• Tag Archives China
  • Bond Market Bulls Embrace China Debt Downgrade

    It appears credit ratings agencies simply get no respect…
    Four months after Moody’s downgraded China to A1 from Aa3, unwittingly launching a startling surge in the Yuan as Beijing set forth to “prove” just how “stable” China truly is through its nationalized capital markets, S&P followed suit this week when the rating agency also downgraded China from AA- to A+ for the first time since 1999 citing risks from soaring debt growth, less than a month before the most important congress for Chiina’s communist leadership in the past five years is set to take place. In addition to cutting the sovereign rating by one notch, S&P analysts also lowered their rating on three foreign banks that primarily operate in China, saying HSBC China, Hang Seng China and DBS Bank China Ltd. are unlikely to avoid default should the nation default on its sovereign debt. Following the downgrade, S&P revised its outlook to stable from negative.
    ‘China’s prolonged period of strong credit growth has increased its economic and financial risks,’ S&P said.
    ‘Since 2009, claims by depository institutions on the resident nongovernment sector have increased rapidly. The increases have often been above the rate of income growth. Although this credit growth had contributed to strong real GDP growth and higher asset prices, we believe it has also diminished financial stability to some extent.”
    According to commentators, the second downgrade of China this year represents ebbing international confidence China can strike a balance between maintaining economic growth and cleaning up its financial sector, Bloomberg reported. The move may also be uncomfortable for Communist Party officials, who are just weeks away from their twice-a-decade leadership reshuffle.
    The cut will ‘have a relatively big impact on Chinese enterprises since corporate ratings can’t be higher than the sovereign rating,’ said Xia Le, an economist at Banco Bilbao Vizcaya Argentaria SA in Hong Kong. ‘It will affect corporate financing.’

    This post was published at Zero Hedge on Sep 23, 2017.


  • Earthquake Detected Near North Korea Nuclear Test Site; China “Suspects Explosion”

    In what may be the latest major escalation involving North Korea – and potentially the nation’s 7th nuclear test – China’s earthquake administration said it detected a magnitude 3.5 earthquake in North Korea, which it suspects “was caused by an explosion”, raising fears that the rogue state has tested another nuclear bomb. The Chinese administration said in a statement on its website that the quake was recorded at a depth of zero kilometers, while Xinhua said the epicenter was in roughly the same place as a similar shallow earthquake on 3 September, which turned out to be caused by North Korea’s sixth and largest nuclear test.
    ***
    However, in analyzing the same earthquake, South Korea came to a different conclusion, and said it was likely to be natural or man-made such as a nuclear test. South Korea’s weather agency assessed the seismic activity as a natural event.
    “The quake is presumed to have occurred naturally,” an agency official said, according to South Korea’s Yonhap news agency. “A sound wave, which is usually generated in the event of an artificial earthquake, was not detected.”

    This post was published at Zero Hedge on Sep 23, 2017.


  • Market Talk- September 22nd, 2017

    The Australian ASX was probably over-sold yesterday and therefore stood as the only core that performed today. Closing up +0.5% was a healthy recovery after yesterdays 1% decline. China’s downgrade put a small dent in confidence for the cash markets which took the Hang Seng down
    -0.8% while the Shanghai closed with just small loss. Geopolitical risks remain present after US President Donal Trump signed to expand measurers to target North Korean trade. the Nikkei although closed lower (-0.25%) was off of its earlier lows as news of the speech-plays increased between the two nations. Having seen gold break the psychological $1300 mark yesterday, today we traded comfortably below that level all day. The Yen has dipped back below 112 again as talks of possible missile launches were circulating ahead of the weekend.

    This post was published at Armstrong Economics on Sep 22, 2017.


  • Gold Bullion Fails to Recover $1300 Even as Dollar Retreats Post-Fed, Kim + Trump Trade Insults

    Gold bullion rallied almost $10 per ounce on Friday from yesterday’s 4-week lows against the Dollar but failed to recover what analysts called the “key pivot” of $1300 despite claims of safe-haven buying after Pyongyang threatened to test a nuclear bomb over the Pacific Ocean.
    The Yen rose faster versus the Dollar, erasing last week’s 0.7% gain in gold for Japanese investors, as Kim Jong-un – leader of the regime in neighboring North Korea – called US President Trump “deranged”, and Trump called Kim a “madman”.
    “Chinese interest was once again prevalent to underpin the early session bid,” says one Asian bullion desk.
    Ratings agency S&P today downgraded China‘s sovereign debt one notch to A+, saying that credit growth remains strong and “deleveraging is likely to be [too] gradual.”
    This was the ” wrong decision” Beijing’s Finance Ministry replied.
    Chinese gold premiums, over and above the global reference rate of London prices, held Friday at $7 per ounce, still below the typical incentive for new imports of $9-10 per ounce.
    After India’s gold bullion imports tripled from a year ago to $15 billion-worth in April-August, “We don’t favor a blanket restriction on gold imports,” the Economic Times today quotes a Commerce Department official, “[because] it may involve disputes in the World Trade Organisation.”

    This post was published at FinancialSense on 09/22/2017.


  • China Blazes a Trail in Mobile Payments

    In June, we wrote about how China’s world-leading innovation in social commerce is being driven by one of the greatest transformations in history: two decades of unprecedented economic growth and wealth creation. That growth has created massive social dislocation – a generation of migrants made their way from the countryside to the city in search of factory employment, leaving behind all the support and family structures of traditional rural life.
    This migration has been the largest movement of humans in the history of the world, and it has created unprecedented needs – and opportunities for those who are meeting those needs, both economic and social.
    Just as this transformation was happening, another transformation was underway – the arrival of the internet and of mobile devices to access it. As the adage goes, necessity is the mother of invention. China has become the world’s most vibrant laboratory for the application of mobile internet technology.

    This post was published at FinancialSense on 09/22/2017.


  • The forthcoming global crisis

    The global economy is now in an expansionary phase, with bank credit being increasingly available for non-financial borrowers. This is always the prelude to the crisis phase of the credit cycle. Most national economies are directly boosted by China, the important exception being America. This is confirmed by dollar weakness, which is expected to continue. The likely trigger for the crisis will be from the Eurozone, where the shift in monetary policy and the collapse in bond prices will be greatest. Importantly, we can put a tentative date on the crisis phase in the middle to second half of 2018, or early 2019 at the latest.
    Introduction
    Ever since the last credit crisis in 2007/8, the next crisis has been anticipated by investors. First, it was the inflationary consequences of zero interest rates and quantitative easing, morphing into negative rates in the Eurozone and Japan. Extreme monetary policies surely indicated an economic and financial crisis was just waiting to happen. Then the Eurozone started a series of crises, the first of several Greek ones, the Cyprus bail-in, then Spain, Portugal and Italy. Any of these could have collapsed the world’s financial order.

    This post was published at GoldMoney on September 21, 2017.


  • US Threat to Cut China Off from the International Dollar May Be Empty

    Earlier this month, the US threatened to lock China out of the dollar system if it doesn’t follow UN sanctions on North Korea. Treasury Secretary Steven Mnuchin threatened this economic nuclear option during a conference broadcast on CNBC.
    If China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the US and international dollar system, and that’s quite meaningful.’
    The threat may be meaningful, but it also might be empty.
    Mnuchin was talking about locking the Chinese out of SWIFT – Society for Worldwide Interbank Financial Telecommunication. The system enables financial institutions to send and receive information about financial transactions in a secure, standardized environment. Since the dollar is the world reserve currency, SWIFT facilitates the international dollar system.

    This post was published at Schiffgold on SEPTEMBER 21, 2017.


  • Asian Metals Market Update: September-21-2017

    A December interest rate hike and more hikes next year is more or less a certainty. This is the first time this year that the Federal Reserve has been very clear on the US economy and the US interest rate cycle. Any reduction on North Korean risk can result in another wave of sell off for gold and silver. The fall is good for a sustained medium term rise in gold and silver. Indian demand for gold will rise for the next month. I can expect the media to be filled with all kinds of bearish views on gold and silver. I prefer to use the sharp fall (if any) in gold and silver for the rest of the year to invest for a period of three years and more. Once again my preference will always be for physical gold as opposed to a gold ETF. I will be looking for price bottom formation every day for medium term opportunities.
    China has a holiday from 1st October to 6th October. On 9th October the USA is closed. In between we have the US September nonfarm payrolls on 6th October. Chinese are the great gobblers of gold. I expect massive Indian demand and massive Chinese demand for gold (if they continue to fall) on or before 30th September.

    This post was published at GoldSeek on 21 September 2017.


  • Metals Massacre – Iron Ore Enters Bear Market, Copper Collapses To 1-Month Lows

    The hype surrounding the credit-fueled resurgence in base metals in the first half of 2017 has crashed and burned on the altar of reality in China’s slowdown with industrial metals from copper to iron ore and zinc all plunging in the last two weeks. Odd that we don’t hear much from mainstream business media discussing the implications for a global coordinated economic growth narrative…
    Since the start of September, industrial metals have been hammered (as stocks soared)…
    ***
    Iron Ore prices have crashed into a bear market…

    This post was published at Zero Hedge on Sep 21, 2017.


  • S&P Downgrades China To A+ From AA- Due To Soaring Debt Growth

    Four months after Moody’s downgraded China to A1 from Aa3, unwittingly launching a startling surge in the Yuan as Beijing set forth to “prove” just how “stable” China truly is through its nationalized capital markets, moments ago S&P followed suit when the rating agency also downgraded China from AA- to A+ for the first time since 1999 citing risks from soaring debt growth, less than a month before the most important congress for Chiina’s communist leadership in the past five years is set to take place. In addition to cutting the sovereign rating by one notch, S&P analysts also lowered their rating on three foreign banks that primarily operate in China, saying HSBC China, Hang Seng China and DBS Bank China Ltd. are unlikely to avoid default should the nation default on its sovereign debt. Following the downgrade, S&P revised its outlook to stable from negative.
    ‘China’s prolonged period of strong credit growth has increased its economic and financial risks,’ S&P said. ‘Since 2009, claims by depository institutions on the resident nongovernment sector have increased rapidly. The increases have often been above the rate of income growth. Although this credit growth had contributed to strong real GDP growth and higher asset prices, we believe it has also diminished financial stability to some extent.”
    According to commentators, the second downgrade of China this year represents ebbing international confidence China can strike a balance between maintaining economic growth and cleaning up its financial sector, Bloomberg reported. The move may also be uncomfortable for Communist Party officials, who are just weeks away from their twice-a-decade leadership reshuffle.
    The cut will ‘have a relatively big impact on Chinese enterprises since corporate ratings can’t be higher than the sovereign rating,’ said Xia Le, an economist at Banco Bilbao Vizcaya Argentaria SA in Hong Kong. ‘It will affect corporate financing.’
    ‘The market has already speculated S&P may cut soon after Moody’s downgraded,’ said Tommy Xie, an economist at OCBC Bank in Singapore. ‘This isn’t so surprising.’

    This post was published at Zero Hedge on Sep 21, 2017.


  • Is Identity Politics Brewing a Holocaust?

    Signs of American collapse are everywhere. Apparently no one notices. The world continues to vote with the US in the UN. When even Russia and China serve as handmaidens to US foreign policy by voting with Washington against North Korea, it appears that the image of America as the exceptional and indispensable country is a propaganda success even among Washington’s most threatened enemies. When Russia and China follow Washington’s lead, it shows the world that there is no alternative to Washington’s leadership.
    A country with a $20 trillion public debt, an even larger private debt, a work force drowning in debt and employed in third world lowly paid domestic services, a stock market pumped up beyond all reason by Federal Reserve liquidity and companies using their profits to repurchase their own stock, a military that’s been tied down for 16 years by a few lightly armed Muslims, a propaganda ministry instead of a media with public ignorance the consequence, and with a total collapse of morality in public and private institutions along with the disappearance of courage, is nevertheless able to make the entire world dance to its tune. Washington is the Wizard of Oz.
    Washington in the past 16 years has destroyed in whole or part seven countries, murdering, maiming, orphaning, widowing, and displacing millions of peoples. Yet Washington still presents itself as the great defender of human rights, democracy, and all that is good. The American people have voiced few words of protest against the massive crimes against humanity committed by ‘their’ government.

    This post was published at Paul Craig Roberts on September 20, 2017.


  • Russia and China’s Golden Plan to Shift Economic Power East

    Russia and China seem to be betting their monetary futures on gold. Their long-term maneuverings could seriously undermine the dominance of the US dollar and shift the world’s economic center of power from West to East.
    Russia and China buy more gold than any other countries in the world, with Russia leading the way. Over the last decade, the the Central Bank of the Russian Federation has added more than 1,250 tons of gold to its reserves, according to the World Gold Council. At 1,700 tons, Russia’s has the sixth largest gold reserves in the world. Russian gold makes up about 17% of the nation’s wealth.
    In 2016 alone, the Russian central bank purchased 201 tons of gold, far more than any other central bank in the world. The People’s Bank of China ranked second, adding 80 tons to its reserves.
    In June 2015, the Chinese central bank announced its gold holdings had grown by 57% to about 1,658 tons. It was the first official update to China’s gold reserves since 2009. Since then, the Chinese have aggressively added to their holdings and taken other steps to increase their influence on the world’s economic stage. Many analysts believe China drastically understates the amount of gold it owns.

    This post was published at Schiffgold on SEPTEMBER 20, 2017.


  • Cryptocurrency Website Says Now Is a Good Time for Gold

    Even some of the biggest supporters of Bitcoin and other cryptocurrencies recognize the stability of gold.
    Last week was a bad week for Bitcoin. It’s price dropped significantly in the wake of a Chinese government crackdown on cryptocurrency exchanges in the country. Bitcoin’s price has recovered a bit this week, but a recent article published by The Cointelegraph still proclaimed now is a good time for gold.
    Cryptocurrencies, especially Bitcoin, have flown a little too close to the sun recently, and it has seen them get burned by a few key monetary institutions, as well as governments. This attack on Bitcoin, as well as fear and speculation around other markets, could spell a good time for investment in gold. Seen as an insurance policy, gold has been a steady and safe investment for hundreds of years. As markets, beyond even the crypto market, get spooked, investors could see a safety net in the precious metal.’
    The Cointelegraph article emphasized gold as a ‘safe steady investment.’

    This post was published at Schiffgold on SEPTEMBER 20, 2017.


  • Dr Bouthain Shaaban: ‘Catching a Glimpse of Tomorrow’s World’

    Dr Bouthaina Shaaban, Political & Media Advisor to Syrian President, Bashar Al Assad
    Despite all the pain and suffering imposed by the ongoing nihilistic wars in our region, I thank God that we are witnessing this historical era, which is one of the most complex eras mankind has passed through. The daily regional and international events reinforce an image I’ve painted in my mind for the past six years about how the world we know is moving slowly to be replaced by another world; and the transition will take few years to be completed.
    I see two different intersecting circles today, and we can only see a sliver of each circle, but the intersecting parts remain hidden. In the BRICS summit that took place in China few days ago, I could see signs of the new world, a glimpse of the coming decades, what our children and grandchildren will definitely see in their lifetime, and I was pleased by what I saw.
    I saw the BRICS leaders arriving at the summits and being welcomed by a body language that entails respect and parity, and everyone had a happy expression on their faces, signalling their liberation from having to deal with the supremacists who reside on the other half circle. I saw the First Lady of China standing very humbly and elegantly, wearing a silk dress made in China, representing a country with a great civilisation that is preparing to revive the Silk Road, which would change the identity and life style of the entire world.

    This post was published at 21st Century Wire on SEPTEMBER 18, 2017.


  • SEPT 18/ANOTHER RAID/GOLD DOWN $14.05 AND SILVER DOWN 50 CENTS/OPEN INTEREST IN SILVER RISES DESPITE FRIDAY’S WHACK/USA ACCUSED CHINA OF UPSETTING THE GLOBAL TRADING SYSTEM AS INTEND ON DECLARING…

    GOLD: $1307.35 DOWN $14.05
    Silver: $17.14 DOWN 50 CENT(S)
    Closing access prices:
    Gold $1307.40
    silver: $17.20
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1325.89 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1319.40
    PREMIUM FIRST FIX: $6.49
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1319.20
    NY GOLD PRICE AT THE EXACT SAME TIME: $1316.20
    Premium of Shanghai 2nd fix/NY:$3.00
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1314.40
    NY PRICING AT THE EXACT SAME TIME: $1312.10
    LONDON SECOND GOLD FIX 10 AM: $1312.10
    NY PRICING AT THE EXACT SAME TIME. 1312.35
    For comex gold:
    SEPTEMBER/
    NOTICES FILINGS TODAY FOR SEPT CONTRACT MONTH: 0 NOTICE(S) FOR nil OZ.
    TOTAL NOTICES SO FAR: 54 FOR 5400 OZ (0.1679 TONNES)
    For silver:
    SEPTEMBER
    198 NOTICES FILED TODAY FOR
    990,000 OZ/
    Total number of notices filed so far this month: 5,677 for 28,385,000 oz

    This post was published at Harvey Organ Blog on September 18, 2017.


  • US Fires Latest Shot In China Trade War: Warns Beijing Is “Threat To World’s Trading System”

    It’s been at least a few weeks since the topic of trade war with China dominated the news flow, so moments ago U. S. Trade Representative Robert Lighthizer decided to poke that particular wound, in during a speech in Washington said that “China’s coordinated effort to create national champions and distort markets is a threat to the world’s trading system.”
    Some headlines from his speech, via Reuters:
    USTR LIGHTHIZER SAYS THERE IS A GROWING FEELING AMONG VOTERS THAT GLOBAL TRADING SYSTEM NOT FAIR TO U. S. WORKERS USTR LIGHTHIZER SAYS “WE WILL HAVE CHANGE IN TRADE POLICY” USTR LIGHTHIZER SAYS U. S. CAN COMPETE IF CONDITIONS ARE FAIR USTR LIGHTHIZER SAYS HE AND TRUMP BELIEVE U. S. SHOULD BE MORE PROACTIVE IN TRADE POLICY, DEMAND RECIPROCITY USTR LIGHTHIZER SAYS HE AND TRUMP BELIEVE THAT TRADE DEFICITS MATTER USTR LIGHTHIZER SAYS SCALE OF CHINA’S EFFORT TO SUBSIDIZE INDUSTRIES IS A THREAT TO WORLD TRADING SYSTEM USTR LIGHTHIZER SAYS 301 PROBE INTO CHINA’S INTELLECTUAL PROPERTY PRACTICES COULD LEAD TO WTO CASES

    This post was published at Zero Hedge on Sep 18, 2017.


  • Asian Metals Market Update: September-18-2017

    Yen as well as gold can be affected on speculation that Japanese prime minister may called a snap general election next month. But first we have the FOMC meet this week and thereafter the German general elections and later US September nonfarm payrolls on 6th October. Over the next three weeks there are market moving news and events which can change direction of metals, energies and currency markets. Just remember to have a key technical support in hand and key resistance in hand and trade accordingly. Do not drain your brain by over analyzing news and events. Life is never complicated. It is through our perception that we make life complicated. Trading and investment is also like life.
    Gold and silver fell after the USA said that it will try peaceful pressure on North Korea. In my view they are just out of solutions as the USA knows that trade sanctions will be useless without the support of Russia and China. Except Japan, none of North Korea’s neighbour’s want an armed conflict.

    This post was published at GoldSeek on 18 September 2017.


  • How Rich Chinese Use Visa Fixers To Move To The U.S.

    Have a spare $500,000 to invest in an economically distressed American area (that actually isn’t distressed at all)? China’s EB-5 fixers will help you every step of the way…
    ***
    One summer Saturday in 2013, Vivian Ding took the stage in the grand ballroom of Shanghai’s Shangri-La Hotel to hold forth on a subject in which she was both an expert and an inspiration: emigrating to the U. S.
    Tall, with a commanding presence, Ding is what you might get if Tony Robbins were a Chinese woman capable of both pumping up a cavernous ballroom and filling out an I-526, the Immigrant Petition by Alien Entrepreneur form. Standing next to a 6-foot-high pyramid draped in black velvet, she recounted her own move to America and described the prestigious U. S. high school her daughters attended, thanks to a program that lets immigrants invest in new commercial enterprises in exchange for permanent residency visas – green cards. The cloth was pulled to reveal a model of a Manhattan building: the glassy residences on the Hudson River now known as Via 57 West. Sign a contract that day to lend $500,000, help build a ‘landmark for mankind’ – and take home a prize, Ding implored the audience. That day, the prize was an iPad mini.

    This post was published at Zero Hedge on Sep 17, 2017.


  • Bitcoin Price Falls 40% In 3 Days Underlining Gold’s Safe Haven Credentials

    – Bitcoin price action shows cryptos vulnerable to commentary and government policies
    – Bitcoin falls to low of $2,980, down by $1,000 in week as China flexes muscles
    – Volatility major issue: In 3 days btc fell 40% before bouncing 25% off lows
    – BIS state risks of cryptos cannot yet be fully assessed and says technology still unproven
    – Apple and Google developing a payment API for cryptos – may give governments full oversight
    – Bitcoin and cryptos current volatility and exposure to governments underlines gold’s safe haven status
    ***
    Even for bitcoin last week was an eventful week. The price hit a recent low of $2,980, falling 40% and recovering by nearly 25% in the space of three days.
    Last week was a good example of the vulnerabilities in the cryptocurrency space to government announcements regarding the infrastructure the ecosystem.
    This last year has seen unprecedented progress and development in the bitcoin and crypto arena. From the price reaching new highs to an explosion in Initial Coin Offerings.
    The fall in price by over $1,000 should serve as a reminder that markets will stumble when they try to run before they can walk. As much as early adopters like to declare bitcoin the new currency and declare is true safe haven, the last week has shown that gold is a far better long-term safe haven.

    This post was published at Gold Core on September 18, 2017.