Phoenix Capital Research's blog
China’s Government knows it's on thin ice and so is doing three things to try to mollify the Chinese population:
- Launching a very public campaign to crack down on corruption (to mollify the populace).
- Taking steps to tame inflation (slowing financial speculation and importing massive quantities of commodities to attempt to control prices).
- Curbing its stimulus efforts.
Border controls? Capital Controls? And we’re talking about a union?
This is precisely the formula that resulted in the Arab Spring in the Middle East: increased costs of living and a corrupt Government. Could China be heading for a similar development? It sure looks like it.
German Chancellor Angela Merkel has walked a tightrope over the last few years of keeping the EU together without infuriating the German populace to the point of having to abandon ship.
Many commentators have spent a great deal of ink proclaiming China to be the next great economic power. While it is true China has seen dramatic improvements in its economy over the last 30 years, my view has been and remains that most of the “growth” of the China “miracle” is just a debt-fueled bubble built upon a loose foundation of Government corruption and fraud.
The simple fact remains that politicians proposed stealing savings deposits from the people in order to fund a bank bailout. You can dress this idea up however you like, calling it a “levy” or “tax” but taking someone’s personal property without their permission is theft plain and simple.
When you are leveraged at $26 to 1, you only need the assets you’ve invested in to fall 4% before you are totally bankrupt. This 4% drop in asset prices has already happened across Europe, the only reason that we haven’t seen a systemic collapse there is because Mario Draghi, the head of the ECB, said he’d buy unlimited amounts of EU bonds.
Why does this matter? Because it indicates what we’ve been saying since June 2012, the entire European “fix” was one enormous lie. NOTHING was fixed in Europe at all. ON top of this, your SAVINGS in Europe can be seized at any time if things get bad.
The US has been lying to all of us for decades now.We’re not talking about some kooky conspiracy theory… we’re talking about something that affects every man woman and child in the US.
Why do I bring all of this up? Because it was China’s stimulus and China’s economy that supposedly lead the world back towards growth again. China is the proverbial canary in the coalmine, the economy that most quickly reveals what’s coming and where we’re all heading…
The same warnings flashed in 2008... and they're flashing again now.
German Chancellor Angela Merkel has walked a tightrope over the last few years of keeping the EU together without infuriating the German populace to the point of having to abandon ship. What happens if she loses her political "balance"?
Checkmate, Fed. You’re spending over $100 million per day to create a grand illusion. Stocks are hitting new all time highs, but none of us are any richer for it.
While Stocks Soar Towards New Highs, Sophisticated Investors Are Already Prepping for the Next, Bigger CollapseSubmitted by Phoenix Capital Research on 03/04/2013 11:10 -0400
While the mainstream financial media continues to trumpet the wonders of stocks closing in on all-time highs, larger, more sophisticated players are preparing for a financial meltdown in a much larger market: bonds.
A major shift is taking place in Central Bank policy. The herd is ignoring the language as usual... just like they did in 2008.