Showing posts with label South China. Show all posts
Showing posts with label South China. Show all posts

Monday, December 25, 2017

Mystery Buyer Of "Most Expensive Apartment In Asia" Revealed

A month ago, we highlighted a disturbing new record in the Hong Kong real-estate market – a market that received a ranking of “high” from Algebris Investment’s Alberto Gallo in his annual ranking of the world’s biggest asset bubbles.


According to a report in the South China Morning Post, the record price per square foot for a residence in Hong Kong was obliterated when a mystery buyer purchased two apartments in “The Peak” – an exclusive district.


At 132,000 Hong Kong dollars per square foot, the purchases made them the two most expensive apartments in Asia in terms of square footage. In total, the mystery buyer spent an astonishing 1.16 billion Hong Kong dollars (nearly $200 million) on the two apartments.



Today, the name of the mystery buyer has been revealed, courtesy of the South China Morning Post:


The Land Registry on Saturday identified the buyer as Lin Zhongmin, sparking frenzied media speculation about where the person comes from.


 


The two flats on the 12th floor of the exclusive residential development, with a combined area of 8,821 square feet, were sold last month.


 


One flat, measuring 4,242 square feet, fetched HK$560.2 million, or HK$132,060 per square foot, making it Asia’s most expensive residence by floor area. The adjoining flat, measuring 4,579 sq ft, sold for HK$604.2 million, or HK$132,059 per square foot.



According to the SCMP, the name of the buyer is not widely known in Hong Kong. The paper ventured to guess that he is from the main land, meaning the buyer would have to pay a double stamp duty of 15% on one flat plus the basic stamp duty of 4.25% on the other. The total would come to about $110 million Hong Kong dollars.



Whoever Lin is, it’s safe to assume he has a personal wealth in the billions.


“It would be logical to assume that anyone who can afford to spend more than HK$1 billion on two flats would have a personal wealth of at least HK$10 billion,” Vincent Cheung, deputy managing director for Asia valuation and advisory services at Colliers International, said.


"They may not even have bought the flats to live in as they most probably have other homes."


With the purchase of these two apartments, Mount Nicholson now has Asia’s three most expensive homes. In addition to the two bought by Lin, another flat – measuring 4,266 square feet - was sold in November for 500 million Hong Kong dollars ($60 million).


The buyer of that flat was mainland businessman Zhu Xingliang, the founder of Suzhou Gold Mantis Construction Decoration, which is engaged in the interior design, construction and landscaping sectors.


In the global league table, Hong Kong held on to the dubious accolade of being the world’s most expensive place to live for the seventh straight year in 2017, according to Oxford Economics. The median home price was 18.1 times the median annual pretax household income last year.
 









Sunday, December 24, 2017

Nikki Haley Pranked By Russian Comedians: "Putin Absolutely Meddled In The Binomo Election!"

Do you know Binomo?” the impersonator asked. “They have declared independence. They had elections, and we suppose Russians had its intervention.”


“Yes, of course they did, absolutely,” Haley confidently replied.


And with that US Ambassador to the UN Nikki Haley got punked by well-known Russian comedians and professional pranksters Vovan and Lexus (Vladimir Kuznetsov and Alexei Stolyarov) - sometimes called "The Jerky Boys of Russia" - who had previously phone pranked figures ranging from Elton John to Turkish president Recep Tayyip Erdogan to Rep. Maxine Waters to Senators Senators Lindsey Graham and John McCain.


The duo reportedly phoned Haley"s office hours after the UN voted to condemn Trump"s decision to recognize Jerusalem as the capital of Israel on Thursday, pretending to be Mateusz Morawiecki, the prime minister of Poland, in what ended up being a 22-minute conversation.



Image via Agencias


Poland was one among the thirty-fine nations abstaining from the vote and is also set to begin a two-year term as a member of the UN security council - a stance which Haley praised,  tweeting soon after the vote “We appreciate these countries for not falling to the irresponsible ways of the UN." In a somewhat comical and seemingly desperate follow-up to the vote which was an embarrassing and resounding affirmation of American isolation on the Israeli-Palestine issue, Haley then formally invited the 64 countries who either voted "against" or abstained (or just didn"t show up) for Thursday"s UN General Assembly vote on the Jerusalem resolution to a "friendship" party (was "Binomo" on the list of invites?).


So let"s just say it hadn"t been a good week for Haley, who apparently assumes there"s a place called "Binomo" in the South China Sea, and that the ever-treacherous Putin meddled in their elections.  The call continued with Haley, who as one of America"s top diplomats is supposed to be knowledgeable and familiar with all countries across the globe, stating that "we"ve been watching very closely... issues that keep coming up about the South China Sea" - in reference to the mythical Binomo:


“And we’re aware of that. We"ve been watching that very closely. And I think we will continue to watch as we deal with the issues that keep coming up about the South China Sea,” Haley replied.


Continuing with the issue of supposed Russian meddling in democratic elections in various corners of the globe, the Polish PM-impersonator asked Haley whether or not “Putin [will] be aggressive regarding Europe next year?”


“It is hard to know what Russia is doing right now. I think what we have seen in the Security Council and otherwise is they are trying to be relevant in every region and they are trying to have some sort of say in every region,” she replied. “In some cases, it has worked for them and in some cases, it hasn’t. So they don"t have the influence that I think they would like to have but they are certainly trying to get that.”



“I think that many of the other countries, whether it is the Security Council or otherwise, are watching it very cautiously and carefully to make sure that they don"t get too much of a foothold where they can cause chaos,” she continued.


“They are aggressive and they can be difficult to work in the Council... And they [Russia] do try to cause some disruption, but we manage them and we continue to remind them what their place is,” Haley told the ‘Polish PM.’


According to RT News Russia’s Foreign Ministry spokeswoman, Maria Zakharova, took to Facebook to criticize Haley’s rhetoric, saying “Nikki, do you really want Russia to remember all of its ‘places’ in the world?" - while also calling Haley"s perspective “somehow short-sighted” in what was perhaps an ironic understatement. 



The pranksters also inquired whether Haley had heard (the made up claim) that Ukrainian President Petro Poroshenko had accused Kevin Spacey of harassing him in 2015, to which the ambassador replied that she would research it further. 


Though Vovan and Lexus have received widespread media coverage after various pranks within the last couple of years, so far only Russian and independent media have covered the latest Nikki Haley phone call, which Haley"s office has neither confirmed nor denied (and is not likely to address it at all). Regardless, it is a moment where the prevailing culture of "Russiagate" paranoia has resulted in embarrassment for yet another top US official, as Stolyarov (a.k.a. Lexus) told Russian media in an interview, “Nikki Haley is a member of Trump’s cabinet. An ambassador to the UN holds a lot more clout in their country than on ours… It’s very funny when such a person is responsible for foreign relations in the US.”









Monday, December 18, 2017

Is The iPhone X Racist?

A woman in the eastern Chinese city of Nanjing has been offered a second refund after faulty facial recognition software on two iPhone X handsets allowed her colleague to unlock them.



As The South China Morning Post reports, the woman, identified only by her surname Yan, told the Jiangsu Broadcasting Corporation that despite activating and configuring each phone’s facial recognition software, her work colleague was able to get into both devices on every attempt.


Yan said the first time it happened, she called the Apple hotline, but the staff would not believe her.


Shen then went with her colleague to the nearest Apple store, where her colleague used facial recognition on the phone to demonstrate the issue to staff, according to the report.


The store said the camera might be faulty and gave Yan a refund. But the new iPhone X that she bought also had the same problem, prompting the shop to offer another refund, the report said.


No details were given about whether the woman decided to purchase a third iPhone X.


Apple did not respond immediately to a request for comment.


So the question is... does the iPhone X (or its operating system) think all young Chinese women look the same? ... and therefore, is it racist?









Thursday, November 9, 2017

Hong Kong"s IPO Mania Goes White Hot, Drives Up Interbank Rates

IPO mania is gripping Hong Kong and if you’ve been looking for a warning sign that equity markets are close to a peak, just maybe this is it. It was a feature of the Hong Kong market in 2006-07, before the Great Financial Crisis, and in 2000, prior to the bursting of the Dot.com bubble. No surprises, the current mania is also focused on the technology sector. The focal point today is the China Literature Ltd IPO which began trading this morning. The stock price rose as high as HK$110 per share compared with the HK$55 IPO price. No wonder the company’s executives were looking smug.



China Literature is an Amazon Kindle “look-alike”, being the Chinese mainland’s largest publisher of e-books. However, it is also growing its own network of contract writers and owns the rights to well-known Chinese online novels, such as the Grave Robbers’ Chronicles and Ghost Blows Out the Light series. The HK$8.3 billion IPO was more than 600 times oversubscribed with 5% of the city’s population applying for shares. According to Bloomberg.


Hong Kong demand for new share sales has hit fever pitch, with 417,000 people applying for lots in Tencent Holdings Ltd.’s online bookstore unit -- more than 5 percent of the city’s population. China Literature Ltd.’s retail offering was 625 times oversubscribed, according to the company. That locked up at least HK$520 billion ($67 billion), or a third of the city’s monetary base, the South China Morning Post reported. It’s easy to see why the clamor: China Literature’s shares surged as much as 100 percent on their Wednesday debut…"You can tell Hong Kong investors like tech stocks," said Daniel So, Hong Kong-based strategist with CMB International Securities Ltd. "If you’d managed to get the stock, you’d have made a lot of money.”



One signal of the scale of the current IPO mania is that the China Literature had a 200-basis point impact on Hong Kong’s interbank rate, as Bloomberg explains.


Interest in initial public offerings is so intense it’s affecting the city’s interbank rates. The overnight Hibor fixing jumped 2.1 percentage points on Oct. 31, the most in a decade, as investors placed orders for China Literature.




In contrast to some of the Dot.com era’s IPOs, at least China Literature is profitable and has a coherent strategy. It uses “big data” to drive revenues and aims to cross-sell content into other media.  As Bloomberg reports.


China Literature had profit of 213.5 million yuan ($32 million) in the first half of this year, compared with a 2.4 million yuan loss for the same period in 2016, according to its prospectus. The company -- created through the merger of Tencent’s online literature business with Carlyle Group LP-backed Cloudary Corp -- had 9.6 million works and 6.4 million writers as of June 30. Customers can pay for an entire book or buy a few chapters at a time to see if they want to keep reading.


 


“We can study our users’ social network and understand their preference and recommend to them what their friends like to read,” Co-Chief Executive Officer Wu Wenhui said in an interview. “We already have compiled a great amount of user data, which will enable us to study what they like.” The company also wants to leverage its content into other forms of entertainment, such as movies, TV series and anime, as Tencent aspires to create a Marvel-like empire. Shenzhen-based Tencent became China’s second-biggest technology company on the strength of its WeChat messaging app, which since has morphed into a portal for shopping, banking, gaming and consuming entertainment.



China Literature will select some content, and co-invest or co-produce movies or anime series, co-CEO Liang Xiaodong said. He added that his company is closely working with Tencent’s film and video units. “User demand for content is getting very strong, especially original material,” Liang said in an interview with Bloomberg Television. “Our content can easily be converted into movies and games to maximize coverage.”



The China Literature IPO came on the heels of HK’s largest ever fintech IPO, ZhongAn Online Property & Casualty Insurance. ZhongAn raised $1.5 billion and priced at the top end of its valuation range. As Bloomberg notes, there are more tech IPO’s in the pipeline with the focus now shifting to the gaming accessories sub-sector.


China Literature’s IPO follows ZhongAn Online P&C Insurance Co., which went public in September. The first major fintech listing in Hong Kong, and backed by Ant Financial, the owner of Alipay, the retail portion was almost 400 times oversubscribed. Focus will now shift to Razer Inc., a manufacturer of high-spec gaming accessories, which will begin trading in Hong Kong on Monday after raising $529 million.



The Razer Inc. IPO will make co-founder and CEO, Tan Min-Liang, a dollar billionaire. The global gaming market is “hot”, with growth expected to increase by 52% to $160 billion by 2021. Buyers of Razer shares will include Singapore’s sovereign wealth fund, GIC.


If we were to be strictly precise, the ZhongAn IPO was 391 times over-subscribed, while China Literature was 625 times over-subscribed. Consequently, the latter beat out ZhongAn to hold the record for a Hong Kong IPO. We look forward to seeing the metrics for Razer, but Hong Kong IPOs are obviously white hot.


Shouting on deaf ears no doubt, the FT reports that one analyst urged caution.


In recent years, a doubling in the share price on the first day of trading for a Hong Kong listing has been rare. The strong appetite for China Literature stock on Wednesday was driven by retail investors trying to get a piece of what many perceived could be the next Tencent, said Kevin Tam, an analyst at Core Pacific-Yamaichi in Hong Kong.“ They expect this to be Tencent number two,” he added. “Many retail investors missed out on the first Tencent IPO and the 10-times growth.” But Mr Tam cautioned that such expectations for China Literature were misguided. Much of Tencent’s value is locked in its userbase but China Literature has “just a very small slice of that”, he said.


Wu Wenhui. co-chief executive of China Literature, stated that he wants to bring original Chinese literature to a global audience. He might eventually be successful in this but, right now, he"s bringing the melt-up stage in the Chinese bubble to a global audience.
 









Monday, October 2, 2017

Bitcoin Surges Above $4400 As World Realizes Jamie Dimon & China Don't Matter

Bitcoin just topped $4400 for the first time since in over 3 weeks and has now erased all of the plunge losses from Jamie Dimon"s "it"s a fraud" and China"s shuttering of all local exchanges.


It didn"t take long for the world of crypto-currencies to shrug off Jamie Dimon"s self-tighteous denigration of the decentralized currency that could directly "disrupt" his cash cow businesses; and furthermore, as The South China Morning Post reports, China"s bitcoin market alive and well as traders defy crackdown.



As SCMP reports, weeks after Beijing banned fundraising through token launches and ordered some bitcoin exchanges to shut, casting a chill over the cryptocurrency industry, traders say that the market is far from dead.


While several exchanges have announced that they will close by the end of this month, traders have now moved to buy and sell bitcoin directly with each other on peer-to-peer marketplaces and messenger apps.


Although the crackdown has dissuaded large swathes of less-experienced investors from participating in the trade, market participants point to the limits Chinese regulators ultimately face in controlling the industry, where many users are anonymous and difficult to track.


In the short-run, the crackdown has also created an arbitrage opportunity for investors, with the price of bitcoin in China now trading at a discount to overseas exchanges.





“They can’t set rules to stop me from investing in what I want to invest in. They say you are protecting me, but as long as I think this is good, they have no way to intervene,” said a Chinese bitcoin investor named Victor, who declined to give his full name citing current sensitivities.



“I can do over-the-counter trades or I’ll go offshore ... My wallet is my wallet. I’ve never registered my identification card.”



Over 15 exchanges, including the three largest players OkCoin, Huobi and BTCChina, have since announced that they will close their mainland businesses by the end of September.


Trading has spiked generally on peer-to-peer marketplaces, according to data website Coindance. On OTC platform LocalBitcoins, China trading volumes more than doubled in the week starting September 16 from the previous week to 74 million yuan.


It hit an all-time-high in the week starting September 23, reaching 115 million yuan in trades.


“The fact that bitcoin is still being traded is an indication that China isn’t looking to eliminate them, but reposition things in a way to have better control over them,” said Marshall Swatt, the founder of New York-based Coinsetter, a bitcoin exchange acquired by larger peer San Francisco-based Kraken in 2016.

Wednesday, September 13, 2017

This Fascinating City Within Hong Kong Was Lawless For Decades

There are very few places on Earth that remain ungoverned, and even the tiniest islands and city-states tend to have rules in place for things like taxation and citizenship.


Government control is an established reality for most of the world, but what would happen if a neighborhood in your city suddenly became a lawless free-for-all? What type of industries would emerge, and how would people cooperate within that environment to ensure basic services continued to operate?


As Visual Capitalist"s Nick Routley details below, one example from recent history sheds light on just how such a situation could work: Kowloon Walled City.





Kowloon Walled City


Today’s infographic is a fantastic editorial illustration from South China Morning Post from 2013 that takes a detailed look at the inner workings of Kowloon Walled City (KWC).


Often described as one of the most remarkable social anomalies in recent history, this bizarre enclave was more dense than any other urban area on the face of the planet.


Kowloon Walled City Timeline


The story of the KWC site begins in the Song Dynasty (960-1297) when a small fort was constructed to house soldiers who helped safeguard the salt trade. In the latter half of the 19th century, the small fort was expanded into a full garrison town as the threat of a British invasion hung over China.


In 1898, the 99-year lease of Kowloon and the New Territories was established with one exception: the 2.7 hectare walled fortress. Because China never dropped its claim on the site and the British took a hands-off approach, the site became a sort of lawless enclave.


After WWII, squatters began to fill the site and more permanent structures followed. By 1950, the population had grown to 17,000, and by 1990 over 50,000 people lived within a property the size of two rugby fields.


kowloon walled city density people


From Squatter Camps to Functioning Neighborhood


There was a tendency to view KWC is an isolated bubble of vice within the city, but the sheer volume of business activity within the informal settlement shows that outside customers were more than happy to benefit from lower priced goods and services. This symbiosis has few parallels in modern history, and it makes KWC a fascinating situation to look back on.


KWC is best known as an enclave of criminal activity and illicit businesses such as brothels and gambling dens, but that only tells one side of the story. Despite the lack of space and formal links to utilities, the neighborhood was remarkably productive. In fact, KWC was often been described as Hong Kong’s shadow economy because the hundreds of tiny workshops and factories scattered throughout the site provided products for businesses across Hong Kong.


Kowloon Walled City Businesses


People moved to KWC for many reasons, including bankruptcy, poverty, or to avoid deportation. Others went there to take advantage of the lack of law enforcement and regulations.


One prominent example of skirting regulation was the high concentration of dental and medical practitioners operating within KWC. In addition to lower rents, doctors who immigrated to Hong Kong from China could avoid expensive licensing and retraining required by the colonial government. Industrial businesses were free to ignore fire, labor, and safety codes to produce goods at a lower cost, or to sell items that were considered taboo in the formal economy (e.g. restaurants serving dog meat).


Law and Order


Triads acted as a de facto city council by resolving civil conflicts, creating a volunteer fire brigade, and organizing garbage disposal. The tight-knit community within the settlement would also coordinate among themselves to conserve electricity and make repairs to shared infrastructure.


Despite the lack of formally recognized land ownership, people still bought and sold property within KWC. In one example, a construction company struck an exchange deal with the owner of a four-story building. The owner would retain a ground floor flat in a newly constructed thirteen-story building on the site.


The Bitter End


In 1993, after intense rounds of buy-out offers and forced relocations, Kowloon Walled City was demolished and converted into a park. Many of the businesses were forced to close forever as rents in the rest of Hong Kong were not affordable for most of the owners.





All this intensity of random human effort and activity, vice and sloth and industry, exempted from all the controls we take for granted, resulted in an environment as richly varied and as sensual as anything in the heart of the tropical rainforest. The only drawback is that it was obviously toxic.



– Greg Girard, author of City of Darknes

Wednesday, August 23, 2017

Chief Of Naval Operations "Looking Into" Possibility Ships Were Hacked

Authored by Mac Slavo via SHTFplan.com,


Tragedy struck the USS John S. McCain on Monday, when the destroyer collided with a merchant ship off the coast of Singapore, leaving 10 sailors missing and five injured. The US Navy is still struggling to find all of the remains of the missing sailors, and has ordered an operational pause for all naval fleets around the world as investigators try to figure out exactly why this terrible accident occurred.



Among the possible causes that are being looked into, one has a raised a few eyebrows. Over the summer there have been two accidental collisions involving the 7th fleet, and a total of 4 similar incidents this year. This has led some Navy officials to suspect that a cyber attack may have been responsible for the crash, as well as other recent Naval accidents.





The Navy has not ruled out an intentional action behind the latest deadly collision between a Navy destroyer and a merchant ship, the chief of naval operations told reporters Monday.



“That’s is certainly something we are giving full consideration to but we have no indication that that’s the case—yet,” Adm. John Richardson, the CNO, said at the Pentagon.



“But we’re looking at every possibility, so we’re not leaving anything to chance,” he said.



Asked if that includes the possibility the electronic defenses on the guided missile destroyer USS John S. McCain were hacked in a cyber attack, Richardson said investigators will look into all possible causes.



“We’ll take a look at all of that, as we did with the Fitzgerald,” the four-star admiral said, referring to another Navy warship collision with a merchant ship in June near Japan.



So far the Navy has made it clear that there currently isn’t any evidence that the neither USS McCain, nor any other naval vessel, has suffered from a cyber attack. However, there are quite a few top notch cyber security experts who think that all of these collisions probably have something in common.





“There’s something more than just human error going on because there would have been a lot of humans to be checks and balances,” Jeff Stutzman, an ex-information warfare specialist in the Navy, who now works at a cyber threat intelligence company, told McClatchyDC.


 


“When you are going through the Strait of Malacca, you can’t tell me that a Navy destroyer doesn’t have a full navigation team going with full lookouts on every wing and extra people on radar,” he said.


 


Itay Glick, the founder of cyber security firm Votiro, told news.com.au that the possibility of cyber interference was the first thing that came to his mind when he heard about the incident.


 


“I don’t believe in coincidence,” Glick told the website.


 


“Both USS McCain and USS Fitzgerald were part of the 7th Fleet, there is a relationship between these two events and there may be a connection,” he added.



The only other question that remains is, if these collisions were caused by cyber attacks, who is responsible? One likely culprit seems to be China. For years the Chinese government has complained about the US Navy’s presence in the South China Sea, which they claim as their territorial waters. In fact, following the USS McCain’s accident, the Global Times, which is effectively a mouthpiece of the government, claimed that Chinese citizens were celebrating the collision.


It’s also important to consider the fact that many US Naval vessels are riddled with counterfeit parts from China. A Senate led investigation in 2012 found that our ships contained over a million counterfeit parts, mostly of Chinese origin. Obviously, this raises the possibility that the Chinese government may have used black markets to secretly funnel parts to the US Navy, which contain backdoors that are easily exploitable.


But perhaps what’s most telling, is how a state-run Chinese media outlet responded to the USS McCain collision, by suggesting that the US Navy has become a dangerous presence for commercial shipping in the South China Sea.





BEIJING (Reuters) – The U.S. navy’s latest collision at sea, the fourth in its Pacific fleet this year, shows it is becoming an increasing risk to shipping in Asia despite its claims of helping to protect freedom of navigation, an official Chinese newspaper said…


 


…The state-run China Daily said in an editorial on Tuesday that people will wonder why such a sophisticated navy keeps having these problems.


 


“The investigations into the latest collision will take time to reach their conclusions, but there is no denying the fact that the increased activities by U.S. warships in Asia-Pacific since Washington initiated its rebalancing to the region are making them a growing risk to commercial shipping,” it said.



There’s no proof that China has been hacking our ships, but the possibility can’t be ruled out.

Tuesday, August 8, 2017

Escaping The Madhouse

Authored by Jeff Thomas via InternationalMan.com,


In the late 17th century, we British decided that, as a humanitarian effort and public service, we’d collect up all the people from the towns and countryside who were bonkers and confine them in institutions, so that society could be protected from them.


As so often proves the case, the idea of a collective solution to an individual problem is doomed to failure from the start.


There are many problems with madhouses. First, they need funding and, of course, the entity that receives the funding is likely to prefer skimming off whatever they can, rather than spending it on the inmates. Second, the sort of people who apply to become staff are often not the most desirable, and in fact are often dangerous. Third, one madman might be a social problem, but what happens when you throw them all in together? Are conditions likely to make them less mad or more mad? (I would suggest the latter.)


When I was a teenager, I had the dubious pleasure of visiting a state-run madhouse—the maximum-security ward, where all the most violent inmates were kept.


I’d been asked to visit a short-term inmate named Billy, who’d been committed to the mental institution for a month as punishment for a petty crime. My purpose was to hopefully raise his spirits, but my one visit there provided me with insight that I couldn’t have gained otherwise and has stayed with me for life.


I was taken through several layers of security before being led through a series of heavy steel doors into a large room. There were tables and chairs in the middle and beds along the walls. About fifteen men were talking congenially in small groupings.


I sat down with Billy. Although we weren’t friends, he was glad to have a visitor, and the men with him were also glad to see a new face. One man was having a lunch that had been sent by a relative, and he insisted that I have his dessert, a cupcake. He seemed quite a nice guy, although I later learned from Billy that he had been a schoolteacher and was sentenced for life, having butchered his mother and a female pupil.


Billy advised me that all of the inmates were easy to get along with, but most were relatively paranoid and could “go off.” He said that there had recently been a bloodbath in the ward, so everyone was enjoying a week or two of calm, hence the friendliness of my reception.


However, soon, each inmate would begin to wonder if any of the others had managed to make or find a weapon. The more they worried, the more they’d try to get a hold of a weapon or make one themselves. After a month, it would be assumed that most of the men had a weapon of some sort. After two months, it was assumed that they all now had hidden weapons, and tension would be building. Conversations would diminish over time, and each man would become increasingly withdrawn.


At some point, the paranoia would become so great that some errant word or small gesture by an inmate would inadvertently trigger violence in another inmate. When this happened, it became every man for himself immediately. They’d all reach for their weapons, and there would be a bloodbath. Some would try to hide in corners, whilst others would attack whoever might be near to them.


Afterward, the weapons would be collected by the orderlies and those wounded would be taken to hospital. For a time, the survivors would return to congeniality—happy that there were no more weapons, allowing them a “normal” social life with each other.


My visit was brief, only an hour or so and, during that time, all the inmates were quite calm and polite to me. I was perhaps nineteen at the time and, later, I mentally compared my rather privileged upbringing with the life of those committed to the asylum. I decided that, if I were ever in a situation that might result in my becoming an inmate in such a place, I’d exit the situation as quickly as possible, before I was trapped in such a deplorable institution.


*  *  *


So. Fast-forward to the present day, and we witness the US government providing a regular stream of misinformation on the Middle East, Russia, China, and pretty much any nation that poses any economic threat to the present American hegemony.


The network news in the US is clearly eating this up and expanding upon it—not only crying wolf, but using a bullhorn to do it. The US has more 24-hour news programmes than any other nation, and many of them spend over 90% of their time warning of the dangers of Russia and other “enemies.”



It can truthfully be said that, when an empire slides into decline, the leaders almost always opt for war, partially because it creates a distraction from political misdeeds and partially because most people will get behind their government, no matter how flawed, if there’s a war on.


This is clearly the case in the US today.


The rhetoric-attack against other nations has largely succeeded in convincing Americans that Russia, China, the Middle East, etc. are “out to get us.” Russia and China, in particular, have consistently tried to expose the lie of this rhetoric, but their efforts are never reported on the US programmes, so the average American has no idea that he’s being lied to on a wholesale basis by his government and the complicit media.


Virtually every news item that’s reached the American ear as to developments in Ukraine and Syria has been falsely reported by the US news, to the point that many Americans believe the US should “go in and straighten them out.”


The creation of islands in the South China Sea by the Chinese, which they have held claim to for hundreds of years, has allowed US military “experts” to declare repeatedly on the news that “We can’t allow the Chinese to expand into the South China Sea.”


And, of course, the US, in the last sixteen years, has invaded or bombed Afghanistan, Iraq, Syria, Libya, etc., under the dubious claim of “keeping the world safe for democracy.”


Again, cooler heads on the other side of this equation have done all they can to calm down the rhetoric. Even US allies in Europe, such as the French and Germans, have refused to endorse US sanctions against the Middle East and Russia, for fear that they might be dragged into not only a trade war, but possibly a shooting war.


In such an atmosphere, it’s no wonder that the world in general is ramping up its storehouse of weaponry. As America celebrates the creation of a new aircraft carrier, the rest of the world does what it can to quietly build up its own arsenal, “just in case.”


This, of course, is what foments wars, even world wars.


When all the inmates begin to realise that tension is building and the other inmates now have lethal weapons, the question is no longer, “Can I win against them?” but, “Can I afford not to do all I can to protect myself, no matter the outcome?”


This reveals a basic failing of empires - the assumption that they’ll force other nations to cave in to their threats. The opposite is in fact true. Once everyone is trapped in the madhouse together, the moment the violence is finally triggered, all the inmates reach for their weapons. And what happens after that is anybody’s guess.


I’ve spent the balance of my life avoiding madhouses by living in countries that are not rooms within the madhouse. Today, the US is heating up the world to a dangerous degree, and those who don’t wish to be trapped in the madhouse when the tension boils over might be advised to seek a safer place to live before the panic occurs.


*  *  *


Doug Casey, the original International Man, literally wrote the book on “escaping the madhouse.” Now Doug is sharing his strategies in a special video. Click here for the details.

Sunday, July 2, 2017

The American People Are The Number One Target: "They Are Tightening The Screws"

Authored by Jeremiah Johnson (Nom de plume of a retired Green Beret of the United States Army Special Forces ) via SHTFplan.com,



A little more than a week ago it was announced that Whole Foods was bought by Amazon.com for just under $14 billion.  One of the major problems with this is that Jeff Bezos, the head of Amazon has deep ties with the CIA and the Federal government.


Wal-Mart being fully in the government’s pocket and now Whole Foods brought under thumb as well, how much longer before Kissinger’s “Food as a Weapon” principle is brought to bear?  A good article was just released by Jon Rappaport entitled Buy your food from the CIA: Amazon buys Whole Foods, that is worth reading.


As if that connection is not nefarious enough, there is more: it appears a new cloud technology is being produced for the CIA from…you guessed it…none other than the CIA, as is excerpted here:





The intelligence community is about to get the equivalent of an adrenaline shot to the chest. This summer, a $600 million computing cloud developed by Amazon Web Services for the Central Intelligence Agency over the past year will begin servicing all 17 agencies that make up the intelligence community. If the technology plays out as officials envision, it will usher in a new era of cooperation and coordination, allowing agencies to share information and services much more easily and avoid the kind of intelligence gaps that preceded the Sept. 11, 2001, terrorist attacks.



“The Details About the CIA’s Deal with Amazon,” - www.theatlantic.com    6/17/17



Guess the data center that ran taxpayers billions that is in Utah is not enough, nor the fusion centers in every state.  Did you like “…a new era of cooperation and coordination…” between the friendly agencies?  And all to “avoid intelligence gaps,” just for your protection, right?


Wrong.


They are tightening the screws, little by little, while they refine all the control mechanisms and place that security web over their number one target: the American people. 


They are taking control of the food supply incrementally.  Water?  Yes, here in Montana, the state just sent out a form for property owners to declare their water rights…as the CKST (Confederated Kootenai &Salish Tribes) Water Compact was passed into law in Montana in 2014.  Actions will be taken within the next two years.


As enumerated in other articles, Montana kicked in $3 million after the liberals in the state House and Senate, as well as the liberal governor, Bullock (D, MT) signed the water compact into law.  The shortfall is $8 million, as the total state commitment was $11 million.  They are just waiting for the Senate to ratify this as a Federal treaty, and then they can (ostensibly on “behalf” of the Indian Tribes) place meters on everyone’s wells…off of the reservation…and “manage” the water on behalf of the Indian Tribes…enforced by DHS.


This is a small slice of the country as a whole.  They are following full speed ahead with the Agenda 21 Directive to take over everyone’s food, water, land…everything.  A war will surely enable them to throw the Executive Order 13603 into action to confiscate and control every resource in the United States, including human labor…slave labor, to be precise.  Incrementally they place these laws into effect, and the stultified public, thinking only of the next barbeque and fireworks party is dumbed down into inactivity.


There’s enough going on in the international arena that is capturing everyone’s attention, such as North Korea’s missile tests and threats, China’s aggressive South China Sea/Senkaku islands maneuvering, and the Syrian debacle unfolding with the U.S. ratcheting up the tough-talk of blaming Russia and Iran for any “Syrian chemical attack” that comes along.  Russia also just deployed a new satellite, and there is the possibility that in a televised broadcast, he sent out a message to “sleeper” agent in the West.  See the article by Stefan Stanford entitled Vladimir Putin sends message to ‘Russian Sleeper Agents’ in West as Russia Launches Top Secret Military Satellite.


“Hammer and Anvil” usually refers to a military maneuver to crush an enemy force between two friendly elements.  This maneuver is being employed here and now, as well: either crush the United States and enslave its people domestically, with an economic collapse or civil war, or just initiate a war with another country and enslave the citizenry afterward.  Either way, they are pushing their agenda forward each day.  It is just a matter of time to find out which of the two vehicles…international war or domestic tyranny…that they will employ to obtain their globalist and totalitarian objectives.

Thursday, May 11, 2017

Chinese Black Swans? No Problem!

With bonds, stocks, and commodities collapsing amid a renewed wave of Chinese monetray conditions tightening, concerns over potential butterfly effects and potential "black swans" are beginning to appear. However, as The South China Morning Post reports, the people of Shanghai have a solution for that...



Two deliverymen have been accused of stealing a black swan from a park in Shanghai and cooking and eating part of it, according to a TV report.


Residents living near Xujiahui Park noticed that one of five black swans living in the area was missing, Radio and Television Shanghai reported.


Surveillance footage showed the pair grabbing the swan late at night.



The men, whose full names were not given, had originally planned to catch fish, but were deterred by security patrols in the park. The bird died before the men got it home and they then boiled its carcass and froze it, according to the report. The following day they cooked it with carrots, ate half, but threw the rest away because it tasted bad. The men have been arrested by the police for hunting and killing a protected species, the report said.


*  *  *


On a serious note, we have come to expect this kind of behavior from the increasingly despeate Venezuelans, but if this is becoming the norm in Shanghai, then China"s problems run far deeper than collapsing capital markets.

Wednesday, April 12, 2017

Viral Video Shows Chinese Warehouse Where Humans Were Replaced By Robots

Even as talk about robots taking over low-(and not so low) skilled jobs has been all the rage in recent months, few Americans have been faced with the imminent threat of being displaced by Johnny 5. Not so in China, where a viral clip released by the local TV broadcaster shows an army of little orange robots sorting out packages in a warehouse in eastern China, the latest example of how machines are increasingly taking over menial factory work in the world"s most populous nation.


The People’s Daily shared the behind-the-scenes footage of the self-charging robot army in a sorting centre of Chinese delivery powerhouse Shentong (STO) Express. The video, also released by the SCMP, shows hundreds of round Hikvision robots,  each roughly the size of a seat cushion,  swivelling across the floor of the large warehouse in Hangzhou. A worker is seen feeding each robot with a package before the machines carry the parcels away to different areas around the sorting centre, then flipping their lids to deposit them into chutes beneath the floor.



The robots identified the destination of each package by scanning a code on the parcel, thus minimising sorting mistakes, according to the video.


The army of robots can sort up to 200,000 packages per day and are self-charging, so they can work 24/7, although they are presently used only for about six or seven hours each time from 6pm according to a STO Express spokesman.


An STO Express spokesman told the South China Morning Post on Monday that the robots had helped the company save half the costs it typically required to use human workers. They also improved efficiency by around 30% and maximised sorting accuracy, he said.


“We use these robots in two of our centres in Hangzhou right now,” the spokesman said. “We want to start using these across the country, especially in our bigger centres.”


Manufacturers across China have been increasingly replacing human workers with machines, for one simple reason: Chinese wage growth is soaring with average wages in China"s manufacturing sector rising above those in countries such as Brazil and Mexico.



Meanwhile, the output of industrial robots in the country grew 30.4% last year. In the country’s latest five-year plan, the central government set a target aiming for annual production of these robots to reach 100,000 by 2020.


Elsewhere, Apple’s supplier Foxconn last year replaced 60,000 factory workers with robots. The Taiwanese smartphone maker has several factories across China, with the bulk of the hundreds of thousands of employees set to be rep[laced by robots.

Wednesday, April 5, 2017

Why Trump's First War Is Probably Going To Be A Conflict With North Korea

Authored by Daniel Lang via SHTFplan.com,


By now most people are completely desensitized to stories involving North Korea (just look at the lack of mainstream media coverage of tonight"s missile test-launch). One can only hear about so many blustering threats, missile launches, and state sanctioned executions, before those incidents are no longer surprising. Over the years we’ve seen it all, and most folks don’t really pay much attention to what’s going on in the Hermit Kingdom. That’s unfortunate, because they’re not paying attention as the Trump administration inches towards war with North Korea.



The first definite sign that the current administration was going to take a different approach to North Korea, was when Secretary of State Rex Tillerson stated emphatically last month that “all options are on the table.”





“Let me be very clear. The policy of strategic patience has ended. We are exploring a new range of diplomatic, security and economic measures. All options are on the table,”


Tillerson told reporters during a joint news conference with South Korean Foreign Minister Yun Byung-se on Friday.



“Certainly we do not want to, for things to get to military conflict,” Tillerson said.



However, he went on to say that “if they (North Korea) elevate the threat of their weapons program to a level that we believe requires action, then, that option’s on the table.”



He added that a “comprehensive set of capabilities” is being developed to deal with the country.



And at least one of those options is already in place. Before that interview even took place, US special forces were already training to decapitate the North Korean regime.


Despite that threat, North Korea has refused to back down on their nuclear program, and for good reason. Kim Jong-un’s regime believes that they won’t be safe from foreign invasion unless they have a nuclear tipped ICBM that can be launched at targets that are thousands of miles away.


The US government on the other hand, has taken a different position. Our government believes that North Korea can’t be trusted with that kind of military capability. In a sense both sides are correct, but clearly those opinions are diametrically opposed. Unless one side backs down, there will be war before North Korea demonstrates that it can launch a nuclear tipped ICBM.


And President Trump has tacitly admitted that he’s willing to go to war with North Korea. During a recent interview with Financial Times, he stated if China can’t or won’t reign in North Korea, then our government is willing to “act alone.”





POTOMAC FALLS, Va. (AP) — President Donald Trump says that the United States is prepared to act alone if China does not take a tougher stand against North Korea’s nuclear program.


 


Trump’s comments in an interview with the Financial Times come just days before he is set to host Chinese President Xi Jinping at his Mar-a-Lago estate in South Florida. The two are expected to discuss a number of issues, including North Korea, trade and territorial disputes in the South China Sea during their meeting on Thursday and Friday.


 


“Yes, we will talk about North Korea,” Trump told the newspaper for a story that appeared Sunday on its website. “And China has great influence over North Korea. And China will either decide to help us with North Korea, or they won’t. And if they do that will be very good for China, and if they don’t it won’t be good for anyone.”



Without China’s help, there can’t be any peaceful resolution with North Korea, because China is the closest thing to a friend that country has on the global stage. Unfortunately, there isn’t much of a chance that China is going to defang this regime anytime soon. If they could they would have done so a long time ago. They may enjoy having a communist buffer state between their capital and an American ally in the south, but they don’t want to live right next door to a certifiably insane regime with nuclear weapons.


I don’t think that China could ever convince North Korea to give up its nuclear program. Kim Jong-un saw what happened to countries like Libya and Iraq after they abandoned their WMD programs. And North Korea is probably just as afraid of regime change at the hands of China as they are of America, because China would prefer a buffer state that is much more obedient and prosperous (and you know, not armed with nukes that at the command of a lunatic). Even North Korea’s closest friend is kind of an enemy, and they need capable nukes to defend themselves from China as well.


So if China can’t convince them to give up their nukes, and the United States won’t tolerate a nuclear armed North Korea, then there’s only two possible outcomes. Either our government is going to blink in this standoff, or there’s going to be war.

Anti-Government Vandalism Hits Trump Golf Course At Worst Possible Time

Via TheAntiMedia.org,


Kicking off what CNN called “the most crucial week of statesmanship so far” for the new U.S. president, NBC Washington reported Monday that police in Virginia are investigating a striking piece of vandalism at the Trump National Golf Club.



From that report:





Vandals dug holes in the club’s 13th fairway of the club’s Championship Course, spray-painted parts of the course and poured a chemical, believed to be bleach, on the grass, said the Loudoun County Sheriff’s Office.”



Continuing, NBC explained what makes the vandalism so profound:





“The word ‘resist’ was spray-painted on the fairway and symbols associated with anarchists appeared to have been spray-painted and dug into the course.





The incident was reported Saturday morning, a day ahead of a scheduled golf game at the course between President Trump and Senator Rand Paul.


When CNN said this would be a challenging week for the president in terms of diplomacy, it was referring to the fact that on Friday, Trump is set to sit down with the most powerful world leader he’s faced yet — China’s President Xi Jinping.


U.S. tensions are high with China, with territorial disputes in the South China Sea and concerns over global financial markets pitting the two superpowers in a standoff.


It can’t look good for the Donald, then, to have a rival world leader in town days after an anti-government group publicly exhibited such a bold statement in opposition to his rule — and on the man’s own soil, no less.

Friday, March 31, 2017

Is War Between U.S. And China Brewing In The South China Sea?

Authored by James Holbrooks via TheAntiMedia.org,



Adding fuel to an already highly combustible situation in Southeast Asia, Reuters reported Tuesday that China has “largely completed major construction of military infrastructure on artificial islands it has built in the South China Sea,” and that the Asian superpower “can now deploy combat planes and other military hardware there at any time.”


Citing satellite imagery analyzed by the Asian Maritime Transparency Initiative, part of Washington, D.C.’s Center for Strategic and International Studies, the news agency writes that “work on Fiery Cross, Subi and Mischief Reefs in the Spratly Islands included naval, air, radar and defensive facilities.”


Sticking to the mainstream narrative that China is an aggressor in claiming sovereign rights to the majority of the South China Sea, Pentagon spokesman Commander Gary Ross says the new images confirm what the U.S. military already knows.





“China’s continued construction in the South China Sea is part of a growing body of evidence that they continue to take unilateral actions which are increasing tensions in the region and are counterproductive to the peaceful resolution of disputes,” he told Reuters.



China, as it has repeatedly, downplayed this notion and stuck to the position that it’s simply erecting defensive infrastructure within its own borders, as would any nation.





“As for China deploying or not deploying necessary territorial defensive facilities on its own territory, this is a matter that is within the scope of Chinese sovereignty,” Foreign Ministry spokeswoman Hua Chunying said at a press briefing Tuesday.



Despite comments such as these — and the very real fact that China hasn’t actually invaded anyone — the corporate media jumped on the news of the new images.


Forbes, for instance, ran a piece that essentially listed all the reasons why China is a really bad actor in the region, and CNN talked to analysts who explained how the military buildup on the artificial islands will be gradual as China continues to exert its authoritarian influence over neighboring countries.


That’s the narrative. Believe as you will.


But the reality of the situation in the South China Sea - all geopolitical analysis aside - is that there’s about to be a hell of a lot of military hardware in those waters.


As Anti-Media has been reporting, U.S. forces are already in the region, taking part in joint drills with ally South Korea that will last until the end of April. Then, at the beginning of May, Japan — another U.S. ally — will sail its navy’s most powerful warship through the South China Sea on a three-month tour.


That means that just as the joint drills with South Korea end — which, incidentally, units from Delta Force, the Navy SEALS and Army Rangers are taking part in — Japan will shove off a warship aimed at waters claimed by China.


If that timing seems a little curious, also consider that the U.S. just deployed its Terminal High Altitude Area Defense (THAAD) missile system in South Korea, which both China and Russia cared none too much for.


With China showing no signs of backing away from its stance in the South China Sea — both ideologically and physically —  and with the corporate media willing and eager to push the “evil China” narrative that the U.S. military appears hell-bent on capitalizing on, it appears the long-dreaded collision course with China may, indeed, be not far off on the horizon.

Sunday, March 26, 2017

Caught On Tape: Hong Kong's Longest Escalator Suddenly Reverses At High-Speed; Injures 18

Rescue workers rushed to Langham Place (a bustling shopping mall in Mong Kok, Hong Kong) after the one of longest indoor escalators in the city stopped and reversed at high speed on Saturday afternoon.



Video footage obtained by The South China Morning Post showed the 45m long escalator quickly changed directions at high speed, causing people to fall and pile up at the base of the escalator.



In another video, some people could be heard screaming as others tumbled down the escalator. Others managed to grab the handrail and steady themselves.



Eyewitnesses said the 14 women and four men lost their balance and rolled down the escalator. A police spokeswoman said one man suffered a head injury and was sent to Queen Elizabeth Hospital.



A Langham Place spokesperson told Apple Daily that the escalator in question received a regular inspection every two weeks. The most recent inspection was conducted on Thursday, and showed that all mechanical parts operated normally.





“I was going up the escalator, and it was like two times faster than normal,” a woman who injured her leg said at the scene.



“I heard people screaming...the escalator was going down but the speed accelerated,” the woman, who identified herself as Tina, said.



“People started to panic... and some fell down.”



She recalled that the same escalator had stopped for a few minutes earlier in the day, around noon.



Langham Place, located at the heart of the busy Mong Kok shopping district, opened in 2004. The mall contains two long escalators from the fourth to the eight floor, and from the eight to the 12th.

Wednesday, February 22, 2017

China Opposes "Threatening And Damaging" US Carrier Patrols In South China Sea

One day after the US announced it had dispatched the USS Carl Vinson aircraft carrier group in the contested South Chine Sea on "routine" patrols (through a post on the aircraft carrier"s Facebook page), China responded and predictably, it wasn"t thrilled. In a statement by the foreign ministry, Beijing said on Tuesday that it opposed action by other countries "under the pretext of freedom of navigation" that could "threaten and damage" its sovereignty, a clear reference to US patrols in territory that China considers its own.



"China always respects the freedom of navigation and overflight all countries enjoy under international law," Chinese foreign ministry spokesman Geng Shuang said at a daily news briefing. "But we are consistently opposed to relevant countries threatening and damaging the sovereignty and security of littoral countries under the flag of freedom of navigation and overflight," Geng said in China"s first official comment on the latest U.S. patrol since it began.


Without explicitly naming the US, Geng said that "we hope relevant countries can do more to safeguard regional peace and stability."


For the time being, the U.S. carrier strike group has not referred to its recent operations in the South China Sea as "freedom of navigation" patrols, although it will likely have to justify its presence in the region in the coming days, especially if confronted with Chinese naval forces.  As Reuters adds, U.S. ships last year conducted several such patrols to counter any efforts to limit freedom of navigation in the strategic waters.


Meanwhile, China just wrapped up its own naval exercises in the South China Sea on Friday. War games involving its own aircraft carrier have unnerved neighbors with which it has long-running territorial disputes. Beijing most recently warned Washington against challenging its sovereignty in the South China Sea last week. It claims almost all of the resource-rich waters, through which about $5 trillion worth of trade passes each year.




At the same time, Brunei, Malaysia, the Philippines, Taiwan and Vietnam also claim parts of the South China Sea that command strategic sea lanes and have rich fishing grounds, along with oil and gas deposits.


The United States has criticized China"s construction of man-made islands and build-up of military facilities in the sea, and expressed concern they could be used to restrict free movement. Foreign ministers of the Association of South East Asian Nations (ASEAN) on Tuesday expressed concern over what they see as militarization in the South China Sea, Philippines Foreign Secretary Perfecto Yasay said after meeting with his ASEAN counterparts.


While tense relations between the Trump administration and Beijing have eased in recent weeks, following Trump"s concession that he would observe the "One China" policy, the long-running and on occasion violent tensions over the contested naval territories have little hope of resolution for the foreseeable future.

Friday, February 10, 2017

US, China Military Aircraft Have "Unsafe, Close Encounter" Over Contested Islands

After years of "close encounters" of the Russian-kind, it appears the US military has found a new nation to fly close to.



Nine months after China demanded US "immediately cease" spying near its borders...





"It must be pointed out that U.S. military planes frequently carry out reconnaissance in Chinese coastal waters, seriously endangering Chinese maritime security," China"s Foreign Ministry spokesman Hong Lei Hong told reporters, adding that  "we demand that the United States immediately cease this type of close reconnaissance activity to avoid having this sort of incident happening again."



CNN reports that two US defense officials confirmed that there was an "unsafe" close encounter between a US Navy P-3 Orion aircraft and a Chinese surveillance aircraft Wednesday in the general vicinity of the contested Scarborough Shoal in the South China Sea.



One official said the Chinese plane was a People"s Liberation Army Air Force KJ-200.



CNN reports the two planes flew within 1,000 feet of each other in the general vicinity of the contested Scarborough Shoal in the South China Sea.



A second official said that the American P-3 had to alter course to ensure that there wasn"t an aerial collision.


A spokesperson for US Pacific Command, which oversees US troops in the region confirmed, the incident, calling it "unsafe" in a statement provided to CNN.





"The U.S. Navy P-3C was on a routine mission operating in accordance with international law," Maj. Rob Shuford said.



"The Department of Defense and US Pacific Command are always concerned about unsafe interactions with Chinese military forces," he added.



"We will address the issue in appropriate diplomatic and military channels."



While the Navy considers the encounter to be "unsafe," it does not assess that any malign intent was behind the incident, though the event was considered serious enough to be raised up the chain of command.


The official called encounters between US and Chinese aircraft like the one that took place Wednesday "extremely rare," noting that there were zero such incidents in 2015 and two in 2016. It was the first such instance of 2017.


We look forward to China"s official response tomorrow, especially considering President Trump"s positive outreach earlier today.

Wednesday, February 1, 2017

This Won't End Well - China Skyscraper Edition

China has been on a skyscraper-building boom for years, but, we suspect, 2016 may have seen the mal-investment boom jump the shark.


As Goldman Sachs illustrates in the following chart, China was head, shoulders, knees, and toes above the aggregate of the rest of the world in terms of skyscraper completions in 2016...



Could record-setting skyscrapers signal economic over-expansion and a misallocation of capital?


EWN Interactive, a subscription service focused on technical analysis, thinks so. The following infographic follows the “Skyscraper Curse” through six different market tops and subsequent crashes over the past century.


It is gigantic in size, so please click here or the below image to access the legible version:




EWM Interactive sums up the infographic with these words:





In the market, extreme optimism results in price bubbles. One of the real-life manifestations of extremely positive social mood is the construction of enormous buildings. Market tops and skyscrapers often seem to emerge simultaneously, because both phenomena are the result of the illusion of infinite prosperity.



But extreme psychological conditions do not last very long. That is the reason why record-breaking buildings, whose construction starts during a market bubble, are often completed after the bubble’s collapse.



*  *  *


In January we noted a perfect example of the smoke-and-mirror-ness of China"s credit-fueled expansion, as a 27-storey high-rise building which was completed on November 15th 2015 was just demolished, "having been left unused for too long."



And just this week, another illustration of Keynesian perfection as China created, then destroyed 19 massive structures, to make room for an even bigger skyscraper. The epic explosion that took place in Wuhan, the capital city of Hubei province, leveled 19 seven to 12-story structures in a controlled demolition, the South China Morning Post newspaper reported, citing local media. The city authorities are planning to demolish at least 32 buildings to make way for a new business center that will reportedly feature a 707-meter tall skyscraper, which is to be one of the tallest buildings in the world.



*  *  *


The silver-lining - now workers can clean up the mess, dig a bigger hole... and fill that in - all in the name of Keynesian "growth."


Thursday, December 22, 2016

Chinese Multibillionaire Defaults On Retail Bonds Due To "Severe Cash Crunch"

Italy"s Monte Paschi isn"t the only institutions that is about to soak retail investors who thought that two bailouts for Italy"s third biggest bank in two years wouldn"t be followed by a third nationalization in year #3. According to the South China Morning Post, a Chinese multi-billionaire businessman has defaulted on bonds worth a paltry 100 million yuan ($14.4 million) that he raised from retail investors, citing "tight cash flow", according to reports.


Wu Ruilin, chairman of the Guangdong based telecom company Cosun Group, has a personal fortune of 98.2 billion yuan, or just over $14 billion, China Business News (CBN) reported citing an audit by a third party. That makes Wu wealthier than Baidu’s founder Robin Li, who has 98 billion yuan and is ranked 8th on the Hurun Rich List 2016.


And yet, despite the founder"s personal fortune, according to a notice put up by the Guangdong Equity Exchange on Tuesday, two subsidiaries of Cosun Group are each defaulting on seven batches of privately raised bonds they issued in 2014. According to the notice, “the issuer had sent over a notice on December 15, claiming not to be able to make the payments on the bonds on time, due to short-term capital crunch.”


The good news, is that Wu is allegedly making unlimited guarantees for the principal and interest on the bonds with, what SCMP calls, "all of his legitimate wealth." Meanwhile, Zheshang Property and Casualty Insurance Company is responsible for the bonding insurance that guarantees scheduled payments of interest and principal on the bond, the notice said.


The bad news is that neither Wu nor the insurer had put the payments into the relevant account by 5 pm on Tuesday, according to the exchange notice. Although the bourse did not specify the value of the bonds, CBN said they were together worth around 100 million yuan.


SCMP adds that calls to Cosun went unanswered on Wednesday.


Philip Sun, an analyst with central China based JZ Securities, said it made no sense for Wu to “purposely defaults on the bonds” as it would “severely affect his credit and make institutional investors panic”, which would create bigger problems for him.


“Either he was building his business on high leverage, or he is determined to count on the insurer, but it is for sure he really has a severe cash crunch,” said Sun. CBN reported, somewhat redundantly, that some investors said they would sue Cosun and Wu Ruilin himself.


Still, one wonders if the (formerly) prosperous company of a Chinese billionaire is on the verge of bankruptcy due to a "severe cash crunch", just how bad is the cash crunch behind the scenes in China, and how much longer can the PBOC keep keep the charade that all is well going?