Be careful with these hot money plays, for they are getting bombed into the stone age on earnings. Yesterday, one of my holdings, CAAS, reported solid earnings, yet slipped a buck fifty, nonetheless. Let’s not even mention BORN. That fuck dives 10% if someone at the company sneezes sideways.
Even still, today should be a solid day, after a good jobs report. Plus anyway, the Fed is actively manipulating the markets, in an evil underhanded way in order to blow up our Asian counterparts. There is something very fucked up taking place between China and the US. Last night, China scrambled to raise reserve requirements for their banks by 50bps. Everyone openly acknowledges the fact that US clambux are flooding Asian markets to the point where dangerous bubbles are being formed. If you think about it, what better way to fuck your enemy than to create a monstrous bubble in their bullshit country that will one day blow up and cause armed revolt? Rofl.
China might have us by the short hairs via treasuries; but we have them by the fucking head with all of our clambux over there.
It should make for an interesting decade.
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“China might have us by the short hairs via treasuries; but we have them by the fucking head with all of our clambux over there.”
Indeud! The cold war has been replaced by the Clam war!
Economic war has been fought and won by China for more than 10 years. Monetizing debt today is a tiny response/gesture back compared to Chinese winship in the economic war since before 2000. More like the ‘Clam response’.
Apparently we’re firing giant missiles at them from Catalina.
Just showing them our superior abilities when it comes to finance and rocket science. Nothing like an ICBM launch from a sub off Callie to get one’s attention, eh?
Nice analysis. China US relationship is getting fishy. But imploding the Chinese economy would create difficulties for the monster known as US consumerism. I think it’s more along the lines of monetizing debt. Simple. Fucking China is merely an unintended consequence.
we can get by just fine without the cheap shit made from China.
carry on (literally)
Rare Earth Elements are 94% from China right now. I’m not talking just about crappy futons from Walmart.
We have plenty of rare earth deposits here. It would spur domestic development.
Besides, along with the Japs, we are the largest consumer of rare earths. If we don’t buy them, who will?
I was wrong. 97% of rare earth production comes from China, and 100% of the Heavy Rare earths come from China. Yes US could conceivable (though painfully and expensively) probably obtain supply of the light rare earth elements (LREE’s) from elsewhere but doesn’t have any of the heavies (HREE’s) Ytrium based ones. Only China has significant extractable amounts so far discovered. They already cut off Japan once (recently) from rare earth’s in a display of political muscle flexing.
fucking china is thee intention, the clams way. the fed cant be as sneaky as them,but he’s trying. i guess its a better try than to default on them.
India, the next China…. Our government sucking up to India right now to convince them to buy up the slack since Chna is backing off….
dont worry ben has your back.lol cause hes got to feel for the soft spot,so he knows where to put the dagger. in china.
I’m lost as to how china gets out of this with their small testicles intact.
Face facts, the Chinese economy is one huge make-jobs-up economy. Their firms are not really profitable, so it’s a huge make work program.
If they revalued they’re fucked up shit creak because the people would start rioting if they lost their jobs.
They have to grin and take it up the arse.
At least China’s government spending actually puts people to work.
It’s American spending that puts Chinese to work.
Eggsactly …
And J, doesn’t Oz provide a decent portion of those Rare Earths, light & heavy?
BORN only has 5.7 million share float. It would spike or crash just looking at it funny.
Some are speculating that this is a warning threat from China. http://noconsensus.wordpress.com/2010/11/09/hide-the-incline/
“Quit fooling with your currency and pay us what you owe.”
Thoughts?
Climbing the Great Chinese Clambux Wall of worry.
China is pissed because all they will get for their treasuries is Clambux. Which means we punk them in the end.
Fly,
Forgive me for asking, but did you write this post? Sounds distinctively different from your style. Did you ask someone to fill in for you? Again, sorry if I’ve misread, but it just doesn’t sound like you.
I’m unable to access PPT user notes… Anyone else having difficulty?
Yup.
ya.
also user screens and watch-lists are inaccessible.
Chinese strike back.
Indeed. In a war, China would shut down the power grid, financial markets, cell networks and internet.
user notes is down!!!!
I think that terrorists could also destablize thr world economy by screwing up any of the world powers via currency. It could bring on a war of treatys or because of them. Were we not doing this all a hundred years ago?
You all belched when I put forth OINK in the low 6s. That little curly tail is still doing the bamboo tango but, a good mick knows when it’s time to get off the pig’s back before getting porked.
Looks like my call came through – I was off by 20 pts and 30 minutes, but that is close enough for government work…Quint wins again – here’s to swimmin with bow-legged women!
Props to you on that one! Sometime before or after the swim save some time for leap frog.
I kinda like the breast stroke too.
Fly, fix the notes! I need to update everyone on how my positions are sucking!
hahah, i second that..lotto plays blowing up in my face!
I’ve discussed China with an advisor whom I sometimes consult. He said don’t trust the Chinese. I asked why. He said you can’t trust anyone who uses two sticks to pick up a single grain of rice, but uses one stick to pick up two pails full of shit.
True story, but pointless. I think the guy just doesn’t like Chinese people.
Ha, pointless, but amusing
Semper Fidelis to all Marines past and present. 235 years of faithfully guarding the realm!
LOL! Great analysis on the China bubble-blowing policy.
That will serve well the rest of the emerging countries too.
We’ll see who’s emerging after Berny is done with them.
Great analysis by Tom Graff on China’s face-saving moves lately in preparation for unpegging the juan….
1) Chinese officials have a strong understanding of economics and are fully aware of the potential consequences of their current easy money policies.
2) China wants to have a bigger role on the world stage.
3) China controls the media and Dagong is effectively part of the media.
4) The Chinese citizenry knows that China owns a huge slug of Treasuries and cannot realistically sell in short order.
5) Chinese officials are very sensitive about doing anything politically embarrassing, especially if it appears to be bowing to Western pressure.
These assumptions may or may not be literally true, but I think they are pretty close to accurate. Why would China essentially tell the world that Treasuries are weak securities? Aren’t they talking down their own position? Furthermore, aren’t they risking political embarrassment, i.e., the Chinese people start asking, if Treasuries are such junk, why do you own so much of them?
It all starts to make sense if China is about to allow the yuan to appreciate further. They want to be taken seriously as a world player and they know that they can’t achieve that while continuing to manipulate their currency. However China also can’t be seen as giving in to the West. So what do they do? Explain to their people that China can no longer afford to be beholden to the dollar, because Treasury bonds are such junk. Not only does it not appear like the Chinese government is bowing to Westeren demands, it is the opposite. They get to say that the West is profilgate and China is superior. It is a Win-Win for the Chinese government.
Foreign ministry spokesman Qin Gang made a statement about the eight-point diplomatic philosophy of the People’s Republic of China:[10]
China will not seek hegemony. China is still a developing country and has no resources to seek hegemony. Even if China becomes a developed country, it will not seek hegemony.
China will not play power politics and will not interfere with other countries’ internal affairs. China will not impose its own ideology on other countries.
China maintains all countries, big or small, should be treated equally and respect each other. All affairs should be consulted and resolved by all countries on the basis of equal participation. No country should bully others on the basis of strength.
China will make judgment on each case in international affairs, each matter on the merit of the matter itself and it will not have double standards. China will not have two policies: one for itself and one for others. China believes that it cannot do unto others what they do not wish others do unto them.
China advocates that all countries handle their relations on the basis of the United Nations Charter and norms governing international relations. China advocates stepping up international cooperation and is against unilateral politics. China should not undermine the dignity and the authority of the U.N. China should not impose and set its own wishes above the U.N. Charter, international law and norms.
China advocates peaceful negotiation and consultation so as to resolve its international disputes. China does not resort to force, or threat of force, in resolving international disputes. China maintains a reasonable national military buildup to defend its own sovereignty and territorial integrity. It is not made to expand, nor does it seek invasion or aggression.
China is firmly opposed to terrorism and the proliferation of weapons of mass destruction. China is a responsible member of the international community, and as for international treaties, China abides by all them in a faithful way. China never plays by a double standard, selecting and discarding treaties it does not need.
China respects the diversity of civilization and the whole world. China advocates different cultures make exchanges, learn from each other, and complement one another with their own strengths. China is opposed to clashes and confrontations between civilizations, and China does not link any particular ethnic group or religion with terrorism.
Now my turn:
China is vastly increasing its military spending.
China frowns upon US debt monetization.
China is testing satellite rendezvous, has anti-satellite capability, and is aggresively expanding its space program and assets.
China has more and better roads than the US.
China has high-speed trains all over the place.
China uses more energy than the US.
China is stockpiling metals, especially including uranium.
China is stockpiling oil.
China is spending fortunes on ice-breakers that are vastly more capable than anything out there.
China dominates and controls rare-earth elements (vital to militaries and advanced technology).
China has a 100 million man surplus (potentially expendable standing army) thanks to 1 child policy combined with rampant female abortion.
China may have just launched a missile just off Los Angeles from a submarine.
China is ruthless in its supression of free thought or political debate.
China rips off just about every innovation that comes out of any other country despite patents, copyright laws, etc.
Chinese food often gives me the runs.
Think of the poor Yangtze river dolphin!
Conclusion: Try avoiding chinese food. Except for delicious ginger beef. That stuff can give super-powers.
You know more shit about China than anything!
I hope you don’t expect me to read all that…my attention span is not that long.
“Plus anyway, the Fed is actively manipulating the markets, in an evil underhanded way in order to blow up our Asian counterparts. There is something very fucked up taking place between China and the US.
Indeed: a currency war w China. But the Fed is also f’ng the US taxpayer
Last night, China scrambled to raise reserve requirements for their banks by 50bps. Everyone openly acknowledges the fact that US clambux are flooding Asian markets to the point where dangerous bubbles are being formed. If you think about it, what better way to fuck your enemy than to create a monstrous bubble in their bullshit country that will one day blow up and cause armed revolt? Rofl.
Agreed, except for the Rofl. China has 55% young males in the population, i.e. 5% expendable. If you were in power in China and the whole thing BTFU, would you take the blame like a man or direct the unemployed anger to someone else? But who?
“China might have us by the short hairs via treasuries; but we have them by the fucking head with all of our clambux over there. It should make for an interesting decade.”
Undoubtedly. US & EU have lots of gold; China, little.
Trouble brewing
How much gold does the US have?
I forget exactly but the ratio is something like US 9, EU 10, China 1
Ft. Knox needs an audit. But that’s crazy talk, I guess.
There’s no gold left in Ft. Knox. FED traded it away a long time ago. Citizens of US and China would both be screwed if gold standard, or CO2 scheme shows up as a world reserve currency. They would fare better with a silver standard. Or rhenium.
If there is a switch to a gold standard, then Nautilus Minerals (NUS) will dominate sub-ocean mining for years and its stock price will explode!!
250 yrs ago when the illuminati made sure we had the holy grail,and all the treasures of the world with it.lol. they will drive the price of gold as high as it will go to pay them off,and still have enough left over to order a pizza
You can mock. But why is there no willingness to audit either the federal reserve, or Fort Knox? Why is the US swapping out its sweet light crude emergency reserve for sour heavy oil reserves even though you lack the refining capacity for it?
i know,lets ask glenn beck lol
Earnings will be outstanding once they are stated in clambux.
is today the 3rd anniversary of this site here?
the decision to develop a totally new moon rocket in the 1962 Soviet UR-700M-class (Project Aelita) able to launch a 500 tons payload in LTO has been discussed in a 2006 conference by academician Zhang Guitian (???), a liquid propellant rocket engine speciallist, who developed the CZ-2 and CZ-4A rockets engines.
That’s about 6 times bigger than the Saturn V rocket was. http://www.astronautix.com/lvs/ur700m.htm
This is part of the unofficial Chinese space plan.
Enough controversy from me today. I gotta get to work. Cheers.
You’ve been on a roll. That’s for sure.
Re; that “missile” launch off Cowleefawnia. There are really only two conclusions that can be drawn so far.
1. Our military/government truly does not know what it was, in which case a reasonable person would have to conclude that they are either inept or dealing with something far beyond their capability to track or determine. In which case we are screwed.
2. They do indeed know what it was and its either too scary to reveal to the public or too embarrassing. Probably screwed again in this scenario.
The Chinese hacked into Pentagon networks and launched a missile. Simple as it is.
It’s option 2. They can track baseball sized objects in orbit.
Copper Imports to China slowed down again…Dr.Copper is getting weaker.
you short?
I guess for short thesis one needs to track if copper consumption in China went down, as imports goes both to factories and warehouses.
Dr. Copper is actually resting…. at around 4 you cannot call him weak.
indeud… I buy copper for my sculptures, it has gone up and up and up and up….
Agreed, There’s still a lot of development to do in both China and India. Electric cars need electric motors. Electric motors need copper. On and on… I guess I could build a model, but why bother.
I have been on the sidelines for a month missing out on such pots of gold. I like natural gas but been burn so many times in the past with natural gas plays. Would a coal play right now work..winter seems to be a good time to take a look at energy.
I stopped burning coal at home in 1923.
ha!!!
great one…
that’s because you started burning Reich Marks instead
http://inflationsecrets.com/
boo boo,
I think I should invest in shoe laces. People are holding on to their shoes longer now. lol
no, if the market “corrects” over the winter, it will take everything with it, including coal, only a supply shortage during a correction will be a plus in my op.
just my 3 cents worth (inflation adjusted)
Wanted to share my latest post in P.G. It takes a under-the-hood look at recent price action in NFLX. Beware – no charts! http://www.ibankcoin.com/peanut_gallery/index.php/2010/11/10/here-is-why-netflix-is-up-today-and-will-surge-further/