This page has been archived and commenting is disabled.

Is The China Bank Run Beginning? Farmers Co-Op Unable To Pay Depositors

Tyler Durden's picture


While most of the attention in the Chinese shadow banking system is focused on the Credit Equals Gold #1 Trust's default, as we first brought to investors' attention here, and the PBOC has thrown nearly CNY 400 billion at the market in the last few days, there appears to be a bigger problem brewing. As China's CNR reports, depositors in some of Yancheng City's largest farmers' co-operative mutual fund societies ("banks") have been unable to withdraw "hundreds of millions" in deposits in the last few weeks. "Everyone wants to borrow and no one wants to save," warned one 'salesperson', "and loan repayments are difficult to recover." There is "no money" and the doors are locked.

The locked doors of one farmers' co-op...


Via China CNR,

Shadow Banking has grown remarkably... recent years, opened dozens of Yancheng local "farmers mutual funds Society", these cooperatives approved the establishment by the competent local agriculture, and received by the local Civil Affairs Bureau issued a "certificate of registration of private non-enterprise units."

As savers are promised big returns...

Deposit-taking and lending by cooperatives operated operation, and to promise savers, depositors after maturity deposits not only can get the interest, you can also get bonuses.

But recently things have turned around...

However, beginning in early 2013, Yancheng City Pavilion Lakes region continue to have a number of co-op money people to empty, many savers deposits can not be cashed, thus many people's lives into a corner.


Dong-farmers in Salt Lake Pavilion mutual funds club, a duty officer's office, told reporters, because many people take money, put out loans difficult to recover, leading to funding strand breaks.

Rough Google Translation:

Salesperson: ...the money has been slowly falling and in the end is difficult to ask for money, right? And now there is no money coming in, now people don't want to save money, and take all the money.


Reporter: But it's their money, they should be able to...


Salesperson: I know I should [given them money]; however, when the turn started, their is no money, we get cut off and lenders and borrowers took off...

One depositor blames the government (for false promises):

The bank has a deposit-taking his staff, he would say that he is a government action that has the government's official seal, to give you some interest, as well as the appropriate dividends, because we believe that the government, so we fully believe him , we put the money lost inside, who thought in November, Xi Chu who told us that something was wrong.

But don't worry - this should all be settled by 2016...

Yu Long Zhang: we put all of his certificates of deposit are received out. You are only responsible for the loan out of the money back to the people against. The people's money has been invested in other projects go, we have to be tracked to ensure no loss of capital assets, can dispose of his assets disposed of, can recover quickly come back.


Reporter: There is a specific timetable yet?


Yu Long Zhuang: 2014 cashing out the entire program.


Reporter: When did all of these things can be properly resolved?


Yu Long Zhuang: the latest is 2015, 2015, all settled.

So, for the Chinese, their bank deposits have suddenly become highly risky 2 year bonds...


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 01/23/2014 - 13:32 | 4359386 Hippocratic Oaf
Hippocratic Oaf's picture

Move Coin Now!

Wi Tu Pur

Thu, 01/23/2014 - 13:35 | 4359399 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Sorry folks, the money is gone. The Chairman says thank you for the yacht though.

Thu, 01/23/2014 - 13:37 | 4359414 idea_hamster
idea_hamster's picture

Reporter: When did all of these things can be properly resolved?

Yu Long Zhuang: the latest is 2015, 2015, all settled.



Chinese farmer:  Whew – good thing I wasn’t planning to do anything that requires money like seeding my farm or eating for the next year.  Wait...wut?

Thu, 01/23/2014 - 13:43 | 4359424 Looney
Looney's picture

Yu Long Zhuang... Xi Jinping... Ding Ding Dong...  ;-)


Thu, 01/23/2014 - 14:04 | 4359530 El Vaquero
El Vaquero's picture

Ohhhh, you touch my tralala...

Thu, 01/23/2014 - 15:07 | 4359781 ZerOhead
ZerOhead's picture

It's a good thing the Chinese are confusing Cyprus troubles with Miley Cyprus troubles or a general panic would have already occurred...

Thu, 01/23/2014 - 15:12 | 4359810 El Vaquero
El Vaquero's picture

Wait, I'm confused here.  So, the Chinese are entertained by Miley Cyprus and thus are calm, right?  I guess my real question is this:  Should I be long Dong-Farmers? 

Thu, 01/23/2014 - 16:35 | 4360098 zaphod
zaphod's picture

Yawn, a bank run is when people flock to the bank for paper currency thinking that that will protect them.

Wake me up when the gold run starts and people flock to banks to trade that paper currency in for something real.

Thu, 01/23/2014 - 16:51 | 4360149 DoChenRollingBearing
DoChenRollingBearing's picture

With all this financial institutional weakness there, even more Chinese may start buying gold.  I would advise you not to nap unless you are pretty much all set up with your own gold.

Then sleep easy!  :)

Thu, 01/23/2014 - 17:56 | 4360351 negative rates
negative rates's picture

The not being able to get your money out bonus, sweet.

Thu, 01/23/2014 - 19:46 | 4360721 johngaltfla
johngaltfla's picture

Chinese Communist Party Spokeman Chu Mi Goo said that that is the price of capitalism and if anyone wanted to get upset they will be provided with a form to file a complaint then promptly shot.

Thu, 01/23/2014 - 16:54 | 4360160 Manthong
Manthong's picture

ASK  for your deposit (unsecured, ZIRP loan) back..

..coming to a TBTF bank near you soon.


Thu, 01/23/2014 - 17:27 | 4360267 BuddyEffed
BuddyEffed's picture

As long as they beat you to the store before the shelves are empty, what difference gold or paper?

Thu, 01/23/2014 - 15:12 | 4359818 kralizec
kralizec's picture

Heh.  Perhaps they more in tune than we thought?

"Everyone wants to borrow and no one wants to save,"

Ho Li Fuk, welcome to Amerika little yellow bitchez!

Thu, 01/23/2014 - 15:09 | 4359799 Almost Solvent
Almost Solvent's picture

Doesn't anyone watch It's A Wonderful Life over there????


George Bailey has invested in YOU AND YOUR NEIGHBORS!

Thu, 01/23/2014 - 14:08 | 4359560 CheapBastard
CheapBastard's picture

Gotta love those "No Credit Check, Low Interest, Never Pay Back Loans" .... sorta like the ones we have here for houses....

Thu, 01/23/2014 - 18:07 | 4360399 mt paul
mt paul's picture

or the ones we have for treasuries ..

Thu, 01/23/2014 - 13:59 | 4359508 G.O.O.D
G.O.O.D's picture

Time for some starvation bitchez..its whats for dinner.

Thu, 01/23/2014 - 17:07 | 4360207 ATM
ATM's picture

No need to wowwy. Wickshaws fuww of cash is on way to bad bank. Make all peeples happy.

Thu, 01/23/2014 - 14:09 | 4359556 ILLILLILLI
Thu, 01/23/2014 - 17:08 | 4360208 ATM
ATM's picture

A fucking classic.

I played that to a room full of financial adisors and they hit the floor.

Thu, 01/23/2014 - 17:58 | 4360363 caShOnlY
caShOnlY's picture

Sorry folks, the money is gone.

china will blame US money printing.  US blames china currency practices.  China launches retaking of Senakaku islands, then Philippino islands.  US intervenes, with military.  China responds with USTs dumped on markets.  Global markets, currencies, economies collapse.

WWIII is about to be written into the history books, Krugman gets his wish.  Krugan eventually gets fried by nuke in NYC apt. His death  is called "ironic ending" to an economist who felt war was good for economy.   Very good ending to moron who didn't have a clue but did have a degree.


Thu, 01/23/2014 - 19:45 | 4360717 Almost Solvent
Almost Solvent's picture

California would make such an easier target for China's ICBMs

Thu, 01/23/2014 - 19:58 | 4360761 clooney_art
clooney_art's picture

Is it a bank though ? The name sounds like a law firm.

Thu, 01/23/2014 - 23:02 | 4361381 Buck Johnson
Buck Johnson's picture

Everybody is getting out of dodge and taking as much of the banks wealth with them.

Thu, 01/23/2014 - 13:37 | 4359415 THECOMINGDEPRESSION

They probably should have been in bitcoins instead of the banks. Free bitcoins here if you have a bitcoin wallet:

Thu, 01/23/2014 - 13:57 | 4359496 THECOMINGDEPRESSION

Whats with the negatives? Its true, its free and you need no money. The Chinese are eating this site up..North Americans wouldn't know a freebee from a dollar bill

Thu, 01/23/2014 - 14:08 | 4359557 Mercuryquicksilver
Mercuryquicksilver's picture

Because Fuck You.

Thu, 01/23/2014 - 14:52 | 4359723 Levadiakos
Levadiakos's picture

Aww. Seems like you picked a bad day to wear see through tights

Thu, 01/23/2014 - 15:14 | 4359819 Loose Caboose
Loose Caboose's picture

Yes, like the man in the cellophane pants - we can clearly see you're nuts.

Thu, 01/23/2014 - 15:16 | 4359826 Citxmech
Citxmech's picture

Any service or product provided for "free" means we are the product.

Thu, 01/23/2014 - 18:08 | 4360401 SDShack
SDShack's picture

Tuesday is Soylent Green day...

Thu, 01/23/2014 - 16:45 | 4360135 teolawki
teolawki's picture

"Because Fuck You."

And the 2BitChitCoin he rode in on.

Thu, 01/23/2014 - 14:20 | 4359603 jcaz
jcaz's picture

....Because your dewsh-iness requires a reward.....

Go back to the Yahoo boards,  fucktard.

Thu, 01/23/2014 - 14:36 | 4359658 madtechnician
madtechnician's picture

Don't take it personally , they don't understand bitcoin so they attack it at every possible opportunity , quite normal human behavoir for the less intelligent members of the species.

Thu, 01/23/2014 - 15:04 | 4359773 NoDebt
NoDebt's picture

We understand BitCoin just fine.  We also understand what it means when somebody comes here to shill for their crappy rip-off webside.  

And yes, you should take it personally because that's how it was meant.

Thu, 01/23/2014 - 15:16 | 4359825 superflex
superflex's picture

Welcome to Fight Club.

If you cant take the heat, go back to with the 11 other muppets who follow their propaganda.


Thu, 01/23/2014 - 15:20 | 4359842 madtechnician
madtechnician's picture

Hey fucktard , how do you know when your bitch has been swallowing too many hormone pills ?

Her beard tickles you on the back of your kneck when she's fucking you up the ass with her clitoris.

Fight Club - Bring it on.

Thu, 01/23/2014 - 16:00 | 4359983 gmrpeabody
gmrpeabody's picture

Wow..., do you use that same mouth to eat?

Thu, 01/23/2014 - 16:16 | 4360031 Oldballplayer
Oldballplayer's picture

I have a beard too.  So when I get together with your beyatch, we make sparks. 

Thu, 01/23/2014 - 16:35 | 4360100 dogmete
dogmete's picture

Further proof that humans should not reproduce.

Thu, 01/23/2014 - 17:58 | 4360359 mick_richfield
mick_richfield's picture

We're working on that.

Thu, 01/23/2014 - 15:42 | 4359925 Levadiakos
Levadiakos's picture

Free Beiber!!

Thu, 01/23/2014 - 16:20 | 4360042 Pool Shark
Pool Shark's picture





[are you sure it's free?...]


Thu, 01/23/2014 - 18:10 | 4360404 SDShack
SDShack's picture

"What's a Beiber?"

Thu, 01/23/2014 - 19:56 | 4360757 TheReplacement
TheReplacement's picture

Save beaver with a cold.  Can't be good if it's free.

Thu, 01/23/2014 - 19:56 | 4360754 TheReplacement
TheReplacement's picture

Free beer?

Thu, 01/23/2014 - 17:40 | 4360300 tradebot
tradebot's picture

Bitcoin will go kaput...just like facebook will soon...remember myspace?  Peak, decline then kaput.  They joke about fiat currencies...the very thing they are backed by.  Really?

Thu, 01/23/2014 - 19:08 | 4360601 madtechnician
madtechnician's picture

Yeah Yeah Yawn , was hearing exactly that in 2009 , 2010 , 2011 , 2012 , 2013 , oh wait ......

Thu, 01/23/2014 - 16:51 | 4360154 John_Coltrane
John_Coltrane's picture

If it sound too good to be true ...

Well, we all know the rest and so should the Chinese.

Thu, 01/23/2014 - 20:19 | 4360813 caShOnlY
caShOnlY's picture

They probably should have been in bitcoins

Fuck your fucking bitcoins you fucking moron.  Do you really think they are manipulating gold like hell to allow another "unregulated" currency to live?  DIGITAL = FIAT, asshole.   BITCOIN = Central Banks.    

Tell me something, moron:  Why did they take down the guy who made PHYSICAL BITCOINS with the code encrypted inside, but allow the digital version to be used freely in trade?   (answer for asshole bitcoin salesman below)







Thu, 01/23/2014 - 13:42 | 4359436 UncleBubba
UncleBubba's picture

This picture is obviously staged.

No way the skies in china are that clear. 

Thu, 01/23/2014 - 20:10 | 4360785 jonjon831983
jonjon831983's picture

lol. Not everywhere is a complete "wasteland".

Beijing is supposedly a massive LA because its geographical location doesn't have good airflow to push coal power plant emissions outta the way.

Thu, 01/23/2014 - 14:23 | 4359618 mclant004
mclant004's picture

Does anyone know how big this bank is? 

Thu, 01/23/2014 - 15:05 | 4359780 NoDebt
NoDebt's picture

Before or after they burn it to the ground?  Before?  Medium sized for a local bank.  After?  Should fit loosely inside a shoe box.

Thu, 01/23/2014 - 16:10 | 4360011 Oldballplayer
Oldballplayer's picture

Quoting from Goodfellas:  "You had a bad week?  Fuck you.  Pay me."

Seems to me that is customer service training in China.

You want your money?  Fuck you.  Come back in 2015.

Thu, 01/23/2014 - 16:37 | 4360102 koncaswatch
koncaswatch's picture

When they do come back to collect, it will be in the Caribbean...  I read somewhere (lost the link) that there are now trillions of Chinese U$D stashed.

Thu, 01/23/2014 - 16:17 | 4360030 Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Prease do not wolly.

Thu, 01/23/2014 - 17:40 | 4360298 SAT 800
SAT 800's picture

"Dong farmers in Salt Lake Pavilion"----Dong farmer, darn it, I should of known my mother was right when she wanted me to become a Dong Farmer. What in the name of sweet screaming baby Jesus do Dong Farmers grow?

Thu, 01/23/2014 - 17:59 | 4360367 mick_richfield
mick_richfield's picture

Um... dongs?

Don't they have a reading comprehension test in the SATs anymore?

Thu, 01/23/2014 - 17:55 | 4360343 Millivanilli
Millivanilli's picture

Rut ro...


And its gone.   Chinese style.

Thu, 01/23/2014 - 13:33 | 4359392 yogibear
yogibear's picture

Chinese flash paper. Burns quickly.

Thu, 01/23/2014 - 13:34 | 4359393 TeamDepends
TeamDepends's picture

JPM and the other TBTFs are going to need actual guard-lions at the door before long.

Thu, 01/23/2014 - 14:05 | 4359489 Grande Tetons
Grande Tetons's picture

The blame will be pinned firmly on the shoulders of Randall Stevens. 


Thu, 01/23/2014 - 13:35 | 4359401 The Abstraction...
The Abstraction of Justice's picture

Chingy changy chongy, ping pang pong gone mong wrong.

Thu, 01/23/2014 - 13:35 | 4359404 pods
pods's picture

Rut Roh.

Thu, 01/23/2014 - 18:14 | 4360422 SDShack
SDShack's picture

Chinese officials interviewed included:

Sum Ting Wong

Mo Ne Tu Lo 

Ho Le Fuk

Banc Bing Bang

Thu, 01/23/2014 - 13:36 | 4359406 csmith
csmith's picture

Northern Rock. Circa 2007.

Thu, 01/23/2014 - 13:35 | 4359408 CrimsonAvenger
CrimsonAvenger's picture

If a dong farmer came to me for his money, I'd give it to him and get him the hell out of my office.

Thu, 01/23/2014 - 13:42 | 4359440 Herd Redirectio...
Herd Redirection Committee's picture

Guess the Chinese never saw "Its a Wonderful Life"...

Thu, 01/23/2014 - 13:51 | 4359473 fooshorter
fooshorter's picture

PingPong! PingPong! Save me PingPong!



Thu, 01/23/2014 - 13:43 | 4359445 WhiteHose
WhiteHose's picture

LMFAO! Now have to clean the coffee off my screen!

Thu, 01/23/2014 - 16:17 | 4360037 Oldballplayer
Oldballplayer's picture

I would not want to be around when it is reaping time on the dong farm.  Do they hire lesbains with scythes to do the harvesting?

Thu, 01/23/2014 - 16:42 | 4360122 Herd Redirectio...
Herd Redirection Committee's picture

Dong harvest season...  Three words that will generate fear in even the bravest of souls.

Thu, 01/23/2014 - 17:41 | 4360305 SAT 800
SAT 800's picture

Being a Dong Farmer is almost as embarrassing as having a currency called the Euro; which still sounds to me like a bladder disease.

Thu, 01/23/2014 - 13:36 | 4359409 THECOMINGDEPRESSION

They probably should have been in bitcoins instead of the banks. Free bitcoins here if you have a bitcoin wallet:

Thu, 01/23/2014 - 14:13 | 4359578 TheGermanGuy
TheGermanGuy's picture

Dude, if you are looking for the free shit army, try

Thu, 01/23/2014 - 13:36 | 4359411 tallen
tallen's picture

Why aren't the printers on yet? PRINT!

Thu, 01/23/2014 - 13:39 | 4359423 Meatier Shower
Meatier Shower's picture

Aaaand it's's all gone.

Thu, 01/23/2014 - 13:47 | 4359455 wiseindian
wiseindian's picture

God I know that reference and it makes me el oh el ... thanks!

Thu, 01/23/2014 - 13:45 | 4359425 LMAOLORI
LMAOLORI's picture



"One depositor blames the government"


Brave but he better watch his back.  Tylers when you run these stories does your inbound traffic from China increase? I used to blog and whenever I posted anything negative about China Google analytics showed a drastic increase.


Secret wealth of Chinese leaders revealed


"The secret financial holdings of the families of China's leaders from Xi Jinping to Deng Xiaoping have been exposed in a massive leak of documents to the International Center for Investigative Journalism.

Family members of more than a dozen military and political leaders are among the 21,000 mainland Chinese and Hong Kong residents using off-shore tax havens in the Caribbean to store their wealth, according to the disclosures."

Thu, 01/23/2014 - 13:39 | 4359426 Nue
Nue's picture

Overheard at the PBC

(translated from Chinese) "What the hell does that bitch Yellen mean, "We can't redeem the bonds right now."?!"

Thu, 01/23/2014 - 13:51 | 4359476 Herd Redirectio...
Herd Redirection Committee's picture

"Is that Stanley Fischer whispering in your ear, Janet?"

Thu, 01/23/2014 - 14:11 | 4359563 CharlieMike
CharlieMike's picture

Also overheard at the PBC:

"Why he say bitch?  Mr Yellen can not be bitch."

Thu, 01/23/2014 - 13:40 | 4359427 Oldwood
Oldwood's picture

Those who complain too loudly about the loss of assets will be handled in a most expedited and politically correct way, through liquidation of liabilities, of course. They being the liability.


Thu, 01/23/2014 - 13:40 | 4359428 ejmoosa
ejmoosa's picture

They can sell a few US treasuries and restock the vaults....what else are they going to use all those US treasuries for anyway?

Thu, 01/23/2014 - 13:41 | 4359435 LMAOLORI
LMAOLORI's picture



Problem with that is who is going to buy them?

Fed Owns 64% More U.S. Government Debt Than China

Thu, 01/23/2014 - 13:56 | 4359490 doctor10
doctor10's picture

"Who is going to buy them?"

Why, some of these folks, I'm sure will be happy to as they are granted asylum from their fellow Chinese


"Family members of more than a dozen military and political leaders are among the 21,000 mainland Chinese and Hong Kong residents using off-shore tax havens in the Caribbean to store their wealth, according to the disclosures."

Thu, 01/23/2014 - 14:07 | 4359547 ejmoosa
ejmoosa's picture

You are going to have a lot more buyers today than you will in 12 months....


Besides, Janet's gonna buy all she can if that is what she has to do to support the price.

Thu, 01/23/2014 - 14:21 | 4359607 LMAOLORI
LMAOLORI's picture



I agree.  I should have phrased that differently I suppose my point was really more to show how our debt has been monetized and how our money is really nothing more than funny money. Notice how the U.S. is silent about the human rights abuses in China and the $ leaders have each others backs. 


Russia Urged China To Dump Its Fannie, Freddie Holdings Before GSE Bailout

Thu, 01/23/2014 - 14:26 | 4359624 ejmoosa
ejmoosa's picture

The Chinese and others deserve to be fleeced, to be honest.  Without their buying of treasuries irregardless of how the dollars were being spent here, the US government would never have been able to expand it's spending the way it has.


And I have no moral obligation whatsoever to pay them back.  Let's face it.  They fucked up.

Thu, 01/23/2014 - 14:38 | 4359665 LMAOLORI
LMAOLORI's picture



What it boils down to is one Federal Reserve Comrade scratching the other FR Comrades back

Thu, 01/23/2014 - 13:41 | 4359432 El Vaquero
Thu, 01/23/2014 - 13:42 | 4359439 taketheredpill
taketheredpill's picture



Dong Farmers?


Paging Richard Simmons...

Thu, 01/23/2014 - 13:44 | 4359443 dogbreath
dogbreath's picture

Ho li Fuk          it will be revolution if the depositors aren't mad whole.    

Thu, 01/23/2014 - 13:51 | 4359466 Oldwood
Oldwood's picture

Its kind of sad that we are hoping the Chinese or even the French will be the ones who actually revolt and get things rolling. Sad because those who espouse freedom as much as we Americans do will take a knee while the communists of the world fight back. Of course, it was their fucked up idea in the first place that got the concept of centrally controlled economies rolling.

Thu, 01/23/2014 - 14:03 | 4359529 arby63
arby63's picture

Shhhh. Don't speak so loudly. Your local sheriff probably has a platoon of tanks at his disposal. On loan from the DoD of course. 

Thu, 01/23/2014 - 14:19 | 4359598 Oldwood
Oldwood's picture

Things are just looking better everyday for us.

Thu, 01/23/2014 - 14:43 | 4359683 LMAOLORI
LMAOLORI's picture



Better not mess with their pensions...

Battle over police pensions in US cities takes ugly turn


A drive by some American cities to cut costly police retirement benefits has led to an extraordinary face-off between local politicians and the law enforcement officers who work for them.

In Costa Mesa, Calif., lawmaker Jim Righeimer says he was a target of intimidation because he sought to curb police pensions. In a lawsuit in November, Righeimer accused the Costa Mesa police union and a law firm that once represented them, of forcing him to undergo a sobriety test (he passed) after driving home from a bar in August 2012.

That followed a call to 911 by private detective Chris Lanzillo, who worked for the police union and the law firm that represented it, according to the suit. Lanzillo is also named as a defendant, accused of following Righeimer home from the bar.

Thu, 01/23/2014 - 17:29 | 4360273 Urban Redneck
Urban Redneck's picture

I actually have less of an issue with my local Sheriff borrowing tanks than I do with the local IRS, ATF or FBI offices possessing tanks. (As long as they're just for show and not used before TSHTF)

Thu, 01/23/2014 - 14:12 | 4359562 Ranger_Will
Ranger_Will's picture

Its kind of sad that we are hoping the Chinese or even the French will be the ones who actually revolt and get things rolling. Sad because those who espouse freedom as much as we Americans do will take a knee while the communists of the world fight back.

Sheeeyit son.  I got's mawself a big ass flat screen, some potato chips, cheap "beer" and the Pro Bowl on...revolutions are messy! Ew! And and I might even break a nail!

Thu, 01/23/2014 - 17:45 | 4360315 Oldballplayer
Oldballplayer's picture

The French are revolting.  Really they stink like all get out.

Thu, 01/23/2014 - 13:46 | 4359452 q99x2
q99x2's picture

You will know when the bank runs start by the price of bitcoin. The Chinese take longer than most but once they catch on look out.

Bitcoin: Last:$922.96

Thu, 01/23/2014 - 13:53 | 4359484 Herd Redirectio...
Herd Redirection Committee's picture

$811 here

Thu, 01/23/2014 - 14:44 | 4359691 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Maybe there is a premium in markets where physical bitcoins are actually delivered?  


If so the premium will lead to an arbitrage that will collapse the paper only bitcoin markets.  

Thu, 01/23/2014 - 16:20 | 4360047 Oldballplayer
Oldballplayer's picture

he he he he...

He said paper bitcoins....

Thu, 01/23/2014 - 17:20 | 4360248 tallystick
tallystick's picture

Price is lowest where it's easiest to covert BTC back to fiat.

Thu, 01/23/2014 - 13:49 | 4359457 NIHILIST CIPHER

Bankster format working well in China.

Thu, 01/23/2014 - 13:50 | 4359463 Battleaxe
Battleaxe's picture

Everyone knows there's actually not much money in the banks. Haven't you watched "It's A Wonderful Life"?

Thu, 01/23/2014 - 14:13 | 4359575 Ranger_Will
Ranger_Will's picture

Or maybe "Money As Debt" ?

Thu, 01/23/2014 - 17:01 | 4360190 John_Coltrane
John_Coltrane's picture

What part of fractional reserve banking don't the Chinese understand?  The numerator or the denominator?  Hint:  The ratio is much much less than 1 and approaches zero as its logical limit.

Conclusion:  Your "deposits" are backing by nothing.

Thu, 01/23/2014 - 13:51 | 4359469 CJHames
CJHames's picture

Yeah, but their health care is friggin awesome!

Thu, 01/23/2014 - 13:51 | 4359475 Rising Sun
Rising Sun's picture

Go communism Go!!!!


Hey Yellen!!!!  Have enough ink to fix this shit???

Thu, 01/23/2014 - 13:53 | 4359480 esum
esum's picture

this is every bank in ameriika without qe

Thu, 01/23/2014 - 13:56 | 4359491 esum
esum's picture

ever go into a bank and ask for a modest amount of cash... say $9999.99. Immediately the "manager" comes over and wants to know why you want the casharew... like it's their money not yours... and tell me all about your business..... Politely remind them that we bailed them out and its not thier money and they can not be trusted.  

Thu, 01/23/2014 - 15:13 | 4359813 css1971
css1971's picture

It IS their money, it is NOT your money.

You loaned the money to them and they gave you an account.

Seriously people, you need to learn what a bank is before TSHTF.

Thu, 01/23/2014 - 14:08 | 4359512 Joebloinvestor
Joebloinvestor's picture

The Chinese version of a bail-in.

Thu, 01/23/2014 - 14:05 | 4359532 The Duke of New...
The Duke of New York A No.1's picture


No more Gold for you Chinese! ... what's left is ours ... so Take Your Stinkin' Paws Off You Damn Dirty Apes!!!!!.

Thu, 01/23/2014 - 14:12 | 4359535 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Chain the herds to the projects(physical collateral) as payouts in lieu of cash to settle paper debt internally and then control how said physical assets needs to be lived/worked to settle up the debt you can't pay when the paper dries up. Like washing dishes for the rest of your life to pay for the dinner at the restaurant when the credit card says denied when trying to pay for the check except in this case the restaurant was the one who issued the credit card in the first place.

The Chinese are sneaky bastards when it comes to central planning.

Those ghost cities are going to be filling up real quickly as this one plays out since that is going to be some of the collateral they use. People have no money to leave once the old paper debts are settled while lack of liquidity is enforced and stuck in the cities next.

Thu, 01/23/2014 - 14:11 | 4359564 topshelfstuff
topshelfstuff's picture

This has to connect to the upcoming Chinese "Lunar" New Year, Jan 31 this year, the biggest, by far, Holiday in China. The Mainland Market will Close starting on THUR, Jan 30 and stay closed until Monday Feb 10

Hong Kong will only Close 2 days Jan 31, New Year Day and the following Monday. Most everyone heads back home for Golden Week

Thu, 01/23/2014 - 17:48 | 4360324 Oldballplayer
Oldballplayer's picture

That is going to be a long, long ten days for Chinese Bankers.

Thu, 01/23/2014 - 17:51 | 4360331 SAT 800
SAT 800's picture

Eben wonger day for Dong farber.

Thu, 01/23/2014 - 14:11 | 4359566 CheapBastard
CheapBastard's picture

All the bank's monies (along  with the bankers) have already lef tthe country and is sitting in McMansions in Cali, Vancouver, Melbourne, and so on....

Thu, 01/23/2014 - 14:43 | 4359681 Herd Redirectio...
Herd Redirection Committee's picture

Remember that story about "all cash" RE deals??

Thu, 01/23/2014 - 14:14 | 4359580 ilikepies
ilikepies's picture

Two words. "Bank Run"  Make it a reality and see the world change overnight....

Thu, 01/23/2014 - 14:16 | 4359585 semperfi
semperfi's picture

solution:  TPTB globally revalue gold to $50,000 per oz - then every $1Trillion in debt can be paid back with roughly 570 tonnes of gold

Thu, 01/23/2014 - 14:38 | 4359669 madtechnician
madtechnician's picture

Or re-value bitcoin to 2 million bucks apiece , it will be one or the other place your bets ....

Thu, 01/23/2014 - 15:01 | 4359759 Herd Redirectio...
Herd Redirection Committee's picture

Look, if gold goes to $0, I'm going to have myself some very nice teeth and assorted jewellry.

Bitcoin goes to $0, what are you left with exactly?

Thu, 01/23/2014 - 15:24 | 4359848 madtechnician
madtechnician's picture

Gold is not going to zero.

Bitcoin is not going to zero.

Fiat will appproach zero.


Thu, 01/23/2014 - 18:35 | 4360493 forwardho
forwardho's picture

Now there is an idea whoose time has come!

Thu, 01/23/2014 - 14:19 | 4359590 silverserfer
silverserfer's picture

it doesnt help the peasants that the renmibi only goes up to 100 yuan banknotes. Thats like a $16 bill. Try transacting outside the banking system with meduim sized purchases with duffel bags full of of small bills. thats all they have.

Thu, 01/23/2014 - 14:24 | 4359616 Yen Cross
Thu, 01/23/2014 - 14:24 | 4359623 Joenobody12
Joenobody12's picture

Nothing new here actually. Same shit happened back in the 80s.

Thu, 01/23/2014 - 14:30 | 4359651 Sufiy
Sufiy's picture

China set to hike official gold reserves to 5,000 tonnes next to combat its growing financial crisis?

  ZeroHedge reports today that China's Gold reserves ... are the same as reported in 2009 - it is the total joke by all means and Jim Rickards explains very well why. Accumulation of Gold is the military exercise in China, they are using different vehicles in order not to drive the prices up. FT reports that China Becomes Top Gold Consumer in 2013. And according to China's report to IMF:   China Expands Gold Reserves to 2,710 Tons - Third Largest In The World 

  Now Chinese companies are moving down the food chain and are bidding forlargest Copper deposits and Gold companies. Eric Sprott is covering this subject very well and we are facing the real Gold shortage with record high COMEX leverage and record low stock of Gold available for delivery.    Gold is moving fast to the upside today with falling US Dollar and general equity markets. The real fireworks will be started after Gold cuts through $1270 level and the real Short Squeeze begins.

Thu, 01/23/2014 - 14:36 | 4359660 Dr. Engali
Dr. Engali's picture

Uhmm... I have news for you 'salesperson'  There is no money in the whole freaking system. There is fractional reserve  ponzimatic fiat digital currency, but there is no money.

Thu, 01/23/2014 - 14:44 | 4359685 kchrisc
kchrisc's picture

Warning: Black swans may be closer than they appear.


"Do banksters, pols and crats rise to the top or float to the top?"

Thu, 01/23/2014 - 20:04 | 4360774 monkeyboy
monkeyboy's picture

"Do banksters, pols and crats rise to the top or float to the top?"


Swing from trees, bridges & lamp posts would also be an acceptable answer.

Thu, 01/23/2014 - 14:45 | 4359693 Iknews
Thu, 01/23/2014 - 16:14 | 4360019 WarPony
WarPony's picture

hypodermic nephilim-dna "wallet" chip in 3 ..2 ...

Thu, 01/23/2014 - 14:58 | 4359752 papa_lazarou
papa_lazarou's picture

fortune cookie say: enjoy cookie, it your last meal

Thu, 01/23/2014 - 15:08 | 4359791 wisehiney
wisehiney's picture

Finally, a little excitement.

Thu, 01/23/2014 - 15:17 | 4359824 Its_the_economy...
Its_the_economy_stupid's picture

"What if 4% want delivery?"

"Relax, that never happens."

Yeah, but, what if it does?"

"The market will take care of it."

"Thanks, but I'll take the physical now."

Thu, 01/23/2014 - 16:57 | 4360172 Matt
Matt's picture

If too many people want physical, they get settled in cash anyways whether they like it or not.

Thu, 01/23/2014 - 15:17 | 4359831 starman
starman's picture

1 800 Bernie helps ( the rich)

Thu, 01/23/2014 - 15:18 | 4359833 Its_the_economy...
Its_the_economy_stupid's picture

Only now at 112:1, "What if 0.9% want delivery?".


Thu, 01/23/2014 - 15:19 | 4359835 starman
starman's picture

ps whats a dong farmer? is it what I think is it is?!

Thu, 01/23/2014 - 16:46 | 4360136 TPTB_r_TBTF
TPTB_r_TBTF's picture

this is a Dong Farmer holding a Dong Knife for harvesting Dongs.


He looks ready (and eager) to harvest your dong!

Thu, 01/23/2014 - 15:20 | 4359839 walküre
walküre's picture

I'm still laughing at "Credit Equals Gold #1 Trust"

Whoever dreamed that up is a straight A con-artist and hit the Chinese investor's appetite like champagne and caviar to a prostitute.

Same as that "Satoshi" with Bitcoins. Sounds like a Pokemon character and probably aimed at exactly the age group who grew up fighting Japanese cartoon monsters. Cute but deadly for your finances.

Cash in the mattress, gold in the lake. That's where it's at. That's how we roll here at ZH.

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