CHINA

China Taunts Japan Again with 8 Planes Flying by Okinawa Near Disputed Territory

by John Galt September 25, 2016 20:30 ET Earlier today, the Chinese government used their joint naval exercise with the Russian Navy to send a message to Japan by flying 8 aircraft into the disputed region around Okinawa and the Senkaku Islands. Needless to say the Japanese media exhibited the government’s displeasure (via NHK): 8 Chinese military planes fly off Okinawa Japanese defense officials say 8 Chinese military planes flew off Okinawa, southern Japan, on Sunday, going back and forth between the East China Sea and the Pacific. They say fighters…


The Japanese People Want a Harder Stance Towards China

by John Galt August 28, 2016 17:50 ET The American people continue to slumber through their summer of heat, discontent, and insane politics while the rest of the world appears to be posturing for a major war. The Senkaku Islands dispute heated up recently when the Chinese sent hundreds of fishing vessels with Coast Guard escorts into the disputed waters. This had the intended effect of illustrating that the United States was impotent in this affair and that the Japanese government would not act or react without America’s tacit approval. Last…


November 13, 2016 World War 3: The U.N. Gambit

by John Galt August 21, 2016 03:00 ET I apologize for the pause in this ongoing blovel, however, I honestly thought and still think that by this time on Wednesday morning we may still face the possibility of a major conflict erupting should the Poroshenko government keep pressing the issue at the same time the Syrian and Russian Air Forces are bombing near United States Special Forces units inside of Syria. That being said, this story may become the exception versus the rule with the timing being incorrect, which I admit…


Japan Releases Video of China Violating Senkaku Islands Territory with Coast Guard and Fishing Vessels (Video)

by John Galt August 16, 2016 20:40 ET The fires in Turkey are still simmering, the firefights in the Ukraine continuing, the bombing and artillery exchanges accelerating as the Syrian offensive increases near Aleppo, and of course now, the Chinese government sends a fleet of commercial fishing boats estimated to be in number between 200-300 with an estimated 28 armed Chinese Coast Guard ships into the disputed waters around the Senkaku Islands. Too add fuel to this fire, the Japanese Coast Guard posted video of the incursion on its website according…


Japan Poops the Bed

by John Galt July 29, 2016 00:20ET The drunk squirrel used to headline this story has nothing to do with Japanese Monetary Policy. Nor does the pink haired Japanese chick. Or do they? From the Bank of Japan minutes ago (via Reuters): BOJ eases policy with modest increase in ETF buying The Bank of Japan expanded monetary stimulus on Friday through a modest increase in purchases of exchange-traded funds (ETF), yielding to pressure from the government and financial markets for bolder action to spur growth and accelerate inflation towards its 2…


November 11, 2016 WW3: The Brink of Insanity (Continued)

by John Galt June 24, 2016 23:00 ET I’m back from my brief vacation and thus the news and this blovel shall accelerate. Stay tuned for the next few chapters to be published this week. -JG ALL OF THE CHARACTERS OTHER THAN POLITICAL LEADERS ARE FICTIONAL. ANY RESEMBLANCE OR DIRECT USAGE OF ACTIVE DUTY MILITARY PERSONNEL IN THE STORY IS PURELY RANDOM AND BY COINCIDENCE. November 11, 2016 09:48 A.M. Eastern Time somewhere in Northern Virginia “Vice-President Biden, Mrs. Biden, I am afraid I have some bad news,” the Secret Service agent…


Hillary Clinton has Another Reason to Hate Obama

by John Galt July 19, 2016 20:45 ET Poor Hillary. Okay, I’m joking and right about now the 5 Clintonistas that read my blog on a daily basis are probably blathering about what kind of hate I’m about to spew about their witch, er, candidate. Unfortunately, for them, this is an observation on the gift that keeps on giving: the manipulated fraudulent Obama economy. After eight years of manufactured and at best fictional economic data the Clinton campaign should be worried about what is about to hit. Besides, as she says…


WAR DRUMS: China Blames Japan for the Hague Decision on the South China Sea

by John Galt July 18, 2016 21:00 ET Normally I would not give much credence to an editorial in the People’s Daily from China, however since this is the official public organ of the Chinese Communist Party it is crucial to understand the war drums that are beginning to pound louder by the minute after the decision by the Hague on China’s interests in the East and South China Sea. First the editorial from the People’s Daily this morning which indicates who is to blame for the controversy and China’s beliefs…


If China’s Big Mama’s are Buying Precious Metals, Why Aren’t YOU?

by John Galt July 17, 2016 21:45 ET The “Big Mothers” in China are buying gold in much larger quantities because they expect global instability and currency rate disruptions No, no, no, not that Big Mama, more like the women shopping here: The truth is astonishing as this story tonight from the South China Morning Post reveals: Hong Kong hits the jackpot as mainland China’s ‘Big mothers’ hoard gold amid troubled times Excerpt: Chinese customs data released last week showed imports from Hong Kong to the mainland increased in May mainly…


November 11, 2016 WW3: The Brink of Insanity

by John Galt July 14, 2016 05:00 ET ALL OF THE CHARACTERS OTHER THAN POLITICAL LEADERS ARE FICTIONAL. ANY RESEMBLANCE OR DIRECT USAGE OF ACTIVE DUTY MILITARY PERSONNEL IN THE STORY IS PURELY RANDOM AND BY COINCIDENCE. November 11, 2016 12:08 A.M. Eastern Time – The Oval Office “Mr. President,” the aide stuttered, “President Putin sends his regrets that he has not been in contact sooner, but he is flying back to Moscow from Siberia and would like to talk to you on the hotline directly at 6 o’clock in the morning,…


The Shellacking Continues as Britain is Just the Tip of the Real Estate Iceberg

by John Galt July 5, 2016 20:50 ET The absolutely bull whipping of investors in foreign real estate continued today as 2 more property funds in the United Kingdom froze redemptions after Standard Life started the ball rolling on July 4th. M&G became the third company to shut down redemptions from its property fund as it stated (via Bloomberg): “Investor redemptions in the fund have risen markedly because of the high levels of uncertainty in the U.K. commercial property market since the outcome of the European Union referendum. Redemptions have now…


Stock Market Bellwether Update: Going Nowhere Fast

by John Galt July 4, 2016 13:30 ET As America celebrates our 240th birthday and the central banksters of the world celebrate their short squeeze rally of the past five sessions, the truth about where this stock market is somewhat murky. I listen to many of the stock market “call in” radio shows not for advice; but to gauge the sentiment of the sheeple, those poor, stupid suckers who held on to Bear Stearns, Washington Mutual, and General Motors because some “broker” on the radio told an old lady that they…



06.27 Market Deathburger: The EuroCarnage Continues after Brexit

by John Galt June 26, 2 016 15:30 ET I shall keep this as a running update as trading and markets open. Needless to say, currency markets in Asia have opened and the carnage continues unabated so look for Bank of Japan and Swiss intervention soon enough. 05:00 ET – While equity futures are not indicating panic, the bond market is screaming a move into safety. This could be another long day and the key level to watch on the S&P 500 is 2020 as a violation of that figure at…


MSCI will NOT Include China A-Shares in Emerging Market Index

by John Galt June 14, 2016 17:14 ET WOW! This will not help the Shanghai markets tonight and probably will cause massive tankage in Hong Kong also. Via CNBC: Key MSCI emerging markets index rejects Chinese mainland stocks, again MSCI on Tuesday said it would delay inclusion of the mainland-traded Chinese A shares in its key emerging market index. In a release, MSCI said investors needed more time to assess the effectiveness of the Qualified Foreign Institutional Investor program (QFII) investment quota allocation, capital mobility policy changes and the effectiveness of…



As a Follow up to My last Article on China: China FDI Drops 1% vs. Expected +5%

by John Galt June 12, 2016 19:20 ET As a follow up to my last article, the news out of China this morning was not good. In fact it validates the concerns foreign investors have about the viability of keeping money parked inside the communist behemoth where risk is defined not by markets but government whims. Foreign Direct Investment in China dropped 1% instead of rising the predicted 5% that economists expected. These highlights from the release along with the chart from ForexLive tells the tale of woe: +6.0% prev Yuan…


China Drops a Silent Economic Bomb: Hints at Bankruptcy Rules for Financial Sector

by John Galt June 12, 2016 17:55 ET The one thing that foreign investors had always been able to count on with the People’s Bank of China (PBOC) and the Communist Party of China was that no matter how bad the conditions in their financial sector may get, the government and PBOC will always find away to restructure the debts or ensure the continued operation of the entities to avoid an outright default. Sunday, during the Lujiazui Forum in Shanghai, that theory was turned on its head. From the South China…


More Terror in China as Passenger Attempts to Start Fire on Domestic Airliner

by John Galt June 12, 2016 11:30 ET In what seems to be an ongoing theme this morning, there was another attempted terrorist incident inside of China overnight. On a domestic airline flight a man attempted to set the plane on fire using a lighter and bottle of petrol but luckily was subdued by passengers and the fire extinguished before any serious damage occurred. From the South China Morning Post in Hong Kong: Two people were injured in the incident, which broke out aboard Flight ZH9648 shortly before it was due…


It’s Not 2008, Don’t Worry, It’s Fine!

by John Galt June 1, 2016 21:30 ET The stock market is possibly poised to break out to new highs, just like it threatened to do in 2007. As the rest of the economy was in shambles, the hucksters in financial media and so-called stock advisors made a cottage industry on selling to willing pension funds, speculators, and individual investors the stocks of the very corporations and banks that they knew were already technically insolvent. Then came the Obama administration after the crash and he was presented with a deal by…


Gold is Poised for a Major Breakout This Week

By John Galt May 8, 2016 08:30 ET After weeks of consolidation, the breakout and weekly close above the key $1280 support level on a weekly basis indicates that monetary stresses in Asia, Europe, and North America are becoming more severe and that this new move in gold as a flight to safety is indeed being validated with each leg up. The weekly chart also confirms the volume supporting this move and as illustrated in the daily chart below, despite attempts to sell the monetary metal below support, there are enough…


China’s Caixin PMI Edges down to 49.4 in March

by John Galt May 2, 2016 22:25 ET The sugar coated version of tonight’s release came from the newspaper Shanghai Daily via Xinhua: Caixin China manufacturing PMI edges down to 49.4 From the somewhat softened release: The Caixin General China Manufacturing Purchasing Managers’ Index (PMI), an indicator of manufacturing activity, edged down to 49.4 in April, a private survey showed on Tuesday. The reading was fractionally down from 49.7 in March, signalling marginal deterioration in operating conditions, according to the survey conducted by financial information service provider Markit and sponsored by…


Warren Buffett Sees Derivatives as a Potential “Time Bomb” for Financial Markets

by John Galt May 1, 2016 22:40 ET Weird. CNBC did not report on this subject on their web page. Marketwatch did not make a big deal about this story either: The Financial Times of London, Wall Street Journal, Bloomberg, hell, even that rag the New York Times Business section do not even have this headline: Buffett sees derivatives as potential “time bomb” in financial markets So my American readers can thank the Communist Chinese government’s semi-official official propaganda outlet, Xinhua?!?!?! Yup: OMAHA, Nebraska, April 30 (Xinhua) — Warren Buffett, Berkshire…


$1294.90

by John Galt May 1, 2016 19:05 ET Gold closed on Friday with a price of $1294.90. Why is that significant? Because it should alert any sane person that a long term trend line has been broken but more importantly, the three month consolidation and base building period is now over. First a little chartistic charsima courtesy of gold: Way, way, back when Jim Cramer was telling us it was still safe to own Bear Stearns, the precious metals markets experienced a similar consolidation and decline following a rally above $600…


04.27 23:05 ET: Bank of Japan Screws Yellen, TAKES NO ACTION!

by John Galt April 27, 2016 23:05 ET Japan has elected to maintain its current levels of funding with rates and stimulus unchanged. Kuroda basically just told Janet Yellen to go fawk herself. The Japanese Yen just soared against the U.S. Dollar on the announcement (screenshot via BloombergTV): The candlestick on the 1 minute chart via NetDania was even more impressive: Meanwhile in the U.S., S&P and Dow futures, well, shit the bed on the announcement: Everyone knew something was up when Kuroda delayed the announcement but to see this type…


Another Economic Canary Just Croaked in Asia

by John Galt April 25, 2016 19:00 ET And everyone should be worried….. The new mantra on Wall Street and Main Street is that Europe, Asia, and the Middle East do not matter. What happens there is relatively irrelevant and just keep buying crap be it at the retail level for a new gadget or electronic game app, or in the stock market a biotech with losses of over $100 million and a product which is still five years from viability. Yet reality is happening everyday overseas and Americans had best…


04.18 0500 Market Update: Cue the Pump Monkeys, OPEC panic Fading

by John Galt April 18, 2016 05:00 ET Last night’s Asian session was interesting as the Japanese earthquakes and OPEC disaster in Doha provided the deflationary double whammy which scared investors out of Tokyo and Shanghai with sizable drops in those markets(charts via YahooFinance): With a 3.4% drop that was pretty nasty. Shanghai was down 1.44%: Meanwhile, US equity futures have recovered substantially since last night’s initial fall as the central bankers began intervening when Europe opened:   With Europe beginning to recover and crude oil prices pausing in their declines…


04.17 DeathCamelBurger Edition: Saudis Choke in Doha, WTI Crashes below $40 on the Open, Stock Futures Falling

by John Galt April 17, 2016 19:15ET Apparently the House of Saud would rather eat their rides than finance them as today’s Doha, Qatar OPEC meeting ended in discord and disaster for the now flailing for a reason to exist organization. The results? WTI-Crude opened up down over 6% along with Brent and created a huge disaster for the longs that enjoyed the short covering rally of the past few weeks (Charts courtesy of Finviz.com/prices delayed 15 mins):   Note: WTI rolled over to the June 2016 contract starting today; on…


The Federal Reserve is Being Held Hostage by China

by John Galt March 17, 2015 05:15 ET Please not the following from the Federal Reserve’s FOMC statement: Information received since the Federal Open Market Committee met in January suggests that economic activity has been expanding at a moderate pace despite the global economic and financial developments of recent months. Household spending has been increasing at a moderate rate, and the housing sector has improved further; however, business fixed investment and net exports have been soft. A range of recent indicators, including strong job gains, points to additional strengthening of the…



03.08 Warm up the Grill: Deathburger Markets have Returned as Asia Craters

by John Galt March 7, 2016 21:30 ET Never let Janet Yellen light your grill for a Deathburger. So Japanese GDP was worse (not a shock),  China is a clusterTrump (not a shock), and the Asian economy is incinerating investors like there is no tomorrow because there is no tomorrow. How is this suddenly playing out tonight? Japan as of this posting is down about 311 or 1.84% (via YahooFinance):   OUCH. China is not doing much better, now down around 2.8%: US Futures on the S&P 500 e-Minis have turned…


03.03 BREAKING NEWS: N. Korea Orders Nuclear Weapons ready for Immediate Use

by John Galt March 3, 2016 19:25 ET BREAKING IN THE LAST 20 MINUTES VIA YONHAP NEWS, SOUTH KOREA: N. Korean leader orders nuclear weapons to be made ready for use 2016/03/04 07:06 SEOUL, March 4 (Yonhap) — North Korean leader Kim Jong-un on Friday ordered the country’s nuclear weapons to be made ready for use at a moment’s notice. He also said the communist country will revise its military posture so it can be ready to carry out pre-emptive attacks, stressing that the current situation has become very precarious, according…



Shanghai Stock Exchange Shellacked with 6.41% Decline Overnight

by John Galt February 25, 2016 05:15 ET No wonder I couldn’t sleep. There was a bear porn movie on in at the Shanghai Stock Exchange: After the initial down draft, the lunch time break failed to prevent the afternoon panic. After a brief bout of government intervention before 2 pm local time, everyone bailed. This is a very bad omen for March. The US markets might have the cheerleaders out discussing how the bear is over, the correction has corrected, and that this is the buying opportunity of a life…


There is no Dead Cat Bear Bounce of Consequence Forthcoming

by John Galt February 8, 2016 21:30 ET The financial media and prime time stock pumpers will try to deceive everyone into thinking that again, one more time,  that this is nothing more than a corrective phase in the midst of a long term bull market rally. Woe unto the fool who buys that nonsense. Instead of chart after chart illustrating how bad the action has been in the past 40 days, here is a great summary via CNBC’s resident guest technician about trend violations on Friday February 5th’s Option Actions…


And the Chinese GDP Number Is: A Miss, 6.8% vs 6.9% projected

by John Galt January 18, 2016 21:10 ET Bloomberg just broadcast the number moments ago: With bad good news like this, apparently the expectation is the Federal Reserve will respond and bail out the world. All is well, remain calm. Of course markets are rallying expecting a massive central bank bail out rally tomorrow where the Fed buys SPY options like Bill Clinton rents interns. Thus remain calm, all is well, and short into these rallies to make even more money (allegedly): Of course the US Dollar Index calls BS and…


01.11 Oh No Not Again Market DEATBURGER Watch: Paging Janet Yellen, Economy Crapping out on Line 3

by John Galt January 10, 2016 18:50 ET So it’s Sunday night once again. My DFS teams all went to hell in a hand basket yesterday because players with concussions, blown up knees and ankles, and torn groin muscles could not gut it out. I mean seriously J.J. Watt, couldn’t you tough it out, you won’t need your nuts until your career is over anyways. But I digress. The U.S. Futures had a warning sign before they opened at 18:00 ET and that was simple, to to point and a stark,…


01.08 WONTONDEATHBURGER Marketwatch: Will They or WON’t they? 20% decline or 20% Rally? Run Kitty Run…

by John Galt January 7, 2016 19:50 ET So tonight begins, the first episode ever, of the Chinese Stock Markets without their safety vest and life boat, allegedly. UPDATE 20:33 ET: ALL IS WELL, IT’S NOT CAT, EAT ALL YOU WANT, IT’S A BUFFET! UPDATE 20:05 ET..RUH-ROH: Of course stale leftover stocks could really, really suck. Heading into the Asian markets tonight, here is where we are at: Japan’s Nikkei 225 is a wrong, wrong way away from 20, 000: However it is only down 1.08% as of this posting so…


01.06 BREAKING NEWS: CHINESE STOCK MARKET STOPS TRADING AFTER 30 MINUTES 7% DECLINE

by John Galt January 6, 2016 21:07 ET Breaking live on all financial media now. CHINESE STOCK EXCHANGE CLOSES AFTER 30 MINUTES OF TRADING AFTER HITTING 7% LIMIT DOWN THRESHOLD The headline from Bloomberg says it all: China Stocks Halted for Rest of Day After CSI 300 Tumbles 7% And here is the chart of the flatlined Chinese Stock Market from tonight’s brief session after the 15 minute trading halt then crash: Meanwhile U.S. stock futures have taken a steep dump after the news: Gold is on the verge of a…


01.06.15 N. Korean Nuclear Deathburger Marketwatch: Nork Test Causes Almost 200 Point US Futures Plunge!

by John Galt January 5, 2016, 2015 22:25 ET   Yeah, so much for a quiet day in trading today on low volume and a mixed close. North Korea apparently has put an end to that with their reported nuclear test this evening. Guess what time the test occurred on this chart (via Investing.com): Yup, first the China news posted here earlier then right after 9 p.m. ET real panic set in as the realization that the short little twerp is up to no good again; except this time he has…


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