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Chinese Authorities Halt Virtual Credit Card Payments; Tencent, Yahoo Crashing
The PBOC issued a statement today, according to 21st Century Business Herald, that halts virtual credit card products and "face-to-face" payment services such as QR code payment:
- *PBOC HALTS QR CODE PAYMENT: 21ST HERALD
- *PBOC HALTS VIRTUAL CREDIT CARDS BY ALIPAY, TENCENT: 21ST HERALD
Tencent is down over 5%, China CITIC is crushed, and Yahoo was dumped in morning trading in Japan (on the back of Alibaba's Alipay service being affected).
21st Century Business Herald reports:
March 13, the central bank issued an urgent document halt Alipay, Tencent's virtual credit card products, but stopped there barcode (QR Code) payment and other payment services face to face.
21st Century Network 21 has learned that on March 13, the central bank issued an urgent document halt Alipay, Tencent's virtual credit card products, but stopped there barcode (QR Code) payment and other payment services face to face.
Tencent is tumbling (and it appears perhaps a few people knew earlier in the week)...
China CITIC is down hard...
and Yahoo (trading in Japan) was flushed on massive volume at the open...
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Is China a republic or a bank now?
a banana bank.
Bitcoin will be next.
Not to worry because it's all self-contained in China and aside from some fear mongering amongst a few websites like ZH, the Chinee economy is booming, property prices skyrocketing, inflation stable, skies clear, water clean, pigs happy, educated populace, chickens healthy, peaceful global intentions recognizing the dominance of the US global power having won the Cold War, readily adopting strong Jesuit Western values without any cultural clash, proud to be the Coolies of the Universe....
What could go wrong?
And while we're at it, how's that Abenomics shit workin' out for y'all over there in Japan, eh?
You know, that hyper-expansive monetary policy, monetizing everyfuckingthing under the sun for 30 years and hyper-massive government deficits for 3 generations?
Fuckin' great that we here in the Good Olde USofA ain't doing the same shit now, isn't it?
Say where again are those long term rates and how's been those equity market performance been for the last 30 years in Japan?
Not happy, are we, no?
Ah, that fine, strong Jesuit training...
Get that fucking yield while you can, kids
The sky is falling. And soon we'll all be dead. Where the freak is my pumpkin pie? Bitches.
PBOC:
"Wi no lai king an lain kulejito tulan saxian, yu masu pei in peipa."
Translation:
"No credit for you"
What is a virtual credit card pmt?
banks issue credit card numbers with no associated plastic/physical card. They are used primarily by businesses particularly for online transactions.
thus the yahoo plunge
"Virtual Credit Payment"
is when pretend to pay for people who is pretend to work,... or some sort of thing.
If the japs find out what this gvts been doing, it's curtains!
We'd better get back cause they mostly come out at night.....mostly.
http://www.youtube.com/watch?v=B436avtEXzs
thank you
I understand this simply means QR code payments (via phone). PBOC telling tech and internet companies to stay the fuck out of the payments industry.
We know that nothing will happen when credit cards everywhere go dark. Because nobody would accept digital currency anyway.
Have you had an epiphany?
Stack On
It was sarcasm. Everything is already digital and has been since the 1970's. When credit cards, debit cards, ATMs and kiosks stop working things will turn to anarchy.
Anarchy ain't such a bad thang.
Actually its much better than that Totalitarianism that the Digital Currencies have all of us too betwixt and beholding. Now maybe it is fine time for you to be awoken out of that demonic induced spell which was cast upon your soul.
Crash and burn China. Take the whole damned house of cards down so that it can be discarded upon the rubbish heap of History where it so rightfully belongs. Fuck digital currencies which are not representative of true value and stored energy...not necessarily Gold but labor for real items of utility.
Perhaps man has lost the idea about what money is and what it shall be used for. Perhaps we need to relearn that as we have regressed into a societal immaturity. So perhaps a return to BARTER is necessary as the trust has been completely eroded and confidence has diminished to unfathomable lows.
Sarcasm? You were writing about a dream come true. Anarchy reads as a very good thang in my book.
What is the goal of Project Mayhem anyway? (I know...never ask about Project Mayhem...or talk about Fight Club.) Sorry Mr. Durden. My apologies sir.
Well fonestar was only attempting to illustrate that because one digital system is mathematically destined for destruction does not mean all digital systems are. Yes, the Bitcoin network may experience disruptions and problems in an end of fiat times situation. But if you plan on living past the fiat tribulations you should own some Bitcoins.
BTW, fonestar hopes that picture is of the real Satoshi. Seeing him standing there on that hill defiant and unwavering, wearing khakis and sneakers like a real tekk man is a truly moving sight to behold. It has become fonestar's laptop's background.
You can buy much kool-aid with BitCoin. Zazdrovje!
Anarchy sounds great in theory, ultra localized government down to the individual, but then what happens when you go to war with your neighbor? Whoever has the most gold gets to hire the most armed guards?
Still, I'd take my destiny into my own hands in a heartbeat if the only alternative is what we have today.
I'd like to see it down to the local level, but with the hierarchy flip flopped; city > county > state > fed up. County reps only ballotted from existing elected city reps, state reps from elected county reps, Fed reps from existing state reps. If you lose any previous position to get where you are then you are not entitled to any greater position. That way nobody gets into power except by the will of the people. Grassroots, bitchez.
And yes, since we have had digital currency since the 1970's of course it is the best way to do things. Obviously going off the gold standard was a good idea too, just look at all the warmongering and debt servicing we've accomplished. Only a total tool would look at more than a single generation's worth of history to make an informed decision. We all know that America, I mean Texas, is the best, and that if it's the way we do it then it's the way it oughta be done. Now let's go get dem group'a folks, I mean terrists, Yeehaw! DEY TUK ARE JOBS!
"And now we'll halt literal payments too! TAKE THAT CAPITALISM!
and when things turn to anarchy, you better have some precious metals like gold, silver, copper, lead and brass.
Check.
Check.
Check.
Check.
Check.
You forgot the booze.
Check.
You both forgot broads...(just sayin')
Broads will come cheap after the collapse.
deflationary pussy?
as if we needed more motive to stop the hyperinflationists
It's good to know that those Bitcoin shops can be found on just about every street corner so I can redeem my bitcoins when the the internet is frozen.
No, silly, when the zombies come out is when you need gold. In the meantime feel free to keep using YellenBux, #winner.
Seems to me silver would be a better option for repelling the undead.
I'll stick to 200 gr. Accubonds at 3200fps.
Aye. There will be anarchy.
If you're handy with a pitchfork and a rifle maybe I'll feed you in exchange for a few days of your labour down on the ranch.
Stack On
Okay.
You mean Bitcoin is going to go dark?
Have you been to a FEMA camp?
How about silver is that going to be worth anything. I go to college maybe I can sell my knowledge.
You could also sell your pleasure holes.
And your kidney.
If you like your kidneys, you can keep your kidneys*
* dependant on whether you were prudent enough to hold precious metals
Everything is already digital and has been since the 1970's...
"Yeah well, I still jerk off manually."
Best Comment of the day!
Fonstar,
You are just to early, yes there will be a digital curency that is tracable every where. But is not bitcoin.
Bitcoin payments are already pretty much border line illegal in China, although China has said it is legal for their citizens to buy and sell BTC as a commodity. Only thing is, actually halting decentralized BTC payments takes a lot more than tossing up a PDF to a website and phoning up some CEO.
LAWYERS UP! Financial Romulens dead ahead.
Set lasers to STUNNING!
On Scream Number Two!
What do you mean "next"? PBOC banned banks from doing BTC business back in early January. It's already priced in.
You're a bit behind.
http://www.zerohedge.com/news/2013-12-16/bitcoin-banged-bear-market-agai...
Actually, China is making the Fed, ECB, BOE & BOJ look like "banana republic" central banks backstopping banana republics, at his juncture.
Moral hazard and NOT-too-big-to-fail are concepts alive & well in China as of now.
We will know its near the End when $500 and $1000 bills come out and it will be like MonopolyTM money on the streets. Pretty soon demand will rise for $5000 and $10000 bills.
Put Bernanke on the first $billion dollar bill. He would be pleased. It would be the ultimate selfie.
I cannot FUCKING wait to pay off my mortgage with a Bernanke Billion dollar bill and STILL have enough left over for a tall latte.
"...a tall latte."
With or without the full release?
It will not happen. All US issued currency will be digital at that point. And the totalitarian state will have complete control. That is what this is about. Currency has become the implement of Tyranny. You are enslaved to it.
BREAK YOUR CHAINS.
And you will have a microchip imbedded, made and tracked by Freescale Semiconductor.
Is that a public company? Can I buy stock? Sounds like massive growth potential.
Freescale had 20 employees on that missing Malaysian Air flight.
@XRAYD: "a banana bank".
So, Yellow on the Outside, White on the Inside?
Oligarchs playing decisive roll !?
Canary in a coalmine!
one that is in default too
Nope, there was actual canary in the coalmine according to the PBOC.
http://images.sodahead.com/polls/001226297/canary20in20the20coal20mine_x...
That would make a pretty cool avatar for Zerohedge..should someone feel so inclined.
The coal gas has killed the canary.
It's the Canary in the Cocaine! "Long blustery winter in the Caribbean."
Another mainland Chinese company defaulted on debt payments, raising fears that indebted businesses are running out of refinancing options
Haixin Steel, a Shanxi steel mill, has defaulted on bank loans (Financial Times story - gated, but can be read with a free registration)
-Forexlive
There will literally be multiple, small, medium & large Chinese companies defaulting on their debt obligations DAILY now, for a long, long time.
The global bond & equity markets are about to go absolutely apeshit, as the detritus of bad debt that central banks have pumped out over 5 long years gets incinerated, along with the leveraged mal, mis, and disinvestments that such reckless monetary policy not only encouraged, but literally invited.
You promise right? I've had the hope that this charade would end before (and before and before) only to have my hopes dashed. I do think you're right but I thought it before (and before and before). On the other hand I've never seen the body of someone who has starved to death and if it comes down as badly as I fear I may get to. When the banks close and the EBTs go blank it will be ugly.
YEEE HAW! Lock 'n LOAD!
I've read a lot of similar comments lately, viz. that the day of reckoning is taking much longer to come than it should, that the powers that be seem able to kick the can indefinitely, and so on. I'm not picking on you personally DeadFred, but after devoting some thought to the matter I've come up with a partial response.
The coming fin de siècle (no, not the bike race in Helsinki) has the distinction of being the most eminently foreseen secular reversal in history; so foreseen in fact that many have been waiting for years for it with baited breath. However, that does not mean that the details of its unfolding will be known to us with any greater clarity than if it had emerged, kraken-wise, unheralded out of the depths. What it does mean is that those responsible for staying the present course will be all the more reviled by posterity, and will in good time meet with a retribution so horrible that one could say hell itself arose to take them. It's not merely that they missed the warning signs, or even that they failed to heed the warning signs; no, the signs were proclaimed with a great voice and they silenced it; stoned the prophets who were sent to them; smothered, smited, and shackled any protest of dissent. They rushed headlong to their own graves and tried to drag us all with them. There is no excuse for what these men have done and no pity shall find them.
It seems to be "different this time" for two reasons:
1) China is too big to save. The manipulations of foreign banksters won't outweigh the $15 trillion in credit the Chinese created, and it won't outweigh the mountains of ore being dumped onto the market. Remember also, that businesses are likely to have taken out multiple loans using the same collateral.
2) The Chinese government has shown no willingness to stop this process.
Express elevator to hell...going down!
""The coming fin de siècle (no, not the bike race in Helsinki) has the distinction of being the most eminently foreseen secular reversal in history; so foreseen in fact that many have been waiting for years for it with baited breath. However, that does not mean that the details of its unfolding will be known to us with any greater clarity than if it had emerged, kraken-wise, unheralded out of the depths. What itdoes mean is that those responsible for staying the present course will be all the more reviled by posterity, and will in good time meet with a retribution so horrible that one could say hell itself arose to take them. It's not merely that they missed the warning signs, or even that they failed to heed the warning signs; no, the signs were proclaimed with a great voice and they silenced it; stoned the prophets who were sent to them; smothered, smited, and shackled any protest of dissent. They rushed headlong to their own graves and tried to drag us all with them. There is no excuse for what these men have done and no pity shall find them"".......
Poetry my friend...
This one? http://www.ft.com/cms/s/0/27f9f4aa-aa82-11e3-9fd6-00144feab7de.html
If you're on firefox, set your user-agent to be "Googlebot2.1" and the article will be accessible without registration.
Bullish in a China shop.
You just get this feeling...
Congress will rubber stamp a new spending bill to overlook accounting error. House will say, fuck you.
The Republican led House will say "Fuck You Obama", make a gesture of voting against it, then turn around and vote to give it the FUNDING FOR THE IMPLEMENTATION...just like they did with ObamaCare.
You know those documentaries about explorers in the arctic, trekking across the ice? First an unsettling noise, then a crack, suddenly a fissure...
...then the drop
Mommy...I'm hungry. Where's daddy...and who are those mean loking men coming into our bedrooms?
http://thecommonsenseshow.com/2014/03/13/slave-labor-camps-are-next/
Bitcoin is the roach that will not die...
squish a bitcoin and two alt-coins take its place.
This is not your ordinary everyday piece of bad-news-is-good-news. This is serious. China is gearing up for something.
Stopping these payment systems was probably just one minor act of protocol in preparation for something much larger, don't ask me what. To transvaluate an overused phrase, it's different this time.
China taking the first steps to control capital flows(rats) *sinking ship next
Print your way out of this one Yellen you miserable fucking cunt!!!!!
Oh she will, Oscar, she will.
Let's see if the US being the safe port in a storm still holds five years into the Obamanation. If so, Yellen will have less to do.
Is there anywhere left to hide ??? What is coming , doesn't look like it's going to be good.
Combi maneuver with Russia Putin taking lead ?
Japan is being crushed down over 3%, HK should be 2% neg and Shanghai. Futures are flat. The machines can sniff a China stimulus coming.
Not gonna happen. At least not in the form of bailouts.
The Premiere of China just officially stated as much publicly & loudly, and it's not as if he will come out tomorrow (or next month) and say "ooops, my bad, and we changed our mind."
This was decided upon over a long course of deliberations, methodically, knowing full well what fallout it would bring.
I completely concur, for what that's worth. It seems to me that the most likely explanation is that China has decided "Enough already."
Who would have thought of all the Nations, China would be the one to put on the Daddy pants?
I don't think this an act of economic responsibility as much as an act of economic warfare. IMHO they think think they can contain the chaos and the West won't be able to. China can survive if their banks fail, America will decay into anarchy.
We should be down harsher than this...the last sell off all was all about China i.e Copper/Ore being smashed and default fears. I'm following the HFTs, rumors on RRR cuts etc. The Russian thing has been priced in otherwise the EUR would be lower, it took Mario to come out and say he is going print some, claims more deflation is coming bs, for EUR to sell
Chinese CB knows there are a ton of short positions locked into futures now, the markets could capitulate (Copper) into a full blown crash. Won't be a flush, iron ore could collapse completely taking out the miners that are heavily leveraged.
They can't contrive a clean out of the system, more likely if they lose control they will sink the world. Hence Schiller's short the world on a China crisis.
In the meantime they will try their commie/capo dream of steering an ecomomy.
I think chump is right in that there's a good chance China will attempt to "soften" the landing with FISCAL STIMULUS of some sort, but maintain that the Chinese PTB have already decided against TARP or TALF or ongoing/perpetual QE for the ensuing years, which is what the bankers, Wall Street, London, and parasitic financial leeches really want (monetary bailouts).
China will definitely go big on fiscal stimulus to prop up employment rather than do anything to bail out "investors."
p.s. - Speaking of QE, India's central bank is buying Indian Government bonds hand over fist tonight.
Meh. Inflation. "Print like there's no tomorrow."
Question being "will they get the inflation?"
What did Spotswood say in Team America? "That's right people...9/11...times a trillion...
Got GOLD, bitchez?
I don't understand what QR code payments are.
I can guess, and my guess is they would be highly subject to counterfeit, which would make me understand why payments based on those codes were halted.
However, the story sucks, and the fact that I have to speculate about what's really going on just means better journalism is needed.
Totally agree. At least some complete sentences in english so I can piece it together myself...
Because you're too lazy to right click and fucken google it.
Oh I'm so sorry for your loss of time here...
What is QR credit card.
It is a short term Credit card linked to your main credit card. The owner (you) set the Fiat limit / expiry Limit on the QR card and no other information. (Note NO other information is held on the card) it is just a Number on a card. Good way to move hot money yet prevent indentity theft. Could they be conterfieted ?? not probable because the number has to link to an operating card to transfer money. You can set the expiry date (Day, week up to one month) as well and if not used to tranfer money it will automatically cut the link to the operating account at the time set.
Think of it like Bitcoin with peer to peer authentfication + its Hot for only as long as you decide then it self destructs on the time limit (an exploding cold wallet).
Closing the Hot money trail they are and its a good thing they realise Credit is counterfiet money.
Them Chinese have Balls
China can never be part of the big boy club with micro management...of everything....not that the 'developed world' is doing things much differently...
gazprom killed the canary
ching chong bing bong
(translation: FUUUUUUUUUUUUUUCK!!!!!!)
Nikkei down over 2.5% but US futures still green.......hmmmm....
flash em friday
gold 1400..
The banks are forcing everyone into cash only. Cash that they are printing. And crypto that I might start mining.
This is transitory - the Chinese will be fine
Nikkei getting destroyed into the close. Down -530 and looking ugly.
Frostbite Falls Global Doom Report.
RE
Can someone explain me what this move is about ? Is that supposed to be a technical glitch or ...? coz if it ain't then what does it mean ? Huge moneylaundering prepaid markets and their banks can"t handle it anymore ? They decided to hit first on those who won't complain too much ? If that's the case then SHOOOOOOORT PRC's banks, SHOOOOOOT Yuan, long Dollars and Yen ! (how can i say something like that ???? it's insane, this world is crazy)
See my post below yours.
Despite the ZH mistranslation of the title, the PBoC did not halt credit card transactions. What really happened is as follows:
1. The bank CITIC (not related to Citi) planned to issue "virtual credit cards" for online payments firms Tencent and Alibaba. The virtual cards are mostly targeted at those without access to conventional credit cards, such as students, the unemployed and low-income families. Instead of showing up at the bank and submit the documents proving creditworthiness, the applicant could simply load up the payment app and apply by clicking a button. The card transactions are likely to be processed outside the UnionPay network, the card cartel founded by major Chinese banks. Such cards are also usable at brick-and-mortar merchants where Tencent or Alibaba's mobile payment apps are accepted (similar to Google Wallet).
2. The PBoC, citing regulatory concerns, halted CITIC's business plan. The main reason is that the approval process may hurt the customers (and the bank's balance sheet) by issuing cards that shouldn't be issued to them in the first place. Another concern is that Tencent & Alibaba's in-store payment systems have not been tested for security or standard-compliance. The central bank did NOT halt credit card transactions; what was "halted" is CITIC's newly planned card venture. NO such virtual cards have been issued at all.
3. It has been widely discussed what is the real motive behind PBoC's move. Some (China International Capital Co.) speculated that CITIC's joint venture with independent payment firms drew ire of other UnionPay cartel members, among them powerful state-controlled TBTF banks such as the ICBC, Bank of China and Agricultural Bank. Others discussed the possibility of knee-jerk crackdown reflex after the central bank's battle against Bitcoin and other online currencies last year.
4. It has been further speculated that insiders were using the information to generate a media smear campaign after secretly opening massive short positions on CITIC, Tencent, and Alibaba's subsidaries. Prior to today's smackdown, the same insiders may have pumped up CITIC's stock by "leaking" the credit card plan (marketed as very sound business venture) to the public, thus attracting muppets for later slaughter.
So no, this story is not about capital control or bank runs ... sorry for the disappointment. Meanwhile, it may be interesting to watch for possible securities fraud allegations.
She'll soon have help, Jeffrey Frankel says the ECB should circumvent Germanys OMT objections by buying American toilet paper: Why the ECB Should Buy American