Thread by @Hindu7777

#CHINA BACKED OUT OF WAR WITH INDIA ONLY BECAUSE LIFE TIME PRESIDENT #XiJinping XI AND HIS MAD COMMIES KNEW THAT THEY WOULD HANG BY THEIR NECKS ..AND CHINA WOULD BE SPLIT INTO FOUR PARTS , WITH #TIBET BEING THE NEW NEGHBOUR OF INDIA.
in.investing.com/analysis/china…

THE ROT RUNS DEEPER.

A HUGE PERCENTAGE OF CHINESE #GOLD BARS IN THEIR BANK VAULTS ARE FAKE..

CHINA’S DEBT-TO-GDP RATIO STANDS AT 372 % AT PRESENT.

DOMESTIC INFLATION IS PICKING UP. SOONER OR LATER, BEIJING WILL FIND THAT IT CAN NO LONGER COVER UP THE CRACKS IN ITS DEBT WALL.

CHINESE WORKERS WAGES ARE NOW HIGH. THE WEST FINDS THAT COST OF MANUFACTURING GOODS BY RELOCATING TO #CHINA IS NOT WORTH IT..

#USA IS A BEGGAR WITH 26.4 TRILLION USD #DEBT

OPEN THE LINK BELOW AND LOOK AT THE TOP LEFT HAND CORNER.

@davidicke

NO US PRESIDENT TELLS THIS FIGURE IN THE SOTU ADDRESS—WHY?

usdebtclock.org

#CHINESE SHADOW BANKING REFERS TO UNDERGROUND FINANCIAL ACTIVITY THAT TAKES PLACE OUTSIDE OF TRADITIONAL #BANKING REGULATIONS AND SYSTEMS.

@USATODAY @DeepStateExpose

#CHINA HAS ONE OF THE LARGEST SHADOW BANKING INDUSTRIES WITH MORE THAN 51 % OF THE COUNTRY’S OUTSTANDING LOANS TIED UP IN #SHADOW BANKING ACTIVITIES

CHINA’S CONSTRUCTION AND “INVESTMENT” BINGE WAS FUNDED WITH #CREDIT MANUFACTURED BY STATE CONTROLLED #BANKS

AND THEIR #SHADOW AFFILIATES, NOT REAL SAVINGS.

IT WAS DRIVEN BY #CHINESE COMMIE GOVT INITIATED GROWTH PLANS AND #GDP TARGETS. THESE WERE CASCADED FROM THE TOP DOWN TO THE PROVINCE, COUNTY AND LOCAL #GOVERNMENT LEVELS—–

AN #ECONOMIC PROCESS WHICH IS THE OPPOSITE OF ENTREPRENEURIAL AT-RISK ASSESSMENTS OF FUTURE MARKET BASED DEMAND AND PROFITS.

CHINESE GOVERNMENT RELY ON INFRASTRUCTURE DEVELOPMENT TO SUSTAIN ARTIFICIAL GROWTH.. CHINA HAS A 7.9 TRILLION USD SHADOW BANKING SECTOR…

CURRENTLY, CHINESE SHADOW BANKS FUND APPROXIMATELY 32 % OF CHINESE DEBT

CHINA HAS AN INSATIABLE DEMAND FOR CREDIT.

#CHINA IS NOW THIS PLANETS NO 1 IN SHADOW-BANKING ASSET AND NO 1 IN THE SHADOW-BANKING SECTOR… NO NEED TO CONGRATULATE CHINA

THE MOST POPULAR FORMS OF #SHADOW BANKING, ARE SO-CALLED ENTRUSTED LOAN AGREEMENTS AND TRUST LOANS. UNDER THE FORMER, A COMPANY LENDS MONEY TO ANOTHER FIRM WITH THE BANK AS THE MIDDLEMAN, WHILE FOR THE LATTER, BANKS USE MONEY RAISED FROM

#WEALTH-MANAGEMENT PRODUCTS TO INVEST IN A TRUST PLAN, WITH THE PROCEEDS EVENTUALLY GOING TO A CORPORATE BORROWER…

CHINESE GROWTH ( UNLIKE INDIA ) IS STILL DRIVEN MAINLY BY DEBT-FUELLED SPENDING AND EXPORTS..

CHINA PROJECTED FALSE GROWTH RATES BY CURRENCY MANIPULATION

AND #SHADOWBANKING.

THE JEWISH #DEEPSTATE GOVT RUNNING USA DID NOT IMPOSE TARIFFS ON CHINESE GOODS. #USA SHOULD HAVE BRANDED CHINA S A CURRENCY MANIPULATOR LONG AGO.

THE MORE DEPRECIATED #CHINA’S EXCHANGE RATE — THE HIGHER THE PRICE OF THE #DOLLAR IN #YUAN —

THE MORE #DOLLARS #CHINA EARNS FROM EXPORTS, AND THE FEWER DOLLARS IT SPENDS ON IMPORTS.

TO KEEP CHINESE WORKERS BUSY CHINA HAS BEEN MAKING FISHING BOATS WITHOUT ENGINE ( EQUIVALENT ) WHICH WILL NEVER SAIL OR CATCH FISH IN THE MIDDLE OF THE DESERT --

A SCHEME OF MAD #COMMIE LEADERS TO STAY IN POWER

WHEN CHINA OPENED THEIR #BAMBOO DOORS THE SHIP I COMMANDED WAS THE FIRST TO DRY DOCK IN CHINA ( QUINDAO #DRYDOCK ) IN 1986 --WE WERE THERE FOR MORE THAN A MONTH

THE STREETS WERE EMPTY --NO CARS --ONLY #BICYCLES AND BUSES

OUR GERMAN #ENGINEER WAS TAKING CROTCH PHOTOS OF HIS ATTRACTIVE CHINESE TRANSLATOR GIRL --AND SHE ASKED HIM WHAT IS THAT.

THE GERMAN REPLIED -- THIS IS A #MACHINE ( CAMERA )

FIVE YEARS LATER--CAMERAS WERE HEAPED UP ON THE STREET SIDES LIKE TOMATOES IN AN INDIAN MARKET--

DONT ASK HOW MANY NUMBERS -- ASK HOW MANY KILOS OF CAMERAS YOU WANT TO BUY

#CHINESELEADERS HAVE BEEN IMPLICITLY SANCTIONING THE ACCELERATION OF CREDIT GROWTH THIS YEAR IN THEIR SHADOW BANKING MARKETS TO KEEP GROWTH

GOING AT ALL COSTS EVEN WHILE PUBLICLY ADMONISHING-- AND THIS IS THEIR UNDOING !

#CHINA’S SHADOW BANKS ARE, IN PART, ENGAGED IN PONZI SCHEMES, FOR EXAMPLE IN THE 4.2 TRILLION WEALTH MANAGEMENT PRODUCTS (WMP) SECTOR.

SHADOW BANKING SUBJECT TO LOWER LEVELS OF REGULATORY OVERSIGHT AND HIGHER RISKS. SUCH ACTIVITIES ARE OFF THE BALANCE SHEETS DUE TO ACCOUNTING PRACTICES.

SHADOW #BANKING IN THE CHINESE ECONOMY WILL EVENTUALLY LEAD TO A FINANCIAL CRISIS WHEN THE BUBBLE POPS.

#GDP GROWTH IS NOT THE SAME AS ECONOMIC GROWTH. CONSIDER TWO FACTORIES THAT COST THE SAME TO BUILD AND OPERATE. IF THE FIRST FACTORY PRODUCES USEFUL GOODS, AND THE SECOND PRODUCES UNWANTED ONES THAT PILE UP AS INVENTORY, ONLY THE FIRST BOOSTS THE UNDERLYING ECONOMY.

CHINA HAS BEEN BUILDING MILLIONS OF FISHING BOATS AND PLACING IT IN THE DESERT , WHICH WILL NEVER CATCH A SINGLE #FISH ( EQUIVALENT )

BAD #DEBT IS NOT WRITTEN DOWN AND THE #CHINESECOMMIE #GOVERNMENT IS NOT SUBJECT TO HARD BUDGET CONSTRAINTS.
@XHNews @HuXijin_GT

CHINA'S UNREGULATED AND GROWING SHADOW BANKING SECTOR IS THE MAIN DRIVER OF THE CHINESE CREDIT BOOM

#CHINA'S LOSS-MAKING OFTEN STATE-OWNED FIRMS HAVE COME TO BE KNOWN AS 'ZOMBIE' COMPANIES AND BANKS AND INVESTORS FUND MANY OF THEM AS IF THEY WOULD NOT BE ALLOWED TO FAIL.

THE PROBLEM LIES IN HIGH GROWTH TARGETS, WHICH INCENTIVIZE LOCAL COMMIE GOVERNMENTS TO EXTEND CREDIT AND PROTECT FAILING COMPANIES

THESE IGNORANT COMMIES ARE HELL BENT OF SHOWCASING GDP GROWTH—WHICH IS NOT REAL #ECONOMICS

ajitvadakayil.blogspot.in/2016/06/gpi-do…

CHINA IS SIMPLY IN THE BIGGEST CREDIT BUBBLE EVER AND IT TRANSLATES TO THE BIGGEST CURRENCY BUBBLE EVER GIVEN THE SHEER MAGNITUDE OF YUAN DENOMINATED CREDIT WHEN CONVERTED TO DOLLARS AT THE CURRENT EXCHANGE RATE

#CHINA IS TRYING TO ATTRACT FOREIGN CAPITAL INTO

ITS CREDIT MARKETS BUT SUPPLY IS MUCH GREATER THAN DEMAND. YEARS OF MINSKY-STYLE PONZI FINANCE HAVE FINALLY CAUGHT UP WITH THEM

IF THE CREDIT #BUBBLE BURSTS, IT WILL RESULT IN A DEVALUATION OF THE #YUAN.

ALONGSIDE #GOVERNMENT DEBT, CHINA IS NURSING A HUGE MOUNTAIN OF WHAT’S BECOME KNOWN AS ‘SHADOW DEBT’.

SHADOW DEBT BROADLY REFERS TO A TYPE OF WEALTH MANAGEMENT PRODUCTS (WMPS) THAT ARE SOLD OFF THE BOOKS TO CHINA’S SWELLING MIDDLE-

CLASS AS THEY LOOK FOR RISK-FREE SAVINGS OPTIONS PREFERABLE TO THE #GAMBLING CULTURE OF THE STOCK MARKET WHILE OFFERING SUPERIOR RETURNS WHEN COMPARED TO THE SAVINGS RATES OFFERED BY BANKS.

@HongKongFP @HongKongPLG

SHADOW #DEBT OF CHINA IS 20.1 TRILLION USD

NEARLY ALL OF CHINA’S BIGGEST CORPORATE BORROWERS — INCLUDING PROPERTY DEVELOPERS, POWER UTILITIES AND ENERGY, CONSTRUCTION AND MINING FIRMS — DEPEND ON THE REAL ESTATE AND CONSTRUCTION INDUSTRIES TO MAKE ENDS MEET.

THE OVERWHELMING CONCENTRATION OF CHINA'S

HOUSEHOLD DEBT IN THE REAL ESTATE SECTOR HAS MADE HOMEOWNERS VULNERABLE TO VOLATILITY IN THE MARKET.

REAL ESTATE DEVELOPERS, WHICH HOLD 55% OF CHINESE CORPORATE DEBT SCHEDULED TO MATURE IN THE NEXT TWO YEARS, WILL BE HIT HARD

THE CHINESE PARTY IS OVER.

AS BANKS REFUSE TO ROLL OVER DEBTS, SHADOW LENDING CHANNELS BLOCKED AND THE VALUE OF PLEDGED SHARES OF LISTED COMPANIES SHRINKING, DEALS THAT WERE ONCE REGARDED AS GOOD ARE QUICKLY TURNING SOUR.

THE CHINESE SHADOW BANKING FIRMS ARE CHARACTERISED BY ABSENCE OF “REGULATORY OVERSIGHT” AND “SAFETY NET” LIKE GOVERNMENT FUNDED DEPOSIT GUARANTEE AND LENDER OF LAST RESORT FACILITIES.

THE BIGGEST WORRY IS THE MASSIVE DEBT PILE UP IN THE SYSTEM AND SIGNIFICANT INTERLINKAGES

AND SYSTEMIC RISK THAT HAVE GOT INTERWOVEN INTO THE SYSTEM. HIGHER LEVERAGE AND COMPLEX, OPAQUE, DERIVATIVE STRUCTURES ADD UP TO THE RISK ELEMENT IN CASE OF LIQUIDITY FREEZE.

@CIA @FBI @realDonaldTrump @AbeShinzo

CHINA’S SHADOW BANKING SECTOR - UNREGULATED CREDIT MOSTLY HAS BALLOONED IN RECENT YEARS LARGELY DUE TO THE PROLIFERATION OF WEALTH MANAGEMENT PRODUCTS, HUGELY POPULAR INVESTMENTS THAT OFFER SUPERIOR YIELDS TO TRADITIONAL BANK DEPOSITS AS WELL AS IMPLICIT GUARANTEES FROM THE BANKS

THE MAD COMMIES ARE STRUGGLING TO REIN IN THE BOOMING RESIDENTIAL REAL ESTATE PRICES. HOWEVER, THE REGULATOR IS CAUGHT IN A TRAP AS IT CAN NEITHER DEFLATE THE REAL ESTATE BALLOON (AS IT CAN LEAD TO A STRING OF SHOCKS OR DEFAULTS) NOR CAN IT

ALLOW THE PRICES TO REMAIN AT SKY ROCKET LEVEL (AS IT WILL WRECK HAVOC WITH LONG TERM FUNDAMENTALS OF THE ECONOMY). EITHER CASE PUBLIC UPROAR IS ASSURED.

IN CHINA, SHADOW BANKING IS ACTUALLY AN OFFSHOOT OF VARIOUS CREDIT INTERMEDIATION FUNCTIONS PERFORMED BY BANKS.

THUS SHADOW BANKING IN CHINA IS ACTUALLY A “SHADOW” OF ITS BANKS (BANK CENTRIC). WHEREAS IN THE US, SHADOW BANKING IS SIGNIFICANTLY A FUNCTION OF THE CAPITAL MARKETS WHICH IS AN INTEGRAL PART OF THE US FINANCIAL SYSTEM RIGHT FROM THE 1970S.

BEFORE THE 2008 FINANCIAL CRISIS, THERE WAS VERY LITTLE SHADOW BANKING IN CHINA. IN THE AFTERMATH OF THAT SHOCK, CHINESE AUTHORITIES LAUNCHED A MASSIVE EFFORT TO STIMULATE THE ECONOMY, MOSTLY THROUGH A HUGE INCREASE IN LENDING.

THIS LED TO A BOOM IN PROPERTY AND INFRASTRUCTURE SPENDING ( BUILDING GHOST CITIES ) THAT CONTINUES TODAY. DEMAND FOR CREDIT INCREASED SHARPLY, ESPECIALLY FROM LOCAL AND MUNICIPAL GOVERNMENT-OWNED COMPANIES.

@sgurumurthy @RBI @DasShaktikanta @FinMinIndia @RonPaul @FT

AFTER A FEW OLD PEOPLE DIED IN STUCK LIFTS IN GHOST CITIES, PEOPLE STOPPED LIVING IN THESE DESERTED UNHEATED CITIES..





TO MEET THIS DEMAND, BANKS BEGAN SELLING WEALTH MANAGEMENT PRODUCTS

OFFERING HIGHER INTEREST RATES THAN NORMAL DEPOSITS. MANY INVESTORS BELIEVED THESE PRODUCTS WERE IMPLICITLY GUARANTEED BY THE ISSUER, EVEN IF IT WAS NOT EXPRESSLY STATED IN THE CONTRACT. BANKS ALSO BORROWED CASH FROM OTHER BANKS AND COMPANIES.

THESE LOANS ARE OFTEN DISGUISED BY DIRECTING THEM THROUGH A COMPLEX CHAIN OF INTERMEDIARIES, INCLUDING TRUSTS, SECURITIES COMPANIES, OTHER BANKS AND ASSET MANAGERS.

TO EARN INTEREST ON THESE LOANS, A BANK WILL BUY A FINANCIAL PRODUCT FROM ONE OF THE INTERMEDIARIES,

WHICH DIRECTS EARNINGS BACK TO THE BANK. THAT ALLOWS THE BANK TO DESCRIBE WHAT IS REALLY A LOAN AS AN INVESTMENT ON ITS BOOKS.

IN CHINA, WHERE BANKS ARE DISCOURAGED FROM LENDING TO CERTAIN INDUSTRIES AND ARE MANDATED TO OFFER FRUSTRATINGLY LOW INTEREST RATES ON DEPOSITS,

NON-BANKS FILL THE GAP. ABOUT 72% OF ALL LENDING IN CHINA BY SHADOW BANKS ARE "BANK LOANS IN DISGUISE".

SHADOW BANKING HAS AT TIMES BEEN WORTH AS MUCH AS 91 % OF CHINA’S GDP

WMPS ACCOUNT FOR NEARLY 20.5 % OF BANK DEPOSITS IN CHINA

THE REASON CHINA’S FINANCIAL SYSTEM HAS REMAINED UPRIGHT SO FAR IS BECAUSE THE COMMIE AUTHORITIES HAVE FOUND WAYS TO CONCEAL DEFAULTS-- BY DIRE THREATS TO WHISTLE BLOWERS ...

BANKS STEP IN TO COVER LOSSES ON WMPS EVEN WHEN THEY ARE NOT LEGALLY RESPONSIBLE.

BEIJING SUMMONS UP WHITE KNIGHTS TO RESCUE STRICKEN BUSINESSES. IF THEY DONT PLAY BALL--IT IS FALSE CHARGES AND LONG TERM JAIL..

THE RULE IN BEIJING IS THAT STABILITY MUST BE MAINTAINED AT ANY PRICE, THE COMMIE PARTY MUST ALWAYS SMELL OF ROSES..

WHEN THE STATE PROTECTS PEOPLE FROM THE CONSEQUENCES OF IRRESPONSIBLE LENDING, THEN MORE BAD LOANS WILL BE ISSUED. THE RESULT IS NOT JUST AN OVER-INDEBTED ECONOMY, BUT ONE STREWN WITH CORPORATE ZOMBIES.

#CHINA’S CONSTRUCTION AND “INVESTMENT” BINGE WAS FUNDED

WITH CREDIT MANUFACTURED BY STATE CONTROLLED BANKS AND THEIR #SHADOW AFFILIATES, NOT REAL SAVINGS.

THE SHADOW BANKING HAS GROWN AT A SPECTACULAR RATE, AND NOW CONTROLS $21.1 TRILLION OF ASSETS OR ABOUT 89% OF GDP.

#CHINA'S UNREGULATED AND GROWING SHADOW BANKING SECTOR IS THE MAIN DRIVER OF THE CHINESE CREDIT BOOM..THESE IGNORANT COMMIES ARE HELL BENT OF SHOWCASING GDP GROWTH—WHICH IS NOT REAL ECONOMICS..

MAD #COMMIE PARTY OF CHINA IS NOW BUSY BUILDING SALT WATER SWIMMING POOLS IN THE MIDDLE OF THE OCEAN.

IT WILL CONTINUE TILL PEOPLE REVOLT AND HANG PRESIDENT XI, AND HU XIJIN OF THE GLOBAL TIMES LIKE WHAT ITALIANS DID TO MUSSOLINI AND HIS MISTRESS.

@Worldometers @wef @WorldBank

INDIA, THIS PLANETs NO 3 ECONOMY ( NOMINAL/ PPP ) IS THE ONLY ECONOMY PLANET WITH POTENTIAL..

Capt ajit #vadakayil

@RBI @FinMinIndia @MontekSinghPC @sankrant @mvmeet

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