CHINA

U.S. Senate attempts to replicate Smoot-Hawley, passes China Currency Bill

By John Galt October 11, 2011 – 18:45 ET “Those who do not learn history are doomed to repeat it.” So what part of that old saying, depending on which interpretation has escaped the idiots in the U.S. Senate? Apparently all of it. The U.S. Senate tonight passed the currency bill which would, if it becomes law, almost guarantee a trade war with our nation’s central bank. The problem is that the unpredictability of the House Republicrats who are in full blown election mode may allow this to sneak through much…


9/15 AEP: China to Liquidate U.S. Treasuries, Not Dollars

By John Galt September 15, 2011 – 18:30 ET You may now put your seat in the panic position and order doubles from your flight attendant. From the U.K. Telegraph, a quick excerpt from this evening’s entry by Ambrose Evans-Pritchard; please click on the headline to read the commentary in full. China to ‘liquidate’ US Treasuries, not dollars The debt markets have been warned. A key rate setter-for China’s central bank let slip – or was it a slip? – that Beijing aims to run down its portfolio of US debt…


9/14 AEP: China, Europe, and the Brink of Disaster

By John Galt September 14, 2011 – 21:45 ET Today Ambrose Evans-Pritchard posted a series of commentaries on the Chinese interventionist plans along with more on the Euro nightmare. Check out these links to read them in full from the U.K. Telegraph: China states price for Italian rescue China wants to break the ultimate taboo and buy into Western companies such as Apple, Boeing and Intel Europe must take ‘decisive action’ now on banking crisis  


Uh, Rick Perry & other RINO’s: This is the Nation that is Threatening our Existence?

By John Galt September 12, 2011 – 00:25 ET Did your esteemed host and commentator suddenly hit his head and go nuts? No. In the long term, in other words, twenty years from now or longer, China is a direct threat to American world hegemony. In the interim it makes for a nice creature under the bed for long term strategic issues and of course, current Politik think in the U.S. The problem is that the American public is absorbed in an election year and the real threat from long term…


Africa might ditch the Dollar for the Yuan in Trade with China

By John Galt August 30, 2011 – 18:05 ET This little gem of a story from Business Day, a South African financial news publication should be another warning to the sleeping morons in D.C. and Wall Street: Renminbi may replace dollar in Sino-African trade While the Bernank and the Bammer have been out beating their chests about the “world’s reserve currency” the nation of Communist China has been quietly setting up international trade agreements with nations who have crucial supplies of raw materials and strategic resources. From Brazil to Venezuela, Nigeria…


$719 Billion (¥4.6 Trillion) in local Chinese Government Debt due in 2011-2012

By John Galt August 15, 2011  – 22:15 ET Here we go again, with the official China Securities Journal reporting that ¥4.6 trillion or about $719 billion in local government debt due this year and next. This has been estimated by the authorities to be approximately 43% of total troublesome debt according to an article in Business China today. From the same article, RMB 4.6 tln of Chinese Local Government Debt Due in 2011-2012 (Click to read in full), it would appear that some aspects of their banking system may indeed…


Is this the sign that Hong Kong’s Real Estate Bubble is about to burst?

By John Galt August 14, 2011 – 22:55 ET The story seems eerily familiar to me, as when the Florida real estate bubble began to burst, people walked away from contracts even if it mean sacrificing deposits and rightfully offered the primary reason for abandoning their commitment was that they felt the top was in and would wait for the price correction to finish before re-entering the market. Numerous condominium complexes and subdivisions were left on the drawing board leaving vacant lots everywhere or worse, partially constructed shells littering our coastlines…


The ChiCom Attack on American Fast Food Brands Begins

By John Galt August 14, 2011 – 22:30 ET Maybe they got the idea from Michelle Obama, maybe not, but when the Communist Party decides to launch an attack on an industry in China, the companies had best pay attention and hope this isn’t about geopolitics. The story from this morning’s front page of the People’s China Daily, essentially the government owned newspaper and propaganda arm, for August 15th should have U.S. politicians getting nervous as the fast food giants will retaliate not against the Chinese but against our politicians who…


Our Ally at Work: Pakistan gave China access to Top Secret US Helicopter from Osama Raid

By John Galt August 14, 2011 – 13:15 ET The story just broke an hour ago from the Financial Times by Anna Fifield (registration required): Pakistan gave China access to US helicopter From the article: “The US now has information that Pakistan, particularly the ISI, gave access to the Chinese military to the downed helicopter in Abbottabad,” said one person in intelligence circles, referring to the Pakistani spy agency. The Chinese engineers were allowed to survey the wreckage and take photographs of it, as well as take samples of the special…


Dagong Ratings Agency: Dollar Being Discarded by the World

By John Galt August 7, 2011 10:47 ET CNBC just broke the story (click on the title to read the story in full): Dollar to Be ‘Discarded’ by World: China Rating Agency By: Ee Sing Wong The man who leads one of China’s top rating agencies says the greenback’s status as the world’s reserve currency is set to wane as the world’s most powerful policy makers convene to examine the implication of S&P’s decision to strip the United States of its triple “A” rating. In comments emailed to CNBC, Guan Jianzhong,…


And now our REAL Central Bank Lectures the U.S. from Beijing on debt downgrade

By John Galt August 6, 2011 Just dang. I hate it when the commies are right. From Xinhua today: U.S. debt problem remains unsettled BEIJING, Aug. 6 (Xinhua) — Far from an end to the U.S. debt problem, the last-minute congressional approval of an increase in the debt limit is merely a technical time-out. President Barack Obama on Wednesday signed legislation to increase the U.S. debt ceiling, after Congress voted in favor of a compromised bipartisan deal. As for the details, the debt deal calls for spending cuts of roughly 900…


Communist China is Building more Science Vessels, er, Aircraft Carriers

By John Galt August 3, 2011 On July 27, 2011, the Chinese government released a story via its state press agency, Xinhua, that stretched the credulity of anything anyone could ever have made up, even since the time of the old Radio Moscow World Service or Radio Tirana news broadcasts: China refitting aircraft carrier body for research, training Within the article, the following portion of the article is to assure the American people they should fear nothing from this as the Chinese military has refitted the old Soviet era aircraft carrier…


Do Terrorists Prefer Starbucks or McDonalds?

By John Galt July 30, 2011 The title of this editorial will be the question that rages across America in the months and years ahead. As I covered on my radio program last night and my friend Invar covered at his blog Sword at the Ready in the article ‘Feds Mandate Your ISP Monitor and Log Your Internet Activities for a Year’ , it has become quite obvious that the United States government is now fully engulfed in finding every nook, cranny, or orifice that a law abiding innocent American citizen…



Propaganda Hilarity Ensues: Chinese Re-fitting Aircraft Carrier for “Scientific Research”

By John Galt July 27, 2011 Perhaps the Chinese Communist Party has dusted off some of their old news writers for this story out of the state controlled media this morning where the claim has been made that the aircraft carrier they purchased from the Ukraine which is readying for sea trials is being set up for “scientific research.” That reminds me of some of the old time stories you would hear on shortwave via Radio Tirana, Radio Moscow World Service, and currently on Radio Habana Cuba as they attempt to…


What does Taiwan know about EMP our Nation is Ignoring?

By John Galt July 26, 2011 As I was scanning the overnight news feeds, a story popped up in the July 27th edition of the Taipei Times which caused me to take pause as I read it: EMP defense necessary, legislators say WHY WAIT?DPP Legislator Tsai Huang-liang and KMT Legislator Lin Yu-fang said budget concerns should not hinder efforts to protect the MND’s new headquarters By Vincent Y. Chao  /  Staff Reporter The lack of protection against electromagnetic pulse (EMP) weapons at the Ministry of National Defense’s (MND) new headquarters is…


China Continues to Add Yuan Trading Partners while Rome Burns

By John Galt July 25, 2011 As our politicians continue to destroy Rome and blame everyone but themselves, our largest Central Banker and trading partner is out setting up more nations to trade with using Yuan instead of fiat dollars. Tonight’s deal of the day courtesy of the Chinese news agency, Xinhua: Central banks of China, Kazakhstan to open special accounts on currency swap 2011-07-26 06:15:17 ASTANA, July 25 (Xinhua) — The central banks of Kazakhstan and China have agreed to open special accounts under an agreement on yuan/tenge swap. The…


Chinese Fighters “repel” U.S. Aircraft in Taiwan Straits

By John Galt July 25, 2011 From the Financial Times July 25, 1112 EDT: Chinese fighters ‘repel’ US aircraft By Kathrin Hille in Beijing Two Chinese fighter jets crossed the middle line in the Taiwan Strait late last month for the first time in more than a decade to repel a US spy aircraft, according to defence sources in Taipei and Beijing. This marks the first known encounter between US and Chinese military aircraft in mid-air since a US reconnaissance aircraft collided with a Chinese fighter jet in 2001 and was…


A Chinese Example of American Propaganda

By John Galt July 17, 2011 It’s almost as if Steve Liesman was reading the report himself in your living room on Bubblevision Channel 1. However this is not about the financial propaganda the U.S. media portrays using selective data presentation to spin it so Der Buglehead looks good, this is about the ChiComs learning how the game is played. As markets open around the world tonight there is a little tidbit of information that was presented with two wildly different twists of the same data. FYI, “FDI” = Foreign Direct…


China Fears MANBEARPIG: Launches Own Carbon Emissions Trading Project

By John Galt July 17, 2011 So for some strange reason, the world’s allegedly third largest economy has suddenly decided to fear the MANBEARPIG (MBP), a mythical creature  created by the envirocommies and the ultimate Nobel Prize winner who demonstrates that Madoff was a piker by comparison. The MBP has convinced the old time commies of, well, Communist China, that controlling the trading of emissions which have no actual financial value is a fantastic test bed for American and European modified Marxism where banksters are allowed to rape industrialists and the…


Rick Scott (FL-Governor) was Right: High Speed Rail Sucks

By John Galt July 14, 2011 From China Daily 7/14: High-speed train breaks down again Updated: 2011-07-14 07:04 By Xin Dingding (China Daily) BEIJING – A northbound train on the newly opened Beijing-Shanghai high-speed line broke down on Wednesday, the third such incident since Sunday when services were disrupted by power outages. The Beijing railway bureau said on its official micro blog that the train encountered “a sudden malfunction and could not operate normally”. Passengers had to take a back-up train, which arrived at Beijing South Railway Station at about 5…


Commodity Whores: China’s H1 trade surplus down 18.2 pct

By John Galt July 10, 2011 About 3 hours ago, before midnight Eastern Time, the following headline from Xinhua, the Chinese news agency, hit the wires: China’s H1 trade surplus down 18.2 pct The reason this story is important is that it clearly does provide a glimpse into the support the Chinese are providing for commodity markets around the world. A month ago in these pages yours truly warned of this with flooding in southeast China and droughts through many of the agriculturally important areas of the country. Fast forward to…


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CISCO Aids the Police State

  By John Galt July 5, 2011 The scenes from the movie THX 1138 are foreign to many of my readers but for those that remember George Lucas’ look at a bleak, impersonal future managed by computers and enforced with brutal robotic killers, that reality moves closer every day. The definitive police state wet dream is what I would title that movie and based on the actions and desires of the Department of Homeland Security and American corporations, that reality is accelerating into our homes and neighborhoods at lightening speed. So…


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Follow up Story on ChiCom Local Debt: Chinese Bank Bailout almost Inevitable

By John Galt July 4, 2011 The story I posted last week on the debt threat from the insane borrowing and accounting practices of Communist China’s regional and local governments has now gone full circle with Marketwatch publishing a story tonight on that very subject and how analysts are almost certain it will require the Chinese banking system to be bailed out in the future. In the story, China Debt woes point to bank bailout by Chris Oliver, he offered the following astute analysis from Dong Tao of Credit Suisse: Credit…


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More Risk Ignored: Local Chinese Government Debt now over $1.65 Trillion

By John Galt June 29, 2011 Business China has a gem of a report  from yesterday which will be ignored by the permabulls and various Bubblevision networks but could well be a warning of the coming liquidity crunch about to hit China and the rest of the world: China’s Local Government Debt Hits $1.65 tln; Raises Risk Concern While this might not seem like a crisis worthy of massive attention at this moment, it is part of a building case for a future disaster as Chinese financial accounting systems are anything…


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China Sends a Message: First Aircraft Carrier Readies for Sea Trials July 1

  By John Galt June 22, 2011 The dispute in the South China Sea with China involving several nations is about escalate one more notch as the PLA announced the first sea tests for the former Soviet aircraft carrier, the Varyag. The refurbishment is complete and training exercises are expected to start on the 90th anniversary of the founding of the Chinese Communist Party on July 1st which is a sharp message being sent to its neighbors in the region. While there appears to be some calming of the situation with…


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Chinese Food Prices Skyrocket after Drought and now Flooding

  By John Galt June 19, 2011 The crisis of the drought causing massive problems within Chinese agriculture in the central and northwestern portions of the country are now being complicated further by floods in the Southern part of the nation. Meanwhile, as outlined in a story from Xinhau this morning, Heavy Downpours damage farmland, inflates food prices in Eastern China, a substantial portion of production has already been impacted with little relief in sight. From the story: “This is the biggest flood I’ve ever seen in 20 years,” Fu said,…


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News that will be ignored by the MSM: Another Riot in China

By John Galt June 13, 2011 From Reuters this morning: Police use tear gas to quell riot in southern China The importance of this is not that it was reported but that a riot occurred at all. It would appear that the long simmering conflict between the numerous manufacturers with the migrant workers from the interior of China has gone into a full boil. The key statement from the article: The rioters smashed windows, set fire to government buildings and overturned police vehicles, bringing to a climax anger over security guards…


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So Much for China Bailing us Out: Chinese Lending Slows, Growth Stumbles

By John Galt June 13, 2011 The question becomes: Is this the ChiCom bubble finally bursting? It just might be. This story from Bloomberg in the last half hour should give everyone with a legitimate journalistic viewpoint in Bubblevisions one through three a wake up call: China Lending Tumbles, Signals Slowing Economy The slowdown in Chinese economic activity reaches far beyond real estate agents and developers. The American model of moving manufacturing, management talent, an resources to mainland China could prove to be a fatal blow for the less diversified corporations…


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China Tries to Kill the Euro Shorts one more time

By John Galt May 25, 2011 Gee, is China trying to pump up precious metals prices or screw the Eurozone? This story from Bloomberg tonight: Euro Advances on Report China Interested in Buying European Bailout Bonds is an indication of the desperation of the world’s central banksters to keep the fiat merry-go-round going one more day, week, or month. The Euro did advance nicely as you can see in the chart below, but is China going to be there to bail our all of the PIIGS and then France, Austria, Belgium,…


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Terrorists in Pakistan Kill Saudi Diplomat

By John Galt May 16, 2011 The violence in Pakistan has accelerated, first with a grenade attack on the Saudi consulate in Karachi four days ago (read it here at ArabianBusiness.com). Fast forward to the news breaking this morning where per Reuters a Saudi diplomat was just killed in Karachi by a gunman as he was traveling in a car belonging to the consulate. This news may not sound disturbing yet Al Queda has not been extinguished in the Arabian peninsula despite proclamations by the various Sheikdoms and that should give…


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China Suspends Diesel Exports-More Nations to Follow?

By John Galt May 15, 2011 The Communist Chinese government took a very effective step this weekend to preserve their fuel supplies and a direct hint to other nations on how to control the limited supplies of finished petrochemical goods on the world market. The Chinese announced via the Xinhua news agency that all diesel exports have been suspended with the exception of  diesel for Hong Kong and Macao. As the wars in the Middle East expand due to domestic discontent and the Untied States foreign policy retreats into a turtle…


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China Decides to Invest it’s Fiat Dollar War Chest in Real Commodities

  By John Galt April 26, 2011 It was destined to be another quiet night on the international markets with Japan and Europe desperate to create a temporary dollar rally and the Fed more than happy to help where they could. Then from the other side of the globe an explosive headline from China Daily’s Tuesday edition: ‘New funds considered’ to protect reserves That sounds like a direct shot at one Ben Bernanke and the Federal Ponzi Reserve’s QE strategy but as one digs through the story, it is a realization…


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The most Dangerous and Ignored Conflict in the World Continues to Expand

  Despite the relatively unfounded fears of a crisis enveloping the Kingdom of Saudi Arabia, the ongoing conflict between Thailand and Cambodia which threatens two U.S. allies and could open the door to Communist Chinese intervention in the region again is flaring up. This time there is word that the reserves are being called up in both nation’s military and the potential for a full blown mobilization could be starting soon. The latest from this dangers and ignored war from Reuters tonight:   Thai, Cambodian soldiers clash in disputed border area…


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Did Saudi Arabia have Glenn Beck Fired from Fox News?

  By John Galt April 8, 2011 First, you’ll need to bear with me as each section has its own chalkboard, so let’s start with the nation’s involved: This of course introduces the most obvious of questions: Why would China, Russia, and Saudi Arabia want Glenn Beck fired? In due time I think I can explain that satisfactorily. Just remember that in the mainstream media, which Fox News and News Corp. represent, when a relationship goes south it is not labeled a firing or termination unless it was an extreme circumstance…


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