The Big Short of the Yuan. China is fading.

JonesBones

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Chinese markets are in trouble once again.

China’s currency is down nearly 1% from Friday’s close, wiping out the yuan’s gains for the year, after the People’s Bank of China cut reserve requirements for banks over the weekend. Slowing growth and rising trade tensions are pummeling Chinese shares, with the Shanghai Composite entering a bear market Tuesday. And rising defaults are testing the country's gargantuan debt market.

https://www.wsj.com/articles/has-the-big-yuan-short-finally-arrived-1530005935

China’s yuan fixing on Tuesday gave a hint that the nation’s authorities may be growing concerned about the pace of the currency’s decline, according to Royal Bank of Canada.

https://www.bloomberg.com/news/arti...y-may-be-sign-china-is-wary-of-slump-rbc-says
 
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They are in trouble here. Their monetary system is very rigid and cannot adjust to change well. Ours is much better that way. Much nimbler. China almost has a gold standard like system and it is harder for them to adjust with economic dynamics.
 
They are in trouble here. Their monetary system is very rigid and cannot adjust to change well. Ours is much better that way. Much nimbler. China almost has a gold standard like system and it is harder for them to adjust with economic dynamics.

I'm not celebrating any trouble they are in. Just a funny gif.
 
I'm not celebrating any trouble they are in. Just a funny gif.

I am. I almost kind of hope it turns into full blown economic warfare, fuck a 'trade war'. The tariffs on $450 billion of goods with the necessary and obvious exempts plus a complete shut down of all Chinese investment into the United States would be fine appetiziers. That's before making full use of America's hegemonic leverage over the global financial system. I hope they "dump" all of their T-bills and get the Federal Reserve directly involved in the situation.

Drop ALL the EU and NAFTA shit though. Like, right now.

https://www.nytimes.com/2017/08/15/opinion/china-us-intellectual-property-trump.html

Chinese companies, with the encouragement of official Chinese policy and often the active participation of government personnel, have been pillaging the intellectual property of American companies. All together, intellectual-property theft costs America up to $600 billion a year, the greatest transfer of wealth in history. China accounts for most of that loss.

Intellectual-property theft covers a wide spectrum: counterfeiting American fashion designs, pirating movies and video games, patent infringement and stealing proprietary technology and software. This assault saps economic growth, costs Americans jobs, weakens our military capability and undercuts a key American competitive advantage — innovation.

Chinese companies have stolen trade secrets from virtually every sector of the American economy: automobiles, auto tires, aviation, chemicals, consumer electronics, electronic trading, industrial software, biotech and pharmaceuticals. Last year U.S. Steel accused Chinese hackers of stealing trade secrets related to the production of lightweight steel, then turning them over to Chinese steel makers.

Perhaps most concerning, China has targeted the American defense industrial base. Chinese spies have gone after private defense contractors and subcontractors, national laboratories, public research universities, think tanks and the American government itself. Chinese agents have gone after the United States’ most significant weapons, such as the F-35 Lightning, the Aegis Combat System and the Patriot missile system; illegally exported unmanned underwater vehicles and thermal-imaging cameras; and stolen documents related to the B-52 bomber, the Delta IV rocket, the F-15 fighter and even the Space Shuttle.


tranquilo.gif
 
Good, hopefully this will force China to float the Yuan, and once that genie is out of the bottle Xi Jinping cant put it back inside.
 
Hard to feel sorry for the Chinese government, which is why I don't.
 
Bloomberg: China Begins to Question Whether It’s Ready For A Trade War

In recent weeks, prominent academics have begun to question if China’s slowing, trade-dependent economy can withstand a sustained attack from Trump, which has already started to weigh on stock prices. The sentiments are being expressed in carefully worded essays circulated on China’s heavily censored internet and -- according to interviews in recent days with ministry officials and foreign diplomats who asked not to be identified -- repeated in the halls of government offices, too.

The essays have raised concerns that the ruling Communist Party underestimated the depth of anti-China sentiment in Washington and risked a premature showdown with the world’s sole superpower. Such views push the bounds of acceptable public debate in a nation where dissent can lead to censure or even jail time, and are particularly bold given Xi has amassed unrivaled control while leading China to a more assertive role on the world stage.

"It seems like Chinese officials were mentally unprepared for the approaching trade friction or trade war,” Gao Shanwen, chief economist for Beijing-based Essence Securities Co., whose biggest shareholders include large state-owned enterprises, wrote in one widely circulated commentary. “Anti-China views are becoming the consensus among the U.S. public and its ruling party.”
 
having a trade deficit w/ them doesn't really matter if A) their economy is shaky, and more importantly B) they have literally ZERO way to enforce anything.
 
I am. I almost kind of hope it turns into full blown economic warfare, fuck a 'trade war'. The tariffs on $450 billion of goods with the necessary and obvious exempts plus a complete shut down of all Chinese investment into the United States would be fine appetiziers. That's before making full use of America's hegemonic leverage over the global financial system. I hope they "dump" all of their T-bills and get the Federal Reserve directly involved in the situation.

Drop ALL the EU and NAFTA shit though. Like, right now.

https://www.nytimes.com/2017/08/15/opinion/china-us-intellectual-property-trump.html

Chinese companies, with the encouragement of official Chinese policy and often the active participation of government personnel, have been pillaging the intellectual property of American companies. All together, intellectual-property theft costs America up to $600 billion a year, the greatest transfer of wealth in history. China accounts for most of that loss.

Intellectual-property theft covers a wide spectrum: counterfeiting American fashion designs, pirating movies and video games, patent infringement and stealing proprietary technology and software. This assault saps economic growth, costs Americans jobs, weakens our military capability and undercuts a key American competitive advantage — innovation.

Chinese companies have stolen trade secrets from virtually every sector of the American economy: automobiles, auto tires, aviation, chemicals, consumer electronics, electronic trading, industrial software, biotech and pharmaceuticals. Last year U.S. Steel accused Chinese hackers of stealing trade secrets related to the production of lightweight steel, then turning them over to Chinese steel makers.

Perhaps most concerning, China has targeted the American defense industrial base. Chinese spies have gone after private defense contractors and subcontractors, national laboratories, public research universities, think tanks and the American government itself. Chinese agents have gone after the United States’ most significant weapons, such as the F-35 Lightning, the Aegis Combat System and the Patriot missile system; illegally exported unmanned underwater vehicles and thermal-imaging cameras; and stolen documents related to the B-52 bomber, the Delta IV rocket, the F-15 fighter and even the Space Shuttle.

It would be hilarious if Trump single handledly destroys China. However, it's not gonna happen. It's just a 1% drop ffs.
 
I thought China had the best economy in the world. Surely they can hold out long enough to make all this interesting.
 
I thought China had the best economy in the world. Surely they can hold out long enough to make all this interesting.

They can hold out forever.

I mean if the Great Chinese Famine didnt even made Mao's control over the country falter, a few bumps in the economy wont either.

The biggest issue for China is demographic implosion.
 
They can hold out forever.

I mean if the Great Chinese Famine didnt even made Mao's control over the country falter, a few bumps in the economy wont either.

The biggest issue for China is demographic implosion.

New leadership sounds like a buncha pussies.
 
Hard to feel sorry for the Chinese government, which is why I don't.

Pure Dystopia.

RFA: China Aims For Near Total Surveillance, Including People's Homes

By 2020, China will have completed its nationwide facial recognition and surveillance network, achieving near-total surveillance of urban residents, including in their homes via smart TVs and smartphones. According to the official Legal Daily newspaper, the 13th Five Year Plan requires 100 percent surveillance and facial recognition coverage and total unification of its existing databases across the country.

Authorities in the southwestern province of Sichuan reported in December that they had completed the installation of more than 40,000 surveillance cameras across more than 14,000 villages as part of the "Sharp Eyes" nationwide surveillance network, the paper said. Guangdong-based Bell New Vision Co. is developing the nationwide "Sharp Eyes" platform that can link up public surveillance cameras and those installed in smart devices in the home, to a nationwide network for viewing in real time by anyone who is given access.

"Sharp Eyes" comes from a ruling Chinese Communist Party slogan, "the people have sharp eyes," which traditionally relied on the eyes and ears of local neighborhood committees to keep tabs on what its people were up to.

Soon, police and other officials will be able to monitor people's activities in their own homes, wherever there is an internet-connected camera. A Chinese internet user who asked to remain anonymous said the social media platform WeChat has also begun issuing warnings to anyone posting messages that the government deems undesirable.

"The internet and our smartphones have been under government surveillance for a long time already," the user said. "A friend of mine in Anhui is under surveillance, and he tried to buy a plane ticket to go overseas, but he couldn't leave the country. We can be placed under restriction or persecuted by them, or asked to 'drink tea,' [with state security police], or placed under surveillance, at any time," he said. "Overall, it feels as if we're not free at all."

'Social Credit' System

The Sharp Eyes system will be implemented in tandem with a "social credit" system that makes simple actions like buying a train ticket subject to sufficient social credit.

Under a pilot social credit scheme, people who are considered to be "troublemakers" by the authorities, including those who have tried fare-dodging, smoked on public transport, caused trouble on commercial flights or "spread false information" online will now be prevented from buying train tickets, the government announced earlier this month. Employers who fail to pay social insurance or people who have failed to pay fines will also be on the restricted list, which takes effect on May 1.

The administration of President’s Xi Jinping is currently building a social credit system allowing government bodies to share information on its citizens’ trustworthiness and assign a "social credit score" to citizens. In early 2017, the country’s Supreme People’s Court said that 6.15 million Chinese citizens had been banned from taking flights for social misdeeds, Reuters reported.
 
Pure Dystopia.

RFA: China Aims For Near Total Surveillance, Including People's Homes

By 2020, China will have completed its nationwide facial recognition and surveillance network, achieving near-total surveillance of urban residents, including in their homes via smart TVs and smartphones. According to the official Legal Daily newspaper, the 13th Five Year Plan requires 100 percent surveillance and facial recognition coverage and total unification of its existing databases across the country.

Authorities in the southwestern province of Sichuan reported in December that they had completed the installation of more than 40,000 surveillance cameras across more than 14,000 villages as part of the "Sharp Eyes" nationwide surveillance network, the paper said. Guangdong-based Bell New Vision Co. is developing the nationwide "Sharp Eyes" platform that can link up public surveillance cameras and those installed in smart devices in the home, to a nationwide network for viewing in real time by anyone who is given access.

"Sharp Eyes" comes from a ruling Chinese Communist Party slogan, "the people have sharp eyes," which traditionally relied on the eyes and ears of local neighborhood committees to keep tabs on what its people were up to.

Soon, police and other officials will be able to monitor people's activities in their own homes, wherever there is an internet-connected camera. A Chinese internet user who asked to remain anonymous said the social media platform WeChat has also begun issuing warnings to anyone posting messages that the government deems undesirable.

"The internet and our smartphones have been under government surveillance for a long time already," the user said. "A friend of mine in Anhui is under surveillance, and he tried to buy a plane ticket to go overseas, but he couldn't leave the country. We can be placed under restriction or persecuted by them, or asked to 'drink tea,' [with state security police], or placed under surveillance, at any time," he said. "Overall, it feels as if we're not free at all."

'Social Credit' System

The Sharp Eyes system will be implemented in tandem with a "social credit" system that makes simple actions like buying a train ticket subject to sufficient social credit.

Under a pilot social credit scheme, people who are considered to be "troublemakers" by the authorities, including those who have tried fare-dodging, smoked on public transport, caused trouble on commercial flights or "spread false information" online will now be prevented from buying train tickets, the government announced earlier this month. Employers who fail to pay social insurance or people who have failed to pay fines will also be on the restricted list, which takes effect on May 1.

The administration of President’s Xi Jinping is currently building a social credit system allowing government bodies to share information on its citizens’ trustworthiness and assign a "social credit score" to citizens. In early 2017, the country’s Supreme People’s Court said that 6.15 million Chinese citizens had been banned from taking flights for social misdeeds, Reuters reported.
Goat law right here. China smart
 
They can hold out forever.

I mean if the Great Chinese Famine didnt even made Mao's control over the country falter, a few bumps in the economy wont either.

The biggest issue for China is demographic implosion.

China has millionaires now though who are beloved figures in the country. Like Jack Ma. I don't think they are gonna let all these big companies they built up over the years be hurt so much. Money is flowing into US equities. People are willing to pay twice as much for US equities. Chinese stocks are cheap as shit now. I personally like Chinese stocks. They have been good to me over the year. I would like to see these companies get back on their feet even though I don't own them currently. It is good for the market.

Even Buffett and Munger before all this shit said they like Chinese stocks better than American stocks. I did too. Till Trump.
 
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