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China's Collateral Rehypothecation Fraud Is Systemic

Tyler Durden's picture




 

It's official - everyone's involved! According to the 21st Century Business Herald, at least 17 financial institutions involved in copper, aluminum and other nonferrous metals financing business face losses of almost 15 billion Yuan (not including the contagious rehypothecated collateral chains involved) due to the over-invoicing of the Qingdao port. Crucially, it appears that the evaporation of collateral (i.e. multiple loans secured by the same collateral) has been confirmed officially and banks such as Standard Chartered have already ceased any new business via this supposedly secured channel.

Via Caijing (via Google Translate),

According to the 21st Century Business Herald, Qingdao, where at least 17 banks involved in copper, aluminum and other nonferrous metals financing business, which 17 banks, including China Eximbank, the establishment of diplomatic five rows of workers and peasants, China, Minsheng, Industrial, Investment, CITIC five medium-sized banks, also includes Prudential, Qilu, Rizhao, Weihai, Weifang, Shandong and other local financial institutions, coupled with a remote city in Hebei banking firm.

 

Informed sources said 17 financial institutions involved in the financing amount Qingdao Port trade finance business in non-ferrous metals 14.8 billion yuan from top to bottom, including single-family Eximbank in 4 billion and down, accusing him of involving an amount of more than 1 billion are down.

 

At the end of the first quarter of 2014, the outstanding loans in foreign currencies, Qingdao 998.46 billion, of which the balance of the manufacturing sector was 228.53 billion; 15 billion equivalent to 1.5% of total outstanding loans to local financial institutions, manufacturing 6.5% of the loan balance .

 

Qingdao Port nonferrous metals repercussions in the financial institutions financing fraud also caused the divergence. Next, the bank is bound to tighten credit financing, a thorough investigation of existing financing facilities of collateral, which will further exacerbate the bad debt exposure process.

 

...

 

As early as the end of April, the CBRC supervision quarterly meeting, the China Banking Regulatory Commission had warning, "the steel industry trade violations financing model has been copied to sign the copper, coal, iron ore, soybeans and other commodities trade finance field."

...

 

Commodity trade finance risks for the first time and industries with excess capacity, and real estate financing platform tied to become the focus of regulatory agencies in the field of credit risk prevention.

 

For a number of foreign banks involved in financing scam Qingdao Port nonferrous metals foreign banks, including Standard Chartered Bank, had previously announced a halt for some Chinese metal financing business from new customers.

The effects are already clear in Copper and Iron Ore prices.. next we see if the physical gold bid re-appears as CCFD unwinds continue and crediot contracts for all but the most creditworthy names in China (and there's not many of them left).

h/t Sean Corrigan

 

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Sat, 06/14/2014 - 14:58 | 4856995 falak pema
falak pema's picture

ringa ringa roses.

Sat, 06/14/2014 - 15:05 | 4857008 Thought Processor
Thought Processor's picture
Rehypothecation is simply counterfeiting on a larger scale.
Sat, 06/14/2014 - 15:06 | 4857011 gafgroocK
gafgroocK's picture

 

 

Whelp, ...I am just shocked that I am NOT shocked..

Sat, 06/14/2014 - 16:05 | 4857144 Skateboarder
Skateboarder's picture

Jesus burgerflippin Christ, these guys are complete failures at continuing Ponzi schemes. All ya had to do was call it something like "extended rehypothecation" and ta-da, not only does it become legitimized in practice as another layer of the 'economy,' but also becomes a legitimate 'science' taught in B-skools everywhere.

Sat, 06/14/2014 - 16:48 | 4857230 kaiserhoff
kaiserhoff's picture

Awe yoah rehypothecation ah berong to us!

Sat, 06/14/2014 - 17:21 | 4857288 THX 1178
THX 1178's picture

"Rehypothecation is simply couterfiet on a larger scale"

Bingo. We can say the same about fiat currency and creating money from loans.

Sat, 06/14/2014 - 17:46 | 4857349 TeamDepends
TeamDepends's picture

Word is Ghana has plenty of whatever you need.

Sat, 06/14/2014 - 21:04 | 4857576 BigJim
BigJim's picture

All they need to do is lower the required collateral ratios and all is good, no?

So if the PBoC announce that, instead of needing (for example) a tonne of copper to borrow a million yuan, all you actually need now is approximately enough to copper-plate (say) a medium-sized kettle... well, the problem vanishes.

I'm only partly joking.

Sat, 06/14/2014 - 17:39 | 4857334 Carpenter1
Carpenter1's picture

Damn it. I was just about to believe it was time to short, now with this news, I'll have to buy more FB and TWTR.

 

 

Sat, 06/14/2014 - 19:00 | 4857469 Bangin7GramRocks
Bangin7GramRocks's picture

Can't Blythe Masters invent a new "financial product" for the Chinese market? Her past "innovations" created 10 extra years of theft for the crooked class in America.

Sat, 06/14/2014 - 19:14 | 4857495 Urban Redneck
Urban Redneck's picture

The financial product already exists, it merely needs to be implemented. The most critical aspect is to create FUNGIBILITY. Gather all the toxic OTC paper, put it on an exchange (and make sure no one ever stands for physical delivery of more contracts than are actually availability for delivery). There might some guys from the CRIMEX looking to relocate in the near future who could help out.

There is no reason why a commodities exchange cannot trade both spot and futures contracts with an option for either physical delivery or cash settlement (particularly since the front month contract becomes a spot contract if it isn't rolled).

Kick the can, and make MOAR money doing so.

This isn't rocket science.

Sat, 06/14/2014 - 16:13 | 4857145 Dr Benway
Dr Benway's picture

And how long before the phantom collateral created by manipulated shares (in various jurisdictions) is unwound? Chinese companies create such collateral by forming an investment cartel, holding assets purportedly trading at a "market" price, while the cartel owns almost all shares and controls the price. See for example UND.AX or LHB.AX or SST.AX. These are carried at "market" values while as few as three related entities own 99% of their shares.

The Australian market is absolutely stuffed with shares kept at deliberately inflated prices by small cartels. Besides as collateral, the ramped shares are also used by complicit cartel fund managers, who unload the inflated fake assets on granny investors with impunity while charging fees on the unrealized "profits" created by the ramps.

For more information on international securities fraud, check out my recently updated blog, banned in Australia:

http://drbenway.blogspot.com/ncr

Sat, 06/14/2014 - 16:29 | 4857197 0b1knob
0b1knob's picture

And how much of the gold "imported" into China is just one shipment of gold rehypothecated 20 fold and sold to 20 different suckers?

The amount of gold "held" in various parts of the world just doesn't add up.   Some sucker somewhere is holding gold plated tungsten or a piece of paper that will never be honored.  And yes I'm looking at you Germany.... 

Sat, 06/14/2014 - 16:48 | 4857229 thisisjustarand...
thisisjustarandomusernameicreatedforzerohedge's picture

>>> "The effects are already clear in Copper and Iron Ore prices"

 

well technically Copper is still up or at least basically net 0 since this began...

and, let me get this straight, there is less copper than we thought, so supply of copper is lower... so price is supposed to go down? WTH

 

as for the "17 banks" this banks were doing the same thing so it's less a bottom line loss as much as a paper normalization loss

 

and these banks and those that use copper as collateral have plenty of tools to 'secure' themselves thanks to the PBOC loosening of lending and rates as we just saw last month in China new lending hit new recent records, so there is a huge amount of new lending and liquidity entering the market so all these entities can secure themselves -- which at least in the short run supports a soft landing and prevents this from contributing to any sort of immiment hard landing (though to be fair it could make a distant hard landing even harder)

 

so basically:

 

1. now everyone needs more copper to secure their previous loans

2. copper is 'cheap'

3. PBOC just gave everyone easier and cheaper loans to buy stuff with

4. banks and lenders will CONTINUE to use copper for security; they'll just be more dilligent to make sure it's actually there

and this is going to make copper continue to crash?

 

 

Sat, 06/14/2014 - 17:48 | 4857354 g speed
g speed's picture

Copper has value in industry which has been secondary to its value as a leverage tool (thanks to the great China growth at all costs). Now that the leverage tool value of copper is gone all that remains is industrial value--which is money wise much less. Price goes down --copper is now delivered instead of ware housed as collateral-demand falls and-price goes down. Price goes down then copper is less useful as collateral--price continues to fall till market balances and fair value is discoverd --that is supply meets demand.

Sat, 06/14/2014 - 19:01 | 4857449 Anasteus
Anasteus's picture

The fact that copper is gone perhaps also means the leverage tool value of copper is gone, but the price of metal is certainly not. In fact, quite the opposite, it means that copper is apparently more valuable being located elsewhere (who knows where) than in the original vaults backing the leverage.

It is the leverage value itself which is gone.

Sat, 06/14/2014 - 18:25 | 4857403 pakled
pakled's picture

"Rehypothecation is simply counterfeiting on a larger scale."

 

 

And sans the need to go to the trouble of actually counterfeiting! What's not to love?

Sat, 06/14/2014 - 22:41 | 4857868 doctor10
doctor10's picture

The New York and London Boyz and Girlz have got about a hundred years more experience than their Chinese wannbe

Beijing Whales

Sat, 06/14/2014 - 15:10 | 4857010 Ignatius
Ignatius's picture

"Rehypothication fraud".  Isn't that repeating oneself, like saying "Duckbill Platypus" or "Corrupt Politician"?

Sat, 06/14/2014 - 15:50 | 4857124 ebear
ebear's picture

Brought to you courtesy of The Department of Redundancy Department.

Sat, 06/14/2014 - 15:06 | 4857012 Taint Boil
Taint Boil's picture

 

 

I wish I could be here 100 years from now to see what the history books will be saying about this time. Well.... assuming there are still books and people.

 

 

Sat, 06/14/2014 - 15:16 | 4857040 Lumberjack
Lumberjack's picture

This I can assure you, our progeny will dis-own us.

Sat, 06/14/2014 - 16:09 | 4857153 Skateboarder
Skateboarder's picture

Which progeny? The one getting stuffed with drugs and nonsense?

Sat, 06/14/2014 - 17:04 | 4857260 Lumberjack
Lumberjack's picture

Their progeny will probably be more harsh.

Sat, 06/14/2014 - 15:46 | 4857113 oddjob
oddjob's picture

The tribe will write history to suit themselves like it always has been.

Sat, 06/14/2014 - 16:52 | 4857235 kaiserhoff
kaiserhoff's picture

Maybe not.

  Middow east go boom!

Sat, 06/14/2014 - 18:07 | 4857383 Bernoulli
Bernoulli's picture

History books? I'm a bit sceptical. Maybe there will be no more "new" books in 100 years from now. People won't be able to write proper sentences anymore and nobody will be able to concentrate long enough to read a whole book. And more importantly: Nobody will care about what happened 100 years ago when people even nowadays are not interested in what happened in the last two decades.

 

Sun, 06/15/2014 - 09:05 | 4858232 what's that smell
what's that smell's picture

"I'd gladly pay you tomorrow for a nonferrous metal today" Wimpy-san

"Tomorrow Never Comes" Elvis Presley


http://www.youtube.com/watch?v=QhYtB7pjkS0

Sat, 06/14/2014 - 18:27 | 4857411 pakled
pakled's picture

Oh, the books will still be there. The Eloy will have them in that big weird looking building. But they will crumble in your hands the moment you touch them.

Sat, 06/14/2014 - 15:06 | 4857014 Death and Gravity
Death and Gravity's picture

Did someone expect otherwise?

Sat, 06/14/2014 - 15:06 | 4857015 Central Wanker
Central Wanker's picture

Sulplise!

Sat, 06/14/2014 - 17:51 | 4857359 kaiserhoff
kaiserhoff's picture

Powiticwy Incowwect!

Sat, 06/14/2014 - 15:06 | 4857017 DirkDiggler11
DirkDiggler11's picture

So, I should go long of physical copper in yuan terms, and short copper via puts in $USD terms. Where or where is Dennis Fartman when you need him !!!

Sat, 06/14/2014 - 15:10 | 4857026 Kaiser Sousa
Kaiser Sousa's picture

"dont worry...we've got your fucking metal..."

Sincerly,

Dewey Cheatum

 

now i suppose the phony paper prices of Gold and Silver will skyrocket on the open Monday....

RIGHT?????????????????

Sat, 06/14/2014 - 15:26 | 4857067 kowalli
kowalli's picture

nope

Sat, 06/14/2014 - 15:47 | 4857118 oddjob
oddjob's picture

Fret not about the price, just make sure you actually hold it.

Sat, 06/14/2014 - 15:10 | 4857028 SilverIsMoney
SilverIsMoney's picture

I love how these asshats in economics always make up new words to avoid telling the truth. Start calling it what it fucking is - counterfeiting!

Sat, 06/14/2014 - 18:15 | 4857398 Bernoulli
Bernoulli's picture

Yes, but the creditor happily "believes". they don't care whether the collateral is there or not. or whether it has been rehypothecated 300 times already.

Same as the bank customers happily believe that their money is really there.

It's like they are asking for it... 

Sat, 06/14/2014 - 15:10 | 4857032 QQQBall
QQQBall's picture

MFG rehpothecated client accounts, right? Pledging something that is non-existent smacks of the F-word and I don't Fook.

Sat, 06/14/2014 - 15:33 | 4857086 maneco
maneco's picture

Yes they did it through their London office as there is no limit to how many times you can hypothecate assets in London. In New York there is a limit to how many times one can hypothecate. I guess it explains why there are so many banks and brokers from all over the world in the City of London.

Sat, 06/14/2014 - 17:57 | 4857371 g speed
g speed's picture

the US limit is 1.4 times (i think) however if you use money in those accounts to buy assets (debt or paper) then 1.4 times what?? Mark to market is gone and has been replaced with market to fantasy. Rehypothacate rules are toilet paper. Some claim JPM ended up with the MFG hypothicated product but what was that? And they wouldn't give it back now would they??

Sat, 06/14/2014 - 18:57 | 4857457 maneco
maneco's picture

I remember at the time hearing that Jon Corzine went long PIIGS(Portugal, Ireland, Italy, Greece and Spain) government debt. I guess JPM is doing well now considering the drop in yields of European peripheral debt.

Sat, 06/14/2014 - 15:11 | 4857033 Devotional
Devotional's picture

good for Gold, right?

Sat, 06/14/2014 - 15:39 | 4857094 dracos_ghost
dracos_ghost's picture

Nope. It's a harbinger of what's going to happen when GLD/SLV go tits up. Instead of the physical zooming to infinity, it will be mercilessly sold off -- as evidenced at least for copper and gang.

Makes no sense. Maybe huge off balance sheet purchases of physical at distressed rates in lieu of default by China? In any fashion, if the copper side of this corruption is true, why isn't copper at $1T. The same argument has been bandied about here that 'when they find out about GLD/SLV rehypothecation fraud PMS are going to the moon Alice'. Well it's happening in copper and the end result -- bupkus. Doesn't bode well for PM EOTWAWKI hopes.

The only good news is that China is looking at it. They'll kill these fucking banksters. Like him or not, Li does not seem willing to take any guff from the old guard.

Sat, 06/14/2014 - 15:45 | 4857111 ThroxxOfVron
ThroxxOfVron's picture

" They'll kill these fucking banksters."

 

We should kill them, too.  

Everyone should sse that it is actually the only sensible thing to do when the Banksters/Fruads are found to be nothing but counterfeiters robbing ALL OF US first in inflated prices/gouging, inflated taxes on the inflated purchases; and though the renting of real assets and real estate they bought with their counterfeit credit/money.

I 100% fully support the use of guillotines, firing squads, or whatever means is most expedient and inexpensive.  

It's time to wipe the parasites out completely everywhere that they can be identified.

Sat, 06/14/2014 - 16:05 | 4857146 shadescale
shadescale's picture

They need to keep the bodies of course, and trot them out in front on the first and last day of every finance-related class.

Kinda like displaying heads on pikes at the gates of medieval London.

Sun, 06/15/2014 - 03:11 | 4858077 litemine
litemine's picture

But isn't Goldman Sacks holding life insurance on their employee's. Kind of like the Insurance held on the Twin Towers purchased a few days before,  and the massive  shorts bought on the Airlines that hit them . Boy someone has a very good Crystal Ball.

Sat, 06/14/2014 - 15:15 | 4857038 Gringo Viejo
Gringo Viejo's picture

Just another reminder that if it's not in your physical posession.......you don't own it.

Sat, 06/14/2014 - 15:22 | 4857058 Kaiser Sousa
Kaiser Sousa's picture

you meant...

"it aint there..."

cheers.

Sat, 06/14/2014 - 15:27 | 4857069 Winston Churchill
Winston Churchill's picture

Depends what you mean by 'there',or is "their" ?

Sat, 06/14/2014 - 15:38 | 4857096 joego1
joego1's picture

And.. It's gone!

Sat, 06/14/2014 - 15:25 | 4857066 Yen Cross
Yen Cross's picture

  I shorted the aud/usd Friday. That trade is exhausted and the the Aussie 10year bond bottomed out (in yield) about 2 weeks ago, so the "smart money" knows something is up and isn't chasing yield.

 China is going to explode like a giant can of rotten river pigs, and Japan is a fucking joke.

Sat, 06/14/2014 - 15:29 | 4857076 Winston Churchill
Winston Churchill's picture

So its a black riverpig event.

Makes a change from swan.

Sat, 06/14/2014 - 15:45 | 4857112 Yen Cross
Yen Cross's picture

   Winston, the PBoC balance sheet makes the Fed. look like a bunch of pikers.

  http://www.yardeni.com/pub/peacockfedecbassets.pdf

Sat, 06/14/2014 - 16:32 | 4857196 Winston Churchill
Winston Churchill's picture

A big difference between a growing economy B/S and a dying one.

But ,yes its bad.

Its why I have long held the belief the Chinese(or BRIICS)  would  launch a totally new asset

backed currency ,while the unwind this mess.Its what I would do in their place.

If Wiley is even partially  right,they could thru' their alternate world bank.

We will find out next month when it meets, or before years end.

We don't know how far along they are with their infrastructure and the NSA revelations

must have delayed them for sure.

Sat, 06/14/2014 - 16:59 | 4857245 lasvegaspersona
lasvegaspersona's picture

WC

How does a country that survives by exporting change to a currency that is stronger than the rest?

It cannot in our currency system. It must remain weak to encourage the importation of it's goods.

Only after a shift of all currencies can strong currencies survive. Only when strength is required to obtain oil will that make sense. For now the dollar is king. Shitty and weak and prone to abuse as it is, it is the only thing that matters in Bretton Woods 2. If all countries change THEN it will make sense to have a gold backed currency...and forget the gold standard, that will NEVER be allowed to happen again, too many victims.

Look to the style of the Euro, with gold on its balance sheet, marked to market, to see where the monetary system is heading. I'm not predicting a euro win but that currency was developed for more reasons than to unify Europe. It was created to allow gold to re-enter the monetary system in a new way,  way that allows it to always find it's value even if the printers over print. Notice that the euro has no single owner. Not even Germany can control it. It is a currency that has broken the links of nation state and to gold.

Sat, 06/14/2014 - 18:07 | 4857387 g speed
g speed's picture

but alas it is still a banking tool-- leverage, usery, manipulated and subject to approval by committees where some are more equal than others and its value depends on which country holds it--IMHO the EU is the road to ruin for some and the fountain of riches for others--just the stuff wars are made of.

Sat, 06/14/2014 - 15:27 | 4857070 nakki
nakki's picture

Isn't this what fractional reserve lending is all about? To bad the banks can't print iron ore, copper, gold or silver, the stuff of real value. Much easier to say, we'll just "print" a trillion or 10 or 100, hit a keystroke, and say see, " everything is fixed". So simple, a chimp can do it. 

Sat, 06/14/2014 - 15:29 | 4857075 disabledvet
disabledvet's picture

So who's buying those JGB's again?

Sat, 06/14/2014 - 15:33 | 4857077 ebworthen
ebworthen's picture

Just like the German Gold that isn't there, or the Gold supposedly backing the paper markets that exists only in the imagination.

A whole bunch of lying going on.

Sat, 06/14/2014 - 15:34 | 4857088 Winston Churchill
Winston Churchill's picture

The whole world banking system is as stable as a one legged

limbo dancer.

Sat, 06/14/2014 - 15:57 | 4857132 ebear
ebear's picture

Yup, and the outlook is blacker than a bear eating licorice in a cave at midnight!

Sat, 06/14/2014 - 15:34 | 4857091 spinone
spinone's picture

China just doesnt have the mojo to keep this quiet.  Everyone is doing it.

Sat, 06/14/2014 - 16:15 | 4857175 disabledvet
disabledvet's picture

"All I need is time Comrade General. You will have your truth."

Sat, 06/14/2014 - 15:39 | 4857098 debtor of last ...
debtor of last resort's picture

So China needs to sell US paper and attach their currency to gold/silver, the soenni's and sjiit's are killing eachother, and the 'west' gets the oil for free. "Winning".

Sat, 06/14/2014 - 15:53 | 4857127 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

If a currency is backed by gold or silver you need to have the gold and silver. Unless they use the metal. If they can not keep multiple bonded warehouses honest why would anyone trust them to have it somewhere else? 

Sat, 06/14/2014 - 15:58 | 4857133 darteaus
darteaus's picture

15BY is what, $2.2B? And with fractional banking, is that $20B?

That doesn't seem like a game changer, or am I missing something?

Sat, 06/14/2014 - 17:12 | 4857270 jackthelad
jackthelad's picture

 am I missing something?

 

When you're up to your neck in debt and your credit lines dissappear it suddenly becomes a game changer. It's never the load that breaks the camel's back. It's the last straw that was put on that does. So yes a couple of bill$$ does make a whole heap of difference.

Sat, 06/14/2014 - 18:24 | 4857410 Bernoulli
Bernoulli's picture

Well I don't want to be nitpicking but the load itself at one point will also break the camels back. Even without the last straw.

Just a matter of time...

Let's see if the camels back lasts until options expiry next friday...

Sat, 06/14/2014 - 19:08 | 4857484 Amish Hacker
Amish Hacker's picture

Fridays are the rug that unpleasant realities get swept under. News stories that are unflattering to the status quo usually get released on Friday, so that by Monday the whole thing will be forgotten. Bank insolvencies get announced on Friday, and by Monday they're open for business as usual, under a new name.

The troubling thing is that we may be headed for a "bank holiday" as part of some sort of systemic reset, in which case nation-wide bank closures will be announced on a Friday, but Monday will not bring any solutions. (The Dow will be up on Tuesday, of course, no matter what happens.).

Sat, 06/14/2014 - 15:59 | 4857136 deflator
deflator's picture

 Don't worry, "they" are going to make sure that your virtual physical commodity holdings are safe. The actual physical commodities are another matter altogether.

Sat, 06/14/2014 - 16:04 | 4857143 Atlantis Consigliore
Atlantis Consigliore's picture

Give me an M and F a G L O B A L  FRAUD LOL.   where in the world is John?

Sat, 06/14/2014 - 16:13 | 4857166 valley chick
valley chick's picture

Will they be able to paper over all this or will it be the first domino to fall?

Sat, 06/14/2014 - 17:25 | 4857302 THX 1178
THX 1178's picture

the 1.4 quadrillion dollar question...

Sat, 06/14/2014 - 16:23 | 4857190 Joebloinvestor
Joebloinvestor's picture

This should have resulted in a supply line short squeeze, not a collapse in prices.

Only in the GS bizzaro world of finance does a shortage cause this.

 

Sat, 06/14/2014 - 16:47 | 4857227 lasvegaspersona
lasvegaspersona's picture

Commodity trade finance risks for the first time and industries with excess capacity, and real estate financing platform tied to become the focus of regulatory agencies in the field of credit risk prevention.

 

I assume the above is a series of Chinese characters roughly translated into something like English.

This sentence has no single meaning in the English language. I really haven't a clue as to the message I'm supposed to come away with. Typical for current internet 'journalism' standards I suppose.

Sat, 06/14/2014 - 17:29 | 4857283 deflator
deflator's picture

I assume the above is a series of Chinese characters roughly translated into something like English.

 

 Seriously, that is your best assumption about that coded message?  What is funny is that you know what it means because you have a good understanding of the subject matter contained within the "text" yet are unable(as I am also unable) to translate the poorly written "text" into correctly written text that someone unfamiliar would understand.

Sat, 06/14/2014 - 17:12 | 4857266 SMC
SMC's picture

The good news is that China executes banksters.

Sat, 06/14/2014 - 18:04 | 4857331 deflator
deflator's picture

 I doubt that China has any plans to execute any of the bankers in this scam as it was the plan all along to arbitrage the Wests belief in fiat resources ie: more fiat money will always produce more resources. The Chinese practically invented the scam of confusing the difference between fiat and actual resources when most Western peoples were still doing everything by barter. 

 

 How else could it be, "systemic" if there wasn't a widespread false belief? Isn't that the definition of apocalypse? "A lifting of the veil" whereas the metaphorical veil is a widespread belief in falsehood and misconception? 

Sat, 06/14/2014 - 17:12 | 4857267 novictim
novictim's picture

"But, but, but...they lied!?"- American banker as he scrambles to pack for a trip to Far Far Away.

 

So, now that we know the Chinese "investors" had no collateral when they bought up all that property expect a lot of real estate to start entering the market place.  This is gonna be fun!

Sat, 06/14/2014 - 21:54 | 4857401 honestann
honestann's picture

Oh, they'll hold onto all the foreign (non-China) property they purchased... because that's where they intend to hide now, and live off the gradual sale of their excess properties.

They might as well rename China to Dodge.

Because those executives are now gonna get outta Dodge!

Sat, 06/14/2014 - 17:19 | 4857284 novictim
novictim's picture

At least the Chinese have cities filled with thriving commerce...uh?...

http://www.thebohemianblog.com/2014/02/welcome-to-ordos-world-largest-gh...

Sat, 06/14/2014 - 18:16 | 4857399 Quinvarius
Quinvarius's picture

After Fukashima makes the USA uninhabitable, you'll be happy about those cities.

Sat, 06/14/2014 - 19:18 | 4857507 pitz
pitz's picture

And why exactly would the USA be uninhabitable due to a nuclear accident half a world away? 

Sat, 06/14/2014 - 19:34 | 4857533 omniversling
omniversling's picture

Do the words 'jetstream', 'ocean currents', 'hydrological cycle' and 'precipitation' mean anything to you? 

You may also refer to the thousands of postings on the following sites:

http://enenews.com

http://www.fukushima-diary.com 

http://uhohjapan2.wordpress.com

http://agreenroad.blogspot.com.au

http://enformable.com

http://majiasblog.blogspot.com.au

http://ex-skf.blogspot.com.au

http://nukepimp.blogspot.com.au

http://www.fairewinds.com

http://nuclearhistory.wordpress.com

http://nukeprofessional.blogspot.com

http://nuclear-news.net/

Also search Hanford and WIPP for local (US) updates...

Sionara

Sat, 06/14/2014 - 21:28 | 4857740 pitz
pitz's picture

Half a world away, that shit, if any, will be completely diluted by then.  BTW, those are all really, really credible sites.  Lol. 

Sun, 06/15/2014 - 03:05 | 4858073 litemine
litemine's picture

Pitz..........You spelled your name wrong , should have chosen "PUTZ"

Sun, 06/15/2014 - 11:27 | 4858476 Atticus Finch
Atticus Finch's picture

Read Arnie Gunderson's assessment before being so smug. And if you don't know who he is, you don't know anything about Fukushima.

Sat, 06/14/2014 - 21:12 | 4857705 AdvancingTime
AdvancingTime's picture

 Much of the recent growth in China after 2008 came from a massive 6.6 trillion dollar stimulus program that expanded credit and poured massive amounts of money into the system. This money encouraged expansion and construction with little regard as to real demand or need. Like a plane on autopilot China continued in the direction it had been on.

Now China finds itself in a credit trap. For years the people of China have had the habit of saving much of what they earn but the low interest rates paid at banks has not rewarded savers. With few investment options much of this money has drifted towards housing and driven housing prices sky high. The economic efficiency of credit is beginning to collapse in China and the unwinding of China’s giant credit spree could be very painful. More in the article below.

http://brucewilds.blogspot.com/2014/03/china-and-great-credit-trap.html

Sat, 06/14/2014 - 21:47 | 4857772 Quaderratic Probing
Quaderratic Probing's picture

14.8 Yuan is 2.38 billion USD
228.5 Yuan is 36.7 billion USD
998.4 Yuan is 160.7 billion USD

Really not big numbers.

That being said.. Bank has no collateral on loan if loan is being paid no problem, If not being paid bank writes off the loan and moves on.

There was no real demand for the metal in the first place so no shortage produced.

This will not be the end the World

Sat, 06/14/2014 - 22:38 | 4857864 andrewp111
andrewp111's picture

The PBOC will just print up a trillion yuan or so to fill in the hole, and have some fraudulent banksters (at least the ones on the wrong side of the current rulers) shot. Nothing to see here, move along.

Sun, 06/15/2014 - 00:33 | 4857932 Wild Theories
Wild Theories's picture

The 15bil(14.8) Yuan worth of loans was equivalent to 1.5% of all outstanding loans from the 17 local financial institutions.

And only consists of 6.5% of the debt carried by the the manufacturing sector.

 

By itself, that doesn't look huge on the CHINESE BANKS side. Unless FOREIGN BANKS have a lot more than this?

Sun, 06/15/2014 - 03:03 | 4858070 litemine
litemine's picture

Prudential.....................Now where have I heard that name before.....hummmmmmmm

Sun, 06/15/2014 - 10:58 | 4858412 orangegeek
orangegeek's picture

FRAWD!!!!!

 

KOMMIES!!!!!

 

oh, big surprise!!!!!!!!

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