A Healthy Economic Fear of China

There’s an old adage in finance concerning borrowing and lending: If you owe the bank $ 1 million, you have a problem. If you owe the bank $ 100 million, the bank has a problem. It’s all about scale. When it comes to countries and markets, there is no scale, and therefore no problem, like the Middle Kingdom. China is the land of the “biggest.” General Motors now sells more cars in China than it does in the States. The country boasts more than 1.3 billion registered cell phones, the most of any nation, and basically one for every citizen. […]

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17 Reasons To Avoid Gold

(Warning: Satire and sarcasm alert!) Central bankers are managing paper currencies for the benefit of the people, not the financial and political elite. Consequently consumer prices are stable and there is no reason to own gold as protection from currency devaluations. Time Magazine confirmed that Greenspan, Rubin and Summers saved the world in 1998. Bernanke did it again after the last crisis. In 2012 he was called “The Hero” by The Atlantic. Our economic world is now stable and secure and central bankers will not need to “save” it again. Because we live in a safe world, there is no […]

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Congress in Turmoil; Jim Rickards on the China Disaster

I’m Mike Gleason and welcome to this week’s Market Wrap Podcast. Coming up we’ll hear from Jim Rickards, author of several bestselling books including Currency Wars and The Death of Money. Jim talks about how China may be on the verge of collapse and the likelihood of chaos that would ensue in the global financial markets that could be similar, but much worse to what happened back in August of 2015. Jim also breaks down scenarios that point to higher prices for the precious metals. Don’t miss my recent interview with Jim Rickards, coming up after this week’s market update. […]

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The Upcoming Trade War Between The U.S. And China Will Be The Biggest In The History Of The Planet

The United States and China are the two largest economies in the world by far, and the upcoming trade war that is about to erupt will be cataclysmic for both sides.  The Trump administration and the Chinese government are both gearing up for a prolonged trade war, and this is going to have very severe implications for the entire global economy.  During the campaign, Donald Trump repeatedly stated that we “can’t continue to allow China to rape our country”, and he was quite correct about that.  Over the past ten years, the U.S. has run a trade deficit of over […]

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Gold/Silver Strong; Yellen Signals More Rate Hikes; Rickards on China Disaster

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason. Coming up we’ll hear a tremendous interview with none other than Jim Rickards, author of several bestselling books including Currency Wars and The Death of Money. Jim talks about how China may be on the verge of collapse and the likelihood of chaos that would ensure in the global financial markets that could be, similar but much worse to what happened back in August of 2015. Jim also breaks down several avenues that in his studied view all point to higher prices metals prices. Don’t miss a must-hear conversation with […]

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China Net Imported 1,300t Of Gold In 2016

BullionStar For 2016 international merchandise trade statistics point out China has net imported roughly 1,300 tonnes of gold, down 17 % from 2015. The importance of measuring gold imports into the Chinese domestic gold market – which are prohibited from being exported – is to come to the best understanding on the division of above ground reserves in and outside the Chinese domestic market.  Kindly be advised to have read my posts the Mechanics Of The Chinese Domestic Gold Market. If segments in this post are unclear please click the links provided. The last bits of data are coming in from the […]

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Q1 – Q3 2016 China Net Gold Import Hits 905 Tonnes

BullionStar Withdrawals from the vaults of the Shanghai Gold Exchange, which can be used as a proxy for Chinese wholesale gold demand, reached 1,406 tonnes in the first three quarters of 2016. Supply that went through the central bourse consisted of at least 905 tonnes imported gold, roughly 335 tonnes of domestic mine output, and 166 tonnes in scrap supply and other flows recycled through the exchange. Core Supply & Demand Data Chinese Gold Market Q1-Q3 2016 Chinese gold demand is still going strong this year, albeit less than in 2015. The most likely reason for somewhat lower demand has […]

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The Bank For International Settlements Warns That A Major Debt Meltdown In China Is Imminent

The pinnacle of the global financial system is warning that conditions are right for a “full-blown banking crisis” in China.  Since the last financial crisis, there has been a credit boom in China that is really unprecedented in world history.  At this point the total value of all outstanding loans in China has hit a grand total of more than 28 trillion dollars.  That is essentially equivalent to the commercial banking systems of the United States and Japan combined.  While it is true that government debt is under control in China, corporate debt is now 171 percent of GDP, and […]

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Australia Customs Department Confirms BullionStar’s Analysis On Gold Export To China.

BullionStar Since 2015 I’ve stated the raw data published by the Australian Bureau of Statistics (ABS) on gold export to China mainland do not accurately reflect what is imported by China from the land of down under. In my previous post I’ve written Australia’s gold “export to China” should be adjusted by Hong Kong’s gold “import from Australia” as a substantial amount of gold Australia declares to export to China is in fact travelling through Hong Kong. A written statement from ABS now supports this analysis. Obviously, what we’re after is exactly how much (non-monetary) gold China is importing from all countries around the […]

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China: Is peak coal part of its problem?

The world’s coal resources are clearly huge. How could China, or the world in total, reach peak coal in a timeframe that makes a difference? If we look at China’s coal production and consumption in BP’s 2016 Statistical Review of World Energy (SRWE), this is what we see: Figure 1. China’s production and consumption of coal based on BP 2016 SRWE. Figure 2 shows that the quantities of other fuels are increasing in a pattern similar to past patterns. None of them is large enough to make a real difference in offsetting the loss of coal consumption. Renewables (really “other renewables”) include wind, […]

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