Tag Archives: China

Monetary Warfare & The Tianjin China Event [Video]

ChinaSGT Report – What may go down as the biggest geopolitical false flag event since 9/11, the Tianjin, China explosions will remain a critical topic of conversation for some time because the Chinese government still cannot determine what caused the blast the melted more than 8,000 cars, multiple buildings and the deaths of more than 110 people, with 90 still missing and presumed dead. Bill Holter asks the question we have all been thinking, was it a tactical nuclear strike? Coming just a day or two after China’s devaluation of the Yuan, was the horrific blast which left a 3 acre crater in its path, as sign of what’s to come if China fully abandons the Dollar? It is rapidly becoming clear that something unconventional happened in Tianjin – which leads to the inevitable question: Has the monetary war gone nuclear?

For REAL News & Information 24/7: http://sgtreport.com/ and  http://thelibertymill.com/

Did The FINAL WAR Between China And US Cabal Just Start?

The question of our title is very important, “Did the FINAL WAR just start?”.  If you polled Americans on this question, 99.9% would answer “no” if you took out the Middle East.  Last week I wrote “The Rumblings of War” regarding the IMF rebuffing China’s entry into the SDR.  This was followed up by “The shot heard ’round the world” on Tuesday commenting on China’s surprise devaluation.  The purpose of this writing is to show you YES, we are in fact at war!

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China, The Hollow Dragon

chinaCharles Hugh Smith – In terms of profitability and trade-generated wealth China is a hollow dragon.

It is widely assumed that manufacturing (a.k.a. the world’s workshop) is the source of China’s wealth. But how can this be true, given that manufacturing profit margins are razor-thin in China, and have been since the early 2000s?

Given that as little as $10 of the value of every iPhone or iPad actually ends up in the Chinese economy, how can anyone claim manufacturing has generated enormous profits?

(Mis)leading Indicators – China

Analysts differ over how much of the final price of an iPhone or an iPad should be assigned to what country, but no one disputes that the largest slice should go not to China but to the United States. That intellectual property, along with the marketing, is the largest source of the iPhone’s value.

Taking these facts into account would leave China, the supposed country of origin, with a paltry piece of the pie. Analysts estimate that as little as $10 of the value of every iPhone or iPad actually ends up in the Chinese economy, in the form of income paid directly to Foxconn or other contractors.

Foreign funded enterprises (FFEs–typically joint ventures between a foreign firm and a domestic Chinese company) dominate Chinese manufacturing. In the 2000s, the share of industrial machinery exports produced by FFEs grew from 35 percent to 79 percent. In computer equipment, FFEs’ share rose from 74 percent to 92 percent. Continue reading

China Just Turned the Currency War Nuclear [Video]

currencyGreg Hunter – Financial writer Andy Hoffman wrote an article titled “Upcoming, Cataclysmic, financial Big Bang to End all Big Bangs,” and the very next day, China devalues its currency by a massive amount. What’s going on? Hoffman says, “A year from now, we are going to be 5% lower (on the yuan) not 2%. So, already the market is bidding down the yuan in what I believe must happen. For all the talk about bubbles here, the NASDAQ bubble, the debt bubble, the housing bubble, bubbles we see in Europe, the bubbles we see in Japan and, frankly, nothing even compares to China’s bubble both economically and financially because of what their communist government has wrought onto them. I think there are going to be further steps for China to devalue as their economy falls apart.”

So, if China is devaluing its currency, does that means everybody else will eventually follow? Hoffman says you bet and says this is why there is the huge demand for physical precious metals and goes on to explain, “because it’s real money people are flocking into. They sense the fear between Greece, Brazil, China, Japan and now our economy that everyone is going to competitively devalue. The Fed raising rates, of course not. They are going to be doing QE4 and negative interest rates. The White House has been saying this year that the strong dollar is killing us, and there is an election next year. The earnings of the S&P are down this year and the economy is falling apart. The strong dollar kills corporate earnings and kills competitiveness. So, the Fed is going to keep weakening the currency. They will do a QE4 . . . sooner rather than later. Everyone knows it is real money you need to own, not this paper stuff as we are going into the final currency war.” Continue reading

Forget The Fake Statistics: China Is A Tinderbox

chinaCharles Hugh Smith – When China’s tinderbox economy implodes, who will be left to bid up the world’s surplus commodities and real estate?

After 30 years of torrid expansion, perhaps the single most consequential factor in China’s economy is how much of it is a “black box”: a system with visible inputs and outputs whose internal workings are opaque.

There are number of reasons for this lack of transparency:

1. Official statistics reflect what officials want to project, not the unfiltered data.

2. Policy decisions are made behind closed doors by a handful of leaders.

3. There is little institutional history of transparency.

4. Many important statistics are self-reported and prone to distortion.

5. Large sectors of the economy are informal and difficult if not impossible to measure accurately.

6. Endemic corruption distorts critical economic yardsticks.

7. There is little historical precedent to guide policy makers and individual investors.

None of these is unique to China, of course, with the possible exception of #7: few nations in history (if any) have experienced an equivalent boom in infrastructure, credit, housing and wealth in such a short span of time.

Saving Face By Editing Data

As anyone who has lived and worked in Asia can attest, public perception (i.e. “face”) is of paramount concern. There is tremendous pressure to put a positive spin on everything in the public sphere. Negative publicity causes not just the individual to lose face, but his boss, agency, company and family may also be tarnished. Continue reading

My Bailout Is Bigger Than Yours’ – China Is Buying More Time To Buy More Gold Before Joining The SDR-basket

Every western media outlet was reporting about how the Chinese bubble was deflating at an extremely fast speed as its stock market decreased by 30% from 5,200 points to roughly 3,500 points before rebounding towards 4,200 points. It seemed like the world was heading towards Armageddon until the Chinese government stepped in to rescue the Shanghai Stock Exchange.

stockSource: stockcharts.com

It quickly instated new measures to ensure the stock market would have a ‘soft’ landing. The Chinese government announced pension funds were suddenly allowed to purchase shares which suddenly generated almost 100 billion dollars in additional support for its falling stock exchange. This first step wasn’t enough, and the Chinese government asked/forced the brokers to step in by pumping an additional few dozen billions of dollar in the market to stop the freefall. In its final move, China has instructed a $483B state-owned fund to start purchasing shares on the open market to ensure there’s a bidder for stock other people want to dump. Continue reading

News And Views From The Nefarium – July 30 2015 [Video]

organizationsJoseph Farrell – Russia and China both enact legislation against non-government organizations (NGOs) which have been the principal agents of US soft power and covert operations since the Reagan administration. But there’s more possibilities to the story as Joseph outlines in today’s high octane speculation from the Nefarium

SF Source Joseph Farrell

US National Endowment for Democracy labeled ‘undesirable’ group under new law

Prosecutors have recognized NED’s activities in Russia as undesirable and undermining national security after the US NGO spent millions on attempts to question the legitimacy of Russian elections and tarnish the prestige of military service.

According to the release published on the Prosecutor General Office’s website deputy head of the agency Vladimir Malinovsky on Tuesday signed the decision to recognize as undesirable on the territory of the Russian Federation all activities of the foreign non-government organization the National Endowment for Democracy. On the same day this decision was forwarded to the Justice Ministry that must now include NED in the list of undesirable foreign organizations.

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