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China Manufacturing PMI At Lowest Since March 2009; Market Response 'Bad Is Good' So Far
AUDJPY is getting smacked hard in this evening's admittedly thin trading given the US holiday. China's double-whammies of PMI data (both official and HSBC versions - with the latter revised lower from Flash to its lowest level since March 2009) and some weak Aussie retail sales data is weighing very heavily on the critical carry trade pair. S&P 500 futures traded down in line with AUDJPY from Friday's close but once the China PMI came as weak as it was so the 'Good is Bad', the PBoC have to do something crowd started buying and dragged ES up a few points. Juxtaposing these dismal macro data was a better than expected China Services PMI and Aussie manufacturing index - as the Schrodinger 'economy is good and bad' headlines continue to confound. For the 'bad-is-good' crowd who see stimulus as the solution, we offer two words 'Steel over-capacity'.
The last time HSBC and Official Manufacturing PMIs were sub-50 was in Nov 11 - right before the last coordinated central bank intervention (but energy and food prices were dramatically different then). This is the lowest HSBC PMI since March 2009...
S&P 500 futures fell in line with AUDJPY's weakness but have diverged since China PMI printed so weak - now the market reprices on further central-planning help implied by the dismal data...
sigh...
With markets thin and no Treasury market 'police' to control the tom-foolery this evening, we can onlyt imagine where this ends but for now AUDJPY is our guide.
Perhaps this must-read story from Reuters will color those stimulus-hunters' opinion a little!!
China's banks are coming after the country's steel traders, hauling executives into court to chase down loans that some traders said they didn't initially need and can't now repay.
The heavy push to recover the loans is another sign of strain on China's financial system at a time when the country's leaders are contemplating another round of stimulus to boost the economy, and when banks are worried about bad debts piling up.
The battle between the banks and steel traders also exposes flaws in the 4 trillion ($629 billion) stimulus round in 2008, and offers a warning to those calling for pumping more money into the system. At that time, Chinese banks threw money at the steel trade - a crucial cog in supplying the country's massive construction and infrastructure growth.
But those steel loans, after offering a quick fix, became excessive, poorly managed, or a combination of the two. Government officials insisted more money was needed to prop up the industry. Steel executives said the money flow was too heavy, and they had to put the money to work in real estate and the stock market.
"After the financial crisis, when the government released its stimulus, banks begged us to borrow money we didn't need," Li Huanhan, the owner of Shanghai Shunze Steel Trading, told a judge at a recent hearing. "We had nothing to do with the money, so we turned to other investments, like real estate."
...
Charts: Bloomberg
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Where is the evidence that accommodative monetary policy helps anyone other than the bankster? Exactly when did this thought process become dogma?
China Manufacturing PMI going up! Double Plus Good, eh?
Is this why I'm seeing all these Chinese dating site ads all of a sudden?
ECB to start unlimited bond buying.
http://www.guardian.co.uk/business/2012/sep/02/eurozone-crisis-thinktank...
riot you stupid Euroepans, riot!
from wires:
-- Weidmann departure would make life easier for ECB
-- Opposition of German hard liners will grow as economy slows
- Still uncertainty of whether ECB bond buying will work
-- EUR may be driven by diversification flows, not policy
not from wires:
-- The ECB should be burnt to the ground.
Remember this? I use this as is my desktop image. Right click the image and save it to your pictures folder.
This is where the G in the Freemasonry Square & Compass symbol originated, and stands for Green Dragon Tavern Lodge where the Boston Tea Party was planned.
http://freemasonry.bcy.ca/history/1773_GreenDragonTavern_Boston.jpg
http://freemasonry.bcy.ca/history/boston_tea_party.html
Top story on Huffington Post; http://i.imgur.com/sj4X7.jpg
U.S. Companies Conduct Fire Drills In Case Greece Exits Euro
http://www.huffingtonpost.com/
http://www.nytimes.com/2012/09/03/business/economy/us-companies-prepare-in-case-greece-exits-euro.html?_r=1
http://www.huffingtonpost.com/2012/09/02/us-companies-conduct-fire_n_1851159.html#comments
Highly recommended, if you can bring yourself to watching it.
PROPAGANDA | FULL ENGLISH VERSION (2012)
http://www.youtube.com/watch?v=6NMr2VrhmFI&feature=plcp
It's a shame!
Because we as USA Constitutional Americans abiding by it, could have paved a much better destiny for ourselves if we were allowed to do so, than the one prescribed for us by our owners.
Note: Copy this text and spread it around before ZH handlers delete it.
It's sort of like the secret society secrets that are not. Israel has more like 300 nukes according to President Jimmy Carter, but 30 would do it. There are no secrets because of the internet, but those who believe there are would like you to believe so, so that they can think to themselves they have an edge on you.
PS
It's not countries starting shit, it's individual human people with superiority complexes.
PSS
I really don't give a shit about human interest stories and peoples personal problems. Go sell your pity party some place else, we're all stocked up here.
I should copyright this statement and sell it to a movie script writer.
I'm thankful the country of Israel was created. It forces the A-Jews to live amongst each other and try to get along with each other the way they are.
Yes we know the A-Jews now own almost everything and control the world, congratulations to them.
See also; Defamation http://www.youtube.com/watch?v=TOUlJLrQ3sQ
It's just a character flaw the Byzantine Empire had pegged.
"Jews" will become irrelevant, so I don't bother myself thinking about this flaw in humanity anymore. I just revel in the fact that they are over-represented on Wall Street and in the current financial structure, and most people working in the financial industry will be unemployed Jews as their monetary system comes crashing down on them. They should have diversified their skill set.
I'm laughing at the superior intelect.
http://i.imgur.com/sj4X7.jpg
The Dead Stream Media will no longer Prescribe their Version of Reality to the Sheeple Anymore!
Got That?
The Jewtub MSM TV and their twisted other media are going to tell you what to think about the Clint Eastwood speech, and not discuss any of the topics and actual words he used in that speech.
All the words in Clint Eastwood's speech were truth. Tell me which words and phrases were lies?
The Jewtube MSM TV and their minions just want more military industrial complex taxpayer money spending.
We call it Jewtube TV because there are all these Ashkenazi Jews on it because of nepotism.
I'm getting sick of looking at all those Ashkenazi Jews on MSM TV all day.
That's why I just thank The Creator every day for the complete and total worldwide economic collapse that is a 100% mathematical certainty. It's the only thing that will solve most of the USA's problems.
SEND SILLY WILLY TO THE FUNNY FARM!
The stupid leftist Guardian still pimping the Euro and EU-SSR. Friends of arseholes like Neil Kinnock and his Danish daughter in law - all feeding at the EU-SSR trough like pigs.
HSBC China Manufacturing PMI™ Manufacturing sector operating conditions worsened at the sharpest rate in 41 months tick tick boom!
Sometime during the last 30 years the entire world sold itself to the London and NYC Hebrew boys.
Our commeupance is due.
1970
Costs of the Vietnam War and increased accelerated inflation
US for the first time in 20th century rana trade DEFICIT
Nixon Shock cancelled convertibility of US Dollar to gold and ended Bretton Woods system making dollar a fiat currency
The Chinese economy continues to slow down.
http://ericsprott.blogspot.ca/
In a response to a comment at his website -
Michael [Pettis] August 31, 2012 at 21:47
"...manufacturing overcapacity is a huge problem, and of course the global crisis jut made it a lot worse, but most studies I know suggest that SOEs in general, were it not for the direct and indirect subsidies they receive, would lose $5-8 dollars for every dollar they state as profit."
http://www.mpettis.com/2012/08/27/how-do-we-measure-debt/
Is that bad? It sounds bad.
That's bad, huh?
Like. Not. Good.
Other PMIs out today South Korea 47.5 and Taiwan 46.1, both contracting. All recent Japan data has been dismal.
Looks like the mercantilist export-focussed model is finished. No way forward for Asia unless they can build domestic demand to match this absurd surplus of supply. But that will take a shift in cultural values, not going to happen overnight.
Cultural values are thrown out the window in a snapsecond when you are suddenly staring str8 into the barrel of a gun.
Perhaps there is such a thing as too much of a good/bad thing.
September is going to be a brutal month.
Has it not been, historically?
(cough: pssst, yes, its usually been miserable)
You didn't build that algo.
kill the machines
Also not terribly good(unless bad is good which means this isn't terrible):
We should be OK then, right?
I think that may depend on your definition of we.
"I" am fucked. Good luck to all y'all's "We"s.
the bernank has this ultimate set of tools, he can fix China....
http://www.imcdb.org/images/006/436.jpg
"bad is good so far"
UNTIL IT'S NOT
i masively shorted SPY and other casino stocks when spx @ 1392, 1415...rode to 1427....= my what a "MASSIVE short squeeze" LOL !! spx now @ 1407 = Friday's close...after RAPIST "fed" announcement.....
but, but the casino didn't sell off!!! = i'm just riding.....
on animal planet this weekend, beautiful quote: "its SIZE vs PATIENCE"....in regard to the pride (lions) waiting to munch on a dead hippo's carcass...the hippos didn't want the lions to munch on it...the lions patiently waited.....
i'm very patient...also last week I ADDED to my EUR shorts of 1.237...added @ 1.26.....avg price = 1.25 @ 7X leverage.
If you like to BUY HIGH..go ahead and buy gold @ 1700....i'll wait for sub $300....like I said I'm a very patient guy.
September is one of the worst months for stocks, a lot of profit taking and messy trades cut/sold etc. Last session was a good example of a messy close re: ZH/nanex HFT story. The thin, nervous markets leading into Sept is telling that a LOT of cash will be taken off the table in the next few weeks. QE3 was priced in and then priced out. It most likely will be lite which won't send stocks into hyperspace. IMO the market is heading for a huge correction (huge in central planning speak is at least 3-5% or on a bad day 10%neg). But, the Fed and ECB have puts. So shorting to long positions is advisable.
Asia just went false breakout on China stimulus hopes, which will never happen as long as their property sector is hugely bid and oil is bid.
This market is coming down. How hard? I dunno know. But with HFTs running all indexes. Could be a nasty 1987 style crash.
You will need infinite patience for that to happen.
"Bad is good" (expectation of QE) will work to keep markets up until both the Fed and ECB disappoint, circa Sept or latest before end of Oct:
http://www.zerohedge.com/contributed/2012-09-02/ssa-nfp-unconventional-policy-and-hangover#comment-2756861
Keep an eye on Slow STO and turning points on the $VIX.
Baffling. But I think that the poor guy that said, "We had nothing to do with the money" was so scared that he said that instead of "We did not know what to do with the money." Guilty by translation in any case.
<== Snorg Tees
<== Chinesekisses.com
I love how everyone sees emerging markets, china, and europe getting pummelled but then thinks that business as usual "rally on my wayword son" can work in the S&P 500. Something is going to give. The only questions is if the bernank can keep it going until the election.
Sub 300 on gold. You are about 12 years late. And shorting this market has rarely worked for more than a few days.
Good luck with that one. And yes, I added to my gold exposure near 1,700. Thank you very much.
Sorry.....where are we? I was looking at that chicks tits.....
Not to worry, it's all under control.
U-Haul with equipment for Biden event stolen in Detroit Posted byCNN Political Unit
Washington (CNN) – A U-Haul truck loaded with equipment for a Monday event featuring Vice President Joe Biden was stolen in Detroit Sunday, a spokesman for the U.S. Secret Service said.
"A U-Haul that we were utilizing was stolen at the Westin Hotel overnight," Ed Donovan told CNN.
Donovan would not specify what equipment was in the U-Haul at the time it was stolen, and added that the theft shouldn't affect the vice president's plans on Monday.
Biden is scheduled to speak at a Labor Day rally in downtown Detroit Monday and march in a parade organized by the Michigan AFL-CIO. Last year President Barack Obama spoke at the Motor City's Labor Day celebration.
Ahhh Detroit, what an exciting city.....
The truck just had Biden’s personal stuff and toiletries in it.
http://shellybellbooks.com/wp-content/uploads/2012/05/rube-goldberg.jpg
You cannot make this shit up. They drive a u-Haul into Detroit and it gets stolen.
Biden is scheduled to speak at a Labor Day rally in downtown Detroit Monday and march in a parade organized by the Michigan AFL-CIO
Parade? The interesting thing about Detroit is it is disappearing. Buildings falling apart, bulldozed or taken over by trees, plants etc. It is like f**king Chernobyl. The wildlife in Chernobyl is actually thriving because no subhuman humans about.
Chernobyl has radioactivity which keeps humans away. Detroit has a dwiindling number of Hope & Change zombies, unions, rampant crime, despair and confiscatory taxation that keeps normal people away. If you see pictures of abandoned buildings in Detroit - it is like the white flight left as fast as the people fled Chernobyl.
Detroit is slowly becoming a field in the Midwest which would be a great improvement.
First Audit Results In The Federal Reserve’s Nearly 100 Year History Were Posted Today, They Are
http://beforeitsnews.com/economy/2012/09/first-audit-in-the-federal-rese...
The list of institutions that received the most money from the Federal Reserve can be found on page 131of the GAO Audit and are as follows..
Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
and many many more including banks in Belgium of all places
View the 266-page GAO audit of the Federal Reserve (July 21st, 2011)
If this is true I am expecting an epic day of comments on zero hedge. I thought the $800 billion bailout that they annouced was rage worthy. This just blows my mind.
For real?
The Fed, more so the NY Fed should be audited for the massive amount of USD swaps to the ECB.
Excellent post IR.
Thx bro. We are all in this together.
Get the whole Audit here:
http://www.sheepclass.com/the-fed-audit.html
This should be the only topic discussed on every major financial outlet throughtout the world. This is outrageous and out right theft of the American taxpayer. Lets see if anyone of them even have a clue.
Everyone on here should copy this and post it everywhere. Unreal!!!!!!!!
Yes but didn't the Fed make a $45 billion profit on that so far according to the Washington Post?
http://wapo.st/RCr9Bo
They are massively hedged.
Put that 45 billion profit up against 853 Billion they gave Bear Sterns, of which will never be seen again. Another great half story from a going out of business an obsolete industry.
How is gold not up to 5K?
I look forward to hearing about this on CNBC. /S
This is just the beginning. My bet is that by the time Benny is through, his balance sheet will look worse than Washington's.
Another $5 trillion to save America
$6 trillion to save Europe
$2 trillion to save Japan
$2 trillion to save China
About $5 trillion to save everyone else
ES 1,400 already being defended at all costs...for some fucking reason.
Golly, it's going to get obvious at some point.
Gee, the Centrally Planned Economy doesn't work? Shock and Horror, whether theirs or ours :)
Theirs or ours? Who does the military answer to, the people, or the banksters?
I did not realize that when Mr Reagan was demanding that the ussr take down "that wall" that we were wanting to become part of the soviet union.
30 days later, fresh meat!
YouTube - Tower of Babel? You didn't build that!
The Chinese economy exists because Western debt slaves have been buying the shit produced by Chinese wage slaves (on credit). The Western debt slaves are all but out of credit. Soon, the Chinese wage slaves will long for the days of their slave wages while the Western debt slaves long for easy credit. Welcome to NWO.
We have them by the throat they have us by the balls, but jokes on them because we don't have any balls.
oh yes, film buffs on ZH
this is an homage to Fritz Lang and his masterwork Metropolis
YouTube - Tower of Babel? You didn't build that!
Do you think Obama is responsible for this mess of a banker-oligarch-controlled shit pile? If so, do you think an oligarch banker will solve it? If your answer is no, then why are you wasting time repeating Red Team slogans? If your answer is yes, you should sign up for a position building the new tower.
Get ready 1 Bln shouvels and start digging a big hole. GDP will go to 100%. Obama should learn from Chinese how to create jobs.
Keynesian fail
One great use of Cloud servers is to execute trades in auto mode: http://intermarketsignal.com/
'Australian growth has been dependent on two huge bubbles: a domestic housing market that is one of the most overvalued in the world and a reliance on the Chinese fixed asset investment craze.'
by Johnathan Tepper at an Aussie research firm.