Here it comes, guys...
jmski52
Posts: 22,820 ✭✭✭✭✭
I think this could create some serious ripples.
"We now know that this has been happening in China with the most critical component of its economic growth miracle: steel. We will soon discover that all other assets: stocks, bonds, commodities (including gold and silver) and finally cash (think deposits) have been comparably rehypothecated and criminally commingled. The end result will be the most epic bank run in world history, which incidentally is precisely what the central banks are attempting desperately to delay as much as possible by generating excess inflation to "inflate" away the debt, leading to rematching of finite assets and virtually infinite liabilities. Alas, in a world in which credit-money liabilities are in the quadrillions, and in which the real assets are in the tens of trillions, only hyperinflation can seal the deal."
China's "rehypothecated ghost steel"...
Trouble ahead.
"We now know that this has been happening in China with the most critical component of its economic growth miracle: steel. We will soon discover that all other assets: stocks, bonds, commodities (including gold and silver) and finally cash (think deposits) have been comparably rehypothecated and criminally commingled. The end result will be the most epic bank run in world history, which incidentally is precisely what the central banks are attempting desperately to delay as much as possible by generating excess inflation to "inflate" away the debt, leading to rematching of finite assets and virtually infinite liabilities. Alas, in a world in which credit-money liabilities are in the quadrillions, and in which the real assets are in the tens of trillions, only hyperinflation can seal the deal."
China's "rehypothecated ghost steel"...
Trouble ahead.
Q: Are You Printing Money? Bernanke: Not Literally
I knew it would happen.
I knew it would happen.
0
Comments
The Chinese are pretty strict on financial shenanigans, probably see some heads roll (literally).
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Don't you know what happens in China dictates what is going to happen in the U.S? I thought you were brighter than that Tim
<< <i>Like I give a Rats buttox WTF happens to China
Don't you know what happens in China dictates what is going to happen in the U.S? I thought you were brighter than that Tim
If you seen what the sell out to the "Reds" has done to manufacturing & especially textiles in the south.
You would be able to comprehend my hatred to the sell outs!
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>The sell outs are the American businesses that sent the jobs to China. >>
True & the ones that rolled out the "RED" carpet~Allowing them to do so!
Likewise - I may not care what happens to China, but it would be to my detriment to ignore what happens in China. Further, it's not about what has happened, it's about what is happening.
I knew it would happen.
Simply put.
The U.S. is going to get bit in the arse real soon on alot things. Buy more ammo to fend it off!
<< <i>The sell outs are the American businesses that sent the jobs to China. >>
Virtually EVERYONE standing in a checkout line this very second, has a cart full of China-made crap that they chose to buy.
Look on your desk right now and look at what was made in China.
Americans have sold out, not just businesses.
See my sig line....
and yes, I've bought my share of chinese crap. We all need to change our habits....what does it take?
When deisel gets another $1 per gallon higher, you will see businesses start bringing things closer to home. It will have nothing to do with jobs, it will have to do with costs.
It happened last time, it will happen again. But all the NIMBYs out there will want them to keep the really nasty jobs over there.
As expected in a free-market, free-trade world (a creed that we successfully modeled and sold to the world at large), labor costs over time have responsively increased in China, and efficiency of manufacturing has imporved in the US.
The result? Manufacturing jobs are returning to the US!
Link
Invevitably: the US standard of living will lower to accommodate the global realities.
But fighting it with tariffs and trade wars would have devatated us.
Why wouldn't we believe our own free market religion when it spreads?
Here's a warning parable for coin collectors...
If the chinese have trouble with people like John Corzine and bernie madoff at least they will deal with them unlike here. Corzine is still free and uncharged and its been nearly a year. In china he would have been tried and they would have had him kneel down and shot him in the back of the neck 11 months ago.
you don't get a lot of repeat offenders with a 1 strike and your out policy
My guess is that will have to raise the value of their currency before we do...we have been printing a lot of dollars and can barely feel inflation, the chinese have been printing just as much to keep their currency peg...but unlike us they are really feeling it already.
The Soviets failed to keep up and lost the arms race and it left them bankrupt ....the Chinese will also fail, their people want better wages, better standards of life, they are getting fatter ...we here are getting leaner and meaner.
Groucho Marx
<< <i>China is in a currency race to the bottom with the US ...Similar to the arms race between the US and the Soviets years ago.
My guess is that will have to raise the value of their currency before we do...we have been printing a lot of dollars and can barely feel inflation, the chinese have been printing just as much to keep their currency peg...but unlike us they are really feeling it already.
The Soviets failed to keep up and lost the arms race and it left them bankrupt ....the Chinese will also fail, their people want better wages, better standards of life, they are getting fatter ...we here are getting leaner and meaner. >>
By lean do you mean the Obama surge in the welfare state, record new highs in foodstamp recipients, a Huge unprecedented increase in SSI disabilty retirements, Huge increase in Government subsidized housing. Is this what you mean by Lean and mean? If so then vote for the messiah once again, and its guarenteed you will get more lean and mean.
Groucho Marx
Knowledge is the enemy of fear
<< <i>You guys are so scared. >>
"fear and greed."
I am however, scared for my children and what lies ahead for them.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Better load up on some more ammo, more than one could possibly ever use.
<< <i>You guys are so scared
Better load up on some more ammo, more than one could possibly ever use. >>
For what? To shoot my neighbors? Im a gun owner and I have fired many different weapons at many different targets, and I have seen many do the same, and I can tell you that 90% of us would fail miserably in our response to this supposed coming Armagheddon.
The fear in some of these threads is becoming extreme. Election cycles have a tendency to do this. Im surprised so many of the older members of this board continue to fall into the same trap.
Knowledge is the enemy of fear
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Scared is diferent than being prepared.
Prepared is having a good defense, prepared is having a good plan for offense. If this Country had not been prepared on numerous occasions we most likely wouldn't be as free as we are today. There is a place of personal responsibility to your self and those close to us that each must be pleased with. Some like to give all that responsibility to others and hope for the best, and then some like to be prepared for potential dilemas just in case those others don't come through as expected. And if that preparation is never needed in ones life time, then great the Republic still exits and us Gunners have had a blast preparing. Our Guns are usually very very saleable, and the Ammo also, as these boards have demonstrated.
To me and a huge amount of other Americans being prepared is to be able to meet evil with force, and to overcome it, so we can live Free and Moral lives.
And you may thusfar be mis-applying Cohodk's comment.
And of course as part of that preperation is the Stacking of Silver & Gold, because we are all SCARED that our dollar is being diluted to infinitum and will be worth a whole lot less in the future. Remember though all things are cyclical and the Dollar might just have one more large up cycle before it completely fades away.
<< <i>
<< <i>You guys are so scared. >>
"fear and greed."
Both are exciteable, but you can sure profit from both of them.
I'm really not clear why you would say that. Maybe you don't consider the criminality aspects or what all that implies. I do, and that doesn't make me "scared".
I knew it would happen.
Almost impossible to find anything still made in America!!
The companies come back to America and then the Unions start their crap and the companies leave again.
You can, you just have to be patient and be willing to pay more for it.
The companies come back to America and then the Unions start their crap and the companies leave again.
That my friend, is SPOT on!!! Unions were needed back in the day. Now, they are at the very root of the every single financial problem the U.S. has imho.
When I now see Steelworkers here locally picketing, I go out of my way to let them know I think they are "#1", sometimes they even get the famous "double #1".
Most of them guys are making over $100/hr. (benefits included...ot not included in this) and that aint enough? I do far more dangerous, responsiblity holding and productive work I might add, and don't come close to that. Yet we are blessed to live very comfortably. Not wealthy by the furthest stretch of an imagination, but very comfortably.
Unions are nothing more than a greed machine. If they are mad at the company for making a buck and not givng their employees what they feel is their fair share, then why don't THEY start up a company and take on the responsibility??? I'll tell you why, because they are bottom feeders. Responsibility? What's that?
I've made this known before too...my Dad was a Union Steward for 31 years and I was for a period of time too, so I lived it, I was part of the problem. I quit a pretty damn good job because I couldn't take the greed the Union was demanding. I gave it up, and thankfully have made my OWN way. I work for my families needs now, not for a bunch of do nothings and expect to be paid top $ devils.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
That threat being corruption.
There is no steel in the warehouse?
Wasn't there that florida guy who tried to sell coins pledged as collateral? The guy with the custom mansion that's now for sale?
How wide spread and disastrous is the corruption?
Who knows, but we do know that we are buying stuff produced there and they are buying stuff produced here. They also went insane and overbuilt infrastructure in some cases like stadiums that are not used (not talking olympics, everyone seemingly has derelict olympic facilities)
I do know that the corruption will come out in the open over and over. But it is too early to warn of cataclysm off this one report. It isn't too early to do warehouse checks though. I would do that, THEN decide what kind of trouble we are in.
PS: I guess it is about time to point out something that was almost covered in the first paragraph:
1. asset bubbles, the why:
a. rampant human stupidity.
b. too much money chasing too few assets. re-read that to yourself because it is important.
There is a lot of cash on the sidelines. It is also chasing treasuries and other gov't debt. is it chasing gold, silver, platinum, palladium, rhodium like it once did? No(t yet?) is it chasing oil? No(t yet). Etc.
Back to the story:
Of course this could have happened with other assets like steel, etc. And China was a hot country once. But to look at some liar on a loan and say "steel!" It's tapped out! Over one story? In china? Give it a rest.
(However, I'd be checking my collateral and counter-parties, especially in china)
<< <i>I think that whoever wins the elections will have a very limited effect if any in the current economic trends. >>
I still think Romney will win.
Unfortunately, the 100 day broadcast will be full of talk but not talk of results.
Ditto if Obama wins.
Unfortuately for Romney, he is going be set up for a 100 day lose if he wins.
<< <i>You guys are so scared. >>
I agree, much ado about something that should be expected in China.
<< <i>it's a shame voters and taxpayers can't effectively organize themselves. >>
They have....
unfortunately it primarily down to organized Democrats and organized Republicans.
And lately the thought occured to me, and hack Jesse Ventura all you want, but a broken clock is right twice a day.... unless its digital then it's only at 12:00am....
"great two parties, that's only 1 more than communism."
Heck, I go on to say if you listen to either party and their ideals then we'd have primarily one party in all three branches of the gov't. Seems like one party rule or an oligarchy or plutocracy to me, very much like communism.
To me, it seems like communist left vs communist right lately and every 2 years you are asked to decide on which same old, same old party line you vote in.
Hmmmm, if it were only China perhaps it wouldn't be all that significant. China does produce about 1/2 the world's steel though. And it's not only steel or China. This stuff impacts all kinds of contracts, including financial contracts all around the world. As you were.
I knew it would happen.
<< <i>
<< <i>You guys are so scared
Better load up on some more ammo, more than one could possibly ever use. >>
For what? To shoot my neighbors? Im a gun owner and I have fired many different weapons at many different targets, and I have seen many do the same, and I can tell you that 90% of us would fail miserably in our response to this supposed coming Armagheddon.
The fear in some of these threads is becoming extreme. Election cycles have a tendency to do this. Im surprised so many of the older members of this board continue to fall into the same trap. >>
He was jesting Cohodk. PiecesofMe don't care to much for those pesky fire sticks
<< <i>to look at some liar on a loan and say "steel!" It's tapped out! Over one story? In china? Give it a rest.
Hmmmm, if it were only China perhaps it wouldn't be all that significant. China does produce about 1/2 the world's steel though. And it's not only steel or China. This stuff impacts all kinds of contracts, including financial contracts all around the world. As you were. >>
China only produces so much steel because we let them. We have the manufacturing capacity in this country to blow them away. But labor is cheap in China, so we prefer to let them exploit their own resources.
America is not dead, nor will it be held captive to any entity--not even the evil Banksters.
Knowledge is the enemy of fear
I knew it would happen.
<< <i>China only produces so much steel because we let them. We have the manufacturing capacity in this country to blow them away. But labor is cheap in China, so we prefer to let them exploit their own resources.. >>
Exactly why we don't drill our own oil, which is a smart move for long term survival.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>I don't think that America is dead either, cohodk - and I must admit that some of our discussions have added to my overall perspective. I'm proud of the USA, and I've become more so since about 1980. Call it a personal evolution. However, I think that America should be setting a much better example than we are at this moment in time. >>
Agreed 100%. And the problem is that we are trying to make everyone happy, which in the ends results in 100% dissatisfaction.
The problems we face cannot be resolved by politics or monetary policy. Time is the only solution. Global demographics have never changed such as they have in the last 25 years. This all takes time to work thru the system.
Knowledge is the enemy of fear
<< <i>The problems we face cannot be resolved by politics or monetary policy. Time is the only solution. >>
respectfully disagree. Problems we face were created largely by politics and monetary policy. Reversing that trend will involve politics and monetary policy changes.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
If it ain't Boeing, i ain't going.
I'll take AMERICAN manufacturing anytime.
In God We Trust.... all others pay in Gold and Silver!
<< <i>
<< <i>China only produces so much steel because we let them. We have the manufacturing capacity in this country to blow them away. But labor is cheap in China, so we prefer to let them exploit their own resources.. >>
Exactly why we don't drill our own oil, which is a smart move for long term survival. >>
but it is killing us on the trade deficit
<< <i>
<< <i>The problems we face cannot be resolved by politics or monetary policy. Time is the only solution. >>
respectfully disagree. Problems we face were created largely by politics and monetary policy. Reversing that trend will involve politics and monetary policy changes. >>
I agree with derryb's disagree, except to add the trade deficit comment.
Knowledge is the enemy of fear
<< <i>Then you will have your Armagheddon. You really think that would happen? >>
O for 4 more will equal A above.
p.s. I'm trying DerryB, witness the shortness of the post.
<< <i>Then you will have your Armagheddon. You really think that would happen? >>
armageddon in some sense.
write downs of gov't debt and repurchases ith more newly invented paper foney money.
If we all do it, the BRICS will have the reserve currencies.