Malaysia – The second corporate raid


It was not the British government that seized Malaya, but a private company, run by an unstable sociopath

EIClogo

People still talk about the British conquering Malaya, but that phrase disguises a more sinister reality. It was not the British government that seized Malaya at the end of the 18th century, but a dangerously unregulated private company headquartered in one small office, five windows wide, in London, and managed in India by an unstable sociopath – Clive.

clive

Robert Clive, was an unstable sociopath who led the fearsome East India Company to its conquest of the subcontinent. Photograph: Hulton Archive/Hulton Archive/Getty Images

The first corporate raid.

In 1511, Melaka was conquered by Portugal, after which it was taken by the Dutch in 1641. In 1786, the British Empire established a presence in Malaya, when the Sultan of Kedah leased Penang Island to the British East India Company. The British obtained the town of Singapore in 1819, and in 1824 took control of Melaka following the Anglo-Dutch Treaty. By 1826, the British directly controlled Penang, Melaka, Singapore, and the island of Labuan, which they established as the crown colony of the Straits Settlements. By the 20th century, the states of Pahang, Selangor, Perak, and Negeri Sembilan, known together as the Federated Malay States, had British residents appointed to advise the Malay rulers, to whom the rulers were bound to defer to by treaty. The remaining five states in the peninsula, known as the Unfederated Malay States, while not directly under British rule, also accepted British advisers around the turn of the 20th century. Development on the peninsula and Borneo were generally separate until the 19th century. Under British rule the immigration of Chinese and Indians to serve as labourers was encouraged. The area that is now Sabah came under British control as North Borneo when both the Sultan of Brunei and the Sultan of Sulu transferred their respective territorial rights of ownership, between 1877 and 1878. In 1842, Sarawak was ceded by the Sultan of Brunei to James Brooke, whose successors ruled as the White Rajahs over an independent kingdom until 1946, when it became a crown colony.

On 31 August 1957, Malaya became an independent member of the Commonwealth of Nations.

After this a plan was put in place to federate Malaya with the crown colonies of North Borneo (which joined as Sabah), Sarawak, and Singapore. The date of federation was planned to be 31 August 1963 so as to coincide with the anniversary of Malayan independence; however, federation was delayed until 16 September 1963 in order for a United Nations survey of support for federation in Sabah and Sarawak, called for by parties opposed to federation including Indonesia‘s Sukarno and the Sarawak United Peoples’ Party, to be completed – Wiki

Just like any sovereign state, Malaysia trotted on to progress and prosperity independently, with all the ups and downs for six decades under six prime ministers.

Currently, this relatively young nation is going through rough seas. The captain of the ship has (literally) lost his bearings, and the vessel is heading towards a iceberg, a collision of an enormous proportion, which will make the Titanic look pale in comparison.

Malaysia is in turmoil, politically and economically. The local currency Ringgit has dropped to a twelve year low and is in a free fall position. The political situation is in a state of disrepair as the ruling party UMNO under the leadership of prime minister Najib is losing popularity by the minute even as we speak.

Corruption is rampant in the government and UMNO, and it starts right from the highest echelon cascading down to the clerks in every ministry and department of the civil service.  Many arrests have been conducted by the Malaysian Anti-Corruption Commission (MACC)

Malaysia scored 49 points out of 100 on the 2016 Corruption Perceptions Index reported by Transparency International. Corruption Index in Malaysia averaged 49.73 Points from 1995 until 2016, reaching an all time high of 53.20 Points in 1996 and a record low of 43 Points in 2011.

The country’s reputation dived head down internationally as the infamous 1MDB scandals were blown out of the pandora’s box. Billions of dollars went ‘missing‘ into the pockets of rouges closely connected to the PM, while some RM2.6b were trailed into the PM’s personal account.

1mdb

The massive amount of debts by 1MDB triggered investigations and several law suits by authorities and creditors in United States, Switzerland, Dubai, Singapore and Hong Kong.

Najib will hope that a friendly figure in the White House will help his chances in the biggest kleptocracy case brought by the US justice department to date. It’s seeking $1 billion in assets that it says are tied to “public corruption and a global money laundering conspiracy.” – Quartz

The second corporate raid

communistmalaisie2

Many mega projects have been interrupted or halted as these projects are in financial rout and seeking bail-outs or sourced out to foreign financiers. The biggest and main taker is China.

The Finance Minis­try (MoF) has called off a deal to sell 60% of Bandar Malaysia – a mega property development project estimated to have a gross development value of RM160bil when completed in 20 years – has sent shockwaves through the country and the region – TheStarOnLine

Proton the first Malaysian car is up for sale and the Chinese automaker Geely is a promising buyer.

Even the Bilderberg Shell have sold their refinery in Port Dickson to a Chinese company Hengyuan International Ltd.

Chinese presence in the ailing Malaysian economy are seen as bailing out Najib’s misadventures and not as genuine investments.

Playing the domestic cards by opening its borders to China’s investment and development projects – many of which have shown traces of fatigue in the long run – Najib brought the Chinese government to understand that he needed them for his own political survival. – TheIndependent

Here are some national mega projects where the Chinese are literally and desperately begged to participate by Najib to restore his unpopularity, saving his neck and retain power all at the same time:

What comes with all these Chinese participations (interventions) and financing? One has to be too naive to think that its all purely business investments on the part of the Chinese and that Malaysia is just so good and fortunate to attract foreign investments, but silly enough to offer opportunities to foreigners, especially China as giveaways whilst herself missing the chance to reap fortunes from her own viable, profit making projects?

Desperate times call for desperate measures, even if it means selling one’s own mother to save one’s own neck. This is a more accurate observation by concerned Malaysians and that history is beginning to repeat itself is glaringly apparent.

The British East India Company came in a quite different time, scenario and circumstances as the corporate raid was done singularly and stealthily during a time and period the people were innocent simpletons, unsuspecting and unaware of what was going on until it was too late to do anything to stop the marauders… and the rest, as they say is history.

For a century, the East India Company conquered, subjugated and plundered vast tracts of south Asia. It was the original corporate raider. The lessons of its brutal reign have never been more relevant.

With that unforgettable episode of Malaya (then) in the back of the people’s heads, Malaysians are witnessing, with their eyes wide open this time history repeating itself.

Malaysians lowered the Union Jack on August 31, 1957 to regain their freedom, and sixty years later, will they be seeing the raising of another corporate flag – the Five Stars Red flag and be slaves all over again? One must remember, most of the big Chinese corporations are controlled and owned by the State. Only this time it will be a communist takeover instead of the capitalist fascists and oh, how paradoxical it has turned out, as the people of Malaya had fought so hard with their lives to rid off the communist terrorists (which were supported and backed by China), during the Emergency period.

What else will be sold to complete the corporate raid? Highways, water, power, utilities public transport and telecommunication services next? Will the people knowingly sit back and allow a second corporate raid this time around?

 

..

Save

SDR World Order


by James Corbett
corbettreport.com
October 1, 2016

I’m not sure how to break this to you, but it appears the world is ending this weekend. Or at least that’s what you’d believe if you were reading certain corners of the internet.

As you may have already heard, the UN is “taking over the internet” this weekend. But as you’ve also heard if you follow The Corbett Report, that is a complete misrepresentation of what is really happening. Worse, hyperbole about a “UN takeover” of the internet obscures the real solution to ICANN and the centralized DNS system.

But there’s another “end-of-the-world” event taking place this weekend that you might not have picked up on: the SDR.

sdrbasket-768x374

That’s right, the IMF is formally adding the Chinese renminbi (aka the yuan) to their “Special Drawing Rights” basket on Saturday, October 1st. The move boosts the yuan to the status of global reserve currency alongside its basketmates, the pound, the euro, the yen and the dollar. At 10.92% it will be the third highest-weighted currency in the basket, behind the euro at 30.93% and the dollar at 41.73%.

For those who missed my previous reporting on the SDR and the significance of the yuan’s inclusion, here’s the primer:

  • The SDR is not a currency, but a potential claim on dollars, yen, euros, pounds, and now yuan.
  • It is issued by the IMF and held (and traded) as a “supplementary reserve asset” by central banks.
  • There are 204 billion SDRs outstanding, equivalent to $285 billion or about 2.5% of total global reserves.

The upshot of the SDR is that it provides liquidity for global transaction settlement in times when dollars and gold are in scarce supply. Inclusion of a currency in the SDR basket means that there is a built-in demand for that currency as central banks tend to match their currency holdings to the basket’s weighting, meaning that central bankers around the world are now (or have already) adjusted their aggregate holdings of yuan to about 10.92% of their portfolio. With $11.6 trillion of reserves globally, that equates to over $1 trillion worth of yuan being held in central bank coffers around the world.

More than that, the move is expected to boost investment in the yuan from both FX reserve managers and global portfolio managers. The FX inflows alone have been estimated at as much as $3 trillion in the coming years, with onshore bond buying accounting for a further $1 trillion of expected foreign investment.

Some outlets are hailing this as the largest transformation of the global monetary order since WWII.

sdr

Others, like Barron’s Chi Lo, are putting a wet blanket on that hyperbole. In an article titled “What Now for China as Renminbi Joins SDR?” Lo argues that much of the re-balancing of global reserve portfolios have already been completed, and would have only amounted to an extra $31 billion of demand for the yuan, a drop in the bucket of global liquidity. And global investors, he says, will not base their investment decisions on China’s SDR status, but on China’s commitment to the structural reforms which have been put on the back burner since the yuan achieved SDR status:

“SDR inclusion of the renminbi is not relevant to the portfolio re-balancing decision (to increase the weighting of renminbi-denominated assets) of international investors. The impact on global portfolio decisions will come from foreign investors’ assessment of China’s fundamental outlook, the opening of China’s capital account and the decision by international index providers, such as MSCI, to include Chinese A-shares in their global indices.”

So who’s right? Is this the dawn of a new monetary order, or a blip of little significance in and of itself? Well, in a weird way perhaps both are right. China’s SDR inclusion is not going to turn the world upside-down overnight. And if it was just the inclusion of one more currency in the global reserve basket (and only 10% of the basket at that), then this wouldn’t be significant all by itself. But while you were sleeping another development came along that gestures to the potentially transformative nature of this SDR makeover.

In August the World Bank announced to relatively little fanfare an historic bond issue: The International Bank for Reconstruction and Development (IRBD), one of the five institutions under the World Bank umbrella, would sell nearly $3 billion worth of SDR-denominated bonds. And the currency of settlement? The Chinese yuan.

chinaimf-768x512

SDR-denominated bonds were flirted with decades ago, most recently in 1981, but the market for SDR bonds did not develop and they soon went the way of the dodo. But now, lo and behold, 35 years later they’re making a comeback, right in the heart of the world’s rising economic dragon.

The issue, which went ahead on August 31st, serves a mundane, practical purpose: It allows Chinese investors to dabble in different currency assets without investing abroad. But at the same time it serves a much bigger purpose. In attempting to revive the long-dormant SDR bond market, China is tacitly backing the SDR as a reserve currency unto itself. Not a mere claim that is redeemed in other currencies by central banks in need of liquidity, but a settlement currency in and of itself.

As I explained before, this has been Beijing’s plan since the 2009 crisis: not to have the yuan replace the dollar as the global reserve, but to have the SDR replace the dollar. This allows the Chinese government to avoid having to liberalize the yuan or ease up on its rigid capital controls, but still gives it a seat at the table in a new global monetary order while simultaneously dethroning their best frenemy, the US. It’s win-win-win for China and, more importantly, win-win-win for the globalist oligarchs who want to bring in a New World Order of globally-administered currency.

As The Epoch Times puts it: “This is the first step toward one world currency.”

globalcurrency-300x122And guess what? It’s been in the planning for years, openly discussed in the central bankers’ white papers, decision documents and conferences, but conveniently unreported by the media and completely overlooked by the public.

In March 2009, as the world was still reeling from the Global Financial Collapse, Zhou Xiaochuan, the Governor of the People’s Bank of China, published an essay on March 23, 2009 in an essay bluntly titled “Reform the international monetary system.” In it, he argued that the world could no longer afford to be tied to the US dollar and the vagaries of the American financial system. Instead, it needed to be presided over by those trustworthy angels at the IMF:

“Compared with separate management of reserves by individual countries, the centralized management of part of the global reserve by a trustworthy international institution with a reasonable return to encourage participation will be more effective in deterring speculation and stabilizing financial markets. The participating countries can also save some reserve for domestic development and economic growth. With its universal membership, its unique mandate of maintaining monetary and financial stability, and as an international ‘supervisor’ on the macroeconomic policies of its member countries, the IMF, equipped with its expertise, is endowed with a natural advantage to act as the manager of its member countries’ reserves.”

And in case that wasn’t clear enough, Zhou also wrote that: “The SDR has the features and potential to act as a super-sovereign reserve currency.”

The very next year the Bank for International Settlements (yes, that Bank for International Settlements), the European Central Bank and the World Bank jointly organized the Third Public Investors Conference, a chance for 80 central bankers, wealth fund and pension fund managers to hobnob at the BIS’ headquarters in Basel and discuss their world domination schemes. The results of that conference were collected in an edition of “BIS Papers” and published on the BIS website. One of those papers, penned by George Hoguet and Solomon Tadesse of State Street Global Advisors, discussed “The role of SDR-denominated securities in official and private portfolios” and predictably pimped the revival of SDR bonds that we are currently living through:

“An investor can synthetically replicate the weights of an SDR-denominated bond, but a security denominated in SDRs is self-rebalancing and is likely to minimize rebalancing costs. Additional research, particularly on the coordination problem (which limits liquidity) and operational issues, including settlement, can facilitate the development of an SDR-denominated bond market. Williamson (2009a) suggests that greater private use of the SDR could possibly facilitate greater official use, including the pegging of currencies to the SDR rather than to a basket of currencies or to some bilateral exchange rate.”

In other words, SDR bonds create the market for SDRs generally and legitimate their use as a settlement currency in their own right.

yuanphnoe-300x169Now, six years later, here we are with the World Bank helping China issue SDR-denominated bonds. This is the real reason that this bond issue is happening at all. As The Epoch Times points out: “For the IBRD, there is no advantage because it is borrowing in strong currencies and getting paid in a relatively weak one.”

No, this is not about some wonderful new way for the World Bank to cheaply finance its bond issues; it is entirely about legitimizing the role of the SDR on the world stage as a potential world currency.

It remains to be seen whether this strategy will be successful. The first bond issue was a success, with a bid to cover ratio of 2.5 and 50 institutional investors—from central banks to domestic banks, brokerages and insurance companies—bidding on the instruments. But ZeroHedge quotes a fixed-income fund manager in Hong Kong who was not so impressed by the auction: “We are not interested in SDR bonds and we can’t see why Chinese investors should want these bonds since they can easily buy much higher yielding bonds in China.”

Whether SDR bonds will take off depends completely on whether the central bankers can convince the financial world of the benefits of scuttling the dollar reserve system. That will take some concerted effort, which is why we should expect to see an increase in stories raising awareness about SDRs and their potential utility in the coming years.

In that sense, the spate of stories this weekend about the yuan’s SDR inclusion may not be so much the end of the world as the first wave of propaganda getting people ready for the end of the world.

..

The Yuan Is In The Basket!


…and the beginning of the end for the Dollar?


RT

Chinese yuan becomes IMF reserve currency, first new addition since ‘99

yuan

http://on.rt.com/7qs8

The Chinese yuan has been added to the IMF reserve basket, becoming the first currency to be added to the list since the emergence of the euro in 1999.

The official entry was made Saturday, bringing to a close, at least partially, Beijing’s years-long struggle for international acceptance on the sort of level enjoyed by the US dollar. The currency now joins the big four: the US dollar, the euro, the yen, and the British pound.

The decision means the Chinese yuan will now be used as one of the International Monetary Fund’s lending currencies in times of emergency economic bailouts. This sort of internationalization is in line with China’s wish for increased legitimacy of its currency.

The move is also evidence of China’s growing role as a power to challenge the global economic dominance of the United States.

The limitations China places on its own markets, however, have themselves been to blame for this delayed outcome.

“It’s an irreversible path towards opening up, integrating into the global economy and playing the economic game by the rules,” proclaimed IMF Managing Director Christine Lagarde.

READ MORE: Putin’s gift to Xi causes Russian ice cream craze in China

Her assurance comes as critics say the move is no more than symbolic. Many of them accuse Beijing of exchange rate manipulations and cross-border capital movements.

US Treasury Secretary Jack Lew said China is still “quite a ways” away from the status of a true global reserve currency.

Nevertheless, the IMF said it recognizes the “enormous” changes made over the past decade to bring yuan out into the open.

On Friday, the IMF fixed the relative amounts of the five main currencies in its basket for five years, based on the exchange rate of each one over the last three months.

 

..

The Mother of Central Banks Worried About World’s Financial System??


Telegraph

 

China facing full-blown banking crisis, world’s top financial watchdog warns

The BIS said there are ample reasons to worry about the health of world’s financial system.

 

By

China has failed to curb excesses in its credit system and faces mounting risks of a full-blown banking crisis, according to early warning indicators released by the world’s top financial watchdog.

A key gauge of credit vulnerability is now three times over the danger threshold and has continued to deteriorate, despite pledges by Chinese premier Li Keqiang to wean the economy off debt-driven growth before it is too late.

The Bank for International Settlements warned in its quarterly report that China’s “credit to GDP gap” has reached 30.1, the highest to date and in a different league altogether from any other major country tracked by the institution. It is also significantly higher than the scores in East Asia’s speculative boom on 1997 or in the US subprime bubble before the Lehman crisis.

Studies of earlier banking crises around the world over the last sixty years suggest that any score above ten requires careful monitoring.  The credit to GDP gap measures deviations from normal patterns within any one country and therefore strips out cultural differences.

It is based on work the US economist Hyman Minsky and has proved to be the best single gauge of banking risk, although the final denouement can often take longer than assumed. Indicators for what would happen to debt service costs if interest rates rose 250 basis points are also well over the safety line.

China’s total credit reached 255pc of GDP at the end of last year, a jump of 107 percentage points over eight years. This is an extremely high level for a developing economy and is still rising fast .

Outstanding loans have reached $28 trillion, as much as the commercial banking systems of the US and Japan combined. The scale is enough to threaten a worldwide shock if China ever loses control. Corporate debt alone has reached 171pc of GDP, and it is this that is keeping global regulators awake at night.

bis1

The BIS said there are ample reasons to worry about the health of world’s financial system. Zero interest rates and bond purchases by central banks have left markets acutely sensitive to the slightest shift in monetary policy, or even a hint of a shift.

“There has been a distinctly mixed feel to the recent rally – more stick than carrot, more push than pull,” said Claudio Borio, the BIS’s chief economist. “This explains the nagging question of whether market prices fully reflect the risks ahead.”

Bond yields in the major economies normally track the growth rate of nominal GDP, but they are now far lower. Roughly $10 trillion is trading at negative rates, and this has spread into corporate debt. This historical anomaly is underpinning richly-valued stock markets at time when profit growth has collapsed.

bis2

The risk is a violent spike in yields if the pattern should revert to norm, setting off a flight from global bourses. We have had a foretaste of this over recent days.  The other grim possibility is that ultra-low yields are instead pricing in a slump in nominal GDP for years to come – effectively a trade depression – and that would be even worse for equities.

“It is becoming increasingly evident that central banks have been overburdened for far too long,” said Mr Borio.

The BIS said one troubling development is a breakdown in the relationship between interest rates and currencies in global markets, what it describes as a violation of the iron law of “covered interest parity”.

The concern is that banks are displaying a highly defensive reflex, and could pull back abruptly as they did during the Lehman crisis once they smell fear. “The banking sector may become an amplifier of shocks rather than an absorber of shocks,” said Hyun Song Shin, the BIS’s research chief.

This conflicts with what the Bank of England has been saying and suggests that recent assurances by Governor Mark Carney should be treated with caution.

Yet it is China that is emerging as the epicentre of risk. The International Monetary Fund warned in June that debt levels were alarming and “must be addressed immediately”, though it is far from clear how the authorities can extract themselves so late in the day.

The risks are well understood in Beijing. The state-owned People’s Daily published a front-page interview earlier this year from a “very authoritative person” warning that debt had been “growing like a tree in the air” and threatened to engulf China in a systemic financial crisis.

The mysterious figure – possibly President Xi Jinping – called for an assault on “zombie companies” and a halt to reflexive stimulus to keep the boom going every time growth slows. The article said it is time to accept that China cannot continue to “force economic growth by levering up” and that the country must take its punishment.

One bright spot is a repayment of foreign debt denominated in dollars. Cross-border bank credit to China has fallen by a third to $698bn since peaking in late 2014 as companies scramble to slash their liabilities before the US Federal Reserve raises rates. The tally for emerging markets as a whole has fallen by $137bn to $3.2 trillion.

bis3

China’s problem is internal credit. The risk is that a fresh spate of capital outflows will force the central bank to sell foreign exchange reserves to defend the yuan, automatically tightening monetary policy. In extremis, this could feed a vicious circle as credit woes set off further outflows.

The Chinese banking system is an arm of the Communist Party so any denouement will probably take the form of perpetual roll-overs, sapping the vitality of economy gradually.

The country was able to weather a banking crisis in the late 1990s but the circumstances were different. China was still in the boom phase of catch-up industrialisation and enjoying a demographic dividend.

Today it is no longer hyper-competitive and its work-force is shrinking, and time the scale is vastly greater.

…and BOE is also worried?

Bank of England concerned over rapidly growing Chinese debt bubble

Britain’s central bank has warned that growing Chinese debt is a threat to global financial stability. Chinese firms are borrowing faster than the GDP is growing, according to the bank. ….read further

 

..

Save

NYSE and its stocks will sink to the bottom of the ocean if they were in a shipping container


Many people think that the stock markets are the “indicators” and signs of whether the economy is healthy or otherwise. The mainstream media controlled by Wall Street and governments are always painting a rosy picture of the economy and placing the wool on people’s eyes.

As many (not that many actually) know the too-big-to-fail banks have failed, but because they are still seemingly conducting business as usual, most would think , “Oh its just a small hiccup” and are very confident that their governments are there ever-ready to protect their monies and assets. Anyway, that’s what an elected government is for right? Wrong!

The boneheads in the financial sector depend on the central bank$ to “regulate” the casinos and Ponzi schemes of the world’s banks and bursars. In every tight situation they would wait for the central ban$ter$’ solutions, eagerly with their fingers crossed hoping the sun shines again the next day for another bigger scoop, or a newer scheme to rob the masses. The picture is downright pathetically horrendous.


Once again, the rosy view on U.S. economy wilts

Federal Reserve bigwigs meet this week to debate when to raise a key short-term U.S. interest rate. The outcome, however, is not expected to be a cliff-hanger. Wall Street investors only see a 15% chance that the Fed will hike rates.

The final nail in the proverbial coffin may have come with a decline in retail sales and manufactured goods in August, reflecting persistent caution on the part of consumers and businesses. – Market Watch


Latest today…a real classic garbage from who else – The Financial Times

Stocks gain and the dollar drifts ahead of central bank meetings

Oil prices rise on talk of Opec deal to stabilise global production


For me, I look at the sea where I could see the ships. If the horizon is empty of freighters it simply means no cargo is moving. One cannot make up the data of the Export-import (Exim) business. No buying means no selling, no manufacturing means no trading, and its that simple to gauge the (real and true) economy.  The Baltic Dry Index figures dropped to its all-time low.

In trading Thursday, the benchmark Baltic Dry Index continued its fall with another record low at 298, its first value ever below three hundred points. Capesize and supramax day rates were down, while panamax vessels traded slightly higher. The worsening market is forcing an increased volume of vessel and enterprise sales, and, for well-positioned buyes, creating an opportunity to purchase at distressed-asset prices. – The Maritime Executive

The word economy has taken a turn from its original meaning and intention by Keynesian economists and what is apparent is its now only meant to measure the profits, wealth and assets of the 1 percent and has nothing to do with the 99 percent.

The reports of the shipping industry is terrifying news for the global economy. The horizon is empty and the shipping lanes are scarce if not empty of cargo ships.

The shipping industry is taking a beating.

As the Wall Street Journal reports, about 1,000 ships capable of hauling 52 million metric tons of cargo will be cut up and sold for scrap metal this year. Owners have only ordered 293 vessels this year through July — a stark decrease from 2010 to 2015 when owners were buying 1,450 ships annually.

The reason? A stagnant global economy that stems back to little growth in Europe and a slowdown in China. Chinese imports from the European Union fell 14% last year, the WSJ reports. In the first quarter of this year, Chinese imports from the EU fell 7% from a year prior. Exports to Europe have fallen as well. Continue reading

That sinking feeling for Hanjin as falling freight rates fuel a global shipping crisis

They just keep slitting each other’s throats with lower rates,” the  shipbroker says. His sense of desperation is common in the industry, but he still asks not to be named. Tomorrow he will be fixing deals for the same shipowners who have flooded the market with new vessels in recent years, driving shipping rates lower as the glut of unused vessels grows. – The Telegraph

China’s ports hit hard by global trade slowdown

In the first half of the year, Hong Kong handled 10 per cent fewer containers than during the same period in 2015 and is on course for its fifth consecutive year of declines. – FT

Look up the Internet for more reports of the dying sea-freight business, and you’d find its definitely not a sign of a healthy global economy, but the world’s economist will tell you differently and that’s because the economic profession is in a sad state

It is not an exaggeration to say the current reputation of economists is probably just below that of a used car salesman. The recent failures of economic policies to boost growth or employment have tarnished this image even more. This, however, is in sharp contrast to the past when economists were seen as the intellectual roadblock to popular misconceptions, bad ideas, or more importantly, government policies sold to the public on false assumptions. – Frank Hollenbeck

Hanjin to return chartered vessels

South Korean container line says it is losing $2m a day

Hanjin Shipping is to return all of its chartered vessels to their owners to cut costs, after the South Korean container line said it was losing $2m a day amid the logistics chaos prompted by its bankruptcy last month. – FT

If Wall Street and the world’s con-stock marketers, and their stocks are in shipping containers they would all sink to the bottom of the oceans…literally.

..

China and America Already at War: Tianjin Explosion Carried out by Pentagon Space Weapon in Retaliation for Yuan Currency Devaluation


EducateQIA

The Tianjin explosion was waged as an act of kinetic retaliation by the Pentagon in response to Chinas currency war Yuan devaluation, according to dissident sources from mainland China. The Chinese government has put in place unprecedented secrecy surrounding the mysterious explosion, and aggressive police state tactics are now being invoked to control the flow of information surrounding this event.

Last weeks explosions sent massive fireballs into the sky and hurled burning debris across the industrial area at the worlds 10th-largest port, burning out buildings and shattering windows kilometres away, reports the Daily Mail UK.

The Chinese governments official explanation for the explosion, which has now killed 114 people, is a complete whitewash. China is going to declare regional martial law in the next 18 days, Natural News has learned, in order to exercise total control over the movement of people and information. The government has banned reporters from entering the area and has begun arresting bloggers who promote what the government calls conspiracy theories regarding the cause of the massive explosion.

China has blacked out reporting on Tianjin in exactly the same way the U.S. media blacked out reporting on Dr. William Thompson, the CDC whistleblower who admitted the CDC buried evidence linking vaccines to autism. In both China and the United States, when the government doesnt want the citizens to know something, it censors the story across the entire state-run media, invoking information totalitarianism.

Both before and after the massive explosion, the Chinese government has been flying black helicopters in formation across Beijing. (Update: Previously, this article stated the helicopters began flying after the explosion, but we have been corrected on this point, as helicopters were witnessed in the sky in the days before the explosion as well.) Chinese dissidents took numerous photos of these helicopters and were able to deliver these exclusive pictures to Natural News:

A warning shot from the United States: Dont crash the dollar or sell our debt

Chinese dissidents have told Natural News they have reason to believe the attack on Tianjin is a warning shot from the United States, which is terrified that China is on the verge of announcing its own gold-backed currency while declaring a fire sale on U.S. debt holdings.

The actions would collapse the U.S. dollar and destroy the U.S. economy, sending the United States into economic freefall. The Rod of God weapon deployment by the U.S. Pentagon, were told, was Americas shot across the bow to send a powerful warning message to China while disguising the attack as a domestic chemical explosion.

Timeline of events: China devalues currency, then Pentagon strikes in mere hours

Consider the calendar of events in all this:

August 11, 2015: China devalues the Yuan by 1.9%, sending shockwaves around the world and setting off a devastating impact to the U.S. economy.

August 12, 2015: Tianjin struck by Pentagons secret Rod of God weapon, a space-based top-secret kinetic weapon that can be dropped from high orbit to strike almost any land-based target. The weapon instantly destroys six city blocks on the edge of the city of Tianjin, sending a message to China thats eerily similar to the message sent by the United States in the dropping of the worlds first atomic weapons on Hiroshima and Nagasaki in World War II. (Yes, the USA is willing to drop weapons of mass destruction on civilian populations. It has already done it twice!)

(For those following the Shemitah, the dropping of atomic bombs on Japan also occurred during a Shemitah year, in the month of august, 1945, exactly 70 years ago. This is precisely TEN Shemitah cycles ago, or what might be called a deca-Shemitah.)

August 16, 2015: Obama issues stern warning …about the presence of Chinese government agents operating secretly in the United States, reports The New York Times. And it comes at a time of growing tension between Washington and Beijing on a number of issues: from the computer theft of millions of government personnel files that American officials suspect was directed by China, to Chinas crackdown on civil liberties, to the devaluation of its currency.

The Pentagons secret space-based weapons

The Rod of God weapon consists primarily of a kinetic weapon arriving with unimaginable kinetic energy… more than a small tactical nuclear weapon, in fact, giving it the appearance of a tactical nuke.

U.S. websites are now speculating that the Tianjin explosion was a U.S. space-based weapons test involving a Rod of God weapon dropped from orbit. The [resulting] lake [crater] in China proves a 5 kiloton blast, possibly nuclear or possibly from a space based rod from God (pictured to the left) weapon [was] deployed by the space plane, says The Unhived Mind.

China and America Already at War Tianjin Explosion Carried out by Pentagon Space Weapon in Retaliation for Yuan Currency Devaluation Google Search
After looking through the images of the soviet nuclear tests, the new lake in China appears to have been made by a slightly sub surface burst of at least a 5 kiloton nuclear bomb… This was NOT an accident and the fracture pattern around the crater proves a sub ground burst. If it was a sub ground burst, then a small nuclear weapon is the biggest possibility because once a nuke has to push dirt, the blinding flash will not happen. A slightly subsurface detonation would explain why camera sensors did not get strange artifacts. And if it was not a nuke, it was something else incredibly huge, but not a fuel air bomb because fuel air bombs will not leave craters.

Space-based kinetic weapons dropped onto targets are explained by Popular Science in this article from 2004:

When instructed from the ground, the targeting satellite commands its partner to drop one of its darts. The guided rods enter the atmosphere, protected by a thermal coating, traveling at 36,000 feet per secondcomparable to the speed of a meteor. The result: complete devastation of the target, even if its buried deep underground.


When required these projectiles can be commanded to dive, singly or en masse, at targets on the Earths surface, smashing into the victim at orbital speed. As the projectiles kinetic energy is released, the blast would be equivalent to a large conventional bomb, explains Armaghplanet.com.

China to declare martial law as total control of information and people kicks into high gear

Martial law will be declared across Beijing in the coming days, dissidents have told Natural News. Meanwhile, the Chinese government which runs a massive state-controlled firewall that snoops into all internet traffic and blocks VPN access has added Tianjin as a red flag keyword to its internet traffic filtering.

Local police raids have already begun at the locations of bloggers and independent journalists who have attempted to report true stories on what really happened at Tianjin. The Chinese government is engaged in a total cover-up.

Natural News has learned that the Chinese government is now setting up roadside checkpoints near and around both Tianjin and Beijing. Additional security measures now in place to control the movement of people include:

All hotels are reporting details of visitors to the government, including passport numbers, nationalities, names and phone calls made from the rooms.

Tourists who dont stay in hotels are now required to register with local police or risk arrest. The Chinese government has mandated that it must know the location of every person at all times.

Red armbands are now being worn by workers to indicate they are serving as Stasi-like obedient police snitches. The red armbands indicate total obedience to the government, and the workers wearing them have all been trained in how to spot dissident behavior. Its Chinas version of If you see something, say something just as was pushed in the United States.

In preparation for Chinas Sep. 3 celebration for the defeat of Japanese occupation its the 70th anniversary China has banned Japanese writing in most of its large cities. Government propaganda runs 24/7, condemning the Japanese and the horrifying war crimes committed by Japanese soldiers against China. (Its true, the Japanese committed unimaginable atrocities such as mass-raping women and then chopping them into pieces with machetes to destroy the evidence.)

Helicopter patrols are now routinely witnessed across Beijing and Tianjin, where military choppers are flying in formation as a show of strength.

Massive populations of laborers are now living in underground dwellings, underneath the clean, high-tech buildings of Beijing that seem like world-class architectural achievements. (Update: Previously, this story stated underground cities but we have been corrected on this point and have updated the description to underground dwellings. Essentially, they are below-ground mass housing basements.)

If this war escalates, it could unleash a global currency war of attrition

If this covert war between China and the United States continues to escalate, it would ultimately devastate the economies of both nations. Both China and the USA are currently experiencing shockwaves in their stock markets as bubble economies built on debt begin to unravel.

In these times of shaky financial foundations, it doesnt take much to topple public faith and unleash a mass exodus away from currencies and markets. Its also clear that the United States considers currency games to be acts of war while justifying kinetic responses to such events.

This is all fully aligned with the government policies set in motion by President Obama in 2011. Washington will to [sic] consider using conventional weaponry in response to a cyber-attack on the United States, according a new US strategy, reported The Telegraph:

The White Houses strategy statement on cybersecurity said the United States will respond to hostile acts in cyberspace as we would to any other threat to our country.

We reserve the right to use all necessary means diplomatic, informational, military, and economic as appropriate and consistent with applicable international law, in order to defend our nation, our allies, our partners and our interests, the May 16 document said.

Pentagon spokesman Colonel Dave Lapan confirmed that the White House policy did not rule out a military response to a cyber-attack.

Even further, Henry Kissinger had the following to say about U.S. China relations, as quoted from his website HenryAKissinger.com, in an article entitled The Future of U.S. Chinese Relations; Conflict Is a Choice, Not a Necessity:

Just as Chinese influence in surrounding countries may spur fears of dominance, so efforts to pursue traditional American national interests can be perceived as a form of military encirclement. Both sides must understand the nuances by which apparently traditional and apparently reasonable courses can evoke the deepest worries of the other. They should seek together to define the sphere in which their peaceful competition is circumscribed. If that is managed wisely, both military confrontation and domination can be avoided; if not, escalating tension is inevitable.

If the United States defines currency war attacks as cyber attacks, then we may have just witnessed the first application of that new war doctrine, where electronic attacks are met with kinetic responses from the Pentagon.

Let us all hope this doesnt escalate even further, or America will likely find itself on the losing side of any war involving economics, currencies or cyber warfare.

Sources for this article include:

http://www.naturalnews.com

http://www.nytimes.com

theunhivedmind.com

http://www.popsci.com

http://www.armaghplanet.com

http://www.telegraph.co.uk

http://www.henryakissinger.com

http://www.dailymail.co.uk

http://www.naturalnews.com

Source

WorldTruthTV


RELATED

Tianjin Explosion Shuts Down Chinese Supercomputer

PC World Michael Kan IDG News Service Aug 14, 2015 4:00 AM The deadly explosion that rocked the Chinese city of Tianjin has caused the country to shut down a nearby supercomputer, also one of the fastest in the world. … Continue reading →

..

Anbang Insurance Group – A Chinese Mystery


NYT

Owners of Anbang, a Chinese insurer behind a wave of multibillion-dollar deals, include relatives and friends of its politically connected chairman.

A tiny group of small-time merchants and villagers in China control multibillion-dollar stakes in the Anbang Insurance Group, a global deal maker that owns the Waldorf Astoria in New York.
American regulators are now asking who these shareholders are — and whether they are holding their stakes on behalf of others.

ANBANG

Pingyang County’s verdant hills still hint at a long-lost China. Rice paddies and villages surround its bustling towns, and in the fields, farmers wade into the mud to plant seedlings as they have for thousands of years.

It is an odd place to find the people behind a Chinese corporate powerhouse that is turning heads on Wall Street with a global takeover binge. Yet the area is home to a tiny group of just such people — small-time merchants and villagers who happen to control multibillion-dollar stakes in the Anbang Insurance Group, which owns the Waldorf Astoria in New York and a portfolio of global names and properties.

American regulators are now asking who these shareholders are — and whether they are holding their stakes on behalf of others.

The questions add to the mystery surrounding a company that seemed to come out of nowhere, surprising deal makers with offers to pay more than $30 billion for assets around the world.

Anbang’s shopping spree is part of an outflow of money from China that has reshaped global markets but has often been shrouded in secrecy, sometimes by prominent Chinese looking to shift their wealth abroad without attracting attention at home. That poses a problem for international regulators trying to identify the buyers behind major acquisitions and to assess the riskiness of these deals.

The Anbang shareholders in the Pingyang County area hold their stakes through a byzantine collection of holding companies. But according to dozens of interviews and a review of thousands of pages of Anbang filings by The New York Times, many of them have something in common: They are family members and acquaintances of Wu Xiaohui, Anbang’s chairman, a native of the county who married into the family of Deng Xiaoping, China’s paramount leader in the 1980s and ’90s.

Read further…

..