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Celebrating China's First Bond Default: Copper Limit Down, Yuan Crashes Most In Six Years

Tyler Durden's picture




 

It would appear the fecal matter is starting to come into contact with the rotating object in China. Worrying headlines are beginning to mount on the back of real economic events (an actual default and a collapse in exports):

  • *COPPER IN SHANGHAI FALLS BY 5% DAILY LIMIT TO 46,670 YUAN A TON
  • *CHINA YUAN WEAKENS 0.46% TO 6.1564 VS U.S. DOLLAR
  • *YUAN DROPS MOST SINCE 2008

Aside from that Iron ore prices are crumbling, Asian stocks are dropping, Chinese corporate bond prices aee falling at their fastest pace in almost 4 months, and all this as 7-day repo drops to one-year lows (as banks hoard liquidity).

 

Item #1: The forced unwind of massive rehypothecated copper lots related to concerns over shadow-banking defaults sparked by the fact that Chaori was allowed to actually default...

 

Pushing Shanghai copper limit down...

 

Item #2: Iron Ore prices collapsing for similar reasons (as borrowers rotated to Steel and by-products for collateral on their shadow bank lending facilities)...

 

Item #3: Corporate bond prices are dropping at their fastest in 4 months...

 

Item #4: Repo rates are at near-record lows as banks hoard liquidity...

 

Item #5: USDCNY is tumbling as PBOC efforts to unwind the massvley one-sided carry trade appear to be getting out of control...

 

Item #6: AsiaPac stocks are down by their most in almost 6 weeks...

 

Item #7: Even US equity futures are unhappy (with JPY carry having caught up and now dumping again)...

 

Bonus Item: Copper-to-Gold ratios are collapsing...

 

Charts: Bloomberg

 

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Sun, 03/09/2014 - 22:22 | 4529275 eddiebe
eddiebe's picture

The perfect excuse for China to start dumping T bonds.

Sun, 03/09/2014 - 22:24 | 4529284 johngaltfla
johngaltfla's picture

Badges? We don't need no stinkin' badges! Nor any damned excuse! Sell ya bitchez....

Sun, 03/09/2014 - 22:36 | 4529315 remain calm
remain calm's picture

Now I think it would be a nice jesture if Japan would extend China a loan. Lets all just hug and make-up.

Sun, 03/09/2014 - 22:43 | 4529327 PhilB
PhilB's picture

Lets not get carried away. While the fecal splatter is bound to hit a few, China holds 4 Trillion USD in reserve assets. Thats like what, 65% of Japans GDP alone. It will likely get ugly, but if anyone needs a loan its Japan (not to mentiom a good radioactive scrub down).

Sun, 03/09/2014 - 22:52 | 4529355 philipat
philipat's picture

Isn't this the way free markets are supposed to behave? You know, as in the weak fail. Those were the days!! And it takes "Communist China" to show how markets should work.

Sun, 03/09/2014 - 23:00 | 4529375 Obchelli
Obchelli's picture

Bullish M**er F***ers... Means US Futures will be more positive (positiver) than normal...

Sun, 03/09/2014 - 23:07 | 4529390 philipat
philipat's picture

Moar? Bitchez!!

Sun, 03/09/2014 - 23:11 | 4529401 LetThemEatRand
LetThemEatRand's picture

MIC and Fed printing are limit up.  That's what this is all about.

Sun, 03/09/2014 - 23:23 | 4529431 wintermute
wintermute's picture

I hadn't realised that the S&P 500 is tracking such a long straight line up.

Seems like it is almost artificial, like lots of money being printed every month, or something...

Sun, 03/09/2014 - 23:42 | 4529468 CrashisOptimistic
CrashisOptimistic's picture

Or HFT engines.

Sun, 03/09/2014 - 23:53 | 4529487 The Dunce
The Dunce's picture

China's not going anywhere.  Zerohedge has been talking their downfall sice the beginning of time.  Bitches.

Mon, 03/10/2014 - 00:02 | 4529505 LetThemEatRand
LetThemEatRand's picture

[toilet]Paper tiger.

Mon, 03/10/2014 - 07:02 | 4529763 Obchelli
Obchelli's picture

And futures are up based on F**G Nothing....

Mon, 03/10/2014 - 07:33 | 4529780 negative rates
negative rates's picture

Consumers should draw the line here and get down to that store and give them a piece of their mind.

Mon, 03/10/2014 - 07:36 | 4529785 Notarocketscientist
Notarocketscientist's picture

Those bills will be worthless if China unloads in any volume. 

Sun, 03/09/2014 - 23:12 | 4529404 Groundhog Day
Groundhog Day's picture

who needs cooper when you have the carry trade

Sun, 03/09/2014 - 22:29 | 4529296 Seize Mars
Seize Mars's picture

no, they need the repo collateral as all other assets turn to shit

Sun, 03/09/2014 - 23:58 | 4529502 Renewable Life
Renewable Life's picture

All part of the plan, there are literally trillions in US and European debt, invested in China and it's infrastructure!!! China is going to let them suffer big and see what cockroaches survive and which ones die, then they'll blow the whistle when THEY want too, and trust me, it won't be until US politicians are on their fucking knees begging for mercy and pissing in their pants!

China knows suffering, America and Euro fools only know entitlement, this will be awesome to watch!!

Get the popcorn!

Mon, 03/10/2014 - 04:23 | 4529683 new game
new game's picture

i hope you are right as i too have endured pain to be where i'm at.

pain fuckers, some pain. turn the screws til last ozz of fluid flows til a drip...

mutha fuckers.

Mon, 03/10/2014 - 07:36 | 4529784 negative rates
negative rates's picture

Servin some green maple soup er ya?

Sun, 03/09/2014 - 22:32 | 4529307 disabledvet
disabledvet's picture

more like a war over three uninhabited islands.
"Japan has a history of launching pre-emptive strikes" I might add.

China has already declared the border of North and South Korea a "red line."
Well...what if Japan and South Korea launch a coordinated strike on Pyonyang with the "limited aim of re-uniting the two Koreas"? How is that any different from Russia going into "Kiev Rus"?

Sun, 03/09/2014 - 22:44 | 4529334 TheReplacement
TheReplacement's picture

That would apparently involve killing people, something Russia has yet to do.  Or so reports say.

Sun, 03/09/2014 - 23:21 | 4529426 RSDallas
RSDallas's picture

Or maybe just the perfect storm?

Sun, 03/09/2014 - 23:23 | 4529430 The Most Intere...
The Most Interesting Frog in the World's picture

Once the shit hits fan, would not be surprised if Fed could unload all of it's stash as well actually...  10 YR < 1%???

Sun, 03/09/2014 - 23:43 | 4529470 CrashisOptimistic
CrashisOptimistic's picture

The price would be very high then.  That would be when the Fed could get the most for the sale.

Sun, 03/09/2014 - 23:34 | 4529449 mendigo
mendigo's picture

Does that really make sense?

Or is it just fun to say?

Sun, 03/09/2014 - 23:41 | 4529465 CrashisOptimistic
CrashisOptimistic's picture

On the contrary, UST yields are down 2 bp on the news.  2.77%

When there is fear, there just is no question where the money goes.  It's not a matter of whether one likes it or not.  It's where the money goes when the economy is poor.  It's where the money goes when it is afraid.

 

Mon, 03/10/2014 - 04:54 | 4529706 jeff montanye
jeff montanye's picture

treasury yields rose from late 1929 to early 1932.  see sidney homer's "a history of interest rates".

Mon, 03/10/2014 - 00:41 | 4529553 Buck Johnson
Buck Johnson's picture

Remember China gets alot of their natural resources from Australia, this must be hitting them pretty hard also.

Mon, 03/10/2014 - 02:35 | 4529623 dow jones 20000
dow jones 20000's picture

one can only hope.

I love the fact that I've found a community that is so disturbed by the status quo that we get a little giddy when the poop starts to hit the blades.

I'm also a little drunk. I love you guys. 

Mon, 03/10/2014 - 02:37 | 4529626 CRBull
CRBull's picture

 

 

Dumping Treasuries in Concert with Russia of course....  

Mon, 03/10/2014 - 06:26 | 4529741 Wahooo
Wahooo's picture

Yup, flush the crap all at once. Plunge if needed.

Mon, 03/10/2014 - 06:46 | 4529751 USisCorrupt
USisCorrupt's picture

BitCoins are looking better and better by the day.

Sun, 03/09/2014 - 22:23 | 4529277 johngaltfla
johngaltfla's picture

But there is some good news despite this with the House of Saud deciding to abandon the US and favor Russia:

Is the Syrian Civil War Over?

Mon, 03/10/2014 - 00:16 | 4529462 LetThemEatRand
LetThemEatRand's picture

Funny that someone who seems to revere Ayn Rand would have an issue with the House of Saud.  They are ruthless users of the oil that was found under their land.  They drive the economy of billions of people with "their" oil.  They blow with the wind of whichever military will prevent the "takers" from taking what belongs to the current producers, the House of Saud.  They subjucate their people while producing wealth from happenstance, and rule from palaces by force without elections.  But they took it fair and square and now it belongs to them.   Seems like a Rand dream.   

Sun, 03/09/2014 - 22:31 | 4529278 TruthInSunshine
TruthInSunshine's picture

By the time you feel the effects of this crash, you will pray that you white knuckle'd your cash, & stacked at least a modest stash.

This is Lehman x 1000.

Somewhere, Bernanke is thanking his lucky stars he is no longer in the hot seat, as the fire he started (with his fellow Central Banking Criminals - INCLUDING THOSE AT THE PBOC, WORD) burns out of control.

Sun, 03/09/2014 - 22:32 | 4529305 maskone909
maskone909's picture

Im mclovin it. Hope this is the one

Sun, 03/09/2014 - 22:52 | 4529317 TruthInSunshine
TruthInSunshine's picture

By the way, an important point - The Chinese Government ABSOLUTELY NEEDS TO DRAMATICALLY DEBASE THE YUAN (good luck to any other government telling them they "can't manipulate their currency" DOWNWARD now) if they have ANY hope to manage the crisis they now face for reasons of controlling the damage of the bad debt tsunami about to roll over their mainland, not to mention that China is an export-intense economy.

Sun, 03/09/2014 - 23:11 | 4529400 philipat
philipat's picture

Or, to quote Bernanke; "It was OK when I left".

That's also what Greenspan said. Might get intersting for Yellen with the Fed Balance sheet already heading for $5 Trillion this year even with a complete taper?

Sun, 03/09/2014 - 23:27 | 4529437 walküre
walküre's picture

Liking your outlook for cash at hand. If we'll see a deflationary correction, cash will be king.

As for China though, they don't own enough energy related assets yet. Their currency is shit anyway but everyone looked the other way and took Mao's paper at face value. At least they bought US paper and kept us alive. If they're debasing Yuan now massively, they can't afford to import the resources needed to keep the lights on unless price of oil goes down alot.

Maybe oil collapsing to $50 can jumpstart the global economy. In conjunction with a huge debt writeoff.

Sun, 03/09/2014 - 23:49 | 4529475 TruthInSunshine
TruthInSunshine's picture

They'll cut subsidization of energy prices further and the citizenry will cut back in much of what they were just beginning to enjoy over the last decade.

It's not only not a problem for them, but they've already been conditioned to prepare for a lifestyle downsizing by their central planners, and there is a realization on the part of the citizenry that their export-intense economy is already beginning to crumble as recent trade balances have proven.

Chinese military & Chinese producers are joined at the hip, and production of goods is far and away the largest sector of employment in China.

Moreover, as mentioned previously, China literally can't contain what is alone a disaster, and prevent it from sinking their economy entirely, if they don't dramatically crush the Yuan so as to try and limit the extent, depth & duration that debt defaults do to their economy.

Sun, 03/09/2014 - 23:55 | 4529494 CrashisOptimistic
CrashisOptimistic's picture

Oil is not what it used to be.  Wells used to flow for decades.  That's not so anymore.  Output crashes in a month and even more the first year.

If oil's price fell to $60, scarcity would be absolutely immediate.  The price would spike within a week or two.  That's why it has been so steady 95-105.  The control feedback loop is very high gain.

So that impetus isn't going to come.

Mon, 03/10/2014 - 02:11 | 4529612 walküre
walküre's picture

In my scenario $50 next year is like $200 by years end. Reset. Cut off a few zeroes, new balls and everyone can play again.

Mon, 03/10/2014 - 04:44 | 4529696 new game
new game's picture

85 is limit down, end of story. cost of oil average. just like gold at 1200/oz.

these are benchmarks, like the word written. below is a serious problem that you should NOT be hoping for uless you like to see blood...

Mon, 03/10/2014 - 04:39 | 4529691 new game
new game's picture

101 % cash*

*=.01 roi

Sun, 03/09/2014 - 23:51 | 4529482 holdbuysell
holdbuysell's picture

Spot on.

The FSA will be celebrating this newly found buying power at the expense of more wealth leaving the country through the trade deficit. If the FSA only knew.

And it also means moar Yellen printing to keep pace in the escalating currency wars.

What inning is this? 7th?

Sun, 03/09/2014 - 23:12 | 4529402 Obchelli
Obchelli's picture

If this was one futures would be limit down by now...  I can assure you they will be green in the morning or by EOD. "Misterious buyer" will put market order to buy futures before market and 3:30

Sun, 03/09/2014 - 23:14 | 4529411 LetThemEatRand
LetThemEatRand's picture

As ZH loves to say, it's (not) different this time.

Sun, 03/09/2014 - 23:57 | 4529499 CrashisOptimistic
CrashisOptimistic's picture

You guys just have to understand.

There is no market.  If the system is threatened, the CBs of all the countries will conference call and it will be fixed immediately.  There is no more moral hazard because how can a meaningless substance have any morality associated with it.  When you print something from thin air, it's meaningless.

Mon, 03/10/2014 - 04:47 | 4529697 new game
new game's picture

just like what happened when the ten was threatened at 3 plus. buy mutha fuk'r BUY!

Mon, 03/10/2014 - 07:41 | 4529789 negative rates
negative rates's picture

Everyone evacuate the basement, water is going to flood us out of here in all of about 18 minutes. Can you say ants in pants? 

Sun, 03/09/2014 - 22:24 | 4529282 erg
erg's picture

"Dr. Copper to the emergency room, Dr. Copper to the emergency room."

You'll be working with Dr. Nick.

Sun, 03/09/2014 - 23:32 | 4529446 THX 1178
THX 1178's picture

Hi Everybody!

Mon, 03/10/2014 - 03:16 | 4529645 tenpanhandle
tenpanhandle's picture

Dr. Copper appears to be the patient.

Mon, 03/10/2014 - 06:48 | 4529754 BandGap
BandGap's picture

Physician, heal thyself.

Sun, 03/09/2014 - 22:26 | 4529290 Confundido
Confundido's picture

Everything is under control, guys. Gold will soon be pushed below $1,313/oz and the S&P500 will break the 1,900pt mark. China and Russia are as interested...I am sorry...did I say China and Russia? Correction: Those who rule China and Russia are as interested in keeping the fiat currency dream alive as those who print said currency. They are all the same.

Sun, 03/09/2014 - 22:46 | 4529339 ms8172
ms8172's picture

Exactly!  Then what?  It's coming to an end brother...can't you see the cracks?

Mon, 03/10/2014 - 04:49 | 4529699 new game
new game's picture

the struggle is over the "new reserve" status, so that country can ramp a MIC and create a new shit army and tell the rest of the world where and when to shit...

Mon, 03/10/2014 - 06:53 | 4529758 BandGap
BandGap's picture

And since this is the expected path it will not happen.

What if China and Russia simply abandon using any dollars?

Sun, 03/09/2014 - 22:28 | 4529292 Seize Mars
Seize Mars's picture

First observation: there is just no way to escape that the S&P is hugely overvalued.

Secondly, as China crashes, the USD will be a safe haven. Look for the dollar to soar, and for gold to get monkey-fucking-hammered.

China crash - > USD bid - > gold crash - > USDJPY soars - > Japan crash - > Russian financial threats become less troublesome as their ammo is now soaking wet - > US Bonds bid hard - > EURUSD collapse

Goodbye EM's and Europe hello king Ponzi Dollar

Sun, 03/09/2014 - 22:30 | 4529298 seek
seek's picture

And China, even while crashing, won't mind a gold firesale.

Big question is where the hell the gold inventory is coming from.

Sun, 03/09/2014 - 22:34 | 4529311 DisArray
DisArray's picture

Isn't China the biggest producer of gold now?  They don't export itand they still import more gold.

Sun, 03/09/2014 - 22:34 | 4529313 disabledvet
disabledvet's picture

HELLO MOTHER RUSSIA!

Sun, 03/09/2014 - 22:40 | 4529323 Seize Mars
Seize Mars's picture

Fort Knox.

Sun, 03/09/2014 - 23:32 | 4529439 LetThemEatRand
LetThemEatRand's picture

"Big question is where the hell the gold inventory is coming from."

01000011100011100111100011

Or for those of us not part of the internet billionaires club, The Club, or on the lifeboat, dot dot dot, dash dash dash, dot dot dot.

Mon, 03/10/2014 - 00:24 | 4529534 WillyGroper
Sun, 03/09/2014 - 23:19 | 4529422 The Most Intere...
The Most Interesting Frog in the World's picture

Print $4 trill and the shit still increases in value...  LOL UFB!!!

Sun, 03/09/2014 - 22:31 | 4529300 BaggerDon
BaggerDon's picture

You can bet on one thing, when the shit does hit the fan in S and P, it will not be the FEDs fault...PUTIN is the new Bush

Sun, 03/09/2014 - 22:31 | 4529301 LongBalls
LongBalls's picture

This isn't Nam, this is bowling, we have rules here!?!?!

Sun, 03/09/2014 - 22:40 | 4529325 caustixoid
caustixoid's picture

 

http://www.youtube.com/watch?v=WiQmQhA-OrM

"AM I THE ONLY ONE WHO CARES ABOUT THE FUCKING RULES?!?"

Sun, 03/09/2014 - 22:31 | 4529304 TheRideNeverEnds
TheRideNeverEnds's picture

Wait I am confused, I thought we could just print more demand!?

 

Have I been misled?  

Mon, 03/10/2014 - 00:18 | 4529529 Colonel Klink
Colonel Klink's picture

And more gold!  Don't forget.

Sun, 03/09/2014 - 22:34 | 4529314 buzlightening
buzlightening's picture

USDinker dollar hasn't a chance in hell to win the currency wars now convulsing.  It's the target for blowup or how would we have enough chaos to form a global new world order.  It's being dismantled for suffficinet pleading for a world currency.  USDinker dollar was disigned to die and it's terminal. 

Sun, 03/09/2014 - 22:41 | 4529326 TruthInSunshine
TruthInSunshine's picture

The USD is set to stage an epic rally, despite the fact that it's the last thing that the Fed & Treasury want.

See my comments above regarding CHINA'S ABSOLUTE NEED TO DEBASE THEIR CURRENCY as to the whys.

Sun, 03/09/2014 - 23:03 | 4529382 Yen Cross
Yen Cross's picture

  TIS , the usd will gradually strengthen"hypothetically" as liquidity is withdrawn.

Sun, 03/09/2014 - 23:39 | 4529458 Clowns on Acid
Clowns on Acid's picture

yellen wil take that as a cue that the Taper doesn't matter. Print MOAR !

Mon, 03/10/2014 - 00:15 | 4529523 Yen Cross
Yen Cross's picture

  That my friend , remains to be seen. The whole precipice of this "drawdown" is based on the lack of stimulation.

Sun, 03/09/2014 - 22:45 | 4529332 The Most Intere...
The Most Interesting Frog in the World's picture
Bitcoin:  How da ya like me now???
  • *CHINA YUAN WEAKENS 0.46% TO 6.1564 VS U.S. DOLLAR
  • *YUAN DROPS MOST SINCE 2008

 

Sun, 03/09/2014 - 22:47 | 4529344 medium giraffe
medium giraffe's picture

Yeah, Bitcoin has only dropped 60% since December.  But I suppose that's what you get when you mistake a payment method for an investment vehicle. 

Long Amazon Vouchers!

Sun, 03/09/2014 - 22:52 | 4529356 The Most Intere...
The Most Interesting Frog in the World's picture

hey i'm puttin all my money in to Chuck E Cheese coins...  betting CEC outlasts the Fed...

Sun, 03/09/2014 - 22:45 | 4529335 takeaction
takeaction's picture

Can somebody here in 1 sentance explain what all of this means in simple terms?  Been here awhile...I am not a trader...just a stacker that has had some unforunate boating accidents.

Sun, 03/09/2014 - 22:49 | 4529348 The Most Intere...
The Most Interesting Frog in the World's picture

copper use to secure much loan - like stock secure margin debt...  when kaka hit fan must sell...  price drop much much

Sun, 03/09/2014 - 23:26 | 4529435 ptolemy_newit
ptolemy_newit's picture

its simple you have wasted your time and your money!  We are appproaching the epic deflation peiod of a life time (ex food).

so your wet gold is worhtless unless you can trade it at the market for food?  dare you show anyone you have a single gold pellet or coin?   in the event of sever crisses your gold becomes your governments and a gain you can not spend it!

Now get real smart and save coffee, chocolate and toilet paper, then you can barter.

 

Mon, 03/10/2014 - 05:02 | 4529713 new game
new game's picture

amen bro, 

coffee, smoke and granola, now that is where its at...

ass wipe for inconvienence...

Sun, 03/09/2014 - 22:46 | 4529337 Seasmoke
Seasmoke's picture

OK. I'm down to my last 100,000 in cash and 100,000 stacked. There is very little income any more. And the cash is going out faster each month.

 

What would you do ???

Sun, 03/09/2014 - 23:00 | 4529371 Grande Tetons
Grande Tetons's picture

Whatever you do, do not short the SP. 

What would I do? Have more sex...a lot more. 

FWIW...a 100k stack....is pretty impressive...if PMs are to take off...you should be AOK.

Mon, 03/10/2014 - 14:56 | 4531324 UggSmash
UggSmash's picture

Ugg wonder, Tetons: why no short SP? Tetons have link to argument for this, where Ugg learn? 

Sun, 03/09/2014 - 23:04 | 4529387 Osmium
Osmium's picture

First, let me say i'm sorry to hear about your situation.

Second, I have a bad feeling that soon, many more people will be asking the same question, but I'm willing to bet they don't have any cash or any PM's.

Sun, 03/09/2014 - 23:19 | 4529421 Grande Tetons
Grande Tetons's picture

Betting people do not have PMs....that is a safe bet. A real safe bet. 

Sun, 03/09/2014 - 23:33 | 4529448 walküre
walküre's picture

What's your burn rate? Does it last you 4 years, 2 years or 2 months?

Has the cost of living gone up that much where you live? Can you produce anything to feed yourself and potentially sell into your community, generate some cash flow?

Sun, 03/09/2014 - 23:48 | 4529476 Seasmoke
Seasmoke's picture

I'm thinking 3 years ...also have lots of assets to sell off which may extend anothet year out and selling now to try and protect the cash and stack. Because when it's time to choose between the 2 , I know which one I choosing, just not sure I'm ready for the consequences. 

I Was really hoping this past year , would have been the year for some truth and guidance for the future to take place...but it was just another zombie year. 

Mon, 03/10/2014 - 01:25 | 4529587 Anusocracy
Anusocracy's picture

Well I would move into a good used RV or fifth wheeler and boondock as much as possible in warmer areas with low cost of living. You could also relocate to areas with better employment.

The Dutchman Denali 26' fifth wheeler with the All Weather insulation package would be my choice. I think the insulation was R-40 floor-ceiling and R-9 walls. Pretty good for going rural if TSHTF and $29k at the local RV/Camper show.

http://www.denali-rv.com/

My two cents.

Sun, 03/09/2014 - 23:40 | 4529463 Seize Mars
Seize Mars's picture

Seasmoke

OPSEC, dude. OPSEC.

Sun, 03/09/2014 - 23:51 | 4529478 Grande Tetons
Grande Tetons's picture

It was a rounding error, Captain. 

In actaulity, the ship apparently been lost or sunk. The other item could not be confirmed. Out. 


Sun, 03/09/2014 - 23:49 | 4529480 Seasmoke
Seasmoke's picture

???????

Mon, 03/10/2014 - 00:01 | 4529507 The Wisp
The Wisp's picture

polite way of saying keep you mouth shut it's nobody's business unless you want visitors

Mon, 03/10/2014 - 00:19 | 4529530 Seize Mars
Seize Mars's picture

Watch this:

https://www.youtube.com/watch?v=QrsRuhDHqUw

Start at 3:04, go to about 4:05

Sun, 03/09/2014 - 23:55 | 4529486 Hongcha
Hongcha's picture

Keep the cell phone and the wifi on but end cable teevee, etc.  Go to bare bones and an austere lifestyle but keep up appearances.  If necessary stop cc payments, that can be fixed later.  

Disavow liquor, desserts, any and all luxury calories and eye candy like movies, etc.  Cut the fat.  Work out like a pro athlete.  Pretend I am back in Basic Training.  DefCon One, total discipline/

Mon, 03/10/2014 - 03:27 | 4529650 Serenity Now
Serenity Now's picture

Respectfully disagree.  Do NOT stop paying your credit cards.  If anything, pay them off 100%.  A good creditor's rights lawyer will find out about your assets and stop you from discharging cc debt through bankruptcy.  You won't win that fight.

Mon, 03/10/2014 - 03:45 | 4529636 kareninca
kareninca's picture

I would move to rural New England, and live on someone's farm, and trade labor for food and a free place to live.  I doubt a lot of labor would be required; they would be thrilled to get any, and the last I saw that sort of free housing was tax free (if the job requires living on site).  Crime is low, people are educated and sane, population is shrinking, no water shortages, you can garden three seasons except in the coldest parts.  Taxes are high but you could avoid them legally if you have low/no income and don't own property.  Learn some task local people want (probably internet related) and trade that for the "stuff" you need.

Or, I would join an "intentional community;" I lived in one during college. They still exist.  You have to be able to get along with other people, but there are huge cost savings.

Mon, 03/10/2014 - 07:51 | 4529802 BandGap
BandGap's picture

Rural New England will be zombie vacationland soon enough.

Mon, 03/10/2014 - 03:22 | 4529647 Serenity Now
Serenity Now's picture

Seasmoke, it sounds like you are business owner. Regardless, your two choices are to make more money and/or to spend less. I'm not trying to be flippant. These really are the only choices for any of us. It might be time to cut your losses and find an exit strategy (business-wise, that is).

Personally, I would sell assets, cut spending to the bone, pay off debts, and stay mobile. Can you move? Increase your income? Obviously, if you have a family, this is more difficult.

I don't mean to talk down to you. Anyone who can get to $100K in cash and $100K stacked is no dummy. But if your goes-outs are more than your goes-ins, then you are in trouble. Whatever you do, don't gamble it away trying to make a quick buck. Hang in there.

Mon, 03/10/2014 - 03:43 | 4529665 Ulterior
Ulterior's picture

Dont you think he could have inherited/given it? Why do you judge by the size of assets and not profession about people?

Tue, 03/11/2014 - 02:56 | 4533664 Serenity Now
Serenity Now's picture

Don't YOU think he could have earned it/worked hard for it?

I didn't judge anything.  He asked for advice; I gave my advice.  I don't really care if he earned it or inherited it or won it in the lottery.  It's none of my business, and it does not affect me one way or the other.

If he has money, then I hope he can hold onto it.  Why would I want anything else?

Mon, 03/10/2014 - 07:43 | 4529791 negative rates
negative rates's picture

Conserve bitches.

Sun, 03/09/2014 - 22:46 | 4529338 lolmao500
lolmao500's picture

And then you got this...

"CHINA MARTYRS BRIGADES LEADER" CLAIMS RESPONSIBILITY FOR MISSING MALAYSIAN AIRLINES FLIGHT , BOXUN SAYS

Sun, 03/09/2014 - 22:51 | 4529353 Agent700
Agent700's picture

So what if China is ALLOWING the shadow banking system to fail? They knew the first country to deal with excessive debt would take currency hits but perhaps they will allow defaults and deleveraging to clean out the malinvestments, without burning their reserves in a bailout attempt......

Then turn around and make the RMB fully convertible, BACKED BY GOLD!

Think anyone around the world awash in liquidity might want to convert fiats to gold-backed RMB and invest in fire-sale Chinese assets? And reliquify the Chinese banking system?

 

Food for thought.

Sun, 03/09/2014 - 22:55 | 4529360 The Most Intere...
The Most Interesting Frog in the World's picture

good idea, but why not start sooner???  they just bailed out a couple "trusts" in the last few weeks...

Sun, 03/09/2014 - 22:59 | 4529372 Agent700
Agent700's picture

That was before Putin (an associate of Beijing), got the EU and Obama backed into a corner with their pants down.

Mon, 03/10/2014 - 05:54 | 4529729 new game
new game's picture

one problem-underlying assets have to find market clearing price. that can take some serious ass time.

finding bottoms involve averaging down and hold plan with staying power. if you can recognize thresholds of pain,

you my friend will be a winner!

Sun, 03/09/2014 - 22:56 | 4529362 TruthInSunshine
TruthInSunshine's picture

As China CREATED THE MOST FIAT PAPER since the crash of 2008, and BY A WIDE MARGIN, much of which went out as LOANS ON SHADY INVESTMENTS, PROJECTS & TO NON-CREDIT WORTHY ENTITIES, it's in China's best interest to debase their currency now and by a huge %, in order to try and contain the toxic spillover.

Sun, 03/09/2014 - 23:18 | 4529419 Soul Glow
Soul Glow's picture

Are you sure about that?  China create "more paper"?  In what I know America has created more "wealth" that any Nation-State and Japan has created more monies - debt, cash, obligation, what have you - than any other, per capita.

Sun, 03/09/2014 - 23:24 | 4529432 MrSteve
MrSteve's picture

I celebrate your pride in China but they have produced more fiat in the past few years than JPN and USA combined, so the fiat disaster will be real.

Sun, 03/09/2014 - 23:37 | 4529457 walküre
walküre's picture

The Chinese have used this fantasy money to purchase real hard assets all over the world. Countless real estate transactions just to secure something of value in Europe and North America. Their strategy all along was to build outposts for China's government with Mao's paper. Are they done?

Mon, 03/10/2014 - 00:10 | 4529367 Yen Cross
Yen Cross's picture

 You can always go   3rd person?  Fhonestar style.

  http://bitcoinwisdom.com/

  Or you can sell BTC "puts" NOT! 

  The premium isn't worth the net gain! 

  Bit Coin is an scam! (period)

Sun, 03/09/2014 - 22:58 | 4529368 Atomizer
Atomizer's picture

Watch the renminbi

Sun, 03/09/2014 - 22:59 | 4529370 Ban KKiller
Ban KKiller's picture

Ace accountants will have this repaired by noon EST. 

WHO DO YOU ROOT FOR ON THE RACE TO THE BOTTOM? 

More connected? More to lose. 

Sun, 03/09/2014 - 23:16 | 4529414 Soul Glow
Soul Glow's picture

WHO DO YOU ROOT FOR ON THE RACE TO THE BOTTOM? 

Gold bugs.
Sun, 03/09/2014 - 23:34 | 4529450 Grande Tetons
Grande Tetons's picture

Get ready to root for the bad guy. 

http://www.youtube.com/watch?v=oXRaT5Bl3IA

I think deep inside every gold or silverbug lies a little bit of Porter. You just wanna fuck the unfuckable system and walk away to a new life. 

Hubahubahuba. 

Mon, 03/10/2014 - 00:13 | 4529520 Ban KKiller
Ban KKiller's picture

Richard Stark's Parker really. Donald Westlake...

Fun series of books. "Butcher's moon". 

Sun, 03/09/2014 - 23:09 | 4529393 flysofree
flysofree's picture

In China to borrow money form friends and relatives to gamble in a casino is considered an honorable endeavor. On the other hand, typical Chinese is a grifter type, they have no intention of paying of their business loans.

Sun, 03/09/2014 - 23:13 | 4529407 Atomizer
Atomizer's picture

No foofing sheet.

Sun, 03/09/2014 - 23:15 | 4529413 Soul Glow
Soul Glow's picture

In America to borrow money form friends and relatives to gamble in a casino is considered an honorable endeavor. On the other hand, [the] typical American is a grifter type, they have no intention of paying of their business loans.

Sun, 03/09/2014 - 23:13 | 4529410 Soul Glow
Soul Glow's picture

Damn.  China is pulling a Bernanke and devaluing the currency like madmen.

Mon, 03/10/2014 - 02:01 | 4529473 Seize Mars
Seize Mars's picture

What they are trying desperately to do is re-export the inflation they import from USD.

An increase in USD money supply is an increase in CNY money supply because of the currency peg. They are devaluing for similar reasons as the Bernank (the credit writedowns vaporize collateral, so they need more liquidity), but moreso to try to counter the USD mechanism.

Of course they will accidentally fuck it up.

This is like working in a fireworks factory, and someone keeps lobbing Black Cats in the window; you keep throwing them back out, and you try to light some of your own to throw out also, but...

Mon, 03/10/2014 - 06:52 | 4529757 new game
new game's picture

look where that money went? 1 percenter, same game when the dust clears...

Sun, 03/09/2014 - 23:28 | 4529440 Judge Crater
Judge Crater's picture

If things are as bad as that in China, who will buy those 8 figure condos in Manhattan?  Only the stream of Chinese grifters with flight capital is keeping the NYC high end real estate market afloat.    

Sun, 03/09/2014 - 23:54 | 4529489 fasTTcar
fasTTcar's picture

You forgot the Russians with kick backs from Northrup, Ratheyon etc...

Mon, 03/10/2014 - 07:10 | 4529768 headhunt
headhunt's picture

All it takes is the first domino to be pushed over

Sun, 03/09/2014 - 23:29 | 4529442 joego1
joego1's picture

Until further notice evil capitalism is on hold... Paging Chairman Mao!

Sun, 03/09/2014 - 23:30 | 4529444 robertocarlos
robertocarlos's picture

Shits getting real, expensive.

Sun, 03/09/2014 - 23:37 | 4529453 starman
starman's picture

well if they crash there should be a 7.5 % growth as they forecast it, from the bottom of course!

Sun, 03/09/2014 - 23:43 | 4529469 Atomizer
Atomizer's picture

Bobo's Oranges- The Grifters vs. Derivatives vs. New Universal Banking Bitches. Answer, Basel III. The cock sucking fag on US side is your enemy. Run the Ways and Means committee arrangement. The man will be found buying hot dogs on the other side. We love our country, sovereignty will prevail.

Sun, 03/09/2014 - 23:54 | 4529488 holdbuysell
holdbuysell's picture

The question is what are they buying while selling yuan.

Mon, 03/10/2014 - 03:56 | 4529673 TheCosmicTaco
TheCosmicTaco's picture

They are taking suitcases full of fucking yuan to Hong Kong and Macau, changing it into greenbacks, and then buying gold and mansions in Palm Beach and Orange County. After doing that they stash a few million in a Cayman Islands bank, so they can buy groceries when they move to the US.

Next question please.

Mon, 03/10/2014 - 00:02 | 4529510 Hongcha
Hongcha's picture

Shit, gold and silver are gonna get crushed.  Thankfully I am out of my leveraged plays but I'm eating shit otherwise all over again.  I also covered my SPXU for a small gain just because it made me nervous.  I wonder if being net short 2009-2012 and long gold 2011-2013 did anything to my nerves ...

Mon, 03/10/2014 - 06:31 | 4529748 Squid-puppets a...
Squid-puppets a-go-go's picture

i dont see why - this should result in an intensified Sino rush to gold - unless you think the plunge in copper will be replaced by Au?

Mon, 03/10/2014 - 00:06 | 4529512 Clowns on Acid
Clowns on Acid's picture

China won't crash.... they will figure out how to print quietly and just put a bid in ... just like Bernanke. 

Mon, 03/10/2014 - 00:06 | 4529513 Yen Cross
Mon, 03/10/2014 - 00:15 | 4529522 q99x2
q99x2's picture

They wouldn't have to default if they were part of the EU. They could simply die a most horrible and dreadful death.

Hell with it. BTFD.

Mon, 03/10/2014 - 00:27 | 4529536 q99x2
q99x2's picture

He flew through the air with the greatest of ease that daring young bankster without a trapeeze.

Get the cameras ready. They are desperate.

From Bloomberg:

China Stocks Seen Rallying 24% at Goldman on Valuations

Mon, 03/10/2014 - 01:20 | 4529578 Atomizer
Atomizer's picture

They know an ancient old secret to exit the petrodollar fait collapse. This was all explained during the G20 meeting of 2013.

Sheikh Imran Hosein - 20130223 The International Monetary System & Future of money

Mon, 03/10/2014 - 01:22 | 4529580 Fred123
Fred123's picture

Nothing to worry about, the Chinese are very, very smart and they can violate any and all rules of finance, economics, and markets but still be fine. Did I tell you how super smart the Chinese are?

Mon, 03/10/2014 - 01:27 | 4529589 Apostate2
Apostate2's picture

There is a particular type of Hubris on the mainland currently that you may be unaware of:enzhu xintai-'almsgiving mentality'.

With their spectacular economic growth and dosh they feel that if they consume your products or assets they are practicing charity. Buying UST is almsgving to the US whom they feel will go bankrupt without their largesse. It applies to other Chinese (i.e. HK or Taiwan) as well as foreigners. All trade morphs back to traditional thinking that the central kingdom (zhongguo) accepts tribute from the barbarians (inner or outer) in recognition of their cultural and political superiority. Plus ca change, plus c'est la meme chose.

Mon, 03/10/2014 - 01:35 | 4529596 Atomizer
Atomizer's picture

Hello NSA, can you hear me now? Why do you fucking think the DHS is buying bullets? Do your job in stopping this madness! Start with K street. winks

Mon, 03/10/2014 - 02:04 | 4529610 Seize Mars
Seize Mars's picture

Atomizer,

"Do your job?" Who, the NSA? They are doing their job dude. Their job is to fuck us over.

Mon, 03/10/2014 - 02:17 | 4529614 Atomizer
Atomizer's picture

Stay the fuck out of our messages. Your pay scale doesn’t privy you to communicate. Don’t mean to be a asshole, just let it go. We are helping you!

Mon, 03/10/2014 - 07:03 | 4529764 headhunt
headhunt's picture

So in other words, the first amendment is for some people - who did you vote for?

Mon, 03/10/2014 - 14:18 | 4531118 Seize Mars
Seize Mars's picture

Atomizer
Are you stoned? What the fuck are you on about?

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