May 27

Oesterrreichische Nationalbank

The End Game Continues: Austria Repatriates Gold (ZeroHedge, May 27, 2015):

After Germany and the Netherlands decided to repatriate a substantial amount of gold from vaults abroad to the vaults in respectively Amsterdam and Frankfurt, now Austria is joining the ‘bring our gold home’ movement.

After increasing pressure from the Austrian people on the government and the central bank to increase the ratio of the gold effectively held in the Austrian Central Bank in Vienna, the central bank has finally made the decision to effectively do so. Less than 20% of Austria’s (relatively) sizeable gold reserves were held in its own vaults with the remainder being stored in Switzerland and London. Austria will now remove 63% of the gold from London and transport it to both Switzerland and Austria. This will be an interesting test case to see how long it will take the Bank of England to ship the 140 tonnes of gold (4.5 million ounces) to Vienna, and we dare to bet this will either take much longer than anticipated, or we’ll suddenly see another gold withdrawal from the Federal Reserve which will very likely be the magical 125-150 tonnes number. Continue reading »

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May 26

Chinese Stocks Are Now Up Over 100% Year-To-Date (ZeroHedge, May 25, 2015):

Another day, another dip to be bought aggressively in China. The only catalyst for moar – aside from “well it was up yesterday” – is the news that the Shanghai-HK Stock Exchange aggregate quota will be abolished, leaving room for more speculative excess to flood into 500%-gainers.  CSI-300 is now up almost 6% since Friday’s close and Shenzhen and CHINEXT are soaring back from underperformance yesterday. To round things out on a superlative note, the Shenzhen Composite – which contains all the ponzi-based self-collateralized idiot-makers, is now up over 100% year-to-date. Simply put, you can’t keep a bad market down…

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May 26

Defense to offense: China unveils new military strategy to boost naval capability (RT, May 26, 2015):

China has unveiled a new defense strategy to boost its naval capability and said it will now shift from “territorial air defense” to both “defense and offense.” Beijing also slammed its neighbors for their “provocative actions” on its “reefs and islands.”

The white paper China’s military strategy was issued by the State Council on Tuesday, signaling ambitions for greater naval presence in the region where tensions are rising over disputed territories in the South China Sea. Continue reading »

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May 25

Chinese State Paper Warns “War Will Be Inevitable” Unless U.S. Stops Meddling In Territorial Dispute (ZeroHedge, May 24, 2015):

Just to confirm that if the US had hoped it could threaten Beijing into submission and force the Politburo into curbing its expanionist appetit, it was dead wrong, the nationalist Global Times, a paper owned by the ruling Communist Party’s official newspaper, the People’s Daily, said in a Monday editorial that war was “inevitable” between China and the United States unless Washington stopped demanding Beijing halt the building of artificial islands in the disputed waterway.

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May 24

China Establishes World’s Largest Physical Gold Fund (ZeroHedge, May 24, 2015):

Overnight Xinhua also reported that a gold sector fund involving countries along the ancient Silk Road has been set up in northwest China’s Xi’an City during an ongoing forum on investment and trade this weekend. (read more about the “New Silk Road” which could change global economics forever here). The fund, led by Shanghai Gold Exchange (SGE), is expected to raise an estimated 100 billion yuan (16.1 billion U.S. Dollars) in three phases. The amount of capital allocated to nothing but physical gold purchases (without plans for financial paper intermediation a la western ETFs) will be the largest in the world.

 …

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May 22

Heavy snow covers north China city in early summer (Ice Age Now, May 21, 2015):

May 18, 2015. Heavy snowfall on Monday brought winter back to the Arxan City

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May 21

“Go Now!”: China Threatens US Spy Planes In South China Sea (ZeroHedge, May 21, 2015):

There’s trouble brewing in The South China Sea, where Beijing has been using “scores of dredgers” to turn reefs into islands in the Spratly archipelago. Atop the new islands, China has been busy building things like cement plants and 10,000 foot airstrips capable of landing fighter jets and surveillance aircraft.

China shares contested waters in the area with the Philippines, Vietnam, Malaysia, Brunei and Taiwan, and the US has made it all too clear that China’s reclamation efforts constitute an unacceptable attempt to “use sheer size and muscle to force countries into subordinate positions.” That, along with reports that Washington is looking into options for countering China’s island-building project, set up a contentious scenario that culminated in Beijing advising the US to “refrain from provocative action” in the area.

Having thus set the stage, we bring you the following clip which shows what happens when US spy planes come a little too close to China’s newly created military outposts.

 

 

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May 21

pan sutong 2_0

Crash Contagion: Second Chinese Billionaire Wiped Out In Seconds After Stock Instacrash (ZeroHedge, May 21, 2015):

Yesterday China’s richest man, Li Hejun, lost more than half his fortune when his solar company stock suddenly crashed over 50%. Overnight it happened again, and Hong Kong’s securities regulator, warned other investors to exercise “extreme caution,” as Hong Kong’s best-performing stocks this year are crashing in a serial, tulip-like manner. And another billionaire was promptly wiped out: Pan Sutong started the day engorged with wealth after his companies Goldin Financial and Goldin Properties had risen 300% this year. By the close he had lost 60% of his wealth!

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May 21


Chinese ‘Virus’ Spreads To Germany: Meet The Company That Went From Record High To Zero In 1 Week (ZeroHedge, May 21, 2015):

It appears the frauds, falsehoods, and f##king fallacies are all being exposed at the same time. While we have noted three companies that have collapsed in the last week – destroying their billionaire owners’ wealth in the process – it appears the Chinese capital destruction virus has spread to Germany. Joyou AG – a Chinese affiliate of German bathroom manufacturer Grohe – has collapsed from record highs a week ago to 0, pending bankruptcy, after admitting balance sheet manipulation.

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May 21

Indonesia Just Sank “A Large Chinese Vessel” And 40 Other Fishing Boats In The South China Sea (ZeroHedge, May 21, 2015):

According to The China People’s Daily, Indonesia has just sank a large Chinese vessel and 40 other foreign ships caught fishing in The South China Sea. AP confirms that Indonesian authorities blew up and sank the 41 vessels… which seems like something that might just lead to some serious escalation if true…

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The tweet…

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And AP’s confirmation…

Indonesian authorities blew up and sank 41 foreign fishing vessels Wednesday as a warning against poaching in the country’s waters.

Continue reading »

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May 20

Aaaaannd it’s gone.

“Welcome to the new ‘fake it til you get busted’ normal.”


Hanergy1

China’s Richest Man Sees Half His Net Worth Wiped Out In Seconds After Bubble Stock Instacrash (ZeroHedge, May 20, 2015):

Li Hejun began the day as either China’s second-richest man according to Forbes, or richest, according to the Hurun Report (China’s version of the Forbes rich list) and Le Figaro, with a fortune worth more than $30 billion. By 11am, his net worth was amazingly cut by half, and he was almost $14 billion “poorer” as shares in Li’s flagship Hanergy Thin Film plunged by 47% in Hong Kong before trading was suspended – due to Li’s absence at the company’s annual meeting.

While four months of supercharged stock gains were eviscerated in minutes, it was not a surprise to everyone, as one analysts called Hanergy “a disaster waiting to happen,” noting that the company is working with “unproven” technology and has disclosed few details about the work that underpins its valuation.

It was all going so well, and then… Continue reading »

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May 18

Revealing The Identity Of The Mystery “Belgian” Buyer Of US Treasurys (ZeroHedge, May 18, 2015):

After months of speculation and confusion, on Friday we finally got if not direct, then certainly indirect, evidence from this month’s TIC data that “Belgium” was merely a front for China.

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May 17

“Even as the establishment of new supranational lenders suggests the US-dominated multilateral institutions that have characterized the post-war world are proving unable to meet the needs of modernity, both Congress and the President have stymied IMF reform measures, sending a message to China and others that US hegemony will not die without a fight.”


Belligerent US Refuses To Cede Control Over IMF In Snub To China (ZeroHedge, May 17, 2015):

One story that’s been covered extensively in these pages over the past several months is the emergence of the China-led Asian Infrastructure Investment Bank. The bank began to attract quite a bit of attention in early March when the UK decided, much to Washington’s chagrin, to make a bid for membership. The dominoes fell quickly after that and within a month it was quite clear that The White House’s effort to discourage its allies from supporting the new institution had failed in dramatic fashion.  Continue reading »

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May 16

Birth Tourism

Birth Tourism: How 1000s Of Pregnant Chinese Women Visit The US To Give Birth (& Get A Passport) (Liberty Blitzkrieg, May 13, 2015):

Did you know there exists a highly lucrative business in America that consists of helping pregnant Chinese women get into the U.S. merely to give birth and get their children passports? Yep, neither did I.

From Bloomberg:

Fiona He gave birth to her second child, a boy, on Jan. 24, 2015, at Pomona Valley Hospital in Southern California. The staff was friendly, the delivery uncomplicated, and the baby healthy. He, a citizen of China, left the hospital confident she had made the right decision to come to America to have her baby.

She’d arrived in November as a customer of USA Happy Baby, one of an increasing number of agencies that bring pregnant Chinese women to the States. Like most of them, Happy Baby is a deluxe service that ushers the women through the visa process and cares for them before and after delivery. Continue reading »

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May 15

China requests IMF recommend renminbi as a reserve currency (Government Slaves, May 14, 2015)

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May 14

 –    China Goes “Unconventional” In Effort To Tackle Trillions In Debt, Rescue Economy (ZeroHedge, May 13, 2015):

China has officially entered the realm of “unconventional” monetary policy, joining the Fed, the ECB, the BoJ, and a whole host of other global central banks in an attempt to bring the supposedly all-mighty printing press and the unlimited balance sheet that goes with it to bear on subpar economic growth. We suspect the results will be characteristically underwhelming (at least in terms of lowering real interest rates, although in terms of boosting risk assets, the results may be outstanding) meaning it’s likely only a matter of time before LTRO becomes QE in China just as it did in Europe.

 

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May 12

Chinese Saturation Reached: World’s Largest Smartphone Market Suffers First Drop In 6 Years (ZeroHedge, May 11, 2015)

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May 10

China Cuts Rates (Again) In Desperate Bid To Buoy Stocks, Rescue Economy (ZeroHedge, May 10, 2015):

On the heels of last week’s equity rout, China cuts interest rates for the third time since November. The move comes on the heels of last month’s RRR cut and follows trade data that missed expectations (again) and a PPI print that betrayed persistent deflation risks. Perhaps more importantly, Chinese stocks fell last week amid still more rumors that tighter margin requirements are on the way.

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May 10

“More on the rising east……while the west continues to slide south.”


 russia-china-deals-cooperation

Russia, China agree to integrate Eurasian Union, Silk Road, sign deals (RT, May 8, 2015):

Russia and China have signed a number of energy, trade and finance deals on Friday aimed at strengthening economic ties. The two countries have multiple mutual projects which “achieved a unity of views on a wide range of issues.”

Russian President Vladimir Putin and Chinese leader Xi Jinping have signed a decree on cooperation in tying the development of the Eurasian Economic Union with the “Silk Road” economic project. Continue reading »

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May 07

Gold-bars-111

China To Establish Yuan-Denominated Gold Fix In Bid To Upend London Benchmark (ZeroHedge, May 6, 2015):

A long time ago, in a financial galaxy far, far away, a “fringe” blog raised the topic of gold market manipulation during the London AM fix. Several years later (which, incidentally, is about average in terms of the lag time between when something is actually going on and when the mainstream financial media finally figures it out and reports on it), it was revealed that in fact, shenanigans were likely afoot and indeed, regulators are still trying to sort out what happened.

Via WSJ earlier this year: Continue reading »

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