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It seems that China is more capitalist than our Western governments. Here, billionaires are our gods, where they cut their wings before they grow too big to fall.

I support China's move; the US government has no hope of stopping scammers and scammers, such as cryptocurrency worms or Cathie Weed; at least over there, they stopped them.

Hearing that we released them on bail, the facade continued. There they were released on bail until they were talking nonsense, and then the CCP arrested them or began to break their monopoly.

If the West is smart, we will blacklist all the elites of the Chinese Communist Party, kick them/their families out of our country, and freeze their assets.

In the final analysis, the Communist Party is our enemy, and allowing Western countries to control China and oppress civilians while allowing them to live and make money here will not benefit them in the long term.

That's because you like crony capitalism rather than true capitalism. Although the real economy, the poor and the middle class are suffering and getting poorer, you are benefiting from crony capitalism and hope that this situation will continue. I hope China’s actions will cause such a mess that all gamblers will be eliminated. For 11 years, the Fed has been rewarding stupid gamblers with Fed put options.

Please note that the Chinese are the worst gamblers; they will be eliminated, just like you will be eliminated for gambling.

I should not speak of Chinese people, but of rich Chinese people.

For decades, I have noticed that the Chinese are very bad at hindering horse racing.

In China, all large and medium-sized "enterprises" are owned and controlled by the CCP.

The way the Chinese Communist Party works is that the top leaders usually try to prevent any member from becoming too big because they are afraid of becoming powerless. In addition, there are rival factions, and Evergrande (and many technology companies) belong to the Jiang faction. This is the main reason, and it may not be rescued. Individual Communist Party members will tear China apart for their own benefit. What benefits will the destruction of Hong Kong's international status bring to China?

They annoyed Xi Jinping, who was striving to become an absolute ruler.

China does not have capitalism, and it is ridiculous to imply that it handles things better than the United States to some extent. The United States has serious problems and great power, and the situation in China is much worse.

Thomas Roberts is right. The struggle between the Chinese Communist gangs means that Evergrande will not be able to get help quickly enough. This is like the collapse of the family education industry, whose owners are also reportedly opposed to Xi Jinping.

You are looking for the wrong enemy son. So don't mind.

"If the West is smart, we will blacklist all the elites of the Chinese Communist Party, drive them/their families out of our country, and freeze their assets."

"If the West is smart, we will blacklist all American elites, kick them/their families out of our country and freeze their assets."

"If the world is smart, they will blacklist all nepotism elites in the world, redistribute their assets to charities, and put them all in..."

You cannot "drive them out" because they are global; no country is safe. But maybe we can find a remote island where they can learn to share limited resources?

Boycott, divestiture and sanction AmeriKKKa's joint company.

I think this is not an all-or-nothing proposal..

In fact, even a limited extradition agreement with China can solve some of the problems.

nonsense. The United States is communist (not complete, but close), while China is a capitalist society and is responsible to billionaires. Things have changed and you have been dozing off for about 20 years or so.

If as you said (I agree) the communists are our enemy, then we should focus on the local, not on the other side of the earth.

The difference between freedom of speech comes down to whether talking nonsense in the United States loses the job and shirt, or talking nonsense in China loses the job and shirt. get it? The only real difference is that here, big companies will do all this. In China, the government will do this.

I immigrated from a communist country in the early 1990s. For 30 years, I have been watching America slip into communism.

Tired of people applauding and waving the banner of the greatness of capitalism and freedom in the United States in the past. But got used to the fact that it used to be. If I am young, I will immigrate out of the United States

Well, covid19 finally broke everything. The United States passed a moratorium on deportation to invalidate property rights. Billionaires have accumulated another 350 billion. Nepotism and corruption in the US government, on every level, have shown that it is nothing more than a bunch of communist clowns.

China is far from perfect, but we make China look good.

George Carlin really did it. "When you are born, you will get a free ticket for a deformity show, and in the United States you will get a front row seat"

"For 30 years, I have been watching America slip into communism"

There is another label that better describes Uncle Sam today: fascism or friendly fascism. (See: "Friendly Fascism" by Bertram Gross, South End Press, 1980)

Benito Mussolini, a recognized expert on these issues, stated that “Fascism should be more appropriately called'Corporatism' because it is a combination of state and corporate power.”

"China is far from perfect, but we make China look good."

Darius, I heard it. I grew up in the United States, and what we have today is very different from the environment in which I grew up.

But when the company has all the power and controls the country, this is not communism, but fascism (in the classic definition of the term).

But no matter what you call it, it still sucks.

Freedom and prosperity require strict restrictions on the power of companies and governments. (Limit, not eliminate.)

If we have enough people to take action locally to reduce the influence of others on us, things will get better.

The Chinese government is doing "old-style capitalism", that is, "you take risks, and you take failures." Titanic effect, the captain returns home to the hero, or with his ship (the British captain does this). Play with socialism, follow the rules, and you will be safe, full and happy. The Chinese government regards crazy American corporate socialism as a terminal illness and prevents its death. This is why they will win.

Don't think so. China's centralized planning allows excessive physical debt financing investment and tries to prevent excessive investment. It's a bit late. Just read that they have overproduced electric cars by 4 times. They seem to allow local governments to over-build capacity through debt, rather than market pulling products. Running the economy from the top down can lead to huge mismatches.

The crypto trolls completely infested every YouTube channel I frequent and tried to get unsuspecting fools to contact them on WhatsApp to get great deals like Bitcoin. This is obviously a scam but I'm sure just like what they said. That way, a fool is born every day. The whole cryptomania makes my creeps.

The sell-off on Wall Street is affecting today's cryptocurrency.

Bitcoin fell 10% this morning.

What, stocks and cryptocurrencies are now connected?

They are all related, and since the subject of this article is related to China, it is time to review one of the lessons of the Battle of Chibi. In this real historical battle, the attacking army has an overwhelming advantage in numbers, but they are not good at water warfare. So what did the offensive team do? They chained all the boats together so that even their horses could walk around on the boat without any problems.

Then one day, the defense forces set fire to the outer ships. The rest is what they call history.

"What, stocks and cryptocurrencies are now connected?"

certainly. The Wall Street algorithm is now running encryption.

"Crypto" currencies are the latest capitalist scam, which aims to separate fools from their money.

They prevented many things in China.

You can’t even access your Gmail there. That is illegal. And use a VPN to bypass it? That is also illegal.

Be careful what you want. The string has been appended.

China blocked everything from Google. And Facebook. Somehow, they are alive! How did this happen? /sarc

As they say, what they get is someone who steals a cow, not a person who steals a million cows.

In a post in another article, you said "You own an apartment in China".

1. This makes you a Chinese citizen, or, 2 a foreigner married to a Chinese citizen, or 3 a liar.

Foreigners are not allowed to own real estate in China.

As for your posts concerning China’s issues, I regard them as a tool of the CCP

The average life of ordinary people under the Communist Party's rule has undoubtedly improved, but at a terrible price. Compared with 50 years ago, how much has the situation in the countryside improved? Is the loss of life, art, and freedom worth it?

Mao is the worst murderer in history and the destroyer of national history and wealth.

From a simple economic perspective, when you get rid of 600 to 90 million people, thereby reducing the supply of labor and increasing the amount of food for the remaining population, of course life will improve...for those who are still alive.

thank you, sir. I am half surprised and half amused by the compliments in these comments about China controlled by the CCP. I don’t know if this is just ignorance, or if I actually witnessed government-directed propaganda. It looks very similar.

It is not difficult to find a Chinese in the United States who will tell you what the deal is. Or go to PEK to taste some "Evian". ;)

Wow, good article wolf. A lot of information.

I stayed at home until my car was repaired, and I was checking the original footage and reports from China. Of course, everyone needs a little bit of opinion, but what I see is a lot of dissatisfaction from the workers. Protests have already occurred in the street (!) and have slowed down. Workers are not paid, especially in the construction and coal mining industries. In an ideological communist society, people are hurt by inflation and housing costs, and hate the rich. One person actually said loudly: "I thought that our country is for workers, but I finally concluded that this is not the case" (translation). This is an important statement in China. A video of a migrant worker moving his only property on the street after the recent demolition of a Beijing migrant worker community went viral on social media and aroused anger. The residents who rented there were soon notified to leave. These residents are engaged in car repairs and maid services. The community was demolished to make room for luxury apartments. Yes, everything is a good predictor of civil unrest.

In order for the CCP to save face, there may be a redistribution of wealth, or at least a partial redistribution. Otherwise, what is communist ideology?

Let us hope that the West will follow China, if China *actually* follows. It has followed the Chinese upper class in creating haunted houses and super ruthless financing. China copied the United States, and the United States copied China's extreme version of the United States.

Wow Lynn, thank you for your insights.

Great comment. I also read that government C is really afraid of a sudden outbreak of protests, which will eventually lead to actual action. We have seen this in the mob truck driver strike/protest when costs increase or fuel supply is restricted.

The director sees the existence of status for a reason.

The surveillance status exists to identify potential ring leaders and instigators. The biggest worry is that Mao is inciting dissatisfaction. Once it happens, things will be difficult to control.

Most of the old cadres who remember that era are dead, but the institutional memory has not completely faded.

Therefore, any potential instigators will be quickly identified and dealt with, and some reprisals will be taken against the masses. I will not be surprised to see some demonstration experiments using 9mm solutions. What is really worrying is that there is a real instigator outside who will evade surveillance and instigate things...especially in rural areas. This is why technology is spreading today. There is a better way to enslave people with smartphones than with guns.

The Gini coefficient (a measure of wealth inequality) has recently been the highest or nearly the highest in US history, and the highest among all countries. The Fed will be forced to tighten, otherwise this wealth inequality will increase and riots will become ubiquitous

The profit margin is also the highest in history. More workers than business owners and managers, they will vote for themselves some good things.

The CCP, like the Politburo when the Kremlin collapsed, is a concentration of wealth and generosity. I don't know how anyone can buy the exact same hypocritical words, we are here being instilled into our minds by their propaganda machines.

Strategically speaking, letting Evergrande go bankrupt is a superficial gesture of the CCP's concern for the country, and it is also evidence that the CCP does not care about participating in the global economy.

They have a point of view, why bother when you really do everything?

They own the entire Western world. They only care about the welfare of their power brokers. But even worse, when the government can do whatever it wants without recourse.

Western societies are easily influenced by the CCP’s propaganda, because their elites have plundered their own middle and lower classes, so that from the perspective of the wrong side of wealth inequality, almost everything is better than the status quo.

"Like the Politburo when the Kremlin collapsed, it concentrated wealth and generosity."

Compared with today, the concentration of wealth in Russia was negligible. Most of the large industrial complexes are the same as they are now. Resource extraction or related: oil, aluminum, nickel, etc. or the ports for transporting them are all state-owned. After Putin came to power, these people were initially shaken by former KGB cronies and then took over.

You can determine the exponential growth of Russian personal wealth very closely by comparing the exponential growth of Russian personal wealth with the growth of Russian purchases of London luxury homes. These did not exist before Putin.

Have to laugh at Wall St and go to China to negotiate. I hope they are completely discouraged. Serve them. Maybe they will be more inclined to invest in the United States, even if only a little bit.

Suspect that bankers have almost no patriotic thoughts

You underestimated the risks that Western investors would take when they stepped into China. Most people think that C will only mess up the West, but they cannot afford to do that and are still a reliable global market participant. Western investors will exchange assets for debt, and this has always been possible.

I doubt whether Western investors can obtain assets in China on preferential terms. The biggest obstacle is China's restrictions on capital outflows. Creditors may take away some assets, but the assets and income remain in China.

This is not about assets, but about gaining an important foothold at a low price.

This is not about any one. This is about getting an Evian water that does not taste like toilet water at Beijing Airport. Why are people so comfortable with China now? They have a "president for life" and everything is fake. good luck.

Western companies have good reasons to enter China; cheap land and labor are good for commercial governments, and by producing there, you can enter their markets. By locating the factory in China, rather than in a smaller country, you can gain the added benefit of entering the world's (at the time) most populous market and possibly build brand awareness for the future.

These things are no longer true. Land is expensive. You have to bribe CCP officials countless times. They may kidnap your employees at any time. The general cost of doing business there for Western companies has greatly increased and continues to grow. The CCP can take over your business or the land. The Chinese people boycott you or buy Chinese brands, not you.

They even start to regulate how your products are made (for products sold outside of China). One of the most famous examples is that many globes and maps made in China began to be printed with a "nine-dash line", indicating the CCP's claim to the South China Sea. This surprised many Western companies, who were not told that this would happen. Suddenly your goods arrived, with a revised map printed on it, which is more in the interests of the CCP. Many textbooks containing historical maps are no longer made in China. There are more and more rules, the most arbitrary, which can harm your interests at any time.

Many "Oriental" companies have withdrawn from China, especially Japanese and Korean companies. The fact that the CCP forces the Chinese to hate them is counterproductive. In particular, Samsung seems to have completely withdrawn. Samsung is much larger than people think. It manufactures everything from electronic products to ships. The CCP basically prohibits its citizens from buying Samsung mobile phones and switching to Huawei and other mobile phones. This is one of the decisive factors for Samsung's withdrawal.

Many "Western" companies have given up their dream of the Chinese market. Hollywood may be the next one. China only allows some unknown (34?) foreign films to enter China a year, and more and more Hollywood blockbusters have not been promoted. It has not been approved for several months. This may be temporary because of the "anniversary" of the CCP, but the decline of Hollywood films entering China may be the general trend. The main reason for keeping sunk costs is that if you leave China, the CCP will only take your factory and possibly your equipment, but if you are a Western company, you may hesitate to invest in new factories or substantially upgrade existing factories. .

A major problem facing China's manufacturing industry is that more and more countries and companies are preventing many machinery and technologies from entering China. Especially Japan, because of the CCP’s threat of war, has been doing this all the time. If the German state joins this movement, it will become very difficult to build almost anything of value in China. Many of the factories that are still there will become less practical over time because they rely on machines that can no longer be shipped to China.

China’s population is not even the largest anymore. Although, this is not entirely a good thing, India even exceeds the population of China. The actual population of China is about 150 million less than claimed, and is actually 1.26 billion; Yi Fuxian of the University of Wisconsin-Madison is one of the sources of the 1.26 billion figure.

Can the Chinese economy be considered a bubble, and Evergrande is the most conspicuous? The message seems to be so, but you say that the government will try to reduce it while controlling the situation. So it makes stock and bond holders the first victim.

However, is it unrealistic to think that the government can control the potential implosion of such a large bubble, and if that is the case? On the one hand, it seems that it can burst the bubble, but in order to maintain stability, it needs to inflate further by letting all banks lend again. Is that a little tricky?

Replace China with the United States, and replace Evergrande with Tesla.

China has a bubble. Maybe in some areas, such as real estate speculation, but look at the cost of shipping containers to the United States and China. The U.S. ships most of its products overseas

Is it time to start getting angry with China? Do you need at least four (maybe more, but I gave up after that) very long and repetitive comments? Do I have to behave like a headless chicken without seeming to realize that all current economic difficulties are similar in almost every western country? Although it seems unaware that we capitalists have invented these terrible economic distortions? Rome practiced a slavery economy, and it was difficult to obtain enough food to enter Rome. Maybe it's time to get very crazy and buy about 20 tons of various grains just in case. Now, where will I store them in my one-bedroom apartment? 🤫

Don't worry that rats will eat most of it while you are working

I hope all these attacks on China make everyone feel good.

It seems that criticizing them is much easier than trying to solve our problems. Or maybe attacking China can help us forget that we have something to correct in the ancient United States?

Does it feel good to say "worse over there"? Or is it because the United States always seems to need a new enemy to chew again?

Of course-maybe China is a terrible place. Then thank you for your absence.

I suggest that we let the Chinese figure out how they will solve their problems. I very much doubt whether they will accept our suggestion if we are stupid enough to provide it.

I humbly suggest that we put your efforts in the United States and consider how to make things better, where it may at least have a chance to have some positive impact. Of course there are many opportunities for improvement.

The problem with authoritarian regimes... The scandal lasted longer, on a larger scale, and caused more victims.

Are you describing China or the Wall Street/Fed government?

Very good question, history. Or is this a point?

A good point. I understand it easily...

If a butterfly flaps its wings... If dominoes fall in a Chinese forest, no one will hear... Re-mortgage, cross-mortgage, leveraged daisy chain... is about to dissolve... Geometric disintegration

For a moment, I thought Michael Engel was back again, until I saw who wrote it. :-)

The whole real estate Ponzi scheme.

All of this will only lead to a very unpleasant place. I am not saying that Lehman is unhappy... I think it will make Lehman Brothers look like a picnic. Especially considering the current unhealthy relationship between China and the United States.

When people panic, the trouble created by the money printing machine through the reward lever will appear. When things are based solely on today's price action, when a bank run begins, things still have a long way to go.

Is anyone still depositing money in the bank now? Two years ago, when the system seemed to become a bit unstable here, I withdrew everything and I thought I would beat the crowd (and the line)

In the event of a bank run, they will limit withdrawals to $300 per week. You will have to show the "need" to come up with more things. ATM machines can be easily programmed to implement this rule. They have done this to some extent now.

The opposite is happening now. Note that Wells Fargo now allows cash withdrawals of $1,000 from ATM machines. They took out the $500 button and replaced it with a $700 button. When will we see a $2,000 button? Inflation anyone? ? ?

In Japan, about 30 years ago, you could withdraw 1 million yen (approximately US$10,000) from an ATM machine.

You can also deposit money into another person's account on the ATM, and it will appear immediately.

Can you do it in the United States?

From 1974 to 1981, I was a low-level banking employee. I have seen inflation.

Ordinary people are stupid enough to believe the nonsense of their elite managers. In the end, the elites will hide their confiscation of civilian wealth behind "social and financial projects" that are sold as "benefit" to the oppressed. The same scam, over and over again.

Central bankers never seem to understand that when they create a false interest rate environment to subsidize something...such as debt...the private sector will create more stocks and debt than the central banker can support. we are coming.

Central bankers are not as stupid as you think. They are busy trading stocks and making money. Even the boss (JP) saved himself when he formulated the rescue policy.

Their main goal is to increase their wealth. No matter what changes happen to the economy, they are not what they care about.

The owner of the liquor store told me that credit was so abundant in early 2000 that the distributor would transfer inventory he had never requested. They will say do not rush to pay off these goods, you have a good credit to us. His worry and problem was that he never ordered inventory, did not want to increase the credit limit, and finally had to prevent them from delivering unordered inventory.

This seems to be the case again. Easy credit abounds. Note the following

The story of Evergrande is a wonderful story. There is a good buying opportunity ahead, and I will as always tell you what I buy and when. As ordinary readers here know, I withdrew from the S&P 500 index and other stock indexes in early September. The combination of multiple negative developments in the United States and the world with the weak seasonal period in history provides us with excellent opportunities. Patience, foresight and critical thinking are very important now.

Keep...you are right. As in any free market, the central bank governor will step in and inject funds into the flooded system to ensure that the stock closes at this year's high. /s So, how crowded are the groups that rely on the Fed to rescue them? I think it is very crowded.

This fall will usher in another October 1987. Yes, a 75% drop will have a good buying opportunity

I agree, but don't think that is what this poster means. Judging from the name of the handle, it is more like everything is actually good or great. This is another opportunity to "buy on dips".

Reality? Global fundamentals are terribly weak. Even before COVID, the situation in the United States was the same.

It has been basically or mainly a fake economy since at least 2008. The loosest and lowest overall credit and loan standards ever. The most valuable asset market in history.

The only thing that can support this house of cards is the most extreme optimism in the history of financial market participants. Religious belief in the ability of the central bank and the government to prevent the decline in asset prices and living standards. I have been reading it in the posts here.

Those who believe in the financial suspension law will either expect it to last forever or get out the door first.

I know what you are talking about. They don't realize that asset bubbles are all about distracting and controlling the decline. The pies are actually much smaller, which is why they exaggerate everything, another distraction.

I'm pretty sure that something like this will happen eventually, but as always, it's hard to grasp the time. The Fed can still take a very gentle tone and let the music last for a while... but as long as you are outside and don’t try to short it, you should be fine

The Fed will not let this happen. ;)

October 1929 also provided many buying opportunities. This situation has been happening, people have been buying on dips until 1932, when many blue chip stocks (Steel, Radio, Monkey Ward, also known as US Steel, RCA, Montgomery Ward) fell 70% to 90%.

I think central planners want to slowly release air through inflation. It may be too late.

The Central Committee of the Chinese Communist Party plans to build empty cities, ghost cities, and towers full of empty apartments. China recently blew up partially completed high-rise buildings. There is not enough funds to complete their buildings. Now, after having a child in accordance with the family policy for many years, their labor force is aging.

In the United States, we waste money on the F-35, which cannot fly and has no spare parts. The U.S. is more advanced than anyone in wasting money

Nevertheless, despite this, China's middle class is still growing, and the standard of living is improving every year. The poor benefit the most. How does this compare to the experience of the American middle class, whose purchasing power is now at the level of 1967. There is nothing better than knowing that your life is better than last year, better than ten years ago, and it can make citizens loyal to the government. Seven years of life in China reminded me of this. If you can do this for ordinary people, you don't need to do much other things.

The middle class is shrinking. Also, because of the CCP, the land, sky, and water are all seriously polluted. Education sucks, and it's getting worse. The quality of construction continues to deteriorate. The standard work week for Chinese is 72 hours, and for many young people, this standard is much higher (many people work in 007, that is, work non-stop except for sleeping). The health care of the Chinese people is very bad. The living standards of most people are not so good in China. Because of the CCP’s nonsense like the household registration system, most people have almost no access to social welfare, and many people commute for several hours a day.

In addition, there are nearly 300 million "migrant workers" (migrant workers who work in cities and do not have household registration). These “migrant workers” often have to leave their children in the village, and they may have to live on their own (if the left-behind children are girls, they are easily kidnapped), because the children are not eligible to go to school in the city, where their parents live or work place. This is because of the household registration system.

About 10 years ago, the actual living standards of most people in China reached their peak.

There is an upper middle class who benefits from all the poor and deprived of rights in China, but even they have to deal with severe pollution, terrible crime rates, terrible education system, and so on.

In China, everyone has to deal with things like VPN blocking and ubiquitous government surveillance on you, which may make you disappear at any time.

Recently, China has been building walls on parts of its borders. The barbed wire is facing inward.

Thirty years ago, China was as poor as mud. It doesn't take much effort to start from the starting point of less than $1,000 per capita per year. All you have to do is to allow private businesses and private property. China is on a good path after Japan, Taiwan and South Korea. It's really easy to get from a per capita annual income of $1,000 to $20,000, and then it's hard.

There will be a period of time to be promoted in China, but this is incredibly hard work. China has risen because of foreign companies entering China, for some of the reasons I explained further above.

From the beginning of the 1990s to the beginning of the 2010s, China continued to become more free and prosperous.

In the years following the 2008/9 global economic downturn, many problems arose. Unfortunately, after Xi Jinping came to power in 2012, he began to close China. At first, when Xi Jinping came to power, many people, including foreigners in China, thought it would be a positive thing. It was not until 2016/2017 that China was clearly moving in a very bad direction. Since then, all the ladders to success have been pulled up in China, but to make matters worse, many people are declining. After adjusting for the cost of living, most people's situation in China in 2010 was better than it is now. The lower 75% are hit by the rising cost of living in China, and the hit is getting faster and faster.

Right now, many people believe that in order to reduce China's contact with the rest of the world, most people will be prevented from learning English. The CCP also makes it more difficult for most Chinese people to obtain passports.

It is said that China’s per capita GDP is about US$14,000, but it is more realistic that it is about US$10,000. Although in China, income inequality is very serious, and it will only get worse. China could have continued to become richer for a while, but Xi Jinping has ended this situation. Unfortunately, even if Xi Jinping leaves the picture, he has pushed the CCP through many roads of no return. It is not easy and impossible for the CCP to go in a good direction. Like all regimes, the CCP will end one day, sometimes much faster than you think.

I made a mathematical error.

China's actual GDP is about 10T USD, and the actual population is about 1.26B...

The per capita GDP is approximately US$8,000. PPP cannot be determined because there are too many figures from China.

Hope this is my final comment on this article.

Hey wolf, you installed the robot here.

roddy6667 has been commenting here for many years. Over the years, he has been telling us his story. He lived in China with his Chinese wife, and eventually returned to the United States with the new crown virus, unable to return to China.

You or I may disagree with his views on China, but he is definitely not a robot.

I can say that roddy6667 is a real person. In China, although this is becoming more and more difficult to do. Foreigners can travel to China, and they can do many things, and get paid much higher than ordinary Chinese; teaching English is one thing, but another very important thing is to do white monkey work. The white monkey’s job can be anything, from pretending to be an architect of a building while the company provides tours of the factory/enterprise to outsiders; pretending to be a doctor at an actual press conference and supporting certain drugs; becoming a model. Except for certain business matters, foreigners can hardly engage in any work that the Chinese can do. Some foreigners can go to China to buy things at discounts, ship them directly from the factory to Amazon, and start some similar small businesses themselves.

Until recently, most Chinese people have been very active towards foreigners, many foreigners will live in a bubble in one of the best areas in the best city, and they will be confused the whole time there, not understanding what is happening around them. Even in the best cities, cities have many problems, such as flooding.

Chinese wives (living abroad) are under pressure from their families, and their families are under pressure from the CCP to ask them to become nationalists. There are many videos about this on the Internet. A husband who is very afraid of his wife will say how great China and the CCP are, perhaps singing. The Chinese have been taught from birth to never speak ill of China to any foreigner. Now any news about China by roddy6667 is likely to come from his wife, which is like a filter. roddy6667 probably believed all the nonsense he said.

However, some of the other posters here may be real black cats (paid internet trolls) or Chinese nationalists lying.

When we became more like China, China did not liberalize and became more democratic, partly because of China. I really hope that any Western company that invests in China will be financially hit. This may change their short-sighted greed and make it possible for autocratic opponents, who are now suddenly recognized as a military threat by those idiots who have enabled this, as described in the excellent book "Hundred Years Marathon." The author of the book that is now awakened even admitted that since Nixon's visit to China, he was one of the people with significant official influence.

If you haven't watched it yet, please watch the 2018 documentary "The China Hustle". It plays on Amazon.

"Producer from Enron: The smartest person in the room, a Wall Street robbery story about a Chinese company, the U.S. stock market and the ongoing financial crimes are so big that it has the ability to affect all our wallets."

A great documentary, almost everything I thought of in these discussions. I’m just surprised. We basically know that the Chinese are treating us as fools and allowing us to invest in their companies, and they don’t have to abide by our rules. They can be completely smoke bombs. ...We know they are full of it, but we just pretend that they don't, because we want to be able to invest in the next big thing, and everyone is satisfied with the fraud.

Everyone is treating us as fools, and we know it well, and don't even care. This is why Donald Trump became president. It's a pity that he didn't exercise. It seems we are going to toast. Slowly, maybe... but cheers anyway.

Some people have done this and are doing it to get rich.

Others may actually be ignorant or stupid enough to believe that hot wars are outdated and banned forever. At the same time, I believe that this means that the current political order will either last forever or be a peaceful transition.

I am 56 years old. The United States may maintain its dominance for another 25 years or my expected life expectancy, but this is increasingly doubtful. Given that this is the over-expansion and belligerence of the empire, I would not expect the American elite to accept the graceful decline of great power status.

The Janissaries (Milli) are already picking our leaders. Voting (via mail) is a farce. It won't be long now. It was also self-made.

After watching the two Michaels who were held hostage by Huawei’s Meng Wanzhou deportation hearings over the past two years, I wonder why any reasonable person would travel there, let alone think that joint investment makes sense? Greedy blinds.

Joint investment? I do not think so. Even the "so-called" friendly countries will impose tariffs and fines when they think they bring benefits.

Buyer be careful, buyers be careful, forever. Even use other people's money.

More than 4,000 American companies do business in China. They are also making money, and the money goes back to the parent company in the United States. Maybe they know something you don't? let me guess. Have you never been to China?

There are more KFC restaurants in China than in the United States.

I think your post is wrong because China has a lot of capital controls that restrict the outflow of profits from China.

If they can move them out, the cost is huge.

This is a lie. Trying to make money from a US-owned company in China is almost impossible, even if it is only paid to a foreign supplier.

Those who say that the money made in China faces capital controls may be right.

On the other hand, it is not difficult to invest in China to make money and transfer income to tax havens.

For example, branded products are manufactured in China and sold in the United States. The price of exports from China is the cost of production, plus the brand markup before selling in the United States. This may account for a large part of the sales price and is generated outside of China.

The second example is that if goods are to be sold in China, key parts and components are imported at substantially higher prices.

A large multinational company has a large toolbox of such plans, and can arrange books into any content as needed.

The empire once ruled from London, but it may never be British. Then Empire Hawa has a headquarters on Wall Street, but it may also never be American.

For capitalism, only the bottom line is the most important. Never be loyal to any person, organization, country or ideology. The empire will turn to places where conditions are more favorable.

Do you want Apple to die? Because it has invested more in China than any other American company. If you look at the impact of manufacturing, it is no exaggeration to say that in the past 20 years, Apple has created 1 trillion or more of value in China. If anything, I underestimated the impact.

I saw American jobs in Apple's manufacturing industry and engineering and R&D positions soon transferred to China. Apple must have made money, but what about Americans who have lost their jobs and other American companies that have worked with Apple? What did we get from the money you brag about? Well, we have to spend a penny to get one.

You fully understand what I mean. What did the United States gain from this? If you believe in Tim Apple... Apple directly provides 1 million jobs in the US ecosystem.

Do you see what is missing? Yes, he did not mention how many jobs Apple has created in China. Cook is one of China's best friends. If you are with CCP and want to put spyware in someone's pocket... please call Cupertino, they know where their bread is buttered.

It is very disappointing that Timmy Boy intends to put a photo scanner in each Apple device. I canceled any plans to buy an iPad, hoping to switch to a real Linux phone eventually. Once they become good.

I turned off icloud photo upload. Everyone should.

Apple does not have much direct investment in China. It has signed contracts with Taiwanese companies such as Foxconn to produce their products. In the past, final products were almost always assembled in China. However, Apple asked Taiwanese manufacturers to transfer most of the final assembly to other countries. Most parts of Apple products come from countries outside of China.

In a sense, this is a semantic problem. In places like Foxconn, Apple bought capital equipment and then entered the Foxconn factory in China. Apart from direct capital investment, I don’t know what you would call it.

But let’s take the next step. There is a complete subsidiary industry that has emerged around the iPhone, covering everything from camera modules to proximity sensors... All these things are made by Apple in some way, shape, or form. Direct payment... This directly includes the transfer of knowledge around how to build these modules. Oh, you can argue that PO does not come from Apple's semantics, you are right, Apple has a network or shell company doing its components, capital equipment orders.

The direct result of Apple's investment is the rise of Chinese smartphone manufacturers such as Huawei, Oppo, and Xiaomi, who use infrastructure to know how Apple can compete. All of these are direct capital investments, benefiting...yes...not the United States.

But either way (a bit off topic), I do expect consumer electronics to depreciate in the next 10 years.

After that, it was hardly that important. It is hoped that the new factory will be in the United States after reaching the minimum transistor size. Currently, TMSC is planning to open a bunch of semiconductor factories in the United States.

Nevergrande's debt burden may be greater than the reported $300 B. CCP doesn't know where to start to solve this mess. They will make it implode.

How each Ponzi scheme is finally exposed: unable to find new suckers for additional capital.

It should be fun to watch. Hope everyone has enough popcorn on hand.

I agree with your logic. Get my virtual popcorn, are you waiting? !

This hairy phenomenon is not unique to China. Occurs in various countries. It happens to be a whale.

We need a bigger ship

The shit hit the fan.

All Hail Wolf and his powerful hand-made All-American Prophecy Beer Mug!

Not sure steins are all American. This article details some of these global players. However, pay tribute to the man who begged us to continue the buyer's strike.

I hope I can say that I have done my part. However, Amazon has already received a significant portion of the purchases used to build my home in Southern California. I only bring what fits my mid-size SUV to all parts of the country. Through you, I learned to view the same items on other websites and found that they were competing for business. More people should try to add merchandise to their Wal-Mart. com shopping cart and then try to buy the same product on Amazon. com.

Roosevelt's speech at Madison Square Garden in 1936.

"In the past four years, there has been a government that has not turned its thumb, but rolled up its sleeves. I can assure you that we will roll up our sleeves.

We have to fight against the old enemies of peace-commercial and financial monopolies, speculation, reckless banking, class antagonism, departmentalism, war for profiteering.

They began to view the U.S. government as an adjunct to their own affairs. We now know that organized money government is just as dangerous as organized mob government. "

President Biden should read this speech and make it his speech today. The same old dirty clothes.

President Xi is an example of a government ruled by organized politicians who are greedy for political and pecuniary interests. A huge church was blown up. The priest was arrested. Democracy protesters were sentenced to jail. Muslims were forced to enter the communist re-education camp. Business owners are hindered by claims of national security or destruction of monopolies. When a foreigner owns a patent, the intellectual property is ignored, but when a Chinese owns a patent, the intellectual property is enforced.

What is the image of the United States? A country that bombed innocent civilians with drones

Hope that in the new geopolitical competition, will the two sides see that it is in their interests to improve themselves?

@Rc As a supposedly civilized country, the United States can tolerate the use of these drones, where people eat breakfast to go to work and murder civilians without warning or trial, which is totally disgusting. RT interviewed his father. He saw that his entire family was blown to pieces while loading the charity water supply. This should be mandatory for your MSM to watch, but this is not the case. The military said sorry, we made a mistake. How long will the hatred last? For fucking sake, on top of it.

Yes, the U.S. misused drone strikes and killed 10 people. At the same time, China has imprisoned hundreds of thousands of Uyghurs. This seems to be equivalent.

Alding, the person who brought us the whole concept of drones is the old Hollywood actor Reginald Danny. He is an Englishman who served in the Royal Flying Corps during the "War to End All Wars". Guess he learned from experience that no matter who is crushed in the resulting landslide, the future of the ball will be beautiful. [He also runs the Revell model in Venice, California... You know, let the kids build bombers without the need for baking and selling. It's a bit like a game where mentally ill soldiers are trained to fly airplanes into civilian targets on their home computers. ]

Well, the US government has always said that Afghanistan has ISIS-K or Al Qaeda or whatever, of course... we are busy laying the groundwork for it and making sure these people become that kind of people.

Imagine what it's like for those people's families... You attack with a drone, brag about it on TV, and then spend two weeks to bring it back on Friday afternoon, when you want no one to notice.

After so many years, it is clear that Ron Paul is one of the few sane people in our political system. Irrational.

@H1 If the actual death of 7 children who helped their father bottle charity water for victims in Kabul is equivalent to your MSM "accusation" against Chinese Uyghurs in any way, then I think you are right for fucking sake , On it. Of course, Julian Assange was locked up, not because he exposed similar "fake" news.

He should, but first, he needs to bring back the SALT deduction. Or let his reconstruction plan die terribly within Congress.

Yes...I am still trying to lobby for my own benefit. Because, have you seen California's property tax and income tax, which is terrible.

I am totally in favor of taxing Zuck, Cook, Google Boys, Tom Steyer, etc. until they turn blue, but first, please refund our SALT deduction. In fact, even if there is no transaction, their stocks and real estate (only them) are taxed at their current value, but their book income is 70%. I go all out. But first deduct SALT. (Or I can, if you do it at the same time)

Why do some poor slackers want to work in flyover countries with relatively low wages to pay for the high-yield expenditures in the coastal blue states? I personally don't like the property tax/income tax in New York and California. We ran into our own problems in Maryland.

I think we all agree that this country has entered a stage where the only people we should pay attention to are ourselves and those around us. (As sad as that sentence)

If you want an honest answer about SALT deductions, what Trump did is actually fair. This is a reasonable question, why people in the middle of the United States should pay for the high taxes in the Democratic states... But in my opinion, overall fairness has little to do with this situation.

But I don't care about your taxes at all (sorry, SC, this is a fact, I would rather not whitewash it this way), I only care about my situation. I did the most practical thing in the last election because it was obvious that Trump will never reinstate the SALT deduction, so I hope Biden will. He has been disappointing so far, but for me, he is a single problem candidate and he has not delivered yet. This is the most important.

If you lose MD (most millionaires per capita, this is not because of the fucking crab cake industry), you can kiss your SALT as a gift.

MD (together with VA) is where Swamp goes home to sleep, so political catering is a way of life there. Therefore, if they have no feeling for the Democratic-controlled Congress, the coastal areas will be restricted and the property tax will be wise.

From now on, this ceremonial destruction of the surface/former allies will become the rule... DC is far away, and for the Democratic nationalists, it is bankrupt and cannot* be refunded *Money to anyone.

I will well deduct $60,000 and hold SALT.

I am also willing to...considering the cost of inflation and the coastal taxes we have to pay, I actually want to make $120,000.

Bigger, you can always negotiate in the future.

I prefer to levy more ownership taxes on all assets on a regular basis. This is in my best interest. Don't care about paying for other people's tax cuts.

The thought of this "achievement" makes Biden tears into his eyes by the overwhelming nostalgia he experienced.

The CCP will take measures to appease some of the losses of Chinese citizens. Western holders of Evergrande debt will receive less than 5 cents in U.S. dollars

So will the Fed now twist China's arm to rescue Evergrande? Our Fed's takeover of the world is not so remote after all!

I once learned an ancient geological fact, which can sometimes explain "unexpected" madness and panic...

The ice age always begins when the temperature is the highest. The ice age always ends when the temperature is the coldest.

A good analogy, but the geological part is wrong!

The ice age will only end when the annual average temperature rises enough to begin to thaw the accumulated ice.

To see this with your own eyes, consider winter in any climate where the lake freezes. Frozen lakes will not "start melting" after the coldest day of winter... Only a few months later, when the average temperature returns to above the freezing point, the net melting begins. The ice will not disappear until a long time later.

For the Ice Age, the situation is more complicated, because there are other factors related to precipitation and temperature...

But recessions do start when the economy looks strongest, and bear markets start when the market is close to highs...

Evergrande, Evergrande. What's next, Ever Awe... When people stared at the face of the singularity, they found that the auditorium at the edge of the event horizon seemed to be squeezed tighter and moved forward? For "financial technologists", it may be a bit late to advise China on the way to run their economic super collider. Throwing new and interesting paper into these black holes will not slow down people's appetite.

My whole world is a stupid shovel for the communists. Why is Russia excluded? We are now building an economy there for greedy cheap labor. They will flush your money idiots flush the toilet

If you refuse to use punctuation, why should you divide your comment into several parts and number it? I believe this will be very popular :)

Such nonsense is totally meaningless.

That's why I recommend splitting the parts and quantities-some ME posts that have already started to be lost will be compensated :)

I admire how Wolf links the Evergrande fiasco with the integration of American companies. If the government sits on the sidelines when companies gain control of key communications and business platforms, monopolists and oligopolists can effectively control the government through lobbying efforts, and at some point, large companies dominate the land rather than the voters.

Allowing large companies to make 50 small acquisitions a year allows them to effectively acquire all meaningful competition. It kills small businesses that need a level playing field to complete.

In addition, why the tax rate paid by large technology companies is half the tax rate paid by small businesses? If it is not through the lax and selective enforcement of the tax law, or deliberately setting loopholes in the law, how can this happen?

After 30 years of business integration, we should ask the government to provide a level playing field for small businesses.

"Allowing large companies to make 50 small acquisitions a year enables them to effectively acquire all meaningful competition. It stifles small businesses that require a level playing field to complete."

There is a phrase in the area surrounding large technology companies: "Killing Zone."

For these large enterprise groups, it is difficult to distinguish what is competition. Think of all the bits and pieces that Amazon and Apple have acquired over the years. Take Apple as an example. There have been at least 10 major acquisitions, and it may be close to five times what we have never heard of.

In any case, this is all around their ecosystem, and none of them can be regarded as a monopoly by remote. For example, they have acquired a weather app or a VR company, none of which has anything to do with their current core business, or will only have a very small impact. (If they buy a chip design company, what are the reasons for rejecting them) Unless they don't make an acquisition at all, how can they object to it? However, when these people are vertically integrated, a total ban on acquisitions also seems very challenging. They always point out that no one is obliged to buy their smartphones.

I am not opposed to controlling these companies, but this seems to be a very slippery slope because of the indicators that prevent companies from acquiring. Market value? Competition in the same space? Potential new market? Soon, we will finally get a simple solution, which is to split these companies, and it will be done in a very messy way.

The $1 billion acquisition of Instagram is usually an example of why Facebook is not allowed to acquire potential competitors, but at that time, no one knew whether Instagram or even Facebook’s acquisition would succeed. If someone really owns that kind of crystal ball, the price of Instagram will easily reach 10 times or 50 times.

In the ever-evolving field of technology, government entities are always catching up... They are doing a terrible job, and my biggest worry is that they cross the line and really destroy some important things.

Of course, no one knows whether any of the 200 acquisitions each year will be successful, but this is my opinion. By acquiring hundreds of startups every year, Big Tech ensures that no one knows. Some of them may become the next Google, Apple or Microsoft.

There are many ways to control large technology companies without being severely hit. For example, we can set progressive corporate tax rates. The bigger you get, the more corporate tax you pay. Now, we have a regression model that allows the largest companies to evade corporate tax.

Can't disagree with you there. But let's face it, most of these people are bought out by big shots. If they do not, they will only be overwhelmed.

As for the progressive tax structure, this is what we have for citizens, and see how effective it is in improving income inequality. This is a joke, because the Fed is outside the tax structure. Although they help and abet businesses by insisting on the rest of us, people like Kaplan and Powell are also taking advantage of this situation, buying stocks and municipal bonds and getting fat. Own wallet.

Literally, it is no exaggeration to say that each of these members should be investigated and sanctioned, and their profits will be recovered.

But I digress. I want to see what impact the 50% tax rate will have on Apple or Amazon. My guess is not that much, because if you look at Bezos, he is useless in terms of his ability to evade corporate taxes. The only reason Cook is not so bad is because he cares more about his image and wants to leave the impression of a charming southerner like the neighbor next door, rather than a corporate assassin who sits on the sidelines like him. His only goal is Maximize profits at the expense of everyone else.

@MCH "What are the metrics that prevent companies from acquiring?" I would say our old friends are'decent interest rates' because these companies can borrow large amounts of money almost for free (due to quantitative easing) and they can buy anything they like. If the cost of capital is not manipulated, they can only buy companies whose returns are higher than the cost of capital. This is not easy. The entire financial world has been distorted by ridiculously low interest rates for various reasons, and they can't get out of the predicament, IMO.

To be honest, I don't think interest rates are a big obstacle for these people.

1. See how much cash they have on their balance sheet.

2. For them, a $50 million acquisition hardly constitutes pocket lint and does not hinder smaller acquisitions at all. On a larger scale, they can rely on their cash reserves to absorb these no matter what.

Imposing heavy taxes on them will inevitably invite a large number of lawyers, accountants, and lobbyists to fight for them. No politician can afford to issue a press release from a major employer saying that we are laying off employees because the government is taxing us. Or worse, how do you tax no profits...like Amazon has been doing for years. You tried to tax your income too much, see above.

Yes, I agree that something needs to be done. I really want to know what kind of surgery our ham-scumbag government can come up with.

So, what has happened to the idea of ​​taxing balances and assets that companies advertise on their stock promotions instead of on their books? I don't know how to express this...I hope you understand what I mean.

"The company gains control over critical communications"

Look at the 3 TV network oligopoly from 1950 to 1990...

Long ago, the MSM adjacent to the state brainwashed most Americans.

We are just beginning to live with the ensuing consequences (the doomed promises/lie will all expire...)

At least there are customers in China buying houses. The United States is facing a decline in population and a further gap between the rich and the poor, which means that people whose income does not match the median house price cannot catch up. China has regional issues that they have not resolved, and these issues will impose taxes on their GDP. I hope that the central banks of the world (IMF and SDR) will help China, and the US military will help Vietnam. Vietnam is the driving force behind China's mistakes in Asia.

Not true; the population of the United States is still growing positively due to immigration. China is facing a demographic collapse similar to Japan.

1.2 billion Chinese, (still growing) 126 million Japanese. The population growth rate in the United States has declined, and most of it comes from immigrants. In general, American housing is facing a crisis of oversupply, unless we can increase the median income without raising asset prices (and it usually takes two to three generations for immigrants to be economically viable). According to the Fed report, income inequality in China is not so severe, which means that their housing supply will find demand. U.S. housing is an indicator of income inequality.

I don't know where you got this idea: "(Immigration often takes two to three generations to be economically viable)" AB, but on the contrary, I have been on the southeast and the west coast of the United States for the past 5 or 6 years. Fave was the first person to do "a little" master-level plaster work for me in California. When I asked him to do a big job, he appeared with 25 people; it turned out that his son was the largest union plaster contractor in Northern California. There are 20 people in the office. The master would personally stand on the scaffolding to make the final finishing touches to the historical restoration work to make it look exactly like the original work until the end of the 1980s! ! ! Well, there may be only a few dozen in my direct experience, but all of them come here to work, work hard and achieve success, from professionals, doctors, engineers, architects to carpenters, masons, auto mechanics, farmers Wait. , and many more…

How can/will the International Monetary Fund deal with special drawing rights that China cannot resolve on its own?

The demographic trends from 2000 to 2020 indicate that the population of the United States will surpass that of China in 50-100 years.

The United States also has more natural resources (land and water) to carry a large population, mainly in the middle of the country.

Wisely recheck the state of the Oglala aquifer (Great Plains), excavate extensively after the sandstorm, and since...

The increase in population will only continue to reduce the commercial value of ordinary people. In the absence of overwhelming automation, the population decline should be reversed, but given the continued expansion of automation, it will be interesting to see if the “collapse” of the population will benefit the labor force in a similar way to the approximation. The European plague in the 14th century reduced the population by 30% and changed the arena of feudalism.

May we all find a better day.

"Mainly in the middle of the country."

OMG...Don't tell the coastal locusts that have been lobectomy politically...They have annoyed a paradise (California)

Cas-With all due respect, most of the "coastal locusts" you mentioned started from the east of here, some may come from your state (in my case, the father's side is Sweden-1910, the mother's side It’s Arkansas in 1936. I grew up in San Diego in the 1950s/60s. I was always a native of California and was a minority in school. learn……).

Things go up, things go down. It sounds like your heaven may be rising. Good luck managing the influx, if the part of your territory is really heavenly, you will need everything you can get (if so, please be prepared for bricks from "other places"...).

May we all find a better day.

"Coastal locusts with political lobectomy";

It sounds better than any of you. Cheers and congratulations to a stupid comment!

When faced with real resource constraints, demographic collapse is what you want.

We live in a finite world. I said before, but if the earth contains infinite energy, then high debt and so on are irrelevant in the long run.

Once the Fed rescues Evergrande, it immediately sells and buys on dips.

This situation requires a new set of FED tools. How do we bail out member banks and other entities that are too big to fail? What is the U.S. dollar swap line for third-party purchases of U.S. dollar bonds at face value or better? Look, relax.

Presumably, the government is proposing a piece of legislation that allows the IRS to obtain more information about bank accounts in excess of $600.

Soon, you will need to hand over all funds to rescue the company.

Soon, only large monopoly banks will be able to afford compliance. Get rid of those nasty little banks. I think this is the motivation.

Compliance as a service. That is the next big gold mine.

If you run a business and receive a service payment check and deposit it into your business bank account, please pay attention! The Internal Revenue Service will use the injected US$80 billion to build a server farm next to the server farm used by the Utah State Security Agency. The server will store everyone's banking transactions and run algorithms to see if the business income matches the income reported to the IRS. If not, then you will be fined and you must pay back taxes and fines. enjoy

This is a good thing. They calculate your taxes for you, or your estimated liabilities. There was no trouble with intent afterwards. I guess the US system will have its own suppression. If you are conservative and you want to balance your budget and raise taxes, the best way is to comply with the tax laws already on the books. End, borrowing and spending...

Sorry, that will never work. People will not deposit their payment receipts in the bank. Or better yet, conduct all transactions in cash. The only thing to note is that they may trace everything back to 5 or 10 years. There is a gold mine with unreported income waiting to be mined.

I remember that around 1978, the friendly community liquor store could cash out a salary of $200.

I still remember a man who worked south of the Chicago biscuit factory. He sold 100 five-dollar raffle tickets to win a 200-dollar salary.

SC sees it this way. 70% of Americans do not pay income tax. Every year, they deliver trucks to the H&R block and pay high fees to compensate them. This is a racket and a government authorized racket. Buffett knew it was a good thing at a glance. Of course, IRS now has a free online application service, as well as some good services. Let them calculate the tax for you in the next step. I understand that you have to fight them to get sneaky tax breaks, but I can't afford that kind of accountant anyway. Then maybe we will get some income to settle those federal account deficits. Taxation and immigration are the same issue, enforcing your laws or repealing amendments.

That is definitely the best real news podcast! The Financial Times has new headlines from 30 minutes ago.

But, but, but: I can't wait to hear the rest of the story! How many bubbles and wireless poo "zoomed in" to Dubai at sunset, and the poor little ant was shot by a sparrow in the United States by RH's arrow? Maybe, I better not hold my breath in the next story! This may be the next non-news story: What is Yahoo's next flight to outer space in Elon's cunning tin can?

A sound currency is out of reach. The cure is now limited to deleveraging and carnage. The American system does not represent the interests of the people, because voters do not know or care about whether a sound currency is in their interests. If the Fed tells them that everything is fine, then everything is fine. The Chinese government knows that obscene wealth inequality will, not possibly, let the masses turn to them. They know this lesson well because that is how they gain power. It looks like Powell’s printing press is best equipped with those high-speed German bearings to see if he can run past the lever beast. He might have heard the faint sound of paws hitting the ground.

China's financial earthquake will further damage the supply chain. Moreover, the global CB will inject liquidity into the system to ensure that the seller's market is deep enough and institutional participants can raise cash.

This is an inflationary event. Don't think of deflation. Obviously, increase holdings of hard assets and decrease holdings of financial assets.

In addition, the high-yield bond market will be dangerous. Be careful there.

The high-yield market follows the stock market. It's like mixed investment. When the stock market crashes, the high-yield market also crashes. In addition, it is very unfriendly to taxes. Long-term capital losses, short-term taxable gains. Have been and have done it. never.

In fact, high-yield credit spreads are highly correlated with high-short interest stocks. The correlation between low short interest stocks and HY is anecdotal at best. In addition, the liquidity of the HY market is a real problem during any earthquake.

I suspect that Team J will appear on the news tonight to calm things down and resume the ongoing Dow fall of more than 800 points. I mean, they must have a tool for this type of event in the Toolkit?

Yes, sadly I think you are right. If I were a gambler, I would add a huge bullish position tomorrow to get the front row seat of the dead cat rebound in the next few days and months. Tired me, even with the fiasco with Archegos, the market just shrugged and kept powering up since March last year. This scale is much larger, but people know that Weimar Powell will save it in some way, and the Chinese government may just play for a while and save it in one way or another.

I really hope I am wrong in this matter... I guess time will tell everything. I am not so optimistic. According to my observations since GFC, there will be long-term bloodshed.

IDK, you may be wrong... I hope so. The media trumpeted that the losses were mainly in China.

This is about the debt ceiling... China news is just to distract

Jim Kramer was on CNBC this morning. He is optimistic about Chinese stocks. He looks like he is wearing pants.

The S&P 500 index is currently down 922 (2.66%). Boy, will I make a lot of money on this? I like to do this!

Which way? BTD or short?

I never go short. I will buy through the bottom. I may not have grasped the exact bottom, but if I can reach within 10% of it on either side, I will achieve what I want. I will look for industries that have been punished far more than the broader market and buy them. A big rebound at the end of today.

Finally a big rebound. The plunge protection team hit the field before the close, eh?

It is difficult to know where the bottom will be, but it is better to have a plan. Perhaps one in 100 chances that SP500 will return to the low point below 700 in 2009.

@Kcef Old King Coal is a happy old soul. He has 10,000 people. He leads them to the top of the mountain and then leads them down the mountain. Just saying'

I thought it was the Grand Duke of York?

@S1 Yes! He too! There are many people doing it.

You must put this in perspective.

1) Evergrande's debt is half of Lehman's.

2) The global HY market is about 2.5 times larger than in 2008.

3) CB has figured out how to provide seller liquidity convenience in times of crisis.

This will be the average corrected earthquake for the US market. However, the Asian financial turmoil will disrupt the global supply chain, and inflation will rise further.

The sell-off is not only related to Evergrande. It has been churning under the surface for several weeks. We may fall 5-10% from the high point. We will restore everything before the end of the year, and then restore some. However, unless we change direction before then, what will happen in about a year will truly become a major event. The United States and most of the world will be in a state of massive contraction. He is just warming up.

I think the domino effect is the main danger here. I just read that the stock of another developer has fallen by 85%, and even some banks are beginning to be affected.

For banks, the danger lies in the damage to their assets before the credit crunch. Once bank assets are devalued, they will not have the reserves needed for credit expansion, which is deflation. This is the story of 2008.

So, if you sell the bank, then your expectation is that their assets will be damaged...Do you think this is the case? In the United States and the European Union, this should not happen. However, I have no insight into other blocks.

@S This time the bank has undergone the stress test of destruction. Cannot represent the European Union, no results can be found.

I just want to figure it out.. Refers to a few articles I have read. One of the sources said: “Hengda’s crash dragged down...bank exposure...(.. more than 120)”

Do banks still need reserves to lend?

What does the bank really own? They withdrew from the mortgage business, making almost everything secular. They live on (investment) expenses and credit flows. Wilson of MS calls this "fire" or "ice". If GDP is hot and the Fed raises interest rates, you want to own financial assets. Ice we will shrink. I guess there is no Goldilocks permission. The financial industry is like the automobile industry, yesterday’s news, but they usually come up with something that interests people (electric cars). My insurance company fired its financial adviser. I see competition from shadow banking and the development of community banks have put pressure on their business models. Since they are the private sector of the Federal Reserve, they have a firewall. So you want to know whether fiscal expenditure has replaced monetary policy, and what will happen in the future? Or encryption? The US dollar is their main product. Banks are the third track, and their capital formation business is also outdated. The word zombie comes to mind, but it is worse than that, just like the British royal family, they are no longer lords and no longer celebrities.

Banks own loans and securities, as well as cash. For example, BNY has 400 billion assets.

Shadow banking, debt ceilings, no infrastructure bills, evictions allowed, inflation forces the Fed to take action, you choose.

Ah, smell the nuts that started roasting on the campfire! But it will take a while before it can be cooked. Play!

Six Evergrande executives faced “severe penalties” for redeeming investment products early, and the Chinese real estate giant, which had imploded, told retail investors that they could not repay on time.

According to the British Financial Times, more than 40 group executives personally invested in its investment products, and 6 of them redeemed them early. All six people will refund the money.

The company said: “All funds redeemed by the manager must be returned and severe penalties will be imposed.” The company said it has offered to repay investors with discounted apartments and parking lots.

Won't happen in the U.S.... never

If this happens in the United States, then the Federal Reserve and its members will be sent to prison first. But this will never happen here.

It sounds like the Chinese have controlled this. Now resume your normal programming and place bets on the football game on Monday night.

OK. Bermuda onions or beans? (Sorry, I can't help it.)

Many buildings in China are being or have been constructed as investment shells in more than one way. The most obvious is that these units have not yet been completed and are actually more valuable. Unfinished means "new" and completed means "used", which is not culturally popular.

Less obvious are poor quality materials and workmanship. If no one really lives there, why make things sound reasonable? Maybe only one or two sounds? ID card. Obviously, some of these huge development projects fell apart within only three years of completion. So, not only after financial deflation, but also after discovering quality and livability, what is their value? Suppose the CCP wants to lower prices and let people actually live there.

I don't know if Evergrande is one of the developers who build low-quality development projects, but there are 1.5 million units in the sales process alone, and it is likely that at least some subcontractors use low-quality cement, poor drainage and less steel bars.

My guess is that the video clips you saw in the news about the demolition of several high-rise buildings were because these structures were irreparable—not because they were not yet completed.

Then-after the dust settles, what is the real value of Evergrande's assets? I guess it's far below estimate.

By the way, I found a good explanation about "Chinese money laundering and global real estate" on You Tube on November 30, 2020. It was made by a former Chinese with financial education who was frustrated by not being able to buy a house just like everyone else in the world.

Renewable energy is a big sink for money laundering. I think not only in all parts of the world, but also in China. The advantage of foreign renewable energy investment in the United States, possibly Canada and the United Kingdom, is that although citizens of these countries need to explain their sources of funds, foreigners do not. Same as casinos, this is why Macau is closed more often. This is all related to the capital flight that China hates. At least when it's not the top leader of the CCP family... who knows, it might even be.

A situation where everyone is breaking the law, so high-level predators can choose whom to pursue based on political favoritism.

Chinese residential and commercial real estate developer Sony Holdings Group shares fell 87%. Trading was suspended at 3:28 on September 20, 21.

Interesting! These comments and another very interesting podcast by Wolf are worth learning. I have never heard of the technology used by the founders of Evergrande to inject huge dividends into their pockets while owning most of the shares. It seems that there will be some kind of court battle in the United States to get this money.

Evergrande may hire Trump as a consultant. According to reports, he still owes about 300 billion U.S. dollars in debt, which will mature in the next three years. And he seems to be very experienced in getting rid of loan defaults and not paying suppliers and creditors. With the Trump Company having six Chapter 11 bankruptcies, he can provide stable guidance to the dirty Evergrande founder.

If someone thinks Evergrande is an outsider and everyone else is a fool, then they are delusional.

Evergrande is a canary in the coal mine. Chinese coal mines are the dirtiest coal mines in the world.

By the way, this is based on the list of entities holding Evergrande debt based on Bloomberg Terminal:

UBS AG Credit Agricole Allianz SE Blackrock (of course) Vontobel Holding AG Prudential PLC Government pension fund Royal Bank of Canada Nordea Bank Invesco Ltd BNP Paribas (of course) Van Eck Associates

And such examples are too numerous to list.

call! My bank is not on the list.

@FB what! Without DB, are you biased against this name?

This is a large sum of money on Wall Street, driving China to buy at low prices, and at the same time distracting the retail industry from the upcoming debt limit date...About debt restrictions...

Yellen won't yell for repair

You can't continue stealing without mentioning other people's wallets!

If it is financial investment and China, it is a scam! (KD)

I have no idea. It seems to have the characteristics of corrupt financial behavior:

1. The company assumes too much debt to maintain a bad business model. 2. The consumer makes a wrong decision by prepaying part of the product that has not yet been produced.

As a consumer, if possible, it is best to pay when the item is fully delivered.

Wall Street attracts many people by charging upfront fees for an investment vehicle that has never been delivered.

They are as cunning as bankers and Wall Street people. Their real estate developers are like a Ponzi scheme: the inflowing "buyer" funds pay for the early "buyer" real estate construction costs. They are using repressive claims to crush the CCP faction that opposes Xi Jinping.

During the early CCP tyrants, Xi Jinping’s family “coincidentally” lost everything and became super rich. What is happening is a Chinese Communist gang war, just like in the United States in the 1930s, before Lucky Luciano and his partner Meyer Landing reportedly took over organized crime in the United States.

When a CCP’s POZI RE project collapses, others will also collapse because the idiot begins to doubt it.

Correction: According to reports, Meyer Lansky was his friend, who later became Lucky Luc ciano's successor, and was the head of organized crime in the United States, according to the authorities or at least the Italian Jews part of it, because I suspect it is from Mexico or other countries The gang was among them. The tablet rejected these two names.

What would happen if a naval military confrontation inevitably occurred between China and the United States

@Rc is over in one afternoon. The purpose of the Chinese is defense, not offense. Aircraft carriers and submarines are the most offensive weapons. Calculate them for each side. If they pose any real danger to the motherland, they are expected to be completely surrounded by a swarm of underwater drones. Fortunately, the West knows all this and will not be stupid enough to try, but they still have to put a tough stance on the MSM Hawks. China allows them to do this because they know they must.

As of now, today’s stock opening price is higher than yesterday’s high... So if you sold the stock index yesterday, the Fed’s plunge protection team has determined that you are a loser because futures have been "specified" overnight by more than 350 Points.

The New York Fed was busy last night punishing those who think what the collapse of the Chinese economy means

In fact, the Fed has really become less and less effective and is losing its power. I had a financial article in 1994, and many analysts predicted that the Dow Jones Index would reach 30,000 points by 2000. It took them another 20 years to reach the 30,000 Dow Jones Index.

My observation is that they are losing power and one day they will ruin everything and say that it is trying to save the system, but it must transition to the electronic credit social system. This is just an excuse, because they exaggerated everything. If they just leave capitalism based on actual sound financial principles, then it should like inflation rates above 3% and interest rates above 5% to 11% over the past 30 years. Winners and losers will compete with each other and work out.

"One day they will destroy everything and say it is trying to save the system"

In fact, they stole the free market and ran it for the benefit of a few people for a while... and then the game was over. Maritime Organization

Which is more risky? At current prices, Evergrande bonds may be rescued by CCP or 10-year treasury bonds, the actual yield of the latter is 3,45,6%. If the CCP rescues Evergrande bondholders, those who buy bonds will do well. If the CCP does not bail out Evergrande bonds, panic will become a top priority and the stock market will be controlled, causing the Fed to inject more liquidity into the market, thereby increasing the number of negative real yields.

It depends on the bondholders rescued by the CCP.

It's hard to figure it out now. At least one large gold miner sold at 10 times free cash flow and 6 times operating cash flow, which means that the price of gold is much lower. It seems that the market is pricing the outcome of deflation.

Please remember that the CCP has subtly shifted its public opinion propaganda to serious anti-Western, especially anti-American propaganda has doubled. A revolution of the Chinese people. This is a significant change for the CCP. Many people believe that this is a response to the CCP’s loss of control over the Chinese mentality. "Lying down" is a recent development, but it represents a position that is directly opposed to the CCP workers working to the death. This is a cultural thing. Another Chinese said, "May you live in interesting times." I think China has embarked on some "interesting times" that have hitherto been unimaginable.

In addition to the transformation of the "People's Revolution", there is also a transformation that demonizes the very wealthy Chinese. People like Jack Ma are not so favored by the CCP. If you live in China and profit from it, this is not a good position. Not sure what the final result of this game will be, but it seems to be to re-establish and consolidate control over the daily lives of the Chinese. 1.3 billion people decided to be more like the West they see now. This is a difficult problem for the CCP. It seems that they are very elaborate here, and controlling the manufacturing industry and their employees may be an interesting task.

Can't wait to wait for the next chapter/performance!

How big is BlackRock's loss? I heard that they are at about 400 million dollars...

I will bail you and her! As long as you start spelling your name correctly! Xi is incorrect! This is pronounced eks-eye in English!

George Carlin really did it. "When you are born, you will get a free ticket for a deformity show, and in the United States you will get a front row seat"

"The subsidiary of China Evergrande will pay US$35.9 million in domestic [bond interest] coupons on September 23..."

"Hengda will also pay a coupon of 83.53 million U.S. dollars for offshore U.S. dollar bonds on Thursday. The Shenzhen Stock Exchange filing did not mention offshore bonds."

"Stakeholder differences: commercial banks are the largest investors in onshore bonds, while asset management companies (mutual funds) are the largest investors in offshore bonds; their risk appetite, liquidity requirements and investment objectives may be different."

Are there more non-Chinese investors in offshore bonds?

Housing prices in Vancouver, Ottawa and Montreal fell; Toronto and other cities were flat for the first time since 2019.

Money printing is popular. Retailer category chart.

It just doesn't give up this dress.

This is a difficult task, but I like to participate in it, and your donation makes it work.

It's time to nominate some hawks to the Federal Reserve Board of Governors.

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