From our very astute friend Robert. I asked permission to post the first paragraph and he was gracious enough to elaborate for us with an additional reply. Please read this carefully as he is plugged in and spot on, this is a giant liquidity/credit problem. China will not save the financial system, in fact, they may be at the very core.
Did you see the Chinese Trade data and that Imports outpaced Exports giving them a deficit of around $9.1bn for the first time in over three years?
Perhaps they will be back in a surplus in the next period, however it could be a sign of declining demand globally as their export markets continue to weaken.
Which if so, tells us the western economies are still contracting regardless of what is being said, and China will face it’s own troubles.
Some parties will say perhaps it is a New Year issue but that is not the real story.
China does have a liquidity problem it’s hiding, that has not yet come into public view. Although, with cities for millions sitting empty and deteriorating causing a real drag on capital velocity (imagine a city of 3 million sitting empty and the lack of capital movement/ velocity by non productive real estate) ( they have a number) and soft declining exports while inventories build, all quietly financed with leveraged capital, it should not come as a surprise.
The big shock will come when rates in the US go up on the 15th and debt ceiling is breached, along with the continued decline in retail store volumes and increasing store closings. Where do people think the replacement sales are coming from? People forget loans are libor sensitive even to Chinese borrowers and their financiers, especially the commodity houses.
Consequently it will be their liquidity problem that will shock.
China Posts First Trade Deficit in Three Years
March 8, 2017
(Beijing) — China recorded its first trade deficit in three years last month as imports surged on soaring commodity prices while exports declined, likely adding uncertainty to the country’s growth prospects.
The surprisingly robust rebound in imports may prove short-lived, while the disappointing performance of exports suggested that foreign demand remained slack, with rising anti-globalization led by U.S. President Donald Trump casting a pall on the outlook of Chinese overseas shipments, analysts said.
Imports soared 38.1% from a year ago to $129.2 billion in February, according to figures from the General Administration of Customs, beating the median projection of a gain of 18.8% in a poll of economists by Caixin.
You have to read this! How much more proof is needed? And as Binney said FISA is just for cosmetic reasons, it is a dictatorship.
Former NSA Whistleblower: “Trump Is Absolutely Right, Everything Was Being Monitored”
March 8, 2017
Legendary NSA whistleblower William Binney (and creator of NSA’s global surveillance system) confirmed to Fox News, that President Trump is “absolutely right” to claim he was wiretapped and monitored… he was.
As we noted previously, Binney is the NSA executive who created the agency’s mass surveillance program for digital information, who served as the senior technical director within the agency, who managed six thousand NSA employees, the 36-year NSA veteran widely regarded as a “legend” within the agency and the NSA’s best-ever analyst and code-breaker, who mapped out the Soviet command-and-control structure before anyone else knew how, and so predicted Soviet invasions before they happened (“in the 1970s, he decrypted the Soviet Union’s command system, which provided the US and its allies with real-time surveillance of all Soviet troop movements and Russian atomic weapons”). Binney is the real McCoy.
Binney resigned from NSA shortly after the U.S. approach to intelligence changed following the attacks of Sept. 11, 2001. He “became a whistleblower after discovering that elements of a data-monitoring program he had helped develop — nicknamed ThinThread — were being used to spy on Americans,” PBS reported.