This page has been archived and commenting is disabled.

China Prohibits Local Media To Cover Ongoing Cash Crunch

Tyler Durden's picture





 

China is so "fine" that it has resorted to the full central-planning manipulation trifecta: first making up data, then deleting data, and now outright censoring anyone who reports the data, especially data which reveals the suddenly illiquid state of the local banking system caught in the middle of the grand Likonomics experiment.

FT reports that with (the extensively reported here) cash crunch roiling the Chinese economy, "propaganda authorities have told local media to tone down their reporting to help stabilise financial markets. In a directive written last week and transmitted over the past few days to newspapers and television stations, local propaganda departments of the Communist party instructed reporters to stop “hyping the so-called cash crunch” and to spread the message that the country’s markets are well stocked with money."

This is vaguely reminiscent of the US, only there those who describe the ugly truth behind the propaganda wholesale numbers are merely mocked and ridiculed as the tinfoil hat-wearing conspiracy theory gallery (until such time that one after another "theory" becomes "fact") not censored. At least not yet.

From the FT:

Last week’s directive is an indication of the concerns in Beijing about the dislocation and growing panic in the country’s markets following the onset of the cash crunch.

 

“First, we must avoid malicious hype. Media should report and explain that our markets are guaranteed to have sufficient liquidity, and that our monetary policy is steady, not tight,” the directive said, according to a text obtained by the FT.

 

“Second, media must strengthen their positive reporting. They should fully report the positive aspect of our current economic situation, bolstering the market’s confidence,” it continued. “Third, media must positively guide public opinion. They should promptly and accurately explain in a positive manner the measures taken by and information from the central bank.”

 

The directive was written early last week when the Chinese stock market lost more than 10 per cent in a day and a half of trading. But it has just begun to spread more widely to the nation’s media outlets. An economics editor with a leading newspaper received it three days ago and a television producer in a large northern city said the message was conveyed to staff at a Monday meeting.

 

...

 

The term “cash crunch” is still being used widely in newspaper headlines and television reports, but the tone of the coverage does appear to have been softened.

And with this directive in play, one must wonder just how ugly the reality behid the scenes must be, if stories like this are considered innocuous:

Over the past weekend, several banks again temporarily suspended operations for what they said was routine system maintenance, but there were no similar reports about cash shortages.

 

In one of the most alarming reports during the panic, 21st Century Business Herald, a financial newspaper, reported on June 20 that Bank of China had defaulted on an interbank payment, prompting a denial from the bank. The 21st Century Business Herald website later issued an apology. The Wall Street Journal reported on Tuesday that Ma Kai, a vice-premier, had ordered an investigation into that rumour.

The simple solution to all of this, of course, would be for the NSA to finally launch its own blog in which it discloses all global sovereign secrets on the objects of its espionage: everything from the 2012 net income line of the Belgian Caterers, to what the real 2022 Greek debt/GDP is, to just how broke China really is and, most importantly, whether the PBOC's official gold holdings are now 3000, 4000, 5000 or more tons. That last one is of particular interest.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 07/02/2013 - 12:06 | Link to Comment RacerX
RacerX's picture

Glad to see they are catching up to the US in this area.

Tue, 07/02/2013 - 12:20 | Link to Comment azzhatter
azzhatter's picture

Difference here is the Media gladly covers for Obozo without even being told

Tue, 07/02/2013 - 12:28 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

Self-censorship.  It reminds me of the behavior of court sycophants in times memorial.

Tue, 07/02/2013 - 13:25 | Link to Comment knukles
knukles's picture

Todja.  Fucking Todja.
Snot like one's even got to have half a brain (even of only the 20% we use in our temporal efforts) working.

The whole fucking word's going to wankers.
Mad bloody wankers!

Tue, 07/02/2013 - 12:08 | Link to Comment Shizzmoney
Shizzmoney's picture

It sort of like how I have to scour the news with a fine toothed comb for any comprehensive work on wage growth within the past 10 years.

 

Tue, 07/02/2013 - 12:11 | Link to Comment ebworthen
ebworthen's picture

Wage what?

Tue, 07/02/2013 - 13:26 | Link to Comment knukles
knukles's picture

Grope.

Tue, 07/02/2013 - 12:09 | Link to Comment slaughterer
slaughterer's picture

China and USA: shadow monoliths.  

Tue, 07/02/2013 - 12:09 | Link to Comment Cassandra Syndrome
Cassandra Syndrome's picture

Simply just give CNBC and Bloomberg the license to disseminate the business news in China.

Tue, 07/02/2013 - 12:10 | Link to Comment JustObserving
JustObserving's picture

It has been well established that the New York Times clears its stories with the Pentagon or the CIA.  Remember Judith Miller?  

Tue, 07/02/2013 - 12:10 | Link to Comment Cursive
Cursive's picture

"News" is not true until an "official" has denied it; "news" is not serious until the "officials" censor it.

Tue, 07/02/2013 - 12:10 | Link to Comment ebworthen
ebworthen's picture

"Do not worry."

"Mustard seeds."

"Green Shoots."

Tue, 07/02/2013 - 12:22 | Link to Comment inevitablecollapse
inevitablecollapse's picture

'castor beans' 

Tue, 07/02/2013 - 13:24 | Link to Comment BattlegroundEur...
BattlegroundEurope2011's picture

The NSA is after yo' ass now buddy ;)

 

 

Tue, 07/02/2013 - 12:10 | Link to Comment slaughterer
slaughterer's picture

<<== Dudley Downer

<<== Dudley Upper

(Sorry for threadjacking.)

Tue, 07/02/2013 - 12:11 | Link to Comment Skin666
Skin666's picture

Oh the irony of the FT calling them the 'propaganda authorities'!

 

You gotta give it to them...

 

Kunts

Tue, 07/02/2013 - 12:18 | Link to Comment ebworthen
ebworthen's picture

 

 

J.P. Morgan analyst Lee on CNBC's "Fast Money" saying:

  • Economy is recovering.
  • Pent up investor demand.
  • Equities undervalued.

I'm fairly certain when this segment is over there will be a Cialis then a Viagra commercial.

Propaganda the drug of choice for economies with E.D.

Tue, 07/02/2013 - 12:21 | Link to Comment azzhatter
azzhatter's picture

I admit to have gotten a little boner over Mandy Drury even without Cialis

Tue, 07/02/2013 - 13:30 | Link to Comment Meat Hammer
Meat Hammer's picture

She'd be hotter if she had Michelle Caruso-Cabrera-Rodriguez-Garcia-Hernandez' rack.

Tue, 07/02/2013 - 12:14 | Link to Comment slaughterer
slaughterer's picture

Love the JPM "OVERWEIGHT COMMODITIES INDICES" call today.  Just as expected.

Like to thank Stolper/Tyler for that nice EUR/USD call yesterday.  The only way GS makes me rich is through their worst strategist: STOLPER!

Tue, 07/02/2013 - 12:19 | Link to Comment misnomer00
misnomer00's picture

Amen! long live stolper!

Tue, 07/02/2013 - 12:23 | Link to Comment slaughterer
slaughterer's picture

My only fear is that Goldman might at some point actually fire Stolper.  Or send him to head up some central bank.  Where would the world be without our Stolper?  Can't wait for the 1.28 "stop" to trigger.  KA CHING!

Tue, 07/02/2013 - 12:16 | Link to Comment astoriajoe
astoriajoe's picture

There must be some version of Chinese Kardashians that could make it easier for them?

Tue, 07/02/2013 - 12:19 | Link to Comment ebworthen
ebworthen's picture

Or the Japanese mini-skirt girls for selling government bonds.

Tue, 07/02/2013 - 12:29 | Link to Comment astoriajoe
astoriajoe's picture

for my money, that's the most pleasant form of propaganda.

 

Tue, 07/02/2013 - 12:17 | Link to Comment silentboom
silentboom's picture

Good, maybe we can outsource our propaganda now.

Tue, 07/02/2013 - 12:19 | Link to Comment Yen Cross
Yen Cross's picture

    China is screwed up, but at least traders have been shorting the China trade. I think Europe is in far worse shape than China is. France & Italy are growing more divided on their roles in the euro. Portugal,Greece,Ireland,Spain,Cyprus are all bankrupt and on the verge of social unrest daily. Europe is in a recession, and has enormous unemployment problems. The only thing holding European bond yields in check are swaps with the Federal Reserve, through their U.S. banking arms.

   At least China still has positive growth, and a mountain of F/X reserves.

 

Tue, 07/02/2013 - 12:28 | Link to Comment Smiddywesson
Smiddywesson's picture

Lots of fiat, yes, but:

No farmland, water, energy resources, an environmental nightmare, and worst of all, a culture destroyed by corruption.

You know what they have plenty of?  Potential rioters, 292 different languages and virtually every religion on the planet, every on of which was promised a job and a better tomorrow and now have to face the fact that the One Child policy led to a lot of soon-to-be homosexuals because the girls were all aborted, and because they have  no jobs, they won't be able to escape or import a woman.  Not a safe environment for a peace loving chap like myself.

The Languages of China are the languages that are spoken by China's 56 recognized ethnic groups. The languages of China are collectively known as Zhongyu (simplified Chinese: ??; traditional Chinese: ??; pinyin: Zh?ngy?)[citation needed], and their study is considered a distinct academic discipline in China.[3] Zhongyu span eight primary language families, are diverse morphologically and phonetically, and may be mutually unintelligible to each other. The languages most studied and supported by the state include Chinese, Mongolian, Tibetan, Uyghur and Zhuang. China has 292 living languages and 1 extinct language (Jurchen) according to Ethnologue.[4]

Tue, 07/02/2013 - 12:42 | Link to Comment Yen Cross
Yen Cross's picture

    I'm not siding with China in any way smiddy. I agree that they have huge socioeconomic problems.

    Europe is basically bankrupt and running on vapors, while their equity markets are near their highs, and the euro is trading at rediculous levels. I think a lot of traders are about to get get caught with their pants down, on their long Europe trades. Flows moved from Asia back into Europe (frying pan) when the taper rumours started. Europe is one nasty "tape bomb" away from caving in. 

Tue, 07/02/2013 - 12:50 | Link to Comment Smiddywesson
Smiddywesson's picture

NP, All good points.  Being an uncouth Western Barbarian, I just like to throw rocks at them every once in a while.

Tue, 07/02/2013 - 12:34 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

And the US?  USD the world's biggest bubble?

Or Cleanest dirty shirt? 

Tue, 07/02/2013 - 12:41 | Link to Comment Yen Cross
Yen Cross's picture

    The U.S. is the worlds biggest JOKE.

Tue, 07/02/2013 - 13:30 | Link to Comment knukles
knukles's picture

Let's abandon the dirty shirt metric
In favor of the "skid mark" metric.

Tue, 07/02/2013 - 14:12 | Link to Comment SmittyinLA
SmittyinLA's picture

Fuck the metrics, I'm tired of keeping 2 sets of wrenches

Tue, 07/02/2013 - 15:42 | Link to Comment Umh
Umh's picture

Yes indeed; thanks to the US educational system I also have at least twice as many sockets and wrenches as I should have.

Tue, 07/02/2013 - 12:22 | Link to Comment Al Huxley
Al Huxley's picture

They're being foolish - if they had any kind of intelligence observing the US they'd know that it's entirely sufficient to control the media and make up the numbers.  This kind of heavy-handed control makes them look like amateurs.

Tue, 07/02/2013 - 12:35 | Link to Comment WallowaMountainMan
WallowaMountainMan's picture

does this impact currencies trades?

 

Tue, 07/02/2013 - 13:30 | Link to Comment knukles
knukles's picture

Fuck no

Tue, 07/02/2013 - 14:10 | Link to Comment SmittyinLA
SmittyinLA's picture

The Western media uses more sophisticated techniques like:

"Angelina Jolie had her breasts removed"

It's far more effective than those fascist Chicom threats.

 

 

Tue, 07/02/2013 - 13:16 | Link to Comment orangegeek
orangegeek's picture

That's ok - the NSA can bug the Chinese and report the data this way.

Tue, 07/02/2013 - 17:23 | Link to Comment cro_maat
cro_maat's picture

the NSA are bugging the Chinese, using this data to front run / manipulate / black mail and then spin whatever story suits their current agenda - fixed it for ya.

Tue, 07/02/2013 - 13:25 | Link to Comment Hongcha
Hongcha's picture

The average Chinese waits to be told what to do.  There are exceptions, but they are the elite and 'oriented' to Western-style capitalism.  By and large the populace waits to get in line, be rounded up, do what they are told.

It has been like that since the first emperor.  The few who defy that 'lifestyle', that entrenched thousand-year-old custom, are real heroes in my book; like the blind lawyer in the news a year or so back.  Tremendous courage since everyone there hates him for not being a herd animal like them.

Tue, 07/02/2013 - 17:02 | Link to Comment Trampy
Trampy's picture

The average American waits to be told what to do.  There are exceptions, but they are the elite and 'oriented' to "reality."  By and large the populace waits to get in line, be rounded up, do what they are told.

It has been like that since time immemorial.  The few who defy that 'lifestyle', that entrenched custom, are real heroes in my book.  Tremendous courage is required by those who speak truth, since everyone hates the truth-teller for not being a herd animal, because nobody wants to think of themself as a herd animal.

Tue, 07/02/2013 - 13:27 | Link to Comment Meat Hammer
Meat Hammer's picture

One of my customers is an electrical contractor who frequently takes his scrap conduit to sell at the local recycling center.  During his last trip he has talking with the owner who mentioned that all of the chinese buyers of recycled copper, who were shipping it back to China for construction projects, stopped coming in about 6 months ago.  He hasn't seen one, not one, since.  And it wasn't like their numbers just began to dwindle one day.....they just disappeared en masse. 

Tue, 07/02/2013 - 13:28 | Link to Comment Nue
Nue's picture

Ignore the tumor and hopefully it will go away on it's own I guess?

Tue, 07/02/2013 - 13:45 | Link to Comment Hongcha
Hongcha's picture

Meat Hammer we are in the auction biz which is recycling in its own way.  The boyz are still coming over and {ahem} chain-smoking in the Bonhams and Christies parking lots then going in and buying jade for cash - the numbers are still good - but we are hearing over & over the econ there is bad bad.

I think a lot of people there are strung out on loans and the main is being turned off.  These anecdotal references are all we have, alas, for the reasons laid out in many previous posts on this thread . . .

Tue, 07/02/2013 - 14:01 | Link to Comment Meat Hammer
Meat Hammer's picture

Interesting.  Thanks, Hongcha.

Tue, 07/02/2013 - 14:15 | Link to Comment earleflorida
earleflorida's picture

" Xi cuts CEO clothe for bruising battle"

*{'Glass-Steagall Act (Banking Act of 1933) now Officially in the PRC's Lexicon?' }     http://www.atimes.com/atimes/China/CHIN-02-020713.html  by Francesco Sisci   [7/02/13]

*http://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Act   and this:  "SOE's" [USSA MultiNational's?] http://en.wikipedia.org/wiki/List_of_State_owned_enterprises_in_the_People's_republic_of_China

,... and [GOC's]  USSA Government [MIC,Google,MSFT, Facebook, GMC,Congress,FRB, Wall Street, and the Supreme's,..etel., etc.?] Owned Enterprises   http://en.wikipedia.org/wiki/Government-owned_corporation 

alas,... this kafkaesque-situation tongue'twisting savoir-faire, hoist'd with ones own petard, has a ancien re`gime redux`hue and crying, caught between the horns of a dilemma with only one outcome... that being a tubula rasa devine intervention of the 3rd kind?      

thankyou Tyler

Tue, 07/02/2013 - 14:43 | Link to Comment Quantum Nucleonics
Quantum Nucleonics's picture

Let's see how this goes... credit locks up (check), next people hoard cash and flee risk assets, velocity of money crashes, economic growth implodes.  Time to put the iron ore CEO's and anyone long AUD (among others) on suicide watch.

Tue, 07/02/2013 - 15:08 | Link to Comment The Invisible Foot
The Invisible Foot's picture

China's Communist party supports State-Capitalism=Not real Communism= Makes Amerika jealous. 

Tue, 07/02/2013 - 15:34 | Link to Comment ebear
Tue, 07/02/2013 - 15:47 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

"State-Capitalism" ain't capitalism, son... it's an oxymoron. What they got is simply tarted-up Communism.

Tue, 07/02/2013 - 15:28 | Link to Comment TheMuppet
TheMuppet's picture

At least they clearly identify the censors as "propaganda ministers".  He we call it "the free press" , layering another lie upon the normal content lies.  In that sense the Chinese still have a few lessons to learn from Orwell.

Do NOT follow this link or you will be banned from the site!