china

China’s Central Bank Subsidizes the Federal Deficit

"The Chinese central bank creates money out of nothing, just as the Federal Reserve does. Then it takes this newly counterfeited money and buys U.S. government debt, just as the Federal Reserve does. It bought $25 billion of this debt last month. The Federal Reserve bought $45 billion. So, when it comes to currency-rigging, which central bank is the greater culprit? The two economies, China’s and America’s, are addicted to the drug of fiat money. The first central bank to quit counterfeiting — the first one to 'taper' — starts the international recession. The first one to stop inflating permanently will turn the recession into a depression. Which will it be?" Continue reading →

Continue ReadingChina’s Central Bank Subsidizes the Federal Deficit

China’s richest man says ‘common prosperity’, not ‘wealth gap’ is priority

"Zong only went into business in his 40s, selling fizzy drinks to children and reportedly being so short of cash that he slept under a bridge in Beijing because he could not afford a hotel. But the company he launched, Wahaha, whose name means 'Laughing Child' in Chinese, went on to become China’s third largest soft drinks company, according to Euromonitor International. Zong’s fortune, as estimated by China-based luxury magazine publisher the Hurun Report, makes him the richest person in China and one of the wealthiest in Asia. Zong warned: 'If we had egalitarianism… we wouldn’t have enough to eat.' He called for lower taxes to stimulate investment." Continue reading →

Continue ReadingChina’s richest man says ‘common prosperity’, not ‘wealth gap’ is priority

China defies IMF on mounting credit risk and need for urgent reform

"As you can see from the first chart, total credit has jumped from 129pc to 195pc of GDP since 2008, and has completely departed from its historic trend. The great mistake, plainly, was to keep the foot on the floor in 2010 and 2011, long after the Lehman crisis had subsided. The deeper thrust of the IMF report is that the growth model of the past 30 years is exhausted. The low-hanging fruit has been picked. If the Communist Party fails to take radical action, it will soon be caught in the middle income trap. Loans have jumped from $9 trillion to $23 trillion since 2008, a faster pace of debt build-up than in any major episode of the past century." Continue reading →

Continue ReadingChina defies IMF on mounting credit risk and need for urgent reform

China shuts down $88 million mocked museum with ‘fake’ national treasures

"Chinese authorities have closed a museum which contained scores of fake exhibits, including a vase decorated with cartoon characters billed as a Qing dynasty artefact, state-run media reported Tuesday. The facility, built in northern China’s Hebei province at a cost of 540 million yuan ($88 million), has 'no qualification to be a museum as its collections are fake', a local official told the Global Times newspaper. It had been closed, the paper said, while its founders have been placed 'under investigation' after local residents accused them of wasting money." Continue reading →

Continue ReadingChina shuts down $88 million mocked museum with ‘fake’ national treasures

Gold Deliveries From Shanghai Bourse Jump on Physical Demand

"Physical gold delivered to buyers by China’s largest bullion bourse in the first half of this year almost matched the entire amount taken from its vaults in 2012, and was more than double the country’s annual production. The surge in deliveries underscores buying interest in China, which may pass India as the largest bullion consumer as early as this year after the government in New Delhi raised import taxes while regulators in Beijing made investing in the metal easier. Miners, smelters and refineries are required to sell gold via the Shanghai bourse, the only state-sanctioned marketplace for spot bullion in China." Continue reading →

Continue ReadingGold Deliveries From Shanghai Bourse Jump on Physical Demand

Chinese court compensates rape victim’s mother after labor camp sentencing

"A Chinese court awarded damages to the mother of a rape victim after she was sent to a labour camp for demanding her daughter’s attackers be punished, a spokesman said on Monday. Tang Hui, who became a figurehead for critics of the 're-education through labour' system after she was condemned to 18 months in a camp, won a total of 2,641 yuan ($430) following an appeal, a court spokesman surnamed Zhang told AFP. The court in Changsha, the capital of the central province of Hunan, awarded compensation on the grounds that local authorities had violated Tang’s personal freedom and caused her 'psychological damage', Zhang said." Continue reading →

Continue ReadingChinese court compensates rape victim’s mother after labor camp sentencing

French president auctions off wines in austerity fire sale

"The expected price of the wines range from 20 euros to 2,500 euros ($25 to $3,235) per bottle and include top-end offerings such as a Chateau Latour dating back to 1936, a 1990 Petrus and a slew of 1985 Romanee wines. The cellar at the Elysee was established in 1947 during the presidency of Vincent Auriol and now holds 12,000 bottles. Burgundy and Bordeaux wines will dominate in the auction but there are also offerings from Alsace, the Loire and the Rhone valley. Demand for wine from France, the world’s leading wine producer by value, is high especially from well-heeled buyers in China and the United States. China is the world’s biggest importer of Bordeaux wines." Continue reading →

Continue ReadingFrench president auctions off wines in austerity fire sale

Marc Faber: Even QE99 won’t help US; India best in Asia

"Despite quantitative easing (QE) not really bearing any fruit for the common man, the Federal Reserve is likely to continue with it and go 'up to QE99,' says investment guru Marc Faber. He strongly feels easy money has not boosted employment for the ordinary people; instead it has given a philip to asset prices owned by very small portion of the population. Property prices over the last 12 months are up 35 percent, but all this has not helped the man on the street, he says." Continue reading →

Continue ReadingMarc Faber: Even QE99 won’t help US; India best in Asia

Threat from China Is Being Hyped

"China’s sea-denial forces [don't] make up any real threat to the all-in U.S. force of 11 large deck carriers. But of course this threat is to the American Empire, not the United States itself. The U.S. carrier-heavy force is deployed far forward in East Asia to contain China and protect allies, such as Japan, Taiwan, South Korea, and Australia. Those wealthy allies should be doing more to provide their own security but will never do so as long as the United States provides the first line of defense. Japan already has a stronger navy than China and could do much more if it spent more of its large GDP on defense." Continue reading →

Continue ReadingThreat from China Is Being Hyped

China remains the place you want to have some of your money invested

"China’s announced plan is to move 400 million rural residents into urban cities over the next decade. That’s 40 million people a year, the equivalent of filling up New York City five times annually. That’s a trend … and a very big trend, at that, when you consider the demands that puts on everything from concrete and steel needed to build the necessary infrastructure (apartments, roads, schools, hospitals, shopping centers), to restaurants, supermarkets, housing – the list is nearly endless. China, as well, is moving toward freer financial markets. That, too, is a trend that will create substantial profits for investors." Continue reading →

Continue ReadingChina remains the place you want to have some of your money invested