his role in
helping to cover up the murder. Bo, who was at one time accused of plotting with
Zhou to undermine the party’s leadership transition in 2012, was given a life
sentence last year for corruption
CHINA will ensure the “orderly” migration of about 100 million rural workers
into cities by 2020, supported by expanded social welfare and more job
opportunities, the government said yesterday, as part of plans to push its
Authorities have pledged to loosen their grip on residence registration, or
hukou, which stops migrant workers and their families from getting access to
education and social welfare outside their hometowns.
The government aims for 60 percent of the population of almost 1.4 billion
to be living in cities by 2020, turning millions of rural dwellers into
consumers who could be a driving force for the world’s second-largest economy.
Something is amiss…Duh..no shit. Unlimted free money for bankers
and importing the poor of Latin America will only collapse what is
left of the American middle class. Labor supply goes up…Labor prices
go down. Simple economics 101. Americans have been betrayed by their
leadership, elite, and political parties. Until they wake up to
that fact, things will only get worse.
Economic inequality in the United States has been receiving a lot of attention.
But it’s not merely an issue of the rich getting richer. The typical American
household has been getting poorer, too.
The inflation-adjusted net worth for the typical household was $87,992 in 2003.
Ten years later, it was only $56,335, or a 36 percent decline, according to a
study financed by the Russell Sage Foundation. Those are the figures for a
household at the median point in the wealth distribution — the level at which
there are an equal number of households whose worth is higher and lower.
But during the same period, the net worth of wealthy households increased
The Russell Sage study also examined net worth at the 95th percentile.
(For households at that level, 94 percent of the population had less wealth
and 4 percent had more.) It found that for this well-do-do slice of the
population, household net worth increased 14 percent over the same 10 years.
Other research, by economists like Edward Wolff at New York University, has
shown even greater gains in wealth for the richest 1 percent of households.
For households at the median level of net worth, much of the damage has occurred
since the start of the last recession in 2007. Until then, net worth had been
rising for the typical household, although at a slower pace than for households
in higher wealth brackets. But much of the gain for many typical households came
from the rising value of their homes. Exclude that housing wealth and the picture
is worse: Median net worth began to decline even earlier.
“The housing bubble basically hid a trend of declining financial wealth at the
median that began in 2001,” said Fabian T. Pfeffer, the University of Michigan
professor who is lead author of the Russell Sage Foundation study.
The reasons for these declines are complex and controversial, but one point seems
clear: When only a few people are winning and more than half the population is
losing, surely something is amiss.
A river today became blood red due to illegal dumping of something.
Investigation is underway.
“Then the third angel poured out his bowl on the rivers and springs, and they
became blood. And I heard the angel who had authority over all water saying,
“You are just, O Holy One, who is and who always was, because you have sent
these judgments.Since they shed the blood of your holy people and your prophets,
you have given them blood to drink.
It is their just reward.”
With nothing left to offer the world but Vulture funds and IOU’s, the world
is walking away from the U.S.
The nation of China is upending the global order by creating and funding
institutions which will loan and build infrastructure across the global to the
benefit of emerging countries and Chinese companies.
To make matters worse, Chinese GDP is expected to be 2-3 times as large as the
United States in only 15 years. And that number assumes a optimistic 2% growth
for the United States until 2030.
Qualcomm became the latest US technology company to suffer a reversal in
China, as it warned on Wednesday that a government investigation there
had added to its difficulties in collecting licensing fees on new mobile
The mobile chipmaker’s shares slid by as much as 5 per cent in after-market
trading after it forecast that it would miss out on licensing fees on as
many as a quarter of a billion smartphones and tablets made in China this year.
American firms have now found themselves on the outside of the
world’s largest I.T. market, China, thanks to NSA spying.
As we reported just after the Snowden leaks became public the
Central government in Beijing was shocked at the extent of
collaboration of American I.T. firms with the U.S. intelligence
community. Directives quickly went out to limit sales of
U.S. tech equipment. Purchasing departments were to buy Chinese
at all costs, if the tech was not available at a reasonable price
they should buy European. Sure enough, we soon saw the sales and
earnings of U.S. tech companies go down with the companies blaming
China for the earnings woes.
Now further evidence has surfaced with Huawei set to double revenues.
The U.S. has been slowly evolving into the new evil empire and their
elites don’t even notice it. A tragedy has occurred with Russian separatists
no doubt shooting down a commercial airliner. Instead of questioning the
foresight of commercial airlines about trying to save money by flying through
a civil war zone where military planes are getting shot down, the U.S.
secretary of State John Kerry instantly went on the media networks trying to
pin the blame on Putin. Why on earth would Putin want to take down a commercial
plane? Of course, he would not. Kerry’s CIA conceited backstory of course was
then carried through by the American state media outlets such as CNN.
(Note: Kerry’s son is now on the board of the Ukrainian gas company)
The U.S. instantly saw the deaths of so many people as just one more propaganda
ploy in projecting power into the region. The U.S. will not stop until the Oligarchs
are back in charge of Russia, and the same group is controlling the countries
Central Bank and oil reserves.
Jim Rogers is probably better now known in China now than even the U.S.
In this interview on Chinese television he expects Gold prices will
struggle, but then skyrocket. He tells the truth that the U.S. government
is lying about inflation and tells the audience, to NEVER sell your
RMB. The Japanese Yen went up 700-800% and still run trade surpluses
against the U.S. It will be the same for China. What is telling is that
the Chinese presenter, like most Chinese I know still don’t understand
that a stronger currency equals national strength. Factories in China
can no longer find workers, you need to let the RMB rise and balance the
economy with more service industries while at the same time making all
of the imported commodities cheaper. It is the holding down of the RMB
that has led to over investment in factories and the resulting pollution
while at the same time stunting the service sector.
What U.S. viewers may find interesting is the reaction of the Chinese
presenter when she asks” Why doesn’t the U.S. bring back manufacturing to
the country so that people have jobs?” She looks dumbfounded and can’t
understand why a country would actively unemploy its working class.