Tag Archives: China

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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We Need A Crash To Sort The Wheat From The Chaff

stabilityCharles Hugh Smith – When a speculator bought a new particle-board-and-paint McMansion in the middle of nowhere in 2007 with nothing down and a $500,000 mortgage, the lender and the buyer both considered the house as $500,000 of collateral. The lender counted the house as a $500,000 asset, and the speculator considered it his lottery ticket in the housing bubble sweepstakes: when (not if) the house leaped to $600,000, the speculator could sell, pay the commission and closing costs and skim the balance as low-risk profit.

But was the house really worth $500,000? That’s the trouble with assets bubbles inflated by central-bank/central-state intervention: when inefficient companies and inflated assets are never allowed to fall/fail, it’s impossible to tell the difference between real collateral and phantom collateral.

The implosion of the housing bubble led to an initial spike of price discovery. The speculator jingle-mailed the ownership of the poorly constructed McMansion to the lender, who ended up selling the home to another speculator who reckoned a 50% discount made the house cheap for $250,000. Continue reading

Congratulations, We Just Got Another 5 Years Of The US Dollar

chinaSimon Black – It’s eerily befitting that at this very second, all of South China is frantically anticipating a major storm bearing down on the region.

In this part of the world they call them typhoons, which comes from the Chinese ‘tai fung’, meaning ‘strong wind’.

And strong they are. Here on the 33rd floor of my hotel in Kowloon right now, I can hear the wind whipping ominously as if it’s about to blow right through the windowpane.

Just across the border in Shenzhen, there’s an even stronger wind, blowing trillions of dollars of wealth right out of the system.

And more than that, it’s blowing away confidence.

Financial systems are based on confidence. Think about it– these governments and central banks have absolutely nothing tangible to offer.

They print up countless pieces of colored paper backed by nothing of value and pass it all off as ‘money’.

They rack up trillions worth of debt and act like it’s inconsequential.

Banks operate by keeping only a tiny fraction of their customers’ funds on reserve, loaning out the rest for wars, ghost cities, and bridges to nowhere.

These shaky nodes make up a perilously fragile financial system that is just barely held together by a very thin veneer of confidence.

In order for it to continue functioning, every participant in the financial system must have confidence. Or at least have confidence that everyone else has confidence.

Without confidence, the system collapses very quickly.

Think about what happened in 2008: suddenly the market lost confidence in the solvency of some of the biggest banks on Wall Street, and overnight the entire financial system was in crisis.

Confidence is everything. And China just lost it. Continue reading

If Your BS Detector Isn’t Shrieking, It’s Broken

consCharles Hugh Smith – Once upon a time in America, no adult could survive without possessing a finely tuned BS detector. Herman Melville masterfully captured America’s fascination with cons and con artists in his 1857 classic The Confidence-Man, which I discussed in The Con in Confidence (October 4, 2006).

An essential component of the American ethos is: don’t be a chump. Don’t fall for the con. And if you do, it’s your own fault. The Wild West wasn’t just thieves shooting people in the back (your classic “gunfight” in the real West)–it was a simmering stew of con artists, flim-flammers and grifters exploiting the naive, the trusting and the credulous.

We now inhabit a world where virtually everything is a con. That “organic” produce from some other country–did anyone test the soil the produce grew in? It could be loaded with heavy metals and be certified “organic” because no pesticides were used during production. But what about last year? And the year before? What’s in the water used to irrigate the crops?

The employment/unemployment statistics are obviously BS. 93 million people aren’t even counted any more–they’re statistical zombies, no longer among the living workforce. If the unemployment rate were calculated on the number of full-time jobs and the true workforce (everyone ages 18 – 70 that isn’t institutionalized or in prison), the unemployment rate would not be the absurdly delusional 5.6% claimed by the bureaucratic con artists.

The corrupts-everything-it-touches bribe vacuum known as Hillary Clinton is still disgracing the national stage, 24 years after she first displayed her con-artist colors. Hillary’s most enduring accomplishment is the Clinton Foundation–a glorification of bribery, chicanery, flim-flam and cons so outrageously perfected that it serves up examples of every con known to humanity in one form or another.

And as she learned from hubby Bill–if the smarmy charm-con fails, quickly revert to veiled threats. “You’ll never work in this town again!”

Hillary would fit right into Melville’s river boat teeming with con-artists. The accent she uses on the marks–oops, I mean audience–changes as readily as the camouflage on a chameleon. Upper Midwest, Noo Yawk, Fake-Southern–what you hear depends on the credulity of her marks. Continue reading

$60,000 Gold May Be Laughably Low [Video]

ChinaGreg Hunter – Recent Bloomberg analysis says if China backed its currency with gold, the price would need to be 50 times higher than it is today.  According to Bloomberg, that would be a gold price of around $64,000 per ounce, which is much more than gold expert Jim Sinclair predicted a few years ago.

Financial writer Bill Holter weighs in, “That was a few years ago, before some of the QE, and Jim has said that $50,000 gold may turn out to be laughably low. . . . I think it is very curious that Bloomberg would run this because Bloomberg is as mainstream Wall Street as you are going to get. . . . It would be my guess that Bloomberg has some type of information that China is going to announce their holdings.  I can show you that China has 10,000 tons of gold.  That’s pretty easy to do.  I use the figure of 10,000 tons, and oddly enough, that is the figure that Bloomberg used.”

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