China Says Soros "Hasn't Done His Homework," May Be "Partially Blind"

Tyler Durden's picture

On Tuesday, the People’s Daily laughed at George Soros.

Literally.

On the heels of comments Soros made in Davos last week about China’s “hard landing,” the Party mouthpiece ran an "op-ed" that carried the title “Declaring War On China’s Currency? Ha, Ha.”

It’s not clear that George Soros intends to “declare war” on the RMB. However, he did say he was betting against Asian currencies and because his reputation precedes him when it comes to breaking central banks, the Chinese apparently wanted to get out ahead of what the PBoC assumes will be an attack on the yuan. “Given how people know Soros and what he did in 1992 and during the 1997-1998 Asian crisis, he’s too important to ignore, so China felt that they had to counter any negative comments,” Tommy Xie, a Singapore-based economist at Oversea-Chinese Banking told Bloomberg.“They have to reassure local savers and show them a willingness that the government is looking after them and their savings.”

“Soros’s war on the renminbi and the Hong Kong dollar cannot possibly succeed — about this there can be no doubt,” the People’s Daily continued, before calling the aging billionaire a “crocodile” and a “predator.”

As we noted yesterday, “China won't be able to arrest Soros and beat a confession out of him like Beijing is fond of doing to others suspected of launching ‘malicious’ short attacks, but the brash commentary does indicate that Chinese authorities are becoming increasingly sensitive to suggestions that a steeper RMB devaluation is a foregone conclusion.”

Of course a steeper RMB depreciation is a foregone conclusion because as we’ve outlined on several occasions, the days of China sitting idly by while the dollar peg saps the country’s export competitiveness are long gone and Beijing now seems determined not only to participate in the ongoing global currency wars, but in fact to win.

But China is keen on orchestrating a controlled depreciation (despite the fact that getting it over with at once might be the better option if Beijing wants to limit capital flight) which means keeping hold of the narrative and using the captive Chinese media to fight back against those who, like the “crocodile” Soros, would seek to employ “malicious” tactics to spark a panic.

Against this backdrop we get another hilarious “commentary” piece out of the Politburo on Wednesday, this time via Xinhua. The piece, presented in its entirety below, explains why Soros and the ubiquitous “short-sellers” “make claims that run counter to reality.”

*  *  *

From Xinhua

China has ample reasons to stay confident in face of speculators. Far from some speculators' claims, China is not a source of trouble but an important engine of global economic growth with its growing demand and investment.

Here are the numbers. China registered a growth rate of 6.9 percent last year amid a sluggish global economy, contributing more than 25 percent of global economic growth.

Chinese tourists spent 1.2 trillion yuan (182.4 billion U.S. dollars) overseas, while the country's investors pumped 735 billion yuan (111.7 billion dollars) into other economies.

Speculators claimed they see a hard landing for China. It is true that the growth of the world's second largest economy is experiencing a relative slowdown compared with the blistering growth of the past decade. But as we know, decision makers have now opted for a slower pace in order to make the country's growth more sustainable in the future.

Moreover, a growth rate of 6.9 percent is the envy of most other economies. China's added economic output last year was more than the GDP of Sweden or Argentina.

George Soros, who recently claimed he saw a hard landing for China at the World Economic Forum in Davos, Switzerland, has made the same prediction several times in the past.

It's an exaggeration to say that China increases global deflationary risks. Imagine the world without the demand and growth from China, global economic growth would have been much worse, possibly at higher risk of deflation.

The world economy is having trouble because of the sluggish growth and slow recovery of many economies. International investor Jim Rogers said recently that the monetary policies of the U.S. Federal Reserve and the expansion of government debt are the original sources of the problems.

Meanwhile, China's economic transformation is currently underway.

Figures show that foreign investment in China's service sector saw robust growth in 2016, and the country attracted 136 billion U.S. dollars of foreign direct investment.

Thanks to government policies encouraging innovation and the streamlining of procedures, entrepreneurship is flourishing and bringing fundamental change to Chinese society. In the first half of 2015, the number of newly registered businesses exceeded 10,000 on a daily basis.

Employment creation is strong too, which, coupled with a sound growth rate and strong capital formation and innovation, means that the world's second largest economy is unlikely to experience a hard landing.

So why do speculators make claims that run counter to reality? Analysts said it is because either the short-sellers haven't done their homework or that they are intentionally trying to create panic to snap profits.

*  *  *

Yes, "analysts" say Soros hasn't done his "homework" and just wants to "create panic" on the way to "snapping profits." Xinhua also says Soros' views may indicate he's "partially" blind.

Unfortunately for the Chinese, Soros probably has "done his homework" and his claims do not "run counter to reality." The "reality" here is that China's economy is decelerating and in all likelihood, the yuan will continue to move lower as the currency shoulders the burden of the hard landing.

This won't be the first time Soros squares off against Asian officials over flagging currencies. As Bloomberg also points out, former Malaysian PM Mahathir Mohamad (known as the founding father of modern Malaysia) once called the billionaire a "moron" for helping to trigger the ringgit's collapse.

So strap in, because the PBoC is in for a bumpy ride in 2016 as everyone from domestic depositors to nefarious, predatory, "speculators" bets on continued yuan weakness. 

We close with a quote from Michael Every, head of financial markets research at Rabobank in Hong Kong:  

“They can write as many op-eds as they want, but two plus two doesn’t make five."

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pitz's picture

Devaluations for chronic net exporters never work out in the long term.  If anything, the Yuan is severely undervalued, and will need to rise to balance out global trade. 

PRO.223's picture

Hope China puts all their effort into bankrupting this ass when he makes some kind of bet like he did with the Pound.

El Vaquero's picture

<-Chinese politicians are more credible

<-Soros is more credible

 

 

macholatte's picture

Hope China puts all their effort into bankrupting this ass...

 

just before...

1.  his plane crashes

2.  he has a heart attack

3.  he breaks his neck

4.  the plutonium capsule in his leg pops

 

knukles's picture

I dunno about Soros being blind, but he sure is an asshole

I need more asshats's picture

I heard a rumor that Soros likes to top Icahn. Can anyone else confirm this?

0b1knob's picture

Why don't the Chinese intelligence agencies do the whole world a favor and arrange an expedient demise for Soros?

nuubee's picture

Why is China trying to make the world decide whether or not they or Soros are the worlds biggest liars?? That's fucking torture!

Stainless Steel Rat's picture
Stainless Steel Rat (not verified) nuubee Jan 28, 2016 1:33 AM

+1 for comparing Soros to Icahn.  Let me take that insult a little further by saying Soros is really envious of Icahn and tries to dress like him.  They both really envy Buffett, but all three really really want to be the next Donald Trump.  Honestly, I welcome anything to keep his focus off of the US markets.

Libertati Aut Ad Mortem's picture
Libertati Aut Ad Mortem (not verified) 0b1knob Jan 27, 2016 8:55 PM

Should borrow some polonium-210 from Putin.  It should do the trick.

 

https://en.wikipedia.org/wiki/Poisoning_of_Alexander_Litvinenko

Bingo Hammer's picture

Go away moron; just more Western elite anti-Putin bullshit thrown at the masses to justify more sanctions and the like

luckylongshot's picture

Although Soros gets the credit for the BOE takedown he was not actually the one responsible, that was Stanley Druckenmiller- so Soros does not actually deserve his reputation for being particularly intelligent.

TheDanimal's picture

That's a hell of a toss up.

El Vaquero's picture

I know.  I'm surprised it got any votes at all.  It's like a game we used to play when I was a dumb teenager called Moral Dilemma.  It involved asking really disgusting questions, like "Would you rather eat your grandmother's clean ass, or a young hottie's dirty shit covered ass?"

Implied Violins's picture

- 1000 for reminding me of my teenage years.

kiwidor's picture

where's the dilemma?

a young hottie's dirty shit-covered ass FTW.

Kirk2NCC1701's picture

<-- China will have rast raugh.

<-- Soros will have last laugh.

Obadiah's picture

I'll take "Who is Sun Tzu" for $500 alec

BlueStreet's picture

Picked a bad year to give up Beijing hookers. 

Row Well Number 41's picture

Which of these guys is a liar agian?

mkkby's picture

Soros really needs to waste time on this horse shit.  I mean, he can't have much longer to live and those billions aren't enough to get by?

Anyone with one functioning brain cell would be chilling out on a beach somewhere, instead of trying to pile up more paper wealth to line his coffin.

am87's picture

Is he being nice to us giving astock tip?  Should we listen?  He wants us poor too... I think the conspiracy is that hes only allowed to tell the truth and Lagarde championing her yuan fetish was a pump and dump.   A satanic ritual she had to do while Dilma and Cristina organize shemitah destruction.... Nobody cares what these south american jewish queens did to their corrupt nazi fascist leaning nations. How well is latam prepared for falling yuan?  Look at maduro and dilma is kosher.  Thats all thats necessary.. Theres chinas long term planning with its nicaragua canal.  BS 

. U dont  have to be soros to call the brics bs

.... Just go back to 2010 and ask a white person in brazil or south africa.. Best insider info i got

TheDanimal's picture

I am now even more proud to have failed my college indoctrination class about how super fucking cool and awesome the BRICS are back when I took it in 2011. I ought to go back and see if I can get a refund. It's not like I kept showing up after the first couple of weeks.  I just couldn't sit there and parrot the stupid shit anymore after my day at my internship in a Fortune 500 corporation with one of those downtrodden, soul-crushing office cultures.  Everyone was so afraid of getting fired or laid off and it seemed to me as if that fear was justified.

TruthHunter's picture

Could Soros be all in with a risky bet and using Davos to pump his shorts?

 

Son of Captain Nemo's picture

I guess sabotaging 5 or 6 of my strategic commercial industrial sites within the last year would have me kinda pissed off too if I know who was behind them?!!!

Certainly doesn't stop at China's doorstep either!!!

For the life of me I can't understand why Washington, London and Tel Aviv won't acknowledge him for the unequalled liability and DANGER (skull and crossbones next to word "danger" goes here) that he is and pop a fucking cap in the back of his skull and "call it a day"!!!

Implied Violins's picture

Unfortunately, that won't do it. Has to be a wooden stake through the heart. But it won't be easy - a microscope will be needed to find it.

Son of Captain Nemo's picture

If only taking care of one "did the trick".

Plenty more out there that would step in line to take his place to be just like him!!!

Implied Violins's picture

That's why I'm getting a .700 Nitro with silver bullets. With a big enough gun, I think I can kill their ancestors...

MiddleLeg's picture

"Soros hasn't done his "homework" and just wants to "create panic" on the way to "snapping profits."

typical chosenite: create a crisis, profit from it.

Row Well Number 41's picture

Seriously, Soros created China's economic problem...  Please, his kung fu is strong, but not that strong.

Ms No's picture

The plant explosions have stopped and they have sent in Soros, that's an escalation.  Don't hold back Chinamen... expose the beast!

nmewn's picture

Lets just get a steel cage match going between Soros and Xi and let the best asshole win.

None of us have to die over this ;-)

Yen Cross's picture

   This shit is really funny! China injects how many $billions of Treasuries every week, to lighten outflows, and they're bickering with Soros about the spead between "on" AND "offshore" Yuan?

 It looks like China doesn't have control of their CNH----CNY or credit  markets. It's all Renminbe @ fifteen cents on the $usd bitchez.

 It's a crock of shit,. but here you go

Well Hungarian's picture

Don't know about anyone else, but I would pay to watch China beat the shit  out of Soros.....

khnum's picture

I have Soros as a Sith Lord personally trained by Grandmaster Louis Cypher,never underestimate the dark side

Lost in translation's picture

What's the over/under in Macau for Soros' death in 2016?

johnnycanuck's picture

Soros was super bullish on China when they were still willing to sacrifice their air, water and to poison their land with chemical waste from industrial production. Or so he said; if you can believe anything he says.

 

Hell, he even compared China to the US at the beginning of the 20th Century, then he moved to Singapore to be close the action.

 

Not to China though, bad air and too poluted for the old man who wants one World Government no matter how many bodies are left in his wake. He's as mad as mad can be..

Berspankme's picture

Aren't you talking about Jim Rogers?

Latina Lover's picture

Unlike Crocodiles, that eat carrion, Soros has no useful function.  Too bad he couldn't be eaten by one.

CHoward's picture

Me thinks ole Soros may end up disappearing soon.  Sad. 

Iocosus's picture

After what he did to Russia, I was expecting some radioactive tea to be served at his table. When nothing of the sort took place, I understood it's all a conspiracy and he's part of it.

bid the soldiers shoot's picture

Swing low Sweet Chariot

Coming for to carry me

 to Hungary

BlussMann's picture

Sad ? Are you kidding ?

Laughing.Man's picture

“China won't be able to arrest Soros and beat a confession out of him..."

Sure they can.  The Chinese just have to follow what the Americans have done with black sites.  If the Americans can enter into a sovereign country without that nation permission, why can't the Chinese?  Soros is one guy I woudn't miss if he disappeared.