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Is China on the verge of a crash?
Here's one more example of China's faltering economic prowess: Latin America.

China's Building a Huge Canal in Nicaragua, But We Couldn't Find It

[Image: -1x-1.jpg]
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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China has finally rooted out the guilty culprit, who is responsible for their stock market meltdown. And its just one man, believe it or not.

Quote:If Chinese authorities are to be believed, we finally know the cause of the country’s stock market woes: a single reporter. In a video segment aired by China’s state television broadcaster, journalist Wang Xiaolu confessed to fabricating a “sensationalized” story about the stock market and claimed responsibility for having “caused panic and disorder” among China’s investors.

At issue is a story Wang wrote for Caijing on July 20, in which he reported that China Securities Regulatory Commission was looking to end interventions designed to prop up share prices. CSRC denied the report, which was removed from Caijing’s website last week. CSRC blamed Wang’s piece for a massive drop in the stock market in late July, which sparked market woes that continue today.

Caijing, a financial and business newspaper in China, often pushes the envelope of state-sanctioned media coverage. It has been particularly active in publishing investigations into the finances and business connections of officials suspected of corruption.

The article was written on July 20th, and was not removed until last week, so the authorities had to dig deeply. But they finally got their man. Now everything can finally get back to normal, and PRC economy is saved. S6

Reader's comments are interesting. S5
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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Knew it had to be that Video Producer. ...or was that Benghazi?
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Chinese stocks are in a bubble. Why does it surprise anyone? Investment bubbles are China's national speciality.
And of course it affects our market places. I instructed my banker to wait a few weeks before placing some money, me and my family happen to have just at this moment... I hope that's what he is doing... We would be incredibly lucky to get in right at the bottom of the next global crash! S2
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(09-06-2015, 05:23 PM)Fredledingue Wrote: Chinese stocks are in a bubble. Why does it surprise anyone? Investment bubbles are China's national speciality.
And of course it affects our market places. I instructed my banker to wait a few weeks before placing some money, me and my family happen to have just at this moment... I hope that's what he is doing... We would be incredibly lucky to get in right at the bottom of the next global crash! S2

-If the bubble has apparently popped, how can they still be "in a bubble"?
-You're relying on a 'banker' to "place some money"? Isn't that like relying on a fox to 'place' some chickens??
-Hard to figure the bottom. I'm making some bets on copper. Hard to figure that one of the most basic 'elements' of modern life can remain worthless for very long.
"Democracy is the theory that the common people know what they want and deserve to get it good and hard."
-- Henry Mencken
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Y Wrote:-If the bubble has apparently popped, how can they still be "in a bubble"?
Because once a bubble bursts, they immediately create another one. That's how it works with them.

Y Wrote:-You're relying on a 'banker' to "place some money"? Isn't that like relying on a fox to 'place' some chickens??
I'm not the only one who manage this money, I'd say I have almost no say on this matter, I have yet to inheritate it. But I'm in contact with the banker. An asset manager in fact. And we trust him for personal reasons.

My investment performance hasn't been pristine neither. I did some excellent decisions, but lost every gain in a few bad bets. Some even went down to zero.
My most recent bad bet was investing in oil company Statoil when oil was above $80. I also lost on high dividend stocks when they cut their dividends, and then fell in a tailspin.
Lost half of my money in each of the major crashes since 1998 and took years to return to break even. etc.
I don't think I have even earned any money at all...

Y Wrote:-Hard to figure the bottom. I'm making some bets on copper. Hard to figure that one of the most basic 'elements' of modern life can remain worthless for very long.
Copper should be a safe bet. Safer than gold and, of course, oil.
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(09-07-2015, 06:08 PM)Fredledingue Wrote:
Y Wrote:-If the bubble has apparently popped, how can they still be "in a bubble"?
Because once a bubble bursts, they immediately create another one. That's how it works with them.

There isn't much history to work with. One of the main reasons why China can't create it's own self-sustained economy is mistrust. Effectively they have to borrow our profligate habits to make their system work ... or at least that's been the model to date. Otherwise all the money stays moldering in the mattress. Re-inflating U.S. bubbles occurs pretty quickly these days [e.g. Housing] ... but it wasn't always so. My mother was a child of the Great Depression. She kept the money in her mattress for the rest of her life. And we always had a closet that was packed to the rafters with toilet paper and coffee. FDIC didn't cut it with her. She believed that the wheels could come off at any time ... because she'd actually seen and experienced the wheels coming off. It really hasn't been that long since the Chinese began taking their money out of the mattress. I think it's possible some of them may be reluctant jump back on that band wagon for a good while ... if at all. Plus they are the #1 producer and consumer of gold in the world. Hard to run the casino with sunk assets.
"Democracy is the theory that the common people know what they want and deserve to get it good and hard."
-- Henry Mencken
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The canal sure looks like a vehicle for land grabs to enrich pols and their suck boys. These guys should put in for the 51st state.
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(09-07-2015, 06:08 PM)Fredledingue Wrote:
Y Wrote:-If the bubble has apparently popped, how can they still be "in a bubble"?
Because once a bubble bursts, they immediately create another one. That's how it works with them.

OK, but how do the cope with the dreaded triple bubble??

Will the Chinese economy emerge like some sort of Sino-Hydra sporting nine new bubbles?? S11
"Democracy is the theory that the common people know what they want and deserve to get it good and hard."
-- Henry Mencken
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Actually, I expect the Chinese economy to pretty much follow the Japanese one. Its pretty much based on the same familial way orientals do business. I explained this on earlier posts. Orientals work with semi-permanent groups, where each industry is interconnected, and semi-self-sustaining. They are interdependent on each member of the economic family, and when one stumbles, the rest of the family help cover for it. When the system fails, it causes greater long term problems than in the West. The West is organized more loosely, and can switch from one source to another very quickly. The orientials are locked in and more rigid.

When China falters, it will pretty much follow as Japan has done. It will be a long time recovering. The key word is "inflexibility".
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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You might be right John, but somehow I doubt that two decades of stagnation is really part of the leadership's master plan. The demographics of Japan and China are vastly different. The party is going to have to keep making things happen to stay in control ... and you don't do that by going through endless, fruitless Keynesian cycles. Pressed hard enough they'll do something bold ... like starting a war ... or two.
"Democracy is the theory that the common people know what they want and deserve to get it good and hard."
-- Henry Mencken
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Is this the start of exchanging the dollar for the remnimbi and if so, is it going to be a century before it makes a big difference? I don't understand this stuff, I have been told the reserve status of the dollar has made us way wealthier:

http://www.nytimes.com/2015/12/01/busine....html?_r=0
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For years we have been told that the abandon of the dollar as global currency would mean the demise of the US Empire and its economy... In fact it's just logic that large economies have their own valuable currency. There is more and more wealth in the world (not counting devaluations). The total value of the dollar is littel changed and there is no big difference for the US economy because renminbi is from Chinese internal economy.

Putin must be jealous. But he has to grow an economy first.
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Well, PRC is still on its feet, and no telling how long it will take before it falls on its face economically.   However, the alarm bells are starting to ring again.

China's debt on a 'dangerous trajectory': IMF

Here's the key part of the article:

Quote:The IMF maintained its forecast of 6.7 percent growth for this year, but the report warned that the country's debt load could soar from around 235 percent of gross domestic product last year to more than 290 percent in 2022.

No telling when the crash will occur. But the longer it is artificially held off, the harder the fall. Here's more on this from ZeroHedge: "China's Debt Has Grown $4.5 Trillion In Past 12 Months, More Than The US, Japan And Europe Combined"
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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Well PRC's dept to GDP ratio just keeps on getting bigger.  Since I posted the one above this one, the ratio was 234-235%.  Less than a year later, it is now higher, at 256%.

China's Out Of Control Borrowing Binge Leads The Global Debt Addiction

Quote:While household debt is spiraling, the Chinese government is pushing to double the size of the economy by 2020 (setting this goal in 2010). This ambitious project will almost certainly entail more lending and increased debts. There is a question as to exactly how much more debt China can handle.

China’s debt has been rising steadily, from 141 percent of GDP in 2008 to 256 percent of GDP in 2017. This type of rapidly-increasing debt level has frequently been the precursor of a hard economic fall, and the world is watching China carefully.

[Image: china-debt.jpg?itok=-jMiiJhF]

While countries such as the U.S. and the U.K. also have large debt-to-GDP ratios, the difference is that both are high-income countries, while China has only reached middle-income status, with only $15,400 in household purchasing power. This is a quarter of the household purchasing power of the US. Getting out of debt on China’s low level of income will be far more difficult than in higher-income nations.

And let's not forget all of the Shadow Banks and their Shadow Loans, which the central government has no direct control: Exclusive: Regulator shopping in vogue as China's shadow banks evade Beijing's grip
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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More on the perils of "Shadow Banking". Spiteful

China’s Next Financial Crisis: Shadow Banking




The worst part of all this is that we are living in a global market. If China goes down, the entire world economy will also be hit hard. Shock
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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For some reason, almost everyone keeps talking about Russia, as if its our greatest enemy.  Its constantly on the news, and articles I read just can't get Russia out of their primary attention.  But as I have stated many times before, Russia is Not our biggest enemy: Its China.  Russia is just playing both sides in order to keep from being invaded, like they have so many times before.  And the best way to keep others from thinking it a 'push-over', its best to inflate the chest, beat it with fists, and pretend to be Tarzan.  And to a certain respect, its working.  

But again, its China, the PRC, who we really have to worry about.  And the same thing holds true for Uncle Vladimir Vladimirovich as well.  After all, their territory is being slowly and casually invaded by Chinese, who are bent on taking Siberia and its natural treasures.  Eventually, there Will be a war between Russia and China.  Its inevitable.

Trump also recognizes this, and is playing a high stakes game which has taken a purposefully roundabout walk before honing in on China.  I believe this was done on purpose, by going after the little guys first, getting them in line, and then going after the REAL enemy.  This is where the rubber really meets the road, and while almost everyone in the media is convinced Trump is stumbling around in the dark, I think he knows damned well what he is up to.

And here's the latest from the ones who really have their eyes on the ball: the Asian Press.  This is from last month.

Quote:
Quote:Did China think Donald Trump was bluffing on trade? How Beijing got it wrong

China’s ruling Communist Party’s tightened control over think tanks and a crackdown on extravagance could be having an impact on how the leadership handles foreign affairs – and weakening Beijing’s understanding of US politics under President Donald Trump.

Sources and analysts say that Beijing appears to have been caught off guard by Trump’s protectionist trade blitz, and that it underestimated rising anti-China sentiment among the US elite.

Even last month when US Commerce Secretary Wilbur Ross visited Beijing, some in the capital were still hoping Washington could be persuaded not to go ahead with its threat to slap punitive tariffs on Chinese goods.

But the US was not convinced, imposing 25 per cent duties on US$34 billion of Chinese products from July 6 – prompting Beijing to do the same. Washington now plans to apply 10 per cent tariffs on another US$200 billion of Chinese goods, and Trump has said he is ready to put duties on every import from China.

“They [the Chinese leadership and researchers] didn’t realise how bad the sentiment here is getting. They thought Trump was just bluffing, and they still think like that,” according to a former US policy adviser, speaking on condition of anonymity.

“They say this is about the midterm elections and things will change after that. They are totally wrong and they totally misread the situation. I feel partly this is because they have become more insulated, and partly because nobody dares to tell Beijing that they are wrong.”

They go on to state that China made key mistakes in their intelligence gathering by cracking down on those who are the most likely to understand the situation.  And too, China has done a poor job of understanding what makes Trump, and the Americans really tick.  

Don Surber, who has written articles almost all over, including The American Spectator, Real Clear Politics, and even Daily Mail, has this to say.  Definitely not a friend of CNN, he looks elsewhere.

Quote:Trump has Red China reeling

To find the news, I read the South China Morning Post, which is worried spitless that the Red Chinese economy will tank like its stock market has.

The newspaper is running a series of columns by panicked investors and experts.

Aidan Yao is senior emerging Asia economist at AXA Investment Managers.

Yao wrote, "China needs to put its house in order as the trade war goes from bad to worse."

Explainer: The US-China trade war and its impact on consumers




He continued by quoting independent researcher Xu Yimiao.


Quote:Xu Yimiao wrote, "China should cut its losses in the trade war by conceding defeat to Donald Trump."

He spared not Chairman Xi's regime.

Quote:"Beijing’s strategy of a tit-for-tat retaliation over tariffs has clearly failed. In fact, this strategy escalated the conflict. The direct retaliation after the US announced the first batch of 25 per cent tariffs on US$50 billion in Chinese goods (with the increase from US$34 billion just finalised and coming into effect on August 23) brought few benefits for China. If anything, it gave the US an excuse to plan for a new batch of tariffs covering US$200 billion in Chinese goods. To be fair, it is possible that the US would have escalated the conflict even if China had not retaliated, but whatever the case may be, China’s strategy did not work".
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"To get out of this predicament, Beijing probably needs to deal with Trump directly, figure out what he needs to declare a win and create conditions for that. Of course, allowing Trump to declare victory might be tough and even embarrassing for Beijing, but sometimes it is the best choice to stop losses in one trade and hope to profit at another time."

"Did China think Donald Trump was bluffing on trade? How Beijing got it wrong."

This happens when your intelligence consists of spying on Dianne Feinstein and watching CNN. (  S13  )

Here's the problem, we buy roughly $500 billion of their stuff. They buy only $125 billion or so of our stuff. We have four times as much to tariff as they do.

And that's pretty much the entire thing in a nutshell.  China exports $505Billion to the US, and the US only exportes $138 Billion to China. That's 3.694 times more tariff opportunities. This puts China in one hell of a bind, and needs to get back to the table and bargain in good faith, before this becomes the final straw that leads to their house collapsing.
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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Here's interesting news from the PRC, and the long term consequences have Huge impact.

Beijing to Judge Every Resident Based on Behavior by End of 2020

China’s AI REVOLUTION: Intelligent robots to power factories - risking US fury

What are they going to control all those Chinese citizens, when the climate goes into its deep free fall?  What are they going to do?   Even if they move millions to Africa, is this going to be enough to keep them solvent?  

China’s Food Production Strategy for the Solar Minimum | Mini Ice Age 2015-2035 – video

Although China realizes what it is about to come up against, they are again doing exactly what got them in so many troubles over the several thousand years.  Instead of encouraging 'free thought' and initiative, they are trying to control its citizens through the use of threat and  intimidation.  It isn't going to work, and this is why size is a negative aspect when it comes to survivability in the coming cold climate future.  

These people never seem to learn.  Spiteful

David DuByne of Adapt 2030 really "Gets It".  And so do I, along with a small number of people including Tommy here.  But 98-99% of people just don't get it.............yet.   The "Defecation is about to hit the Rotating Ocillator", and when it does,............................ Shock
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Hillary Clinton Is Like Herpes, "She Wont Go Away" - Anna Paulina
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