China’s Sovereign Wealth Buying Spree Expands

Berlin NY 4th july paradeReal fast here: China is floating like a Peking duck on the troubled waters of global financial collapse and the falling US empire.  A British auction house is selling a Japanese holding of Chinese palace clocks taken from Northern China during the looting of the Chinese empire.  China asserts claims over much of the South China Seas which are called something else in the US.  And GM is going bankrupt as GM executives sell stocks and Chrysler closes dealerships all over America.

The Chinese are not stupid.  They had a long, long list of industries and raw materials they wanted to control.  They relentlessly go down this checklist and this financial collapse means a fire sale of all these goodies and who has the biggest darn Sovereign Wealth Fund on earth?  China!

 

China builds rare-earth metal monopoly | The Australian

 

CHINA has triumphed in a 15-year quest to become the “ultimate monopolist” in the supply of rare earth metals – a dominance that industry experts say could give Beijing control over the future of consumer electronics and green technology.

Industry sources believe that with China dramatically cutting its annual rare earth export quotas, the time may be rapidly approaching when it will be impossible for any company to produce a wind turbine or hybrid electric car outside the communist country. 

After a long, relentless campaign of price wars and export quota reductions, more than 95 per cent of the global supply of rare earth metals – a group of 17 “lanthanide” elements employed in hundreds of technologies ranging from mobile phones and BlackBerrys to lasers and aviation – is produced by China. 

Although China has the resources and refinery capacity to produce enough lanthanum, terbium, neodymium and dysprosium to satisfy a global demand that is rising at 10 per year, its rare earth export allocation for the whole world this year is expected to be about 38,000 tonnes – less than the quantity required by Japan alone. 

Furthermore, as the world tries to make itself more energy-efficient, China’s dominant position will become more strategically critical because of the wide range of cutting-edge environmental technologies, such as wind turbines, low-energy light bulbs and hybrid cars, that depend heavily on the rare earth metals. 
 

 

OK: my very own dad, Aden Meinel, went to China after Nixon and Kissinger and my very own dad was very big on solar energy systems.  The Chinese agreed, this was a great idea, a solar energy array on every house. This is my dream, too.  Not America’s dream.  No, we wanted to build suburban McMansions and drive SUVs instead.

 

So, China built solar panel factories.  They competed with Japan and Korea in this matter but they decided to squirrel all the mineral wealth that goes into these things and voila! They did exactly that.  Congratulations to the COMMUNIST PARTY OF CHINA.  Again: THE COMMUNIST PARTY OF CHINA figured out what sovereign wealth was, the dangers of leveraging the buying of stuff [you lose it all if you have any price lurches or market failures!] and they figured out that OWNING stuff is better than NOT OWNING stuff and they figured out what capital is: it is NOT DEBT.  Thank you for a one-paragraph lesson in ‘How to dominate the earth.’

 

Um, we already lost WWIII.  We can’t build much of anything.  Remember Japan in WWII?  They needed um…RAW MATERIALS….and we would contest them for this.  Well, China has these things now and we have to buy from them.  If they want to squeeze our throats, they will and shall.

 

The Story of Nezu Museum Clock Collection, From Chinese Imperial Palace to Hong Kong Auction – WSJ.com

Hong Kong — When the auctioneer’s hammer came down one morning last spring in Hong Kong, it marked another turn in a journey that most likely began more than two centuries ago in Beijing’s Forbidden City. On the block were 15 clocks, mostly late-18th-century, that had been largely out of sight for 60 years. The collection was thought to have originated with Chinese Emperor Qianlong, who reigned in the middle of the Qing dynasty (1644-1911); it had belonged to the Nezu family, and later their Tokyo museum, since the early 1900s. But the museum had exhibited the collection only twice after World War II…. “Many people aren’t aware of the incredible journey a work of art may take when it is consigned” for auction, says Ms. Antebi, 45 years old, who also heads Christie’s Chinese ceramics and works of art department. “Nor the countless people involved every step of the way.”…

“People say that they do not just find works of art. Instead, they come across works of art only through personal relationships with people,” says Mr. Nezu, who turns 59 this weekend….

Such a connection led his grandfather, Kaichiro, to the imperial clock collection. During a trip to China sometime in the early 1900s — the details are long lost — someone offered to sell the Qing dynasty timepieces to Kaichiro Nezu, who was then a successful Tokyo entrepreneur with interests in railroads. He was also a shrewd art collector, buying Japanese and Chinese works at a time when other collectors were selling. He acquired 21 clocks in all (only 15 of these were sold at the Christie’s auction; one is missing, and five remain in the museum’s collection).

The Chinese communist government is always interested in the mysterious ways the imperial loot got into the hands of the European and Japanese invaders.  Note the Japanese can’t remember how they got these fine clocks…HAHAHAHA….crooks can never remember exactly how they got their loot.  They look at the cops and say, ‘Wow, how did that loot get into my house!  I have no idea!’  Yes, amnesia is the usual mental condition of thieves and pick pockets.

 

The Chinese want this stuff back.  Just like Greece wants its stuff back.  Ditto, Egypt.  Unlike Greece and Egypt, the Chinese can use hooks, crooks and outright muscle to get this stuff back as the auctioneers in Paris discovered last month.  Expect communist bids and intimidation of all other bidders.

 

Hong Kong Awaits <break/> New Central Banker – WSJ.com

Official silence over the retirement plans of Hong Kong’s de facto central banker, the only man to hold his position since it was created in 1993, is creating unease at a time when the territory is drawing closer to China’s financial orbit.

All former Chinese lands will end up back in China including Taiwan.  The US and Europe threw all their weight into destroying China via Tibet and failed.  China resumes its relentless growth, island by island while the US goes bankrupt, bombing Pakistan and Afghanistan and trying to keep our soldiers from slaughtering each other in Iraq or committing hari kari.

 

BBC NEWS |Asia-Pacific | China asserts sea border claims

Picture 12

Berlin NY 4th july parade

GM Now Sees Bankruptcy as ‘Probable,’ Henderson Says (Update2) – Bloomberg.com 

 

General Motors Corp. Chief Executive Officer Fritz Henderson said bankruptcy is now probable as the biggest U.S. automaker races to beat a June 1 deadline to cut costs and debt to avoid it.

“It is probable” that GM will end up using the bankruptcy process, Henderson said today in a Bloomberg Television interview at the company’s headquarters in Detroit.

The comment went beyond Henderson’s May 11 assessment that resorting to court protection to reorganize was “more probable” than GM had previously thought. Henderson is signaling that GM recognizes that bankruptcy is inevitable, saidDennis Virag, president of Automotive Consulting Group Inc. in Ann Arbor, Michigan.

“They would prefer not to do it, and it would be best if they did not have to go through bankruptcy,” Virag said. “I just don’t see any way GM can successfully reorganize without it.”

China loves GM.  China will use sovereign wealth to buy the shattered remains of GM.  GM and other now-dead US car makers made the cars and jeeps and trucks that won WWI and WWII for us.  Next: Boeing.  The Chinese want Boeing and will probably get Boeing when we surrender after losing Social Security and Medicare.

 

GM Shares Plunge on Executives’ Sell-Off – washingtonpost.com

 

Shares of General Motors plunged to their lowest levels since the depths of the Great Depression yesterday following news that six GM executives sold off their company holdings.

Share prices in what was once an American corporate icon ended the day at a mere $1.15, a 20 percent drop for the day, as it seemed increasingly likely that stockholders could be left with nothing — or close to it — in the coming weeks.

 

Arrest them all.   🙂

 

UPDATE 1-GM, Chrysler to cut up to 3,000 dealers — sources | Markets | US Markets | Reuters

Hardship bites in Toyota City | Business | guardian.co.uk

Baltimore Autos Examiner: Toyota post enormous loss in 2008

The US dollar gets only 96 yen per dollar.  Wow.  This is way, way below the 120 yen to the dollar Japan needs in order to kill the US auto industry.  So they are dying, too.  Faster than us!  Isn’t that shocking?  We are Japan’s auto markets, after all.  And China plans to kill Japanese exports to the US because they will undersell Japan pretty soon.  It has just begun.  If China gets GM and maybe, even Chrysler, then Toyota can kiss its control of the US goodbye, sayonara.

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23 Comments

Filed under .money matters, Free Trade

23 responses to “China’s Sovereign Wealth Buying Spree Expands

  1. OC

    Elaine,

    China is going to issue USD-denominated bonds:

    ‘http://www.marketoracle.co.uk/Article10655.html’

  2. payAttention

    ‘Real fast here: China is floating like a Peking duck on the troubled waters of global financial collapse and the falling US empire.’

    If you want to know what Peking duck looks like, take a ride to Canal Street one day and inform your comment. There’s a good place on the corner of Bowery by the way. Peking duck has been depilated and slow roasted until golden brown and then hung in the display window with a hook through its gullet. While we do want to convey hysteria and draw attention away from our own personal colonial occupation of native lands, we should remember to keep our metaphors straight in order to convey the hysterics properly. Incidentally since you source the free Bloomberg extensively, there is a detailed story about 600 applicants showing up for a civil service job in the Middle Kingdom, in one of the second tier cities. And thanks for teaching the Chinese how to undermine our manufacturing with mercantile capitalism, once again.

    http://www.bloomberg.com/apps/news?pid=20601109&sid=aUtHSxTy1zB0&refer=home

  3. payAttention

    Crap Gary Gensler is getting confirmed.. more Goldman shit clogging up the system.

  4. criticalcontrarian

    Elaine, Japan Inc. will make money even at ¥70 to US$1. Expect ¥80 to the $ soon. The Nihon-jin will be hungry, but will still make profit; their elite know how to squeeze blood out of an onion.

    Meanwhile the Singaporeans have had enough of Wall Street, finally. Too little too late. All that hard earned money up sh.. creek, their sovereign fund got royally reamed. http://tinyurl.com/och5rr

    “The belief now is that the world is not so American-centric anymore,” said Melvyn Teo, associate professor of finance at the Singapore Management University. “It’s going to be driven more and more by the Chinese economy and consumer so might as well load up more on Chinese banks than American banks.” Too late the hero!

    And here some food for thought, Dead People Get Stimulus Checks. Hmmm… The feds blame a rushed schedule, because all the checks have to be cut by June. The strange thing is some of the checks were made out to people who were never even part of the Social Security system. http://tinyurl.com/ojvqcw

    The Fed or Treasury guys should write a book, 101 Ponzi Schemes for Dummies. Endless stupidity to no end!

  5. Chris

    Elaine writes: “The Chinese want Boeing …..”

    They already make large subassemblies the airliners. The compay name even has a sort of mandarin sound to it. Not much of a change to “Bojing”

    I like your new site appearance.

  6. emsnews

    Japan can’t make a profit on no sales.

  7. criticalcontrarian

    No sales in America, yes. The sales are in China, 1.2 billion buyers increasing spending by 15% in Q1 of 09 is where the action is. You have for many years been ranting at the Japanese for pretending to be in a Recession don’t start believing them now. The bulk of their factories like the US are in China. And a not only a few are making a beeline for India. 🙂

  8. nah

    it sounds stupid, but congress has to pass laws that make corporate institutions responsible so they can fail and be replaced by real investments.
    .
    like you point out in this article like duh’ energy is choice in the 21st century as it converts like money dummy
    .
    unfortunately the people who know anything about money are lizard people
    .
    http://video.google.com/videoplay?docid=-53565441845289277&q=nuclear+fision&total=185&start=10&num=10&so=0&type=search&plindex=0
    .
    were gunna’ run a hail mary every play fuck downs

  9. nah

    “Angels” seen missing “Da Vinci” box office mark
    LOS ANGELES (Reuters) – “Angels & Demons,”
    http://www.reuters.com/article/entertainmentNews/idUSTRE54D6IS20090515

    the film sequel to conspiracy thriller “The Da Vinci Code,” will likely fall short of box office totals for its more religiously controversial predecessor when it opens on Friday.
    .
    boarrrring… albinoz’, spiritz, and creative thinkerz o my
    .
    must be like… we want to create scary movie 8 we need some materiel

  10. criticalcontrarian

    @nah: I really enjoyed Star Trek though, it rocked. 🙂 J.J. Abrams did a bang up job, Roddenberry would have been proud.

  11. Blues, that lesson from Norway must be: Natural Resources + Industry + Conservation = Success. Am I Right? 🙂

  12. Simon

    I am patiently waiting for Japan’s demise
    The country will pay reparations, but not in a form they will want
    The intention I think, is to pay in blood

  13. criticalcontrarian

    They will be assimilated into Asia. Resistance is futile. Just like the Jews will be overrun by the Muslims. Too many people having sex but shooting blanks. LOL. 🙂

  14. Simon

    Mao refused to take reparations from the Japanese for this reason, and this reason alone
    Blood cannot be paid with money, which can be printed and is infinite
    No, I guess this will be settled the old fashioned way 😛

  15. criticalcontrarian

    There is enough of that to go around for everyone. In all races and continents I’m wondering who put Lu Chuan up to the Nanking! Nanking! movie, it opens old wounds forgotten by a new generation of kids who have never known war. Agitprop at its finest no doubt.

  16. emsnews

    CC: 100,000 Holocaust movies, TV shows, books, museums.

  17. ”Star Trek though, it rocked. J.J. Abrams did a bang up job”

    CC , sorry now i must be critical and contrary. Any movie that opens with parents haggling over how to name the baby after childbirth in the middle of a cacophanist space battle, has lost my interest. Abramms couldn’t even stick to his own plotline. I was quite disappointed in the whole jagged thing as i had high hopes given his talent for storytelling on tv.

  18. Pingback: buying auction » Blog Archive » China's Sovereign Wealth Buying Spree Expands « Culture of Life News

  19. criticalcontrarian

    @Elaine: Ahh, holocaust movies and the like, eminding the world that we are allowed to do anything with impunity because we were decimated 70 years ago. Someone tell these guys to pick a number!

    @ziffhouse: Funny you bring that up, that was the only part of the movie that surprised me (where did that come from???), too long and tedious. Other than that, and comparing it to the original Shatner-Nimoy hamminess, it was a big improvement.

  20. Simon

    I think they don’t want Boeing, which is a government funded aircraft assembler after all
    What they really want would be the advanced engines, or even better the engineers who designed them and pick their brains.

  21. DeVaul

    “The bulk of their factories like the US are in China.”

    China will confiscate their factories and undersell the Japs in their own country. It is called “payback”.

  22. Pingback: Chinese Mull Saving Europe From Bankruptcy | Culture of Life News

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