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The Writing’s on the Great Wall for a China Crash

November 1, 2023

The Writing’s on the Great Wall for a China Crash

As the economy continues to implode, capital flight rises.
As the saying goes, if you want to know what’s really going on, follow the money. That catchphrase doesn’t just apply to foreign companies and investors backing out of China. It also applies to the Chinese economy.A No-Confidence Vote

In the midst of widespread economic duress and growing social disruption, following the money trail shows how Chinese investors are voting with their wallets. Consumer spending is down, and the savings rate is up. Capital is flowing out of China any way it can, and it all amounts to a definite no-confidence vote for Xi Jinping and the Chinese Communist Party (CCP).The CCP Tries to Hide the Facts

In true CCP fashion, the state puts the blame for its failed policies on those who point them out. Anyone who mentions the crumbling economy, for example, is guilty of endangering financial stability. Even though the CCP would consider prosecuting journalists and economists who report accurately about the falling employment numbers and the high debt levels that plague local governments, China’s worsening economic conditions are too dramatic and widespread to hide.

Of course, financial stability isn’t threatened by people talking about it. It’s the CCP that’s destroying the economy. Even recent history shows that the less involved the Party is in the economy, the better it performs.

The property market and the development sector are perfect examples, although not the only ones. Both continue to be heavily manipulated by the CCP, and both are hemorrhaging value, as financial ruin in flagship companies such as Evergrande and Country Garden contribute to deteriorating conditions in the wider economy. Completed projects that remain unsold are being demolished, work on existing projects is being halted, and other development plans are being canceled, even as the development companies owe billions to creditors.…click on the above link to read the rest…

Will Modern Monetary Theory Blow Up the Dollar?

December 18, 2019

Anti-riot police block the entrance to the Magistrates court in Bulawayo, Zimbabwe, on Aug. 19, 2019. Nearly two years after President Emmerson Mnangagwa took power, the country faces rising inflation, increased poverty, and a severe water shortage. (Tafadzwa Ufumeli/Getty Images)
Anti-riot police block the entrance to the Magistrates court in Bulawayo, Zimbabwe, on Aug. 19, 2019. Nearly two years after President Emmerson Mnangagwa took power, the country faces rising inflation, increased poverty, and a severe water shortage. (Tafadzwa Ufumeli/Getty Images)

Will Modern Monetary Theory Blow Up the Dollar?

The idea of an ‘infinite’ money supply from federal printing presses is gaining ground among the radical left in Washington, D.C.

Commentary

“As long as the government can print money, we’ll never be broke.”

That’s the idea behind modern monetary theory (MMT) in a nutshell. Naturally, many of the nuts in Washington are starting to get behind this unhinged notion. That includes members of Congress such as Rep. Alexandria Ocasio-Cortez (D-N.Y.) and democratic presidential candidate Sen. Elizabeth Warren (D-Mass.).

An Economic Absurdity

Sure, a cluster of economists in and around Wall Street and Washington, D.C. are pushing this very dangerous set of policies that are dressed up in academic terminology such as “neo-Keynesianism” so that they sound almost sane. But MMT is as far from economic sanity as one can get. But let’s face it, Wall Street loves any idea that puts money into the market.

In essence, the main idea behind MMT is that any government spending can be paid for but with printed money. An in depth look into history—or even a brief one—shows that the absurd idea of printing unlimited amounts of money leads a nation into hyperinflation and economic ruin.

No Good Examples

A recent example would be Zimbabwe. Unjust land seizures leading to food shortages, price controls, and corruption led to massive deficit spending fueled by printing press money. A inflation rate of 98 percent every day destroyed the economy and the government’s credibility in running it.

…click on the above link to read the rest of the article…

Is Powell Playing Fed Games?

October 13, 2019

U.S. Federal Reserve chair Jerome Powell speaks during a discussion at the Economic Club in Washington on Jan. 10, 2019. (SAUL LOEB/AFP/Getty Images)
U.S. Federal Reserve chair Jerome Powell speaks during a discussion at the Economic Club in Washington on Jan. 10, 2019. (SAUL LOEB/AFP/Getty Images)

Is Powell Playing Fed Games?

The Federal Reserve will be adding assets to its balance sheet again, but Powell insists it’s not “quantitative easing”

The Federal Reserve will be adding assets to its balance sheet again, but Powell insists it’s not “quantitative easing”James GorrieWRITEROctober 10, 2019 Updated: October 10, 2019Share

Apparently, the “repo market” purchases by the Federal Reserve we discussed earlier this week —which don’t count as quantitative easing (QE)—were just the beginning of the new, non-quantitative easing but money printing period.

Fed “repos,” you may recall, are now necessary to boost weak overnight liquidity reserves of the big banks and don’t permanently expand the Fed’s balance sheet, unless they go on forever, in which case they would be QE. Now they are more of a short-term bail-out.

It’s Time for “Non-Quantitative Easing”

But in his Tuesday speech, Federal Reserve Chairman Jerome Powell explained that for the first time in five years, the “time is now upon us” for the Fed to resume buying U.S Treasury bills and bonds. That means that come November, the American economy will officially enter into another period of quantitative easing, you know, the Fed buying assets to expand its balance sheet.

Or not.

Typically, when the Federal Reserve buys Treasury assets, it’s because of weakness, either in the economy or in the financial system. A weakness that needs to be papered over by money printing, expanding the Fed’s balance sheet and bank reserves. Or the Fed buys other assets that nobody wants to buy at a decent price, like the purchases of mortgage backed securities (MBS) it conducted after the financial crisis.

 …click on the above link to read the rest of the article…

How Digital Banking Makes You More Vulnerable

February 15, 2019

A man takes part in a hacking contest during the Def Con hacker convention in Las Vegas, Nevada, U.S. on July 29, 2017. (Reuters/Steve Marcus)

A man takes part in a hacking contest during the Def Con hacker convention in Las Vegas, Nevada, U.S. on July 29, 2017. (Reuters/Steve Marcus)

How Digital Banking Makes You More Vulnerable

Banking – and bank robbery – have entered the digital age and all is not well.

Safes and vaults used to be how banks protected your money. Now the money completely accessible through your digital identity. But how safe is your digital identity?

Needless to say, banking has changed. Although managing financial assets, providing services and processing transactions remains retail financial institutions’ primary functions, they’re also charged with protecting the most prized and valuable assets of all: their customers’ digital identities. That would include yours as well as mine. They’re spending vast sums on it as well. Unfortunately, achieving total security is more of a challenge than paying interest on a CD or interest-bearing checking account.

Invasive Banking Laws Make You Vulnerable

One of the biggest changes in banking over the past decade or so is how much individual privacy has been eliminated. With various anti-money laundering laws and protocols put in place since the 9-11 Attacks, banks have been given new powers aimed at identifying sources of funds and recipients of financial transfers. Furthermore, strict limits on how you transfer or receive money – how much, how often, from whom or to and from where – have resulted in banks knowing more about their clients’ lives than ever before.

But that invasiveness has left clients’ identity incredibly vulnerable. In the past, some banks were slower in adopting client data security tools and protocols necessary to protect personal and corporate client identity details due to conflicting interests. And even those that did so couldn’t be certain that their efforts were successful. Even with the most sophisticated systems in place, that ambiguity remains today.

 …click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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