Category Archives: China

Eureka!

sunbeam August 16, 2019 Comments Off

Eureka! An economic analyst who understands what is actually happening! This embedded video with Mohamed El-Erian accurately explains what is going on economically around the world. As Sundance at CTH, who has been saying this since PDJT took office, notes,

Finally an economic analyst gets prime-time media pundits to listen as he describes the fundamental difference between the U.S. “Economy” (Main Street) and the U.S. “Markets” (Wall Street). Charles Payne understands most of this, but El-Erian has it nailed.

Allianz Group chief economic advisor, Mohamed El-Erian, accurately describes what is happening in an era where deglobalization is taking place. The U.S. economy is strong; however, the multinationals on Wall Street -invested overseas- are exposed. Thus there’s a disconnect and accompanying market volatility.

This is well worth watching because this is the first well-regarded financial pundit that is speaking truth to Wall Street in terms the panel pundits will understand/accept.

There is an interesting slam of the Obama policies by the host at the 6:08 mark. Are more and more people coming around to the fact that Obama’s presidency was a disaster?

The Sky Is Falling!

sunbeam August 15, 2019 Comments Off

The sky is falling! The sky is falling! These are the ridiculous proclamations of the MSM because the yield curve has turned negative. That’s where long-term bond rates (returns on investment) are lower than short-term rates (returns).

The yield on the Treasury’s benchmark 10-year note fell to 1.59% Wednesday afternoon. Earlier in the day it had briefly traded below the return on the Treasury’s 2-year note, something investors haven’t seen since June 2007. That spooked the equity markets, with the S&P 500 Index down by more than 3%.

Financial pundits in the MSM led by CNN immediately called for a US recession. They pointed to the fact that China’s industrial production grew at the slowest rate in 17 years in July while Germany’s economic output actually shrank slightly in the second quarter.

Let’s look at the bigger picture from the 30,000 foot level. One has to start with the idea that, in economics, there is something known as supply and demand. This idea is economics 101 and has been intentionally overlooked by the MSM financial “experts.”

More Tariffs

sunbeam August 2, 2019 Comments Off

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin returned from two days of talks in China on Thursday. After briefing the President on the results of the talks, the President announced a decision to apply a 10% tariff on an additional $300 billion worth of Chinese products. These tariffs will go into effect on September 1^st.

Panda Exposed

sunbeam June 24, 2019 Comments Off

It has been an interesting week in US-China relations. As recently as a few of weeks ago, China had been threatening to blacklist foreign companies that “sided” with the US in the ongoing trade war.

The move to establish the blacklist came after the United States hit Huawei with an export ban, effectively barring US companies from doing business with the smartphone and telecom equipment maker.

The ban was designed to keep the nation’s networks secure from foreign adversaries. The concern is that the company’s products could offer the Chinese government a way to spy on sensitive US communications. Huawei denied the accusations.

In the middle of May, Xi Jinping, China’s leader, had warned his people of a new “Long March.” “We are here at the starting point of the Long March to remember the time when the Red Army began its journey,” Xi told cheering crowds in Jiangxi province. “We are now embarking on a new Long March, and we must start all over again.” Jiangxi province is the site of the Red Army’s retreat in 1934-36. Xi appeared to be warning his people that hardships lay ahead.

Xi Jinping To Visit North Korea

sunbeam June 18, 2019 Comments Off

As noted yesterday, Asia, specifically China, is providing some interesting bits of news this week. On Sunday some 2 million Hong Kongers protested in the streets over China’s attempt to subvert their rights within their legal justice system. Carrie Lam, Hong Kong’s chief executive officer, may have been the target of their immediate anger. However, clearly China is their concern.

The heavy-handed response by Lam, rubber bullets and tear gas, against protesters who were peaceful has brought at least silent condemnation from most of the civilized world. This was no UC-Berkley protest. There were no fires in the streets. There were no broken windows. There was no looting. Emergency vehicles that needed to get through were allowed to pass. There were more than 70 injuries from the police response.

Hong Kong On Fire

sunbeam June 17, 2019 Comments Off

An interesting dynamic is playing out in Hong Kong. Protests broke out a week ago over a proposed law that Carrie Lam, Hong Kong’s first female chief executive, supports. The law would allow extradition of Hong Kongers to mainland China.

Please note the use of the term Hong Kongers. Although mostly descended from ethnic Chinese, the vast majority of the residents of Hong Kong do not consider themselves to be Chinese. Hong Kong has had long experience (150 years) with Western rule-of-law concepts. Additionally over 3 million people fled communist China in 1949 to the safety and freedom of Hong Kong. Hong Kongers are not conditioned culturally, as many of those on the mainland are, to the acceptance of totalitarian forms of governance.