NATO Banking Mess Creates Global Insurrections And Wars

Cairo erupts in second day of violent clashes

Even as NATO desperately tries to find excuses to invade Syria, a country high on the Zionist list of control, the main excuse is, ‘Demonstrators are being killed,’ demonstrators in many countries controlled by NATO such as Egypt, have vast clashes, killing many unarmed civilians.  Egypt is now, as I predicted last spring, entering Stage II of all revolution: the moderate reactionaries who took over after the dictator was removes are still working for the top 1% and now the demonstrators are beginning to realize, they have to fight violently for control.  The victory of Muslim power groups, especially the Muslim Brotherhood, has driven the 1% to madness, so they simply decided to become an open dictatorship, again.

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The violence wracking Egypt is very much tied to global monetary inflation caused by the trillions in credit given to tide over bankers during the credit balloon collapse.  Much of this money was poured by investment bankers into commodity markets, causing global inflation at the same time all countries are striving to cause their currencies to weaken so the top 1% which run most countries (the Elites) can make more money in the free trade/floating fiat currency regime.

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The revolutionary forces being released are not due to a sudden desire for democracy but rather, is the results of economic pressures on the middle class in many countries which see themselves sliding into the lower class as wage reduction pressures hammer their own incomes and their savings vanish as the game of weakening currencies cause inflation.  Couple all of this with ZIRP savings rates, middle class people with some savings left are moving these into the metals commodity markets which ‘dead ends’ the savings since they no longer are being recirculated in ‘growth’ investments in industry and trade.

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Banks hold debts as ‘assets’.  This peculiarity of money theory is ill-understood by non-bankers but it is easy to understand: so long as someone pays the services on loans, money comes in like clockwork and the value of these debts is used to create more lending which multiplies the creation of ‘money’ electronically so infinity is possible except if a horrible thing happens: people owing money on previous loans don’t service them anymore.  Suddenly, there is a hole in the credit bucket and this causes all other loans to become shaky.

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To cover potential defaults, banks were supposed to keep a ‘reserve’ that would be money from debits, that is, savings which they had to attract and above all, pay interest to people who own this capital.  That is, savers should be lured to put money in banks in the form of certificates of deposit and the profits of this would go to the savers, not the bankers.  Naturally, the bankers hate this since they have to pay for holding this money.  They would prefer to create credit out of thin air plus previous loans, not savings where they pay for holding other people’s capital.  Thus, they devised the vaporous derivatives debt insurance scheme run mainly by AIG to do away with the need to hold at least 10% of all value of all ‘assets’ (which are debts) as capital (which are savings).

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Thus, they lent money based on less than 0.1% the value of all loans rather than 10%.  This meant, when AIG went under, all this pretend capital that wasn’t capital but rather, derivative bets with each other, fell apart and open bail outs by currency printing machines (central banks) had to grind out huge sums to recapitalize these banks.  Even after trillions flooded into the system this way, we still see headlines like this: UK banks’ eurozone ‘zombie’ fears – Telegraph

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Eurozone banks’ shortage of collateral to borrow against has led the central bank to widen the pool of assets it will accept, however analysts warned the move could be a “fast-track to ‘zombieville'”…French exposures were cut by £19bn in the third quarter to £178bn, while holdings of Italian and Spanish assets were cut by £8bn and £5bn respectively, according to figures released yesterday by the Bank of England.

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The decision of UK banks to reduce their exposures to the troubled countries came as they upped their holdings in Northern European and US assets. German exposures increased by £26bn, while Dutch were up £13.6bn. US exposures increased by £6.2bn.

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This ‘collateral shortage’ is fancy talk for ‘country debts going bad and thus, eliminating the capital base for all other loans.’  When homeowners and businesses defaulted in mass numbers, this was fixed by piling in massive amounts of government debts which the bankers then sit on like hens on eggs and desperately collect feeble ‘rent’ on these debts.  But now governments are going down into bankruptcy and there is this frantic search for ‘good debts’ to passively hold so they can lend money made out of thin air to people seeking loans.

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Note how they are now buying and holding by far, mainly German government debts.  They also bought some much smaller US debts but the US itself is struggling with rapidly rising government debts due to the US insisting on making its overseas military adventures and commitments greater and greater even as our economy has been slaughtered by free trade debts that grow ever greater.  Even as we suffered through one of the worst recessions since the Great Depression, our trade numbers are still quite huge and the deficit, the red ink, continues in triple digits.

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The US is host to one of the world’s biggest banking centers, on Wall Street:  New York City Faces ‘Extreme Downside Risk’ From European Debt Crisis.  All these lovely ‘assets’ are going bad as money servicing these debts drop off, one by one.  Meanwhile, BofA, Goldman, Barclays Credit Suisse Group AG (CSGN) Deutsche Bank AG (DBK) Have Fitch Credit Ratings Cut  and it is no accident that these very same  bankers happen to also hold 90% of the world’s derivative deals.  I have called for derivatives to be outlawed more than once over the last decade.

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It has to be done.  Once it is declared illegal, all the deals holding up this fake credit will have to cease and be replaced with a capitalist system.  This would disrupt the creation of credit, of course.  But then, we have no choice.  It would have been much, much better to eliminate this deceptive capital creating system back in 1996.  But the joy of creating money out of nothingness was very tempting.  The idea that this would cease to work when going to infinity was ignored which is why I hammer away about the concept of infinity suddenly turning to zero as a fundamental natural force in all things, even something as vapid as ‘pure numbers’ a la the derivative swap markets.

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Since the fundamental basis for all traditional banking has been totally screwed up, since we have free trade warping all economies and all floating fiat currencies struggling to do the same thing, that is, decline in value, we see things getting worse.  So, IMF’s Lagarde announces the obvious: Europe Crisis ‘Escalating’.  The biggest banking power in Europe thanks to the offshore islands and City of London, all owned basically by the Crown, are not regulated hardly at all, so they can create more credit out of thin air compared to say, Germany, that bases its credit on its huge sovereign wealth holdings.  Despite running everything in the red, the UK can still create imaginary loans but this is rapidly falling apart so the UK is actually unable to give IMF more funds for euro-bailout.

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Who can bail out the EU?  Germany, of course.  And Germany, as is normal for anyone bailing out someone, have demands which no one wants to give so the Germans sat on their hands.  And this is life.  Creditors get to call the shots.  And fake creditors (zombie banks) can create fake credit but this simply drains the system of wealth even faster (someone has to pay for the defaulted loans!) whereas credit powers like China and Germany have capital so they don’t drain the system if it collapses.

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Graphic: UK armed forces cuts – Telegraph

This graphic shows what happens to empires that go bankrupt.  Once upon a time, the UK ruled the Seven Seas and had the world’s biggest and most modern navy.  Look at it today!  The last aircraft carrier being canned.  Virtually no air force left.  The remaining, tiny fleet of destroyers cut by 50% this year.  This is a desperate government maintaining the pomp, ceremony and expenses of a huge imperial Throne system while reducing military support to midget size.  This is due to complacency over US protection: they expect us to protect the dame living with her welfare spawn in massive, expensive palaces, on our military spending.

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The US will look like the UK eventually.  No surprise to historians who are realistic.  Perpetual lack of capital as real capital systems vanish, our military will vanish, too.  All of Europe is sleepwalking towards exposure to invasion by other powers.  Of course, the US response to obvious rises in Chinese powers, is to spend more on our military and expand it even further overseas but this is fatal and China knows it.  China’s military exposure is strictly within a short range of its home state.

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The US is grossly overextended and has a presence nearly everywhere and therefore, has seen direct power dissipate into vapor.  And the cost of trying to be equally strong everywhere is causing a classic ‘infinity to zero’ situation.  That is, our military power, devoid of any backing from capital, labor or industrial tax base, devoid of tariffs to fund it, will collapse the entire country into bankruptcy.  Which is now 100% unavoidable.  The Congress isn’t cutting military spending, they are cutting the RATE OF GROWTH and even that is threatening to collapse NATO and our overseas desires to wage war against all Muslims.

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Of course, whining all the way, the military proposes cutting things that are domestic, NOT FOREIGN OBLIGATIONS which are expanding, not contracting:  Blue Angels Budget Blues by Laurence M. Vance

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But the mission of the Blue Angels is purely promoting naval aviation and recruiting instead of actually contributing to national defense, so some have begun to call for the squadron’s elimination because of the budget deficit and potential cuts in military spending.

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So, what little military stuff is left here is put on the cutting block cynically, knowing people will demand these be funded.  But all the things Americans don’t mind cutting are being kept such as even more foreign bases like the new one in Australia which wants us to protect them rather than pay for this, themselves. The US declared victory in Iraq this week and then left with tail between the legs as the hearts and minds of our victims there turn against us: Flags Burn as Last US Troops Trickle Out of Iraq.

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Troops Leave But Iraq Allows US Predator Drones to Remain.  The government knows that if we leave stuff there, eventually, they will have it as we are forced to flee due to going bankrupt.  I saw on Al Jazeera, the 1% elite sheikhs of the oil pumping dictatorships are demanding Syria bow to them as 17 Protesters Killed as 200,000 Rally in Syria.  This revolt in Syria is a point of great interest of NATO and the dictators in the oil nations that fear uprisings.  They desperately want to control it by bringing up a new, better dictator just like they are struggling to impose on Egypt.

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Finally, some news from the investigation front:  SEC charges ex-Fannie, Freddie CEOs with fraud – BusinessWeek

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Those charged include the agencies’ two former CEOs, Fannie’s Daniel Mudd and Freddie’s Richard Syron…”Fannie Mae and Freddie Mac executives told the world that their subprime exposure was substantially smaller than it really was,” said Robert Khuzami, SEC’s enforcement director. “These material misstatements occurred during a time of acute investor interest in financial institutions’ exposure to subprime loans, and misled the market about the amount of risk.”…According to the lawsuit, Fannie told investors in 2007 that it had roughly $4.8 billion worth of subprime loans on its books, or just 0.2 percent of its portfolio. The SEC says that Fannie actually had about $43 billion worth of products targeted to borrowers with weak credit, or 11 percent of its holdings.

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Newt Gingrich should also be arrested and charged with fraud, no?  Of course.  Misleading investors?  Nearly all of Wall Street ended up doing this and the biggest fraud of all is continuing: the derivative swaps.  To lure in real capital, they all had to lie all the time.  This lack of honesty is epidemic.  And this, in turn, has caused a collapse of trust.  Which is no surprise.  Trust fails everywhere as the systems set up by the US and UK empire and which we encouraged everyone to copy, is showing its downside, its faults and instead of fixing these, we flounder about, bleeding immense seas of red ink, while lecturing everyone about capitalism.

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How bizarre is this?  The country with the least capital and the highest foreign debts is the world’s biggest empire!  And it is the bleeding heart of the collapsing system.  Everyone exports to the US and the US is losing economic steam.  So the world will lose economic steam.  And we can’t bail out the world, we are causing this to happen.

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43 Comments

Filed under .money matters, Free Trade, Politics

43 responses to “NATO Banking Mess Creates Global Insurrections And Wars

  1. Urban Roman

    Get ready for more MFGlobals … every one of the “too big to fail” is in fact insolvent, and has been so since 2007 or so. The only option they will have left is to steal client accounts.

    It will be the financial version of the zombie apocalypse.

  2. Steve Murgaski

    “executives told the world that their subprime exposure was substantially smaller than it really was,” said Robert Khuzami, SEC’s enforcement director. “These material misstatements occurred during a time of acute investor interest in financial institutions’ exposure to subprime loans”

    Uh-huh. Good old “material misstatements”. I needed a little George Carlin to wash the taste of that away.

  3. Steve Murgaski

    George Carlin http://www.youtube.com/watch?v=CNk_kzQCclo Let me post links, you uppity machine.

  4. mistah charley, ph.d.

    i just don’t understand. the “money” in the international financial system is pretty much imaginary, created by complicated rules. as “fiat” money, it can be created and destroyed at will. money is “real” only because people will exchange goods and services for it. if people changed the rules, then the “reality” that there isn’t enough money, or that there is too much money, can be fixed with a snap of the fingers. money is not a physical thing, like a liter of water or a loaf of bread – it is a social construct. Smart people can make it up and spread it around in a way that promotes health, wealth, and well-being – can’t they?

    ΩΩΩΩΩΩΩΩΩΩΩ

    ELAINE: It is a social contract. And since absolutely everyone wants infinite amounts of this accounting material, there has to be some sort of system restricting this tendency. Once upon a time, it was gold and silver due to being less common than say, sea shells. No restrictions means tons of this stuff is created so that people can use it to gain some sort of advantage.

    The fact that going to that free funny money well too often led to it becoming zero in value is one of the many lessons we learn about infinity/zero. That is, one leads inevitably to the other.

  5. Jason & Dana Hegna

    Why does there appear to be a worldwide policy to not remove the tyrants from power, no matter how hideously oppressive they may be?

    Is it because they are afraid that if I kill you, you’ll kill me? Probably not.

    We think it is because the dictators are needed for the financial gain from their populations, as it is much easier to take advantage of people under control of a tyrant (who, likewise, receives gain).

    In the U.S., politicians support, and do not interfere with, the opportunities for the one-percenters, as they are receiving gain and advantage themselves from them.

    They all follow this norm.

    – Jason & Dana

  6. Steve Murgaski

    Charley: “money is “real” only because people will exchange goods and services for it.”

    That’s the key. If you don’t have goods and services to exchange with others, but you go on printing money, the value of the money you print heads towards zero.

  7. Joseppi

    USA…”The country with the least capital and the highest foreign debts is the world’s biggest empire”…..An empire which has invested and spent all it’s sovereign capital on military hardware. This sophisticated and bellicose military dominates the world and is the only force that insures US economic hegemony and currency obeisance.
    It’s really scary when you consider that the fiat debt-as-money system is in it’s death throes and the degree of desperation in the empire’s power elite. Damn scary.
    Another great tutorial, Elaine, thanks.

  8. Urban Roman

    @MCP,
    Fiat money is like a share of stock in the empire that prints it. Like a stock share, its value is diluted when more are issued, and rises when shares are retired. Also like stock shares, its value depends on the size and power of the issuing entity.
    Beyond that basic description, you have trade balances, foreign exchange markets, speculation, and leverage.
    What’s going on right now is the loss of that last item, leverage. All the wiz-bang financial engineering of the last 30 years is currently unwinding. The effect of that is to reduce the “velocity” of money (or like MFGlobal, simply destroy it in great wads and chunks). The blanket term for this is “deflation”.

    2012 is shaping up to be a massively deflationary year. If you have some cash, Giblets says hide it!

    ΩΩΩΩΩΩΩΩΩΩΩΩ

    ELAINE: When money is scarce, it becomes valuable. When inflation comes, people spend it faster and faster.

    On the other hand, your comment about money being ‘shares’ is actually quite correct. Several years ago, I wrote an article using old paper money I have, showing how it was originally a CONTRACT not ‘money’. It was a promissory telling the holder, the paper could be exchanged for gold coins or silver coins.

  9. DeVaul

    You think Egypt has problems? Take a look at this:

    http://www.silverbearcafe.com/private/12.11/Kashmir.html

    India plans to build so many dams on the Indus river in Kashmir that only a trickle of water will reach Pakistan. That river is Pakistan’s sole source of water for drinking and irrigation. Afghanistan, with India’s blessing, plans to build some dams too on a tributary to the Indus. Now I understand the fight over Kashmir.

    Imagine no Nile River in Egypt and you get an idea of what Pakistan is facing. A newspaper there has threatened nuclear war if the river is dammed, and quite frankly, that is one scenario where the use of nuclear weapons seems quite reasonable compared to the alternative.

    India has lost its mind. It needs electricity, so it will turn Pakistan into a desert to keep the lights on. What a great idea! A nation without water has nothing to lose by launching its nuclear missiles. The future has arrived. There is not enough fresh water for electicity AND food production.

    ΩΩΩΩΩΩΩΩΩΩΩΩΩ

    ELAINE: Over the centuries many wars were fought over water resources and warm water ports (Russia).

  10. Peter

    It’s crunch time.
    Egypt imports something like 80% of it’s wheat,supported by the Pentagon..
    Saudi Arabia grew 100% of their wheat til they ran the fossil aquifer dry!!
    (That only took 20 years.) They are back to importing wheat with their diminishing oil reserves.
    Not to mention they are having to de-salinate for drinking water.
    The Middle East is a big desert for the most part with way too many people.

    ΩΩΩΩΩΩΩΩΩΩΩ

    ELAINE: If you bring birth control into SA, you are EXECUTED.The women there are kept trapped in their homes and have many babies. This is utterly insane. As I keep on saying, the northern tribal groups (that is, ethnic groups from the Ice Age communities of Europe and Asia) are down to near or even below zero growth. But the warm and hot climate people are having a massive baby boom.

  11. Clueless

    This one’s for you Elaine 🙂

    ΩΩΩΩΩΩΩΩΩΩΩΩΩ

    ELAINE: Ja, sehr amusant. The 2012 German Apocalypse Christmas show!

  12. DeVaul

    I am glad someone wrote a rebuttal to Simon Black, the “Sovereign Man”, who said we should all pack up and leave America for “freer” countries. Easily said for a bachelor with a lot of money, but most do not fit that profile. Also, these “free” countries turn out to be less free than he and others thought, not to mention they provide no services to their people.

    This article supports what Elaine has been saying about the “fun in the sun” mentality of people who live in warm climates. They have no ability to plan even for tommorrow, as the concept of winter is just too foreign to them.

    Even my wife does silly things that irritate me, like driving to the store to get just a few things for dinner, and then going back again the next day. My gasoline bill has blown through the roof and destroyed my budget, but I cannot get her to change her ways until she has to pay, and then she diciplines herself — a thing that makes her much different from other Thais. I think she irritated other Thais with her emphasis on planning and saving.

    Anyway, here is the article:

    http://www.silverbearcafe.com/private/12.11/leave.html

    Someone actually found out the hard way what it is like to live in the “better” places, and I am glad to have my gut feelings vindicated by his experience. There really is nowhere to run to now — no new world to escape to. We must build and live where we are. The more resources in your area, the greater your chances are for survival unless a war breaks out.

    Every country will become a police state until the oil runs out, and then everything will change radically. Police states cannot survive without oil to transport their troops all over the place. The rich will have nowhere to hide either. Their plans to outlast the masses are vain and arrogant in the face of Nature and the gods.

  13. Argentina is pretty aware about UK going bankrupt and it is demanding falklands back.

  14. Pingback: Week Ends With Fitch Threatening Massive Euro Downgrade « EconomicReview Journal

  15. ‘If you bring birth control into SA’
    south africa or america? and why?

  16. Alex Yam

    This just in, our friend Mr Kim in NK has passed away.

  17. WilliamMBoston

    The term “derivatives” covers a wide range of investment-like contracts … and when I read you would ban them, I wonder if you really would ban them in all their forms?

    Farmers and those who trade in physical commodities like grains find derivatives such as grain futures to be very valuable contracts in managing their business and minimizing and controlling risks. I believe judicious use of puts and calls can be very beneficial to stock traders and investors, although for the average retail investor, the house is stacked against them in options trading, and the street will manipulate market swings so as to inevitably win big against the retail customer.

    One of the funniest derivatives I’ve seen are contracts sold by intrade.com on whether or not they (Intrade.com) would be in business on Dec 31, 2011! lol If one felt they would not be in business on that date, would one sell those contracts, which are managed by and payable by Intrade? … http://www.intrade.com/v4/markets/contract/?contractId=743136

    Anyway, I like puts and calls and these Intrade “futures contracts,” and would miss them if they were abolished. (INTRADE: Operational Since: 2001, Total Members: 114,000+, Total Orders: 660,702,728)

    BTW: one can get a 2000% return on their money (20 fold gain) if they buy futures contracts on Ron Paul becoming the next president, and if he wins in November … http://www.intrade.com/jsp/intrade/common/c_cd.jsp?conDetailID=743483&z=1324264871750 … which indicates big money sees no chance of Ron Paul winning. 😦

  18. Clueless

    Actually Elaine, the UK is in much worse financial condition than the EU, and their attempt to call attention to the EU’s woes are blatant squid tactics. Why? Because they have the worst GDP to debt ratio in the “1st World” — a staggering 950%! The EU is better off without them.

    “…the truth is that France is actually 100% correct in telling the world to shift its attention from France and to Britain. So why is this bad. Because as the chart below shows, if there is anything the global financial system needs, is for the rating agencies, bond vigilantes, and lastly, general public itself, to realize that the UK’s consolidated debt (non-financial, financial, government and household) to GDP is… just under 1000%. That’s right: the UK debt, when one adds to its more tenable sovereign debt tranche all the other debt carried on UK books (and thus making the transfer of private debt to the public balance sheet impossible), is nearly ten times greater than the country’s GDP. To call that “game over” is an insult to game overs everywhere. So here’s the bottom line: France should quietly and happily accept a downgrade, because the worst that could happen would be a few big French banks collapsing, and that’s it. If, on the other hand, the UK becomes the center of attention (recall this is the same UK that allows unlimited rehypothecation [13]of worthless assets, and the same UK that unleashed the juggernaut known as AIG-FP’s Joe Cassano – after all there is a reason why the UK has 600% its GDP in financial liabilities – financial innovation always goes there where it is least regulated), then this island, which far more so than the US is the true center of the global banking ponzi scheme, will suddenly find itself at the mercy of the market.” http://tinyurl.com/c484hcf

  19. adamm

    why all this talk of Syria and Iran, when the situation in Egypt re: DEMOCRACY… is as you say a scam up till now with the Army and the elites that Mubarak cultivated still in control.

    BTW what ever happened to the “MUBARAK TRIAL” where he was lying in his hospital bed in court? Thats a mystery to me. Well not really, it was fake.

    Where is MUBARAK hiding now? WHich palace? And what of his Billions??? ETC.

    I see news of Libya is absent also. What gives in that NATO mess??

    Short attention spans on all this…. oh and 4 trillion and 1 million dead Iraqis later, Obomba declares victory and leaves? Except for a 10 000 man embassey and 50 000 mercs.

    Happy xmas

  20. Clueless

    @ adamm: I like the way you think. 90% of the mindeset content of Americans, Anglo’s and Aussie’s is decided by Rupert Murdoch.

    Here is a little something to help you grasp the scale of the “illusion of choice”. Trending huge amounts of trivial and useless information at the target audience creates shortened attention spans, which explains your concern. Enjoy the infographic. http://tinyurl.com/bp3wxh8

  21. Aussie

    @ Clueless
    Re: Actually Elaine, the UK is in much worse financial condition than the EU, and their attempt to call attention to the EU’s woes are blatant squid tactics.
    Enjoy the infographic. http://tinyurl.com/bp3wxh8

    Well said and you are definitely not clueless indeed.

    I fear the clock is ticking and the idiots running our western world will no longer be able to kick the can down the road and wars will start in the middle east to distract us.
    We will lose what little democratic pretence left to live in poverty under a fascist system.

    The US will lead the way down the slippery slope followed by UK and Australia.
    I suppose Canada will join our crowd as well?

    It is so sad and pathetric.

  22. Clueless

    @ Aussie: I have suspected since 2007 that the banking elite have fragmented into two factions, the “unconscionables”, who want to retain the status quo, and the “moderates”, who realize that change is inevitable and the current system unsustainable, requiring a complete overhaul.

    The City boys are in disarray and it shows. Iceland was the beginning of the festivities, and it’s just gotten worse and more reckless. That said, I also suspect they are in mop up mode — that flushing sound you hear is the sound of deflation, as they suck up all wealth, having completed the inflationary spiral they created, ramping up to this point. They never waste a good opportunity the greedy bastards, eh?

    My concern is not so much the Middle East, that is old news. the Arab Spring is cleaning up much better than Israel, and much more cheaply! Zionist usefulness has become somewhat archaic…

    I am more focused on China and India, and the Spratly’s. Next year China has a new leadership, a more hardline military leadership. It is going to be interesting. I suspect the Americans are itching to give China a taste of their hidden hardware. We certainly live in interesting times.

  23. Aussie

    @ Clueless
    Re: I am more focused on China and India, and the Spratly’s. Next year China has a new leadership, a more hardline military leadership. It is going to be interesting.

    Yes it will be interesting indeed.

    I suspect the Asean countries remember how their countries were colonised thru divide and conquer – it is a recent and painful memory to them.
    Asean wants peace to continue growing their economy with China but wants the US to remain engaged as a moderating force on China only.

    China needs peace to continue their economic growth.

    The question is how far the US will go to contain China’s economic and political growth whilst the US declines in relative terms?
    I suggest many of the US ruling elite may go too far and create conditions for a major war because they feel it is the only way to retain hegemony?

  24. Clueless

    @ Aussie:
    Re: Asean wants peace to continue growing their economy with China but wants the US to remain engaged as a moderating force on China only.

    Unfortunately, the US elite may not have to do much in the way of agitating conditions for China to go to war. Why? Because the internal problems in China are starting to boil over, and the Communist party is being tested as we speak. Following is just one of the many anti-government civil unrest/disobedience events of which there were close to 100,000 this year, up from 80,000 last year, a 20% increase.

    “Protesting villagers in southern China said they will march on government offices this week unless the body of a local leader is released and four villagers in police custody are freed.

    The 13,000 residents of Wukan, in the wealthy province of Guangdong, are in open revolt against officialdom and have driven out local Communist Party leaders who they say have been stealing their land for years.” http://tinyurl.com/bnhyop3

    China is headed for a hard landing economically and when the fissures that are widening locally reach tipping point, the central government may look for a foreign crisis to distract its local population from fragmenting the country into several separate States. Time will tell. Regardless, it will affect the stability in the region.

  25. Alex Yam

    ROFL, Clueless the “China-is-going-to-fall-soon Expert” is at it again.

    China has always been tested, the test has never stopped, Chinese has survived much much worse, but you western-media brainwashed idiots keep using some lazy ass europeans standard to predict what’s going to happen in China.

    Europeans like Clueless has no idea how a 1billion people country works, their minds simply can’t adjust to that scale. anything with 3 zeros at the end automatically looks like a huge number.

    The Wukan people have openly said they’re not after a revolution, but they want their fair share of the profit of the lands, that’s why the leader who’s currently leading the unrest has asked his people not to be rude to the authorities. The previous head of Wukan who ran things for decades will soon be kicked out of the party and a lot of people will be executed, then life goes on.

    What you still don’t understand, Clueless, is the Chinese are hardcore, much harder than you can ever imagine.

    Time and time again you talk about “hard landing” like it’s the end of the world, because westerners can’t handle them, but in China, laws and rules can change overnight, entire housing bubble can be created/freeze/destroyed manually within weeks. What that means is China has the ability to apply extreme measures extremely quickly when they are needed.

    This isn’t the first time Clueless talks about shit he doesn’t understand about China (and it won’t be the last), so I’ll just keep it simple this time: What it all comes down to, is Clueless’s view of the Chinese is like a sunday driver’s view of a formula 1 driver. Anything that happens in a formula 1 car looks like “holy shit @#@%%#$% everything is going to crash” to the sunday driver, while it is just another high speed corner to the Chinese.

  26. Clueless

    Ho hum. So says the resident SAR lover. All talk, no walk. Go take a break at China Disneyland to refresh your bitter self Yam. http://read.bi/swzIDu

  27. Aussie

    @ Clueless and Alex Yam

    Re: Following is just one of the many anti-government civil unrest/disobedience events of which there were close to 100,000 this year, up from 80,000 last year, a 20% increase.
    What that means is China has the ability to apply extreme measures extremely quickly when they are needed.

    I suggest there is good observations made by both Clueless and Alex.

    It is true the ‘no-holds-bared winner takes all” economic culture in China has created huge corruption, illegal seizure of peasant land and speculative developments involving local governments and many elites in Beijing.
    Furthermore, there is widespread subliminal anger amongst the powerless.
    But in the big picture it has not yet reached a stage of threatening the legitimacy of Beijing’s “mandate from heaven”.

    China’s very language and culture is imbued with subtle references to its millennia old civilizational existence.
    Even the peasants take pride in China’s return to the “heavens” and it is common to see, for example, a picture of Mao Tse Tung in the modest homes.

    No doubt China will be hit by severe economic problems and increasing unrest.
    But Beijing will do what is necessary to resolve the problem even if it means another Tiananmen square incident or bitter severe economic medicine.

    Remember never in human history has a military organisation retained its cohesiveness despite losing 80% dead during the 3,000km long march resulting in its independence.
    Their insane cultural revolution pitting the young against their older generation did not breakup their nation despite the setback.

    China is a country of extreme corruption and hard work and regard for their nation – very schizophrenic.

    I suggest the majority of the Chinese people would accept ruthless solutions in light of what they have achieved and lost when Western and Japanese imperial powers humiliated them in recent history.

    I once succeeded in getting some Chinese drilling engineers to leave their compound and enjoy a Chinese dinner outside of China.
    They were cloistered in two apartments when not on the rig.

    What struck me was how one of them (we were all drunk at this stage) was explaining how he needed to study more so China could drill better wells deeper and better in difficult geological and depth conditions.

    At the time when Nixon and Kissinger met with Chou En Lai my US multinational employer arranged for me to study Mandarin at a Singapore university attended by Russian and US intelligence types and Japanese corporate people.

    Of course, we from the west studied hard to our standards …but the Japanese studied harder.
    The result was the Japanese zaibatsu did better in Beijing at the time.

    We need to be mindful that our history and culture does influence how we think and perceive.

    At the pointy end, our ruling elite prefer the easy solution because our legacy is wealth and the power to determine the rules – so far.
    China has clawed their way from the gutter and their struggle has made them tougher in their mindset reinforced by insight on what they regard as their proper place amongst the major civilisations before 15th century.

  28. Aussie

    @ Alex Yam
    Re: Europeans like Clueless has no idea how a 1billion people country works, their minds simply can’t adjust to that scale.

    Alex has a point. Bejing’s power is limited and applied selectively and indirectly because China is so vast and its economy and political dynamics differ from individual province and county.

    That is why Beijing uses pilot plant trials on economic policy at different locations to assess and learn before it is implemented. The country simply does not possess the Federal and state mechanisms developed by the US thru evolution since independence.

    China, in a sense, is going thru the US “Robber Baron” and pre-civil war era simultaneously because their evolution is so rapid and telescoped.

  29. Clueless

    @ Aussie: I appreciate your civility, something Yam didn’t learn from his pre-SAR education, Just a lot of bitterness obviously; excess baggage produced a very low quality quidnunc.

    Yam’s background noise aside, you are both wrong in that I am not a “Euro” but ethnically Eurasian, the best of both East and West. I had the privilege of grow up and get educated in Asia, Europe and the US. Something Yam has been trying to pry out of me for sometime now. Keep trying grasshopper… I have been in Hong Kong many more times than Yam has been out of it.

    I was not incubated in Honky-nee-SAR. As such, my outlook is not parochial nor experimental. My reason for not divulging my nationality is to avoid bigoted racist thinking. Many thanks for for making my point Yam.

    Aussie, regarding Chinese corruption — nothing new, it is endemic globally across all cultures, classes and ethnic groups. Thus the saying, “absolute power corrupts absolutely”. Which is why I try my best to avoid the ethnic card — we are just humans all of us. The majority who don’t get it, and who have historically chosen to ignore this fall prey to the “divide and conquer” strategy of the global elite. The elite understand this and never underestimate the power of very stupid people in large groups.

    Further, as much as some people like to toot the Chinese horn — look at their elite, their crème de la crème, are they not behaving exactly as the Euro, Anglo, Hispanic and Slavic elites? Same LV’s, Prada’s, Ferrari’s, Romanee Conti, and so on ad nauseum. They are the same bunch of trash humanity with different facial features, and they will do exactly the same as any group they replace. Any serious student of History will validate this.

    China has not clawed itself out of the gutter, their elite have. And the US? The most powerful country in the world? Last I heard 50% of their current population is poor and an their way to becoming “dirt poor”. This is not about American vs. Chinese, or Japanese, or Indian. It is about rich vs. poor and stupid. And if you haven’t figured it out by this time then this is your definition of man:

    MAN, n. An animal so lost in rapturous contemplation of what he thinks he is as to overlook what he indubitably ought to be.

  30. Aussie

    @ Clueless
    Re: Which is why I try my best to avoid the ethnic card — we are just humans all of us.
    China has not clawed itself out of the gutter, their elite have.

    I agree with all you have said and suggest Alex would better advocate his point of view effectively using more civility?

    We are all trying to understand what is goiung on and can only achieve deeper insight thru discourse?

    Any nation with uncontested or without peers hegemony will behave as the US has overtime because we are human. Empires and rulers attest to this flaw in our nature since homo sapiens existed?

  31. Clueless

    @ Aussie: BTW, the flushing sound resounding globally is quickly catching up in China, The Shanghai index has fallen 30% since May, and it is off 60% from its peak in 2008, which in real terms is like Wall Street from 1929 to 1933.

    The difference: Anglo’s, Euro’s and the like are net buyers, while the Chinese net sellers. Buyers no matter how bad the situation have savings, while sellers have little or no savings, they cannot even realistically buy what they produce or sell.

    Case in point, the huge inventory of ghost apartment blocks and cities littering the Chinese landscape. Disneyland included. You cannot eat concrete. Every penny the Chinese government saves, net of corruption and window dressing (empty cities) is allocated to two things, commodities and raw materials. In reality they only have a float of $100 billion of their reserves as a buffer. Next to nothing when you have 1.3 billion people, of which 220 million are malnourished and hungry. How is that for understanding the scale of over a billion people in relation to economics and finance?

    Another thing one must grasp in the game of global brinksmanship is that while the Chinese try to show the world how much money they have saved, the West tries desperately to hide how much it in reality has. They do this to perpetuate the Ponzi scheme. All is not what it seems. Inflation is a tool with the endgame of deflation — it’s how they collect the slippage from the global economy, and they do it cyclically. That is my perspective, and it is open to discourse.

  32. Alex Yam

    @Clueless

    LOL Clueless, that excuse again? That’s like the 3rd time you use that argument. What the hell is “all talk no walk” supposed to mean? Does it somehow make your invalid logic more valid where I live?

    This isn’t the first time Mr. Clueless is at it, his BS goes way back that’s why I don’t even bother being polite to this idiot anymore. I’ve met quite a few people like him, the problem with the likes of Clueless is he thinks he has seen the truth, he knows it all and everyone else is stupid and doesn’t get it unless you agree with him. If everyone follow his advice the world would be perfect because the truth is in his hands. He bases all his conclusions on some immature fantasy on how the world should be instead of how it actually works. At first I was polite to this idiot but eventually I decided I feel much better by simply knock him off his high horse with what I know are facts.

    For those who doesn’t know what we’re talking about, here is where it all started:
    https://emsnews.wordpress.com/2011/04/05/japan-public-begins-to-panic/
    At some point during a heated argument Mr Clueless actually said “Ask God/Lucifer”, that’s when I knew I was dealing with a delusional moron.

    Clueless, there is a saying: “Jack of all trades, master of none”, having being educated in “Asia” doesn’t mean shit if you fail to grasp the simple fact: Chinese has a fixation on being “Complete”. Ask ANY Chinese about this and they can tell you that’s a fact. That’s why I laugh every time I see your theory on how China will split into 4 pieces or something. It doesn’t matter if China turns upside down next year, the Chinese people simply won’t allow any military general to declare independence, he can declare it, but it won’t last long.

    Over the past months, what Clueless kept on repeating was basically:
    “I, as a know-it-all, believe in X and hates Y, so if Y happens in China, then China will break apart.”

    Which I replied:
    “That’s wrong because Chinese aren’t that sensitive about Y at all, what they care about is Z, they key is Z, not Y.”

    Which Clueless replied:
    “IF CHINA IS SO GOOD WHY DON’T YOU LIVE IN THE POOREST PLACE IN CHINA?!?!?! YOU ARE ALL TALK!!!!1!!1!”

    Now if I said Mainland China is the best place on earth to live in, and then I don’t stay there, then Clueless would have a point. But that isn’t what I said.

    Trying to get this simple fact registered in Clueless’s head is like talking to a 3 years old, it’s like there is some logical blind spot he simply refuses to acknowledge. But that’s not surprising since Mr. Clueless is also a member of the “Invisible man in the sky” club, you know, the club that specialize in fighting against logic for 2000 years.

    I am not even going to talk about the stats he keep pulling out of his ass, so many countries on earth has worse stats than China, you don’t see him screaming it’s the end for those countries.

    In the end all of Clueless’s comments can be bottled down into 1 line: “I am better than all of humanity”.

    Perhaps one day he’ll realize he’s just one of them. The 1% he despises actually came from the 99% the first place, that’s why every time history knock 1 of them down, 99 will try to fill the void.

  33. Alex Yam

    More example from Mr. Clueless’s “China will split into pieces soon” album.

    https://emsnews.wordpress.com/2011/05/25/no-money-for-americans-lots-of-goodies-for-israel/

    Clueless
    May 27, 2011 at 12:20 am

    @ Wu Wei: Well said. Let me add, within a few years the yuan will no longer be touted as a dollar replacement — China will have fragmented into 4-6 separate states. Everyday, and very much underreported tthanks to great censorship efforts by the local politburo, there are many little uprisings happening in China. Also, the military and political establishments do not agree on many issues.

    China has made great effort to project itself diplomatically on a global scale, but the truth is it needs to because of its great need for natural resources — to survive. It has to feed the beast.

    Liu is pretty much spot on, except he fails to mention that it is 3rd world Central banks that fall prey to the “Dollar Ponzi” banking regime. One has to keep an eye on the other “hand”, on 1st world Central banks, to get a complete picture.

    ΩΩΩΩΩΩΩΩΩΩ

    ELAINE: Liu is delusional. Have him explain why Japan was so anxious to make the yen weak all this last year.

    Wu Wei
    May 27, 2011 at 6:11 am

    @Clueless,

    Yes, Henry CK Liu completely figured it out. But China breaking down because of it is not something I see happening anytime soon, it’s not in China’s blood. The Chinese realize all too well what predicament they’re in and realize they need to break free from dollar hegemony.

  34. Aussie

    @ Clueless
    Re: All is not what it seems. Inflation is a tool with the endgame of deflation —

    I have difficulty following your line of thought because I don’t understand the economics as you presented.

    The point about the “empty buildings as in the US and Spain” is well said and clearly a very stupid outcome.
    But I suggest the scale can be painfully absorbed by China?

    After all, China is deliberately “killing the real estate bubble” as we write.

    As I understand it, the US, UK and EU (except Germany) are essentially insolvent as is their banks – a point tirelessly explained by our Elaine.
    Whereas, China has a trade surplus that is held hostage by its USD holdings.
    China is also hostage to exports because they have not yet fully replaced export dependency with domestic demand – but it will probably succeed within next few years?

    Whatever their net float be it USD100billion or more is not big for a 1.3billion population.

    I do accept your argument that the US Fed Reserve by printing money has the effect of reducing the value of their loan obligation to China (a covert default) and the inflation of commodities is hurting China.

    China was in poverty only one generation ago and survived.
    History suggest another descent into poverty will not break up that vast civilisation.

    Now China has a wide and competent industrial base and sovereign funds with minute forex obligations that is the hallmark of a creditor nation?

    In my view, they are better positioned to survive setback than the US because they are essentially a cohesive nation.
    Whereas the US is a society with fragile fault lines in their society – witness how the destruction of New Orleans played out.

    Your theme may prove to be correct going forward…but I remain sceptical at this point.

  35. Alex Yam

    @Aussie

    You don’t understand the economics Clueless presented because what he presented isn’t economics, it’s just hogwash.

    This paragraph takes the cake:

    Clueless
    December 20, 2011 at 7:41 am

    Another thing one must grasp in the game of global brinksmanship is that while the Chinese try to show the world how much money they have saved, the West tries desperately to hide how much it in reality has.

    By that logic Greece must be the richest country on earth.

  36. Clueless

    @ Aussie: I will try to keep it simple. When you make the rules and are the decider of when and where the music stops playing, this while printing money at leisure as everyone borrows this money on interest leveraged x10 = deciding when to inflate and when to deflate.

    Everyone plays by the rules, but you are not bound by them and therefore make the play. The Chinese have to play by the rules, they bought into the Ponzi and are holding the biggest bag. The Euro’s pretend to be loosing when in fact they are in the process of creating a secondary fiat currency to augment the current fiat currency that has lost a great deal of credibility having been debased by its willfully ignorant handlers.

    BTW, China is not deliberately killing the real estate market, where did you get that? I am curious.

    Also your view that China can survive falling into poverty again is not realistic, it would be if everything was static. For example, the Chinese population has risen by 200 million people from the time of the Tiananmen square protests 22 years ago. These are people who use iPhone’s, buy designer wear and surf the Internet. They will not go quietly back to tilling the fields and building dams.

    In fact, just today in another mini uprising the police tear gased and beat over 100 residents of Haimen, a town in the province of Guangdong, who are demanding the coal-fired plant there be moved, saying it is damaging their health. Nope, these are not the same subservient proletariat of Comrade Mao. Far from… Multiply this by 100,000 events a year and you get an idea of the scale of the problem.

    That the Chinese have a higher tolerance for pain and abuse than the average American I wholeheartedly agree, but then they also have a short fuse and are not afraid to die fighting for their cause — something that scares the shite out of the politburo.

    Lastly, only a simpleton would believe that logic applies to what is happening. If that were the case then all the Laws of Economics as taught by the great Ponzi educational incubators would be set in stone. We don’t see that happening do we?

    But then, that is why their schemes work, because there is a sucker born every minute, which is why even after thousands of years and dozens od dynasties the same people are getting screwed by their own kind. We live in a feudal world disguised in a myraid of ism’s tailor made to suit the mindset of the proles. I believe History will support this view.

  37. Aussie

    @ Clueless
    Re: The Euro’s pretend to be loosing when in fact they are in the process of creating a secondary fiat currency..
    BTW, China is not deliberately killing the real estate market, where did you get that?.

    The evidence shows that US congress are in policy disarray with regard to how their economy should be revived etc and the same malaise and ineptitude is evident in the EU and the UK.
    I cannot imagine a rational reason why governments risk riots and impose severe hardships on the citizens that result in riots etc.
    Elaine has described the dynamics well in her blogs previously.

    However, it is true to say that severe economic declines does not necessarily mean their country’s industrial infrastructure is physically destroyed.
    Nonetheless, the US over time has physically extinguished many of its industries.
    History does show that sovereign risk can destroy or reduce a nations standard of living or empire and creditor nations rise such as the creditor US from 1850’s to 1970s etc.
    Why do you think debtor countries pay more for borrowings and loses occur on all forms of wealth in such insolvent countries?

    CHINA IS killing its real estate market – some quotes below
    http://www.nytimes.com/2011/11/11/business/global/government-policies-cool-china-real-estate-boom.html?pagewanted=all
    ….The Chinese government is deliberately bringing down real estate prices to improve the affordability of housing and prevent the housing bubble from becoming worse. Premier Wen Jiabao said Sunday that the government had no intention of changing course.

    “We would like to stress that there is no possibility of loosening the real estate policies — our target is to let the property price fall to a reasonable level,” he said.

    The government has pushed up interest rates and set limits on bank lending, deliberately engineering a credit crunch with the goal of slowing inflation as well as making it harder for speculators to borrow money. The government has also limited the number of mortgages for each individual borrower, raised the down payments for mortgages to as much as 40 percent to protect the banking system from losses and begun experimenting with the introduction of real estate taxes in cities like Chongqing.

    Local and provincial governments have taken further measures. The provincial government here on Hainan Island has chilled sales to buyers from other provinces since last spring by requiring that they prove that they either paid income taxes last year or paid into China’s version of Social Security; evasion of these taxes is widespread…..

    http://english.caixin.cn/2011-11-15/100326488.html
    …China’s economic adjustment period is just beginning, and the pressure may intensify over the next few weeks as more companies succumb to a liquidity crunch.

    Inevitably, many in the nation’s business community will argue for government bailouts and a more relaxed monetary policy. They’ll warn about bankruptcies leading to higher unemployment and less social stability.

    But these will be flawed arguments, as China is already in the throes of a structural labor shortage. Workers laid off due to bankruptcies now could be re-absorbed into the labor force in a matter of months.

    Moreover, bankruptcies are an inevitable and proper consequence of the Chinese government’s policy intent, including its two-sided goal to cool consumer price inflation and the property price bubble. Ultimately, over time, the idea is to rebalance the economy.

    If the government caves in to doomsayers by bailing out and loosening now, the past year of monetary tightening will have achieved nothing. The monsters that are inflation and the property bubble will get uglier, haunting China’s economy.

    True, government controls designed to ease inflation have begun to bite businesses in the property sector. Some developers have cut new home prices to increase sales. This is a healthy sign for the future: Downward price adjustments in the sector are necessary and good for the economy.

    But China’s economic slowdown is necessary, healthy, and digestible. Bankruptcies clean an economy of the dead wood that accumulates during a bubble, setting the stage for a fresh cycle of growth.

    China has more than 20,000 property developers, and the economy simply cannot afford all of them. Every one needs credit to stay alive. So if the government really wants to avoid bankruptcies, massive monetary policy loosening will be needed to re-stimulate speculative demand. Money supply must grow at a rate of more than 30 percent if all these developers are to have sufficient sales. That would inevitably stoke inflation.

    China had 4.6 billion square meters of property under construction in the third quarter. Some of that space is tied to government-subsidized housing projects for low-income families, while the commercial side of the business is worth close to 4 billion yuan.

    The total market value of these projects once completed may be around 40 trillion yuan, or 100 percent of the nation’s GDP. Buying this massive inventory will require unprecedented money supply as well as a lot of speculative deal-making.

    This sort of dynamic was responsible for Germany’s hyperinflation period during the last century. German businesses borrowed heavily during World War I, and after the war dodged bankruptcies and saved assets by supporting government-fueled hyperinflation, which wiped away debt. Of course, savers were wiped out, too.

    The right thing to do is to assist healthy developers as they take over dead wood. China only needs about 2,000 developers. More importantly, China’s market should mature to the point where only 20 to 30 very large developers support urban development. This would lower local government costs, and improve the quality and efficiency of the nation’s ongoing urbanization process.

    For now, falling property prices are working like tax reductions on the economy. China’s property sale proceeds go to governments, one way or another, so prices include built-in taxes on the household sector. When prices fall, as they are now, income is redistributed from governments to households.

    A 50 percent new-home price cut may be equal to a 10 percent reduction in taxes. Such a large tax cut would have a significant impact on consumption. Thus, a big property market adjustment could raise consumer spending by one-tenth.

  38. Clueless

    @ Aussie: Thank you for: “…The Chinese government is deliberately bringing down real estate prices to improve the affordability of housing and prevent the housing bubble from becoming worse. Premier Wen Jiabao said Sunday that the government had no intention of changing course.

    “We would like to stress that there is no possibility of loosening the real estate policies — our target is to let the property price fall to a reasonable level,” he said.”

    I missed this. I understand what you are getting at. However, keep in mind that the financial capacity of the Chinese people to buy this real estate even at the current greatly reduced price levels are still, sad to say, way out of reach.

    Two points to consider, 1. a lot of the money borrowed by developers comes from the savings of whole communities (in the areas of development), with a promise of usurious interest rates (60% returns the norm). The developers now cannot honor their obligations and the target buyers are now bankrupt. 2. the target buyers of the developers are now jobless due to the quickly shrinking exports of Chinese industry. The target market is quickly becoming jobless, and food will be the main priority over owning a home. As I said before, you cannot eat concrete.

    I agree with you on tax savings and consumption — but this is not linear or logical. Chinese exports slowed in October, pressured by the “crisis” in Europe, while strong imports served up a reminder of the domestic economy’s demand.

    Exports are down from 17% from November while imports increased 28.7 per cent, accelerating from a 20.7 per cent pace. So China is now in US mode, spending more than it earns, it has turned a significant corner — one that finds it with a $100 billion float as buffer. That is ominous, it cannot bode well for the future, as insignificant as it looks at this time. You have to take into consideration that due to the sheer size of the population the ability to maneuver economically requires deft steering, which will be a tall order considering the new incoming leadership next year. We watch and wait.

    Further, China’s trade surplus widened to $17bn from $14.5bn in October, though that was well below market expectations for a figure closer to $25bn.

    The export numbers illustrate how the European debt crisis has caused real economic damage, Chinese exports to the European Union were down from September. Exports to the US fared better, but that is due to the Christmas season. The next 6 months are going to be severe.

  39. Alex Yam

    BTW, China is not deliberately killing the real estate market, where did you get that? I am curious.

    lol seriously? That’s like asking “the sky isn’t blue, where did you get that”.

    I can’t believe this question was asked by an “expert” of China.

  40. Alex Yam

    @Clueless

    I missed this. I understand what you are getting at. However, keep in mind that the financial capacity of the Chinese people to buy this real estate even at the current greatly reduced price levels are still, sad to say, way out of reach.

    Two points to consider, 1. a lot of the money borrowed by developers comes from the savings of whole communities (in the areas of development), with a promise of usurious interest rates (60% returns the norm). The developers now cannot honor their obligations and the target buyers are now bankrupt. 2. the target buyers of the developers are now jobless due to the quickly shrinking exports of Chinese industry. The target market is quickly becoming jobless, and food will be the main priority over owning a home. As I said before, you cannot eat concrete.

    You’re so out of touch with what’s going on in China I don’t understand why you even bother. The real estate pie in China is so huge there are houses for everybody, you were yapping about empty cities in China earlier so you should know that.

    What you’re describing as “way out of reach” are either a) houses in city areas where supply is low and demand is high – nothing wrong there. or b) Houses owned by greedy parties who own large amount of empty homes and jack up their prices, aka “bubble makers” – for those the government swiftly created a bunch of new laws to crack them down, such as limiting the number of homes each person can own to one, yes ONE, effective almost immediately when announced.

    These “overnight laws” are the kind of swift moves western governments can never pull as they have too many laws/lawyers/class suits/etc tying their hands and too many people crying “unfair” and stop voting. Well some Chinese did cry unfair, there were news of some Chinese real estate agency getting their shops trashed by home owners after they reduce their selling prices to match realistic market expectations, but no one gave a shit, if the bubble must go, then it will be gone. This is what I meant when I said stop applying Sunday-driver logic to a formula 1 car. China’s real estate prices are expected to drop another 30% to 50% in 2012.

    Your other analysts are nothing but statistics shuffling, there is a saying: “There are three ways to not tell the truth: lies, damned lies, and statistics”, it doesn’t matter how many numbers and financial terms you play with, at the end of the day, the US/EU had demonstrated over the past 3 years what happens to your country when you endlessly chase after high speed growth in capitalism, everyone around the world is sinking so the Chinese are no longer chasing after huge high speed growth like they did 5 years ago, yet for some reason your mind set is still stuck in 2007 when you talk about China.

    I also don’t understand the double standards in your logic, for example when the capital of UK had a riot, I didn’t hear you scream about UK will “soon be split into pieces”, when China build up their forex reserves to buy time you said they’re being scammed, but when the Europeans scammed each other you said they did that on purpose. lol whatever, if god/lucifer said so then it must be true.

    You keep forgetting the party owns the military, the government, the banks, the Yuan, and at least 50% of all the big corporations within the country, the entire machine can act as one immediately when needed, don’t apply Europeans rules to China – if you care about the accuracy of your “predictions”.

    Btw, the so called Wukan “unrest” is now officially over, the Wukan people had been asking the central government to help since day one and now they’ve reached an agreement. They’ve removed all their road blocks and canceled tomorrow’s gathering.

  41. emsnews

    The government of China raised the bank reserve ratio in order to stop a real estate bubble. Our economic leaders refused to do this and so the bubble popped due to being out of control.

    And so yes, the decline in Chinese real estate speculation was a government program doing this, not due to being out of control. And once upon a time, our government used to prevent bubbles, too. But lost this ability when the bankers took over Congress.

  42. Aussie

    @ emsnews
    Re: And once upon a time, our government used to prevent bubbles, too.

    The sad thing is the decline is self inflicted and could be reversed when the US re-acquired the will to govern for the people.

    Of course, that would mean the Pro-Israel interests, Military-industrial complex, Financial Real Estate Insurance sector and Pharma interests put in their proper place. This would require completely new elected politicians at Federal and State level as well as most regulatory and law institutions.

    The rot is gone very deep indeed.

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