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Big Outflow Trouble In Not So Little China?

Tyler Durden's picture




 

China has two problems... well more than two we are sure, but these seem critical.

 

First, there is a significantly slowing economy that 'desperately' needs the hand-of-god Central-Banker to stimulate it with free-money - but is hand-cuffed by the huge disconnect between 'apparently' low CPI and extreme highs in food and energy prices which will only exaggerate spending retrenchment should any money-printing be enabled.

 

and with Corn stocks at a stunningly low level (lowest since 1995 and nearing 1975 levels) things are only going to get worse...

 

Which leaves the PBOC somewhat powerless to do the kind of massive stimulus hole-digging-and-re-filling that is required to plug the economic demand slack.

 

Second, it seems for many investors the writing is on the wall as money is flowing out of the world's growth engine faster than oil from a wok. While at the surface USDCNY appears to be doing its 'stable' thing - the PBOC is soaking up unprecedented amounts of CNY as the market 'sells' out.

This chart (that we previously discussed in detail here) shows the difference between market-driven movements in USDCNY (red) and PBOC-driven (blue) - clearly the market is selling its CNY and running away and while we are sure China would like a lower Yuan (to help exports etc.) it is nevertheless band-ridden and needs to maintain some stability or trade-wars or worse will escalate - so the PBOC is soaking up massive amounts of Yuan (and selling out its USD?) to maintain that illusion of control...

These 'adjustments' which are now on an unprecedented scale started right after LTRO2 ended and are accelerating...

which is leading to forward-Yuan trading at post-crisis high discounts...

 

This combination of slowing (and seemingly unstoppable) economic trajectory with significant negative money-flows is a vicious circle - evidenced by the efforts of the PBOC with stealth reverse repos and the 'easing' of their Yuan trading bands (chart below - as per Bloomberg's Chart of the Day) as perhaps they revert back to a weaker Yuan policy (and implicit strong USD mercantilist vendor-financing model).

 

Charts: Bloomberg and Diapason Commodities

 

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Sat, 08/25/2012 - 14:17 | 2737321 Spudz
Spudz's picture

wtf?

Sat, 08/25/2012 - 14:28 | 2737338 duncecap rack
duncecap rack's picture

people are cashing in their CNY and the PBOC is somewhat forced to buy them if they want to maintain their currency peg. They might let  the currecy slide a bit in the future though. Hope that was helpful.

Sat, 08/25/2012 - 15:36 | 2737415 Ahmeexnal
Ahmeexnal's picture

racism in germ-any flares up again:

http://www.thelocal.de/national/20120825-44569.html

At least nine people were taken to hospital after a fire swept through at a home for asylum seekers in Stuttgart early on Saturday morning. 

The images of asylum seekers jumping out of windows to save themselves from flames immediately raised memories of racist rioting near Rostock, when the accommodation of asylum seekers was set alight. The 20th anniversary of those riots are being marked this weekend.

Although the cause of the Stuttgart fire will be investigated over the coming days, initial assessments make no suggestion of foul play.

One person was in a critical condition, while the rest were suffering from smoke inhalation and burns, a police spokesman said.

Initial estimates suggest about 50 people were in the two-storey building in the Heumaden district when the fire broke out. Emergency teams were looking after the remaining residents while steps were being taken to find them somwhere else to stay.

The police spokesman said two men had jumped out of the window - one had used a sheet to abseil his way to safety.

 

Fascist police force in France is cleared of any wrongdoing:

http://www.thelocal.fr/page/view/amiens-police-cleared-of-provoking-riots

 

Police in riot-hit Amiens have been cleared of provoking two nights of unrest that devastated part of the northern French city earlier this month.

Residents of Amiens' northern quarter have claimed rioting that caused six million euros ($7.5 million) worth of damage and left 17 police officers

injured was triggered by heavy-handed policing of a funeral and wake in the neighbourhood on Sunday August 12.

Police chiefs ordered an internal investigation which has now concluded that the officers involved had acted appropriately and within guidelines.

In particular, the arrest of a man who was driving on the wrong side of the road was "legitimate and necessary," a preliminary report said.The arrest of the man triggered a confrontation between police and dozens of youths who had been at the wake for a 20-year-old who died in a motorcycle accident the previous week.

Police used tear gas to disperse the group of youths that night and more serious clashes followed 24 hours later in which several cars, a local school and a sports centre were badly damaged by fire.

A total of seven people, four of them minors, have been arrested since the rioting, which involved more than 100 youths.

 

While Sweden plunges into full blown depression, the elite purchases fighter jets to be used agains it's own civilian population when TSHTF:

http://www.thelocal.se/42822/20120825/

 

The Swedish government has promised that Sweden is to buy 40-60 units of the next generation of fighter jet Jas Gripen, and is therefore increasing the Swedish Armed Forces’ budget.

The Armed Forces (Försvarsmakten) will be receiving 300 million kronor ($45.5 million) extra in 2013 and 2014, and 200 million kronor extra annually after that, wrote the leaders of Sweden’s four centre-right governing parties in an opinion piece in the Svenska Dagbladet newspaper (SvD).

The party leaders wrote that Sweden and Switzerland, in need of 22 aircraft, have teamed up to buy the Jas Gripen E/F, or Super-Jas.

According to the government, the new system will be up and running in Sweden from 2023 and at least 20 years after that.

The party leaders wrote that this partnership with Switzerland makes the system more cost efficient. The alternative, buying foreign aircraft, has been analyzed, but the new generation of Jas Gripen has been deemed more efficient for several reasons, they claimed.

But not everyone looks happily upon this deal.

“We have a defense which is walking on crutches, and if we force it to carry a great deal of the cost of new Jas Gripens, it’ll crash,” said the Green Party MP Peter Rådberg to news agency TT.

The total cost is still kept secret, something Rådberg is highly critical of.

When TSHTF....."Party leaders".....will send the surviving sheeple to the gulag for mass "re-education".

Sat, 08/25/2012 - 15:41 | 2737438 q99x2
q99x2's picture

Drones are pretty easy to make if the people need to fight back. I think Tesla was making them somewhere around the beginning of the 20th century. The other day I saw some kids practicing dropping a small bag of dog shit from the sky over a field nearby.

Sat, 08/25/2012 - 17:18 | 2737600 CTG_Sweden
CTG_Sweden's picture

 

Ahmeexnal:

"While Sweden plunges into full blown depression, the elite purchases fighter jets to be used agains it's own civilian population when TSHTF:

http://www.thelocal.se/42822/20120825/

The Swedish government has promised that Sweden is to buy 40-60 units of the next generation of fighter jet Jas Gripen, and is therefore increasing the Swedish Armed Forces’ budget.

The Armed Forces (Försvarsmakten) will be receiving 300 million kronor ($45.5 million) extra in 2013 and 2014, and 200 million kronor extra annually after that, wrote the leaders of Sweden’s four centre-right governing parties in an opinion piece in the Svenska Dagbladet newspaper (SvD).

 

The party leaders wrote that Sweden and Switzerland, in need of 22 aircraft, have teamed up to buy the Jas Gripen E/F, or Super-Jas.

According to the government, the new system will be up and running in Sweden from 2023 and at least 20 years after that.

The party leaders wrote that this partnership with Switzerland makes the system more cost efficient. The alternative, buying foreign aircraft, has been analyzed, but the new generation of Jas Gripen has been deemed more efficient for several reasons, they claimed.

But not everyone looks happily upon this deal.

“We have a defense which is walking on crutches, and if we force it to carry a great deal of the cost of new Jas Gripens, it’ll crash,” said the Green Party MP Peter Rådberg to news agency TT.

The total cost is still kept secret, something Rådberg is highly critical of."

 

My comments:

 

Over the past 30 years, Sweden has drastically shrunk its defence budget in terms of share of GDP. The Swedish defence industry, now to a large extent foreign owned, has also shrunk. My assessment is that the order for new JAS Gripen aircraft is a concession to big business in Sweden and people that still hold Saab stock [Saab AB (publ) shouldn´t be mixed up with the auto company Saab]. The current center-right government has so far not favoured domestic high tech industries and domestic big business. Instead, they have imposed tax breaks for cleaning peoples homes and fast food restaurants. New tax regulations will also in practice raise taxes for some venture capitalists and parts of big business since it will be harder to elude Swedish tax regulations. At the same time taxes will be lower for small and mid-size cleaning firms without offshore parent companies and owner operated fast food restaurants.

 

Furthermore, I think that there is a very small risk that Swedish armed forces will be used against the people. The Swedes generally think they have acceptable governments. Even when they make terrible mistakes like when they pegged the krona to the former EU currency Ecu and defended the exchange rate with a 500 % interest rate people thought they had politicians they could accept. The politicians blamed “the market” and the electorate bought that. On the other hand I prefer the former conscript army to the current system with regular soldiers from a democracy point of view (although I tried to get an exemption warrant and later applied for not having to participate in compulsory military refresher courses and also got the poorest grades on my platoon, 10-6-6). I think that the best solution from a democracy point of view would have been a very short but compulsory military service. My impression is that the reason why they scrapped the conscript army is that a very significant share of the young men in Sweden nowadays are Muslims and in some cases sympathize with radical Islam. They don´t want to give such people military training and let them know where they can steal, let´s say, a Robot 70 surface-to-air missile. But I don´t think that people in the Establishment are willing to admit that.

 

I am not sure that the Swedish economy is in a true recession yet. Unemployment has risen somewhat, but that´s rather because of excessive supply of labour than reduced aggregate demand in the economy. But it might get worse if the Swedish krona continues to appreciate.

 

 

(As regards China, which the article above is about, I suspect that the outflow of money is partially due to fear among investors that China´s new leaders will impose a more socialist policy than their predecessors. They can´t know for sure before they have seen the result of the change of leadership due this autumn.)

 

 

Sat, 08/25/2012 - 17:57 | 2737650 Totentänzerlied
Totentänzerlied's picture

"I think that there is a very small risk that Swedish armed forces will be used against the people. The Swedes generally think they have acceptable governments."

The second statement is totally irrelevant to the first.

Sat, 08/25/2012 - 19:48 | 2737759 ThirdWorldDude
ThirdWorldDude's picture

How do you say "Timmmberrrrr" in swedish...?

http://www.swedishtrade.se/PageFiles/134236/Export%20Managers%20Index%20... 

Edit: cue a pop of their housing bubble.

Sun, 08/26/2012 - 01:13 | 2738021 TIMBEEER
TIMBEEER's picture

Thx.

"TIMBÅÅÅÅR'"

Sat, 08/25/2012 - 23:27 | 2737956 BRoquet100
BRoquet100's picture

Didn't the Greeks buy a bunch of armamants during their financial collapse? is this for Martial Law?

This is insane if countries are doing this while whole familes starve or are deprived medications. INSANITY!

Sun, 08/26/2012 - 20:41 | 2739702 AmericanFUPAcabra
AmericanFUPAcabra's picture

if i recall correctly it was something like 40-50 M1A2 Abrahms tanks from none other than uncle sam

Sat, 08/25/2012 - 23:29 | 2737958 Arthur Borges
Arthur Borges's picture

The political reliability of Muslim conscripts seems plausible as an issue; the other issue is that a greater share of jobs require long training courses: it's wasteful to send a conscript on an 18-month training course if his term of service is up six months later.

Sun, 08/26/2012 - 08:08 | 2738264 trebuchet
trebuchet's picture

As in - let the Yuan apprieciate a little. 

 

Post fixed, agricultural price problem fixed. China fixed.  

oh wait.......  china prints yuan, buys dollars, fixes currency rate. there. china fixed. 

 

 

Sat, 08/25/2012 - 14:17 | 2737324 apberusdisvet
apberusdisvet's picture

 

 

The Yuan will be gold backed

 

The USD will be tungsten backed

Sat, 08/25/2012 - 14:54 | 2737374 Peter Pan
Peter Pan's picture

Seriously now, do you honestly believe there is enough tungsten in this world to have a tungsten backed dollar?

I am not having a go at you. I am simply saying that is unlikely that there is enough of anything with which to back the US Dollar except BS.

Sat, 08/25/2012 - 15:12 | 2737398 Fractal Parasite
Fractal Parasite's picture

Depends how much tungsten is stashed at Fort Knox.
http://gold-quote.net/en/articles/fake-tungsten-gold-bars.php

Sat, 08/25/2012 - 15:37 | 2737432 fattail
fattail's picture

BS applied evenly and in the correct quantities is actually quite useful and valuable in agriculture.  Sadly there isn't enough of BS to back the enormous amount of dollars that will have to be printed.

Sat, 08/25/2012 - 16:07 | 2737486 DeadFred
DeadFred's picture

With the quantities being spread around of late we are seriously in danger of osmotic burn out. The system can only tolerate so much.

Sun, 08/26/2012 - 02:21 | 2738071 andrewp111
andrewp111's picture

Tungsten is used to make bullets and penetrating warheads. That is how Uncle Sam will back its dollar with tungsten.

Sun, 08/26/2012 - 05:19 | 2738145 Svendblaaskaeg
Svendblaaskaeg's picture

"Tungsten is used to make bullets and penetrating warheads."

and sizing dies

Sat, 08/25/2012 - 15:24 | 2737416 Stuck on Zero
Stuck on Zero's picture

Better Tungsten than nothing.

 

Sat, 08/25/2012 - 16:05 | 2737476 francis_sawyer
francis_sawyer's picture

full faith & credit of digital "1"'s & "0"'s...

Sure ~ I'll hand over my gold & oil for that... [rolls eyes]... I'd prefer 2 have some REAL jooelrey... Thank u just the same...

Sat, 08/25/2012 - 23:44 | 2737974 BRoquet100
BRoquet100's picture

You can use tungsten for light bulbs. Gold is worthless.

Sat, 08/25/2012 - 14:23 | 2737325 LetThemEatRand
LetThemEatRand's picture

So the race to the bottom -- where the Western oligarchs gradually convince the population that they just need to accept lower wages, more pollution, and greater wealth disparity in order to "compete" with countries like China  -- is taking another leg down. 

Sat, 08/25/2012 - 16:14 | 2737464 Ahmeexnal
Ahmeexnal's picture

Yes, western oligarchs have gradually convinced the sheeple that they need to adopt socialism.

Individualism - bad.

Collectivism -good.

The message to the individualist who yearns for freedom and liberty is clear: YOU DO NOT EXIST.  ONLY THE PARTY (AND BANKSTERS) EXISTS.

Sat, 08/25/2012 - 17:15 | 2737594 LetThemEatRand
LetThemEatRand's picture

Facsism is what the oligarchs have been selling.  Many sheep mistakenly call it socialism, and they develop a knee jerk reaction against anything that involves collective action by the people.  The oligarchs love that, because if the people are convinced that they must act individually or not at all, the oligarchs hold all of the cards.  

Sat, 08/25/2012 - 18:12 | 2737664 Totentänzerlied
Totentänzerlied's picture

You're getting less funny. Socialism is a category and a type within that category, it is for all intents and purposes, outside the Marxist debate club, interchangeable with collectivism and communitarianism. As a category it includes fascism, Maoism, Leninism, Marxism, Stalinin, national socialism, Juche, and about 100 other "different" varieties.

"Anything that involves collective action by the people" is collectivism and uses the - to call a spade a spade - bullshit term "the people". The people is an abstract collective noun referring to a thing which is itself incapable of doing any-thing because it does meaningfully exist in the real world.

"if the people are convinced that they must act individually or not at all" is pure specious equivocation. By definition a market involves interaction between persons, they are acting individually together.

This is grade school material, you must have been absent that day. My knee-jerk reaction to your endless collectivist yearning/whining is: grow up, your arguments have more holes than the innocent bystanders at the Empire State Building.

Sat, 08/25/2012 - 18:47 | 2737702 akak
akak's picture

And LTEM is hereby officially bitchslapped!

Sat, 08/25/2012 - 19:01 | 2737718 LetThemEatRand
LetThemEatRand's picture

If you mean that some bitch just vomited a bunch of meaningless drivel in support of an insanely myopic ideology in response to my post that correctly distinguishes fascism from socialism, you are correct akak.

Sat, 08/25/2012 - 19:00 | 2737722 LetThemEatRand
LetThemEatRand's picture

Right.  The oligarchs love it when you universally condemn any attempt by individuals to act together against their interests.  They thank you for your support.

Sat, 08/25/2012 - 22:06 | 2737906 Likstane
Likstane's picture

It sure looked like you got bitchslapped!

Sat, 08/25/2012 - 14:20 | 2737326 papaswamp
papaswamp's picture

Shhh shhhh all is ok...just keep saying that...

Sat, 08/25/2012 - 14:29 | 2737340 JackT
JackT's picture

Symmetry

Sat, 08/25/2012 - 14:30 | 2737342 BattlegroundEur...
BattlegroundEurope2011's picture

Age old question of where to store your wealth....GOLD!

Sat, 08/25/2012 - 14:49 | 2737369 jmcadg
jmcadg's picture

and silver ... and physical in your possession :)

Sat, 08/25/2012 - 14:57 | 2737377 Fractal Parasite
Fractal Parasite's picture

... which is indeed where the Chinese gov't encourages the citizens to put their pension savings.

Sat, 08/25/2012 - 14:48 | 2737365 Kimo
Kimo's picture

I am hearing lots of antedotal stories of Chinese taking holiday outside of their county... namely, Germany and Thailand.  Perhaps other locations as well.  Yes, there is lead time to holiday planning, but I am still left wondering how the breadwinners, when faced with such a drop in exports, can justify pleasure trips, especially considering the Chinese mindset.

As an aside, from my own observations last spring, Japanese tour groups in and around Germany have done a cliff drop.  That has not changed since last spring, from what I am hearing on that circuit.  But Koreans are still well represented.

Sat, 08/25/2012 - 15:03 | 2737383 American34
American34's picture

Maybe they aren't returning to China. Maybe they are getting out while they can.

Sat, 08/25/2012 - 16:18 | 2737494 Ahmeexnal
Ahmeexnal's picture

No.  They are buying up everyting in sight.

Most euro-peons have a slave mindset dating back to medieval times: paying rent, paying high taxes, bowing to kings and queens, being OBEDIENT AND NEVER QUESTIONING AUTHORITY.

Saw Bergman's "Das Schlangenei" recently.  The german commissar pretty much summarizes what happened to the sheeple during Weimar hyperinflation:  they just kept being good obedient citizens doing their everyday routines as much as possible while the world around them burned.  Those who saw the shitstorm coming and took measures to protect themselves (Jews, gypsies, free-thinkers) were later expelled/robbed/murdered.

You can tell all this to anyone who is willing to listen. No one will believe you despite the fact that anyone who makes the slightest effort can see what is waiting in the future.

It's like a serpent´s egg.
Through the thin membranes, you can clearly discern the already perfect reptile.

Sat, 08/25/2012 - 17:47 | 2737639 BigDuke6
BigDuke6's picture

I had a feeling you'd like bergman.

Sat, 08/25/2012 - 16:49 | 2737553 Son of Loki
Son of Loki's picture

Those traveling Chinese are the tiny minority who work for 1. foriegn companies; or 2. RE developers; or 3. who work for the Gubbermint there.

Don't forget, more then 50% of people there live on less the $1 per day according to BBC (and that is probably optimistic). That 2008 "stimulus" they injected into their markets seriously distorted their economy similar to here except their injection was 3x bigger when compared to their GDP. 

Their Housing Bubble is much greater then USA's relative to incomes. Market correction inevitable:

China Confronts Mounting Piles of Unsold Goods

 

http://www.nytimes.com/2012/08/24/business/global/chinas-economy-besiege...

 

..and this...

 

http://www.nytimes.com/2012/08/24/business/global/manufacturing-in-china...

 

 

Sat, 08/25/2012 - 18:19 | 2737669 Totentänzerlied
Totentänzerlied's picture

I have Chinese relatives (by marriage) in the extended family. They somehow are able to take long vacations all over the world, including the US, but they are incredibly frugal - they waste nothing, eat cheaply, don't own a car, and seem to buy only the bare essentials. There's an old rumor that the government pays certain (party-affiliated) citizens to travel, who knows.

I'm more amazed that so many Americans are still traveling - with whose money???

Sat, 08/25/2012 - 14:49 | 2737366 phat ho
phat ho's picture

ahhhh. I've got it. We'll keep digging our financial hole until we hit China..... shit; this stuff is easy...

Sat, 08/25/2012 - 14:58 | 2737378 phat ho
phat ho's picture

<----- gave myself a mark down

Sat, 08/25/2012 - 15:26 | 2737419 _ConanTheLibert...
_ConanTheLibertarian_'s picture

just change it to an up vote.

Sat, 08/25/2012 - 15:05 | 2737386 moskov
moskov's picture

It's meaningless for China to stock up dollar when the coming bond bubble will explode within 2 years, plus it's not that China has a problem in export. It's literally every top end market in the world is too broke to buy anything. So you either use that dollar to buy up overseas assets like crazy and gold, or you could sit there and waiting for the FED to unfold another QE which will flood a wave of hyperinflation to your country.

Dollar index is going to be useless soon and only Gold will be the king

Sat, 08/25/2012 - 18:00 | 2737652 ozziindaus
ozziindaus's picture

I totally agree with you in regard to crashing aggregate demand. However I must disagree with you on USD devaluation and bond market collapse. The FED is totally out of bullets and knows it must preserve its only asset, dollars. More debt does not solve a debt crisis, only default does and that's good for the dollar. 

Sat, 08/25/2012 - 15:11 | 2737395 reader2010
reader2010's picture

Don't worry the Party has ordered to build more roads and bridges to empty cities in the desert as the newly-built ones are collapsing one after another non-stop. China is indeed fucking DIFFERENT.

http://tinyurl.com/8ggddfo

Sat, 08/25/2012 - 15:44 | 2737443 q99x2
q99x2's picture

Its not a housing bottom but a financial panic that is driving up US home sales.

Sat, 08/25/2012 - 16:32 | 2737526 akak
akak's picture

Big outflows never a problem in not-so-little China.

Big roadside excretory outflows are part and package of Chinese Citizenism.

 

Sat, 08/25/2012 - 16:39 | 2737547 Son of Loki
Son of Loki's picture

When house prices correct down to normal (that's about 14 medium sized corn cobs per sq foot), I may buy one for my son.

Sat, 08/25/2012 - 17:13 | 2737597 Atomizer
Atomizer's picture

We no report GDP not like Econ’merika

 

Yea thats the ticket Atomizer, post on the correct thread and don't get thrown off by the fat China MAN photo relating to EU crisis.

Sat, 08/25/2012 - 17:27 | 2737609 Debeachesand Je...
Debeachesand Jerseyshores's picture

Well if the dumb "shits" in the Chinese Government had let the YUAN float on the world's currency markets,may be some of the problems facing the Chinese wouldn't be so bad.

By not letting the YUAN float,the Chinese has cause unwelcome distortions in thw world's economcies that are coming back to bite them in the ass.

Sat, 08/25/2012 - 23:55 | 2737981 StychoKiller
StychoKiller's picture

You would think that the Chinese understand Yin & Yang and the balance they require...

Sat, 08/25/2012 - 17:43 | 2737632 ozziindaus
ozziindaus's picture

Fuck China and fuck the American politicians and bankers who pumped the EM's on the backs of American manufacturers. China will fall into a multi decade recession and manufacturing will return to the US. My problem is what to do with those parasites who try and sell us the "free trade" bullshit every two decades.

Prediction: Don't expect to hear much more Global Warming nonsense now that the EM's are collapsing. 

Sun, 08/26/2012 - 03:19 | 2738099 strangewalk
strangewalk's picture

I agree 100%--but I know what to do with them--bang bang

 

Sat, 08/25/2012 - 20:21 | 2737802 orangegeek
orangegeek's picture

Communists.

Sun, 08/26/2012 - 01:30 | 2738029 intric8
intric8's picture

I'll tell you what there is an outflow of... highly contaminated radioactive cars from Fukushima that are being sold in unsuspecting third world countries.  http://falloutphilippines.blogspot.com/

Sun, 08/26/2012 - 09:27 | 2738353 bayou_plumber
bayou_plumber's picture

now there is a good use for a drone. dorpping dog poop on politicians, senators and legislators. Since they all produce so much BS recycling the shit might be a good idea especially since their BS is not even fit for a dog.

Sun, 08/26/2012 - 12:55 | 2738670 Brightstone
Brightstone's picture

Money flowing out of China into Southern California is huge.  It is turning our real estate market.  Small REITs 6million plus buying huge inventories of homes.  

Adding premium to Socal's market, I have never seen so many foreign controlled investments in real estate before.  Met one guy who is buying 20-25 homes a week in Riverside county, Los angeles county and he was joking how his friends from Singapore are the only ones that can bid against him.

50,000 Chinese a year are expected to move in to SoCal under immigrant status.  That is they have 6 million plus in investments (15 homes).

Life style in China can be great, but you can't trust the Food, and Medical Care.  Wealthy Chinese are getting their dollars out of China and displacing the Southern California Middle class (who are all moving to Nevada or New Mexico)

Met Pete Navarro last week in LA, (his movie "Death by China" just came out) and he had a plethora of information about Chinese money inflow to real estate, small business investment and China's elite.

Most of my Expat friends in China have moved their families out because of the polution and the flash violence.

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