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China Releases Third Plenum Reform Pledges, Sends Stocks To Fresh Highs
The initial disclosures from the much anticipated and recently completed Third Chinese Plenum were a dud. Which, in a world where all the upside comes from hope and faith in the future (since the present continues to get worse), meant at least 20-30 S&P points left on the table just because the quality of promises, pledges and emotional words out of the Chinese Communist Party was not strong enough. So in order to change that, Xinhua has just pre-released a document summarizing all the party reform initiatives, this time with the promises taken up to the next level.
Some of the disclosures via Bloomberg:
- CHINA COMMUNIST PARTY SAYS IT WILL DEEPEN REFORMS: XINHUA
- CHINA TO ACHIEVES GOALS MENTIONED IN DECISION BY 2020: XINHUA
- CHINA TO LOOSEN ONE-CHILD POLICY FOR MORE FAMILIES: XINHUA
- CHINA TO ACCELERATE YUAN CONVERTIBILITY: XINHUA
- CHINA TO TRANSFER 30% STATE-ASSET PROFITS TO STATE: XINHUA
- CHINA TO ALLOW TRANSFER OF NON-FARMING RURAL LAND: XINHUA
- CHINA TO ESTABLISH DEPOSIT INSURANCE SYSTEM: XINHUA
- CHINA TO REDUCE SCALE OF LAND ACQUISITION FROM FARMERS: XINHUA
- CHINA TO ABOLISH REEDUCATION-THROUGH-LABOR SYSTEM: XINHUA
- CHINA TO SET UP MORE COS. TO MANAGE STATE ASSETS: XINHUA
- CHINA TO SET UP NATIONWIDE DATA PLATFORM FOR PROPERTY: XINHUA
- CHINA TO ACCELERATE PROPERTY TAX: XINHUA
- CHINA TO BUILD OPEN MARKETS WITH NEGATIVE LIST SYSTEM: XINHUA
- CHINA TO EXEMPT MOST COS. PROJECTS FROM GOVT APPROVALS: XINHUA
- CHINA TO STRENGTHEN ANTI-CORRUPTION CHAIN OF COMMAND: XINHUA
- CHINA PLENUM DOCUMENT TO INCLUDE PROPERTY TAX: CAIXIN
Keep in mind that some of these, sich as the end of the one-child policy, were pre-pre-announced before, and nothing happened. But far be it for us to suggest a communist superpower will make promises and not deliver. All that matters is that the announcement has sent futures to fresh record highs. Just keep BTFATH - Bernanke and Yellen pledge that this time central-planning works.
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kneal over and pray to the China god, NOT!
Dude....keep it down.....we owe those cats a lot of money.
When they find out we're not going to pay them....they're gonna be super pissed!
We have the back door gold thing going on with them.....but there's only so much of that until Germany starts crying foul.
one thing about china is they have been around a long, long time. they haven't tried the world conquer thingy, like the brits.
methodical at beating us at the game - like pegging the yuan. cheap labor and bring the billions to papa. so on it goes til we are exhausted and easy foe.
patient and deliberate playing the game long term. here merica sits blowing its wade, limp dicked and tired and ready to keel.
fat unhealthy and runnin on fiat for a free ride til not very free as in prisioners of our own making. they watch and calculate our demise-history in the making-yours and my legacy cause we are letting it happen.
read paul craig roberts latest post - hurts to read the truth...
Just love it when a ponzi scheme comes together.
Don't forget the Saudies, Russians, The Japanese, and of course we owe ourselves a small portion of the pie. They will call it a gang bang and call in our principals debt on top of that.
CHINA TO THANK MR BERRANKE AND MR YERREN FOR LETTING THEM BUY GORD ON DIP.
the only headline that mattered:
CHINA TO ACCELERATE YUAN CONVERTIBILITY
They should pledge to end human rights abuses.
human rights abuses....
according to who's standards?
THE US?!
IRAN?!
TURKEY?!
people get droned for speaking of lesser terrorist idea's you know...
Howsa bout some help for me? I'm getting Obamacared over here.
My rights are slipping fast!
China, India, Turkey and Thailand Buying Record Amount of Gold - What Do They Know The Others Don't?
These two charts present the big picture in Gold Supply and Demand the best. When Central Banks are distorting the markets by suppressing the Gold price the increased Demand is overwhelming the diminishing Supply. The Game of Musical Chairs in Fractional Reserve Gold System continues, but it is very close to its logical conclusion with COMEX deliverable Gold being leveraged of 59 times at least.http://sufiy.blogspot.co.uk/2013/11/china-india-turkey-and-thailand-buyi...
Jesse: COMEX Registered Gold Falls To 587,235 Ounces - Claims At 63 To 1 GLD, MUX, TNR.v, GDX
It looks like that any guessing about The Taper, QE and FED's further actions can not print more Gold for COMEX. Jesse reports that registered Gold falls to 587,235 ounces and leverage in Fractional Gold Reserve System has reached another record high of 63.http://sufiy.blogspot.co.uk/2013/11/jesse-comex-registered-gold-falls-to...
Claims to gold about to go exponential. Paper about to find its true value.
I blame the falling prices on the record purchases really.
Don't read the message; read the message behind the message. CHina is preparing to ramp up home consumption to anticipate world slow down, all the while concentrating on its strategic objectives : Make Yuan reserve basket money, dominate east asian politics and resource allocation; South China and Australia stay promising.
Build up counter trilateral around BRIC and EU to diminish Pax Americana global hold without rocking it into hot war. Russia and ME stay vital link to fossil resources, so stay involved in MENA and Africa.
Long term strategy in a nutshell.
what TF? china reduces government in economy? Obuma just can't get his head around that one, why .gov can only expand and expand until it fills all the space of the universe, the prime socialist law.
China's position has been "long export, short CNY" ever since. With the PBoC's daily fixing the CNY has only appreciated in snail speed over the years. Now China is going to book the profit and close that position, saying she no longer fears a strong Yuan as she sees no reason going long in foreign consumption. As for reserve status, who gives a crap -- as long as oil and iron ore imports are settled in the (strong) Yuan.
Hedge accordingly.
YOU CAN SMOG ON IT!!
AND BRING ME ANOTHER CUP OF SEWER OIL!!
Just finished reading the original Chinese document, which is quite long and unreadable due to the purely political slogan-like narrative littered throughout the thing.
Excluding the emotional crap, here are the most substantial points of the whole document:
1. One-child policy will effectively end. Moar kids!
2. State will transfer capital from gov-owned corporations to Social Security accounts (which are in a bad state of depletion).
3. Gov. plans to package non-performing, state-owned "assets" (mostly credit lines of the Big Four Banks and severely overpriced muni bonds), securitize whatever securitizable out of this crap, and dump them to whoever willing to buy.
4. Don't expect any free speech/political rights improvements. On the contrary, China will build its own NSA and tighten the crackdown on Internet opinions.
5. The Gulag system will end. (But considering No. 4, worse nightmare awaits the dissidents...)
Sorry for replying to myself but I forgot this:
6. Retirement age will be delayed. Moar kids, less old moms and pops on retirement, and new outbailing capital for the social security ponzi.
I have not read the plenary release document yet but soon, since deriving the truth thru mainstream media summaries is impossible. The one line which may be most significant (or not) is:
CHINA TO ALLOW TRANSFER OF NON-FARMING RURAL LAND
The nationalization and inalienability of land is one of those basic principles of communism. Partly as protection against financial and middleman exploitation of the farmer, the regime declared that farming land was off-limits to normal property buying and selling.
Is that partly eroded by the new decisions? Could be a significant change or no change at all.
As China goes full-gear urbanization, rural land reform is theoretically a must-go.
However, as rural land-seizing by the gov-real estate cartel is practically the norm, the impact of land reform may turn out minimal. Why buy the land, when you can simply come and grab it?
And when de-urbanization finally hits China, all rural lands will be controlled by the cartels that face no competition.
Anti-corruption.....rofl.....working with Chinese has taught me that these people are inherently corrupt when it comes to money and power. There is a reason they were so weak before the West came into China. It's still there.
The anti-corruption narrative has always been added in these kinds of Party-documents as a flavor. It is there to placates the plebs.
How do you say "moar cowbell" in Mandarin?
Not a snowcone's chance in HELL she will taper! FULL STEAM AHEAD....
Everyone keeps saying "moar" but it should be "mohr"....as in the cliffs!
In other news, Pres. Xi of China met with Jack Lew, saying "that the best thing either of us could contribute for the world is to manage its own business." (Chinese source, not yet on Anglophone websites)
Read: the best thing YOU can do for this world is to clean YOUR own puke and stick YOUR own head in YOUR own a$$.
Smelllllllllllllllls like Rothschild.
MOAR Freedom for money, but none for you.
They need better advisers.
Well that settles it!!!! Communism wins!!!!
Reagan had it totally wrong.
So when is the Berlin wall going back up?
We're just waiting for your plane ticket and visa to come through.
Already going up around your money, over $50K and your passports if you owe taxes..
No more harvesting organs from political dissidents? No more 12 hour work days for children?
China should adopt the "many welfare Child" U.S. policy.
Property tax.
A polite way of taking wealth away.
Yawn, if you actually bother getting around to reading the original, there are 60 points. It's not unreadable. The one child policy is not "ending", it's having an exception expanded. There are already lots of exceptions as it is. What's happening is that the exception for only-child parents is being expanded from both to one.
There's a whole lotta stuff, and expect to see virtually none of it explained in the US press, as the scale of it makes US government reforms appear absolutely pathetic by comparison.