As it stands now what is really happening with the biggest risk factor to commodity, credit and capital markets, remains a mystery, and instead of getting some much needed clarity from China’s January reserve number, the world’s traders and investors will now have to wait for the February reserve update one month from now to learn if China has managed to slay its capital outflow demons, or if these were just getting started.
“This is according to a Pakistan news agency,” says reader Argiris Diamantis. “No specific numbers are given and this is not (yet) confirmed by other media. It could very well be true, but we have to be careful.”
Snowfall in China, which has continued for several days, has broken all records of previous years and has increased problems for millions of people returning to their homes for Chinese new year ceremonies, says abbtak.tv.
Aerial operation and trainschedule have been affected badly due to bad weather and snowfall, while six thousand policemen have been deployed to control the people.
The Chinese government is facing public outcry amid fresh allegations that authorities have routinely had the organs of political prisoners illegally, forcibly removed.
According to Newsweek, well-respected investigators from all over the world agree that thousands of people have had their organs forcefully extracted, without anesthetic, while held in Chinese prisons. Many of the victims belong to a banned religious group called Falun Gong, a forbidden, though peaceful Chinese religion created in 1992. Members continue to face constant discrimination in the country. Continue reading »
Five years ago, in July of 2011, the house at 4182 West 8th Avenue in Vancouver in sold for $4.6 million. It now rests vacant, abandoned and rotting.
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The ink was not yet dry on the seemingly endless Monsanto-Syngenta on again/off again takeover drama, when moments ago in a shocking development the newswires were lit up with news that a new, and very much unexpected, bidder has emerged for the Swiss pesticides giant Syngenta: China National Chemical Corp, or ChemChina as it is known, which according to WSJ and BBG is set to pay $43.7 billion to acquire a piece of Swiss corporate history.
When it comes to all things China, the old adage “go big or go home” certainly applies.
The country’s monumental expansion in the wake of the financial crisis was financed by borrowing on a massive scale, as the country’s debt burden rose from “just” $7 trillion in 2007 to more than $28 trillion today. That’s big.
Last year, at the peak of the country’s equity bubble, margin financing outstanding amounted to 18% of the SHCOMP’s free float market cap. Also big. Continue reading »
Willem Middlekoop, author of The Big Reset – The War On Gold And The Financial Endgame, believes the current international monetary system has entered its last term and is up for a reset. Having predicted the collapse of the real estate market in 2006, (while Ben Bernanke didn’t), Middlekoop asks (rhetorically) -can the global credit expansion ‘experiment’ from 2002 – 2008, which Bernanke completely underestimated, be compared to the global QE ‘experiment’ from 2008 – present? – the answer is worrisome. In the following must-see interview with Grant Williams, he shares his thoughts on the future of the global monetary system and why the revaluation of Gold is inevitable…
Middlekoop predicts the real estate crash in 2006… (ensure English Subtitles – Closed Captions – are enabled)
Bernanke did not… (stunning!!) Continue reading »
China’s mid-tier banks are piling up exposure to the riskiest subset of borrowers at a time when economic fundamentals are deteriorating on a near daily basis. Meanwhile, this exposure is being carried on a line item that allows the banks to avoid provisioning for the losses that will almost certainly materialize in the not-so-distant future. At one bank, this one line item is larger than the entire Philippine banking system.
Last summer we outlined how Chinese banks obscure trillions in credit risk.
The powers that be in Beijing aren’t particularly keen on allowing the banking sector to report “real” data on souring loans – especially given the fragile state of the country’s economy. In some cases, the Politburo will pressure banks to simply roll over bad debt, effectively kicking the can.
In addition, banks carry around 40% of their credit risk outside of “official loans.” Here’s what Fitch had to say last year: Continue reading »
One month ago, we first revealed that for one prominent winner from the subprime crisis, Hayman Capital’s Kyle Bass, “the greatest investment opportunity right now” is to short the Chinese Yuan: as he explained “given our views on credit contraction in Asia, and in China in particular, let’s say they are going to go through a banking loss cycle like we went through during the Great Financial Crisis, there’s one thing that is going to happen: China is going to have to dramatically devalue its currency.” He even went so far as to give a timeframe: “we think it’s going to be in the next 12-18 months.”
Then, during the Davos boondoggle, none other than the man who broke the Bank of England, George Soros, noted that he too is shorting the Yuan, which in turn prompted China’s communist party mouthpiece, the People’s Daily to officially warn Soros to back off adding in a petulant, schoolyard bully-ish voice “You Cannot Possibly Succeed, Ha, Ha.” Yes, China really said that. Continue reading »
It should surprise nobody that when it comes to perpetuating the global central bank “put”, China – which is at daily danger of having its house of trillions in non-performing loan card collapse at any moment – has perfected moral hazard better than any western central banker. However, even the staunchest cynics will be stunned by the latest development out of the Shanghai government where starting next month, venture capital firms which invested in high-tech startups since the beginning of 2015 can apply for government compensation if their investment loses money. Continue reading »
Punjab authorities have closed down schools from Jan 26 to 31 because of biting cold, a private TV channel reported.
Life is almost paralysed by the biting cold in nine upazilas of the district. The poor are burning hay and fallen leaves to keep them warm.
Nine deaths believed to stem from hypothermia reported in Bueng Kan, Nakhon Phanom, Tak, Rayong and Udon Thani provinces.
Along with severe cold
In addition, the accompanying low temperatures have caused disasters for farmers across the nation.
Buffaloes have recently died due to the extremely cold weather.
Guangzhou residents were excited Sunday to observe snow falling in their subtropical city for the first time in 88 years.
Schools light bonfires, army readies help
People and livestock in upland areas of northeastern Laos are struggling with the freezing cold.
Okinawa’s main island in southwestern Japan gets its first measurable snowfall in history.
In the south, sleet fell on Amami Oshima Island for the first time since 1901. Residents there usually enjoy temperatures of around 17 degrees Celsius this time of year.
It has been another volatile, illiquid, whipsawed session, driven by the only two things that have mattered so far in 2016, China and oil…. and stop-hunting algos of course.
A quick look at the former first reveals that after sliding gradually all session, Chinese stocks puked in the last hour of trading with the China’s Shanghai Composite Index plunging 6.4% to 2,750, the most since the first week of January, and falling to the lowest level since December 2014. The composite has now plunged 22% in 2016 alone and is the world’s worst-performing primary equity index this year.
Here is another Masonic handshake …
(Click on image to enlarge.)
Putin and Obama are both Freemasons and Rothschild/Illuminati puppets. (See HERE.)
(Some more Masonic handshakes you haven’t seen on this site before down below.)
In late September, we were stunned to read (and report) that in the first mega-layoff in recent Chinese history, the Harbin-based Heilongjiang Longmay Mining Holding Group, or Longmay Group for short, the biggest met coal miner in northeast China had taken a page straight out of Jean-Baptiste Emanuel Zorg’s playbook and fired 100,000 workers overnight, 40% of its entire 240,000 workforce.
For us this was the sign that China’s long awaited “hard landing” had finally arrived, because as China’s paper of record, China Daily, added then: “now, many migrant workers struggle to find their footing in a downshifting economy. As factories run out of money and construction projects turn idle across China, there has been a rise in the last thing Beijing wants to see: unrest.” Continue reading »
“I don’t think China’s economic slowdown is that severe to threaten the global economy.”
“China has managed debt restructurings superbly.”
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Sure!!! Let’s look at Bernanke’s track record.
Here are 31 quotes:
1. (October 20, 2005) “House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.”
2. (On 60 Minutes in response to a question about what would have happened if the Federal Reserve had not “bailed out” the U.S. economy) “Unemployment would be much, much higher. It might be something like it was in the Depression. Twenty-five percent.”
3. (February 15, 2006) “Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”
4. (January 10, 2008) “The Federal Reserve is not currently forecasting a recession.”
5. (When asked directly during a congressional hearing if the Federal Reserve would monetize U.S. government debt) “The Federal Reserve will not monetize the debt.”
6. “One myth that’s out there is that what we’re doing is printing money. We’re not printing money.” Continue reading »
China is now facing rich country problems on a poor country budget.
China’s new year headlines are all about the economy. Official plans call for slower growth in 2016 and beyond, with the 7.5 percent growth target reduced to 6.5 percent. A run of poor results in the manufacturing sector calls even that more modest target into question.
You don’t have to listen very hard to hear the bears growling on Wall Street, London, or Paris these days. Indeed, the Dow Jones Industrial Average was down another 300 points on Wednesday to just under 16,200
With the U.S. stock market sagging, oil off to its worst start ever, and the China’s economy continuing to deteriorate, bearish analysts have a wealth of evidence to point to.
And they don’t come much more bearish than Albert Edwards, strategist at Société Générale. He’s not had much nice to say about the global economy in years, and recent events have only hardened his convictions that the world is headed for disaster, and will take the prices of equities down with it. How much? Edwards predicts the U.S. stock market could plunge as much as 75%. That would be worse than during the financial crisis, in which stocks from their peak to trough dropped a brutal 62%. Continue reading »
Even as the fascist, corrupt U.S. government and its regulators (FDA and USDA) actively conspire with the biotech industry to poison Americans with genetically modified foods, Taiwan has already passed and implemented a nationwide law to protect its citizens from GMOs.
Nearly a full year ago, Taiwan passed Food Act Amendments that achieve remarkable food safety milestones the U.S. government refuses to implement, placing Taiwan far ahead of the United States on food safety. These milestones include: Continue reading »
But how many billions (or trillions) did China’s so-called “national team” spend to prop up stocks in recent months? According to Goldman not less than CNY1.8 trillion in the June-November period.
Chinese stocks are trading at the lows of the day after Overnight HIBOR rates (Hong Kong’s interbank borrowing rate) exploded a stunning 939bps to a record high 13.4%. It is clear that banks are utterly desperate for liquidity and/or are extremely concerned about one another’s counterparty risk. This has dragged HSCEI down 5% (to its lowest since Oct 2011).
Ming Pao, the most influential Chinese newspaper in Hong Kong, reports that Shanghai residents are lining up at local banks to sell Yuan for Dollars over fears of even more Yuan devaluation.
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As China’s leaders figure out that pegging the yuan to the dollar while quintupling their debt in five years was a colossal mistake, they are, apparently, concluding that the only way out is a sudden, sharp currency devaluation…
“As predicted August 6th, 2015 “The Panic Of 2016” has arrived, despite equities down gold prices have risen & “the civilian death toll in the Saudi war in Yemen continues to escalate with more than double the number killed in December than November”.
Original release: January 7th, 2016.
“Growth” meet “mal-investment boom-bust” In a perfect example of the smoke-and-mirror-ness of China’s credit-fueled expansion, a 27-storey high-rise building which was completed on November 15th 2015 was just demolished, “having been left unused for too long.”
“… what we are going to see next is a credit cycle, and in a credit cycle you see some losses, but if China’s banking system loses 10%, you are going to see them lose $3.5 trillion.”
CHINA STOCKS HALTED FOR REST OF DAY AFTER CSI 300 TUMBLES 7% – Following the collapse of offshore Yuan to 5 year lows and decompression to record spreads to onshore Yuan, The PBOC has stepped in and dramatically devalued the Yuan fix by 0.5% to 6.5646. This is the biggest devaluation since the August collapse. Offshore Yuan trading has been violent with a 1000 pips swing on Yuantervention. Dow futures are plunging… WTI trades at a $32 handle… Gold hits $1100.
The entire Chinese stock market has been halted on half the trading days in 2016
The punishment will continue until The Fed unleashes QE4!!
“We had a hard landing in the stock market already. We had a hard landing in commodities. [So yes], we could have a hard landing in the economy. China has a colossal credit bubble and no one knows how it’s going to unwind.”
A little over a week ago, Marc Faber dialed in from Thailand to chat with Bloomberg TV about the outlook for US equities, the American economy, and USTs in the new year.
The US is “already in a recession,” the incorrigible doomsayer said.
Stocks will head lower in 2016, Faber continued, taking the opportunity to mock the sellside penguin brigade for adopting a universally bullish take on markets going forward. “Well, I don’t think that the U.S. will continue to increase interest rates,” he concluded, before predicting what we’ve been saying for years, namely that in the end, the Fed may be forced to do an embarrassing about-face and return to ZIRP and eventually to QE. “In fact, given the weakness in the global economy and the deceleration of growth in the U.S., I would imagine that by next year the Fed will cut rates once again and launch QE4.” Continue reading »