China Is Proud To Announce It Is Reflating The Bubble - Will "Actively Push" Investors Into Stocks
We did a double take when we read the following lead sentence from a just released Bloomberg report on what is about to take place in China: "China’s stocks regulator will “actively” push pension and housing funds to begin investing in capital markets, and encourage long-term investors such as insurers and corporate pension plans to buy more shares." To paraphrase Lewis Black - we will repeat this, because it bears repeating - "China’s stocks regulator will “actively” push pension and housing funds to begin investing in capital markets, and encourage long-term investors such as insurers and corporate pension plans to buy more shares." And that is the last ditch effort one does when one has no choice but to push "long-term investors" into the last giant ponzi. Of course, this being China, "long-term investors" means anyone at all, and "pushing" ultimately involves either 9MM or a 0.44 caliber. And what was said earlier about mocking mainstream media spin - well, the first opportunity presents itself a few short hours later - when Bloomberg, the same agency that wrote the above report, tells us that "Asian Shares Rise Amid Global Economic Optimism." Odd - no mention of the fact that China is now pushing habitual gamblers, which over there is another name for "investors" into what is openly an invitation (at gunpoint nonetheless) into the latest and greatest bubble. That said, we give this latest artificial attempt to boost stocks a half life of several days max before the SHCOMP plunges to new lows for the year.
More on this hilarious attempt at reponzification:
The China Securities Regulatory Commission will also allow the creation of sovereign debt futures and explore other new products such as high-yield corporate bonds and municipal debt, the regulator said in a statement on its website yesterday, citing Chairman Guo Shuqing’s comments during a national work conference in Beijing.
Guo, appointed Oct. 29, told securities officials China needs “systemic arrangements” to channel cash into under- funded areas and sustain growth. He echoed Premier Wen Jiabao’s message at last week’s financial work conference that the finance industry should serve the real economy.
The Shanghai Composite Index tumbled 22 percent last year, the most since 2008, on concern increases in borrowing costs and Europe’s debt crisis would derail economic growth. The 33 percent drop since 2009 makes the benchmark the worst performer among the world’s 15 biggest markets.
China should make investments using the 2 trillion yuan ($317 billion) in pension funds from its provinces and 2.1 trillion yuan in housing funds, Guo said at a conference in Beijing Dec. 15, without indicating where the money should go.
This explains the surge in US exports recently and the relative economic strength - it appears America has been exporting financial innovation (such as high yield corporate bonds and municipal debt) double time to Shanghai. Which in turn was tolled by domestic child labor sweatshops and resold to US investors via E*Trade and Schwab as quadruple levered ETFs.
And the kicker:
In a continuation of his predecessor’s policy, Guo pledged to “earnestly” tackle excessive initial public offering prices and to crack down on insider trading and market manipulation, according to the statement.
Chinese fraud? Unpossible.
Needless to say, this act has sown the seeds of the Great Chinese Stock Market Collapse: artificial and forced capital reallocation is always and without fail the coffin in the nail of any ascendent attempt at central planning. Of course, by then the global ponzi will have reach such dire proportions that somehow the ECB will lend money to Greece so that Greece can bail out China, because it is not in ECB's charter to bail out insolvent ponzi regimes (such as Europe of course). Or something just as ludicrous.
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So they're finally learning from Bernanke, bitchez?
huh? The chinks have a 30 year track record of this.
why the fuck is everything everyone else does somehow OUR fault?
It's not. It's Bernanke's fault.
That stupid god damn fucking cocksucker shit sucker bitch fuck is raping our bank accounts and then shitting in our cereal bowls. I can clarify further...
Obviously it is the US bankster elite's fault. The Ivy Ilk Fi-Alpha Scum who run US Empire.
EVERYONE is learning from US EMIRE Keynes'ianism.
NO surprise at all.
Blowback, Bitchez.
There is nothing in the known universe that can stop a super nova sized Chinese housing bubble from continuing to burst, as it has been bursting for many months so far.
In other news;
Why is everybody focused on the veterans unemployment rate?
Unemployment Rate Improved for Everyone in 2011, Except for Blacks
http://colorlines.com/archives/2012/01/unemployment_rate_improved_for_everyone_in_2011_except_for_blacks.html
Dr Ron Paul's bodyguard Jesse Benton not only has brawn, he's got brains too and knowns how to use them. I wonder if he's married?
Jesse Benton ends interview with belligerent Dana Bash.mov
http://www.youtube.com/watch?v=hDlY5UKY9CM&feature=youtu.be
If we have to run Ron Paul again when he's 84 in 2020, we'll glide him out in a hover chair. A very comfy hover chair. With WIFI and Internet, and a cup holder.
...and with Stephen Hawkings voice simulator when needed.
Maybe I'm getting old - but I watched the clip a couple times and couldn't hear/understand her question... what was it? Thanks.
The reporter gave a BS question about a voter who was not able to shake RPs hand so the voter became Democrat. Fucking BS question.
Seriously? Sadly this is how many voters make important decisions...
Big picture it is meaningless.
Im confused. What does this have to do with the price of stocks.. I meant tea in china? Do Jesse Benton and Ron paul buy stocks or are they short?
http://blogs.wsj.com/totalreturn/2011/12/21/the-ron-paul-portfolio/
Fu manchu is enlightened. Thanks
Wow, talk about biased reporting against Ron Paul. Then again Kyle Bass got the same BS.
"There is nothing in the known universe that can stop a super nova sized Chinese housing bubble from continuing to burst, as it has been bursting for many months so far."
Kinda like how a balloon or soap bubble bursts over several days, right?
so the ponzi bubble being run by chinks in china for their own benefit is our fault too?
they have no complicity in it whatsoever?
even though what you said is true..chinks is an extremely offensive word to chinese people
Also, Dude, Chinamen is not the preferred nomenclature. Asian American, please.
excellent Lebowski reference, dude....
Shut the fuck up, Donny.
Chink or Chinamen might be less offensive to the BILLION PLUS CHINESE WHO DON'T LIVE IN THE US than Asian-American, depending on how low their opinion of the US is. Regardless, its better to be in the ballpark yet offensive than flat-out wrong.
IMPOSSIBRU
Sam ting wong nao agen?
Coz USA is in charge of the world, USA has to destroy any state that drops dollar otherwise......the sheep will start surrounding the wolf.
Oh fuck the odds of war go up by the day.
*Thinks using the "n-word" is racist.
*Claims not to be racist.
*Calls Chinese "chinks".
Be careful. This article is not necessarily about QE, but about market regulation. It is the market regulator speaking not the head of the CB. The exact words were in Chinese, and they were translated by an organization with an agenda. The word "actively push" might not be an accurate rendition.
China is going to slow due to a collapse in exports to Europe due to their austerity this year. No amount of pension buying is going to change that, especially in the face of a collapsing real estate market which makes up about 50 percent of their GDP. Good discussion on the China bust here:
http://www.ftense.com/2012/01/2012-outlook-global-butterly-effect.html
Not even slightly surprising. My wife told me that when the PRC first started selling bonds to the People, they were suspicious. So the Party simply made them buy bonds. It was for their own good. They paid well and often (8-12% depending on duration).
Unadulterated Fascism. Did you ever think it was anything else? The Party does not even bother to mask it or spray Lysol on it, as here.
Hmmm. Ponzi is so western. How about Pon-Zi-Yuan? ; )
That's what I understand as well from ex-chinese nationals I've have the opportunity to have a pint with. The paychecks get spread fairly thin with government initatives like this.
In a country that is having trouble meeting food demand, the little bites the Chinese government takes from the people's paychecks is only going to make more protests happen. Between diesel shortages, gas capping, food shortages, brown outs (for now) and a metric shit tonne of empty property. There isn't a nickle to be thrown into china.
My best guess is the earnings month They are going to over stoke it. Of course there is the large possibility that the boiler explodes while doing it. Of course, in terms of funny money, the Chinese and the Americans will just virtually increase the size of the boiler by dropping interest rates lower into micro fractions if need be.
When did China denounce its communist ideology?
These people are endentured slaves and the government has realized that they have given them too much money and freedom. It is now time to call in some overpay. After all the government believes they own all the people, property, legal tender, gold, etc. See what happens when they begin to nationalize western factories. WWIII here we come
Benny B must weep with frustrration when he thinks about how centrally centralized is the ChiCom centralized economic planning.
All this messy congressional oversight and rule of law horseshit -- hardly what a central banker wants to deal with day in and day out, but the shitty West just can't get its act together seems like.
Such round-about stupidity. Better to just hold a gun to peoples' head with the admonition to sure go ahead and do whatever feels right with your own money.
we have rule of law? we have oversight??? GET DA FUCK OUTTA HERE!!!
It doesn't seem like it but we do.
Okay actually they sorta mis-placed the Constitution, trampled on everyone's rights, emptied the Treasury for the benefit of the oligarch class, and maybe froze Eric Holder in carbonite. On accident.
But apart from that yeah it's all good. Benny has to toe the mofo line. Just like that.
Imagine a chinese version of Ron Paul grilling party officials about financial ineptitudes ala Bernank. He'd be taken away, neck shot, and the family charged for the bullit.
... delay time. Putting a lipstick on a pig takes time, that's all. Pig stays a pig, chinese or american, doesn't matter.
PBoC butchers can slaughter the pig faster than in the
FedBernank Facility, or at Goldman-am-Main, that's all.
China Dictatorship = execution for dissent.
US Dictatorship = lose your job, family, identity and any and all sense of humanity for dissent.
The difference isn't that big.
The difference is that when a Chinese family with some money decides to get out of dodge, they do not find banks in their country of destination unwilling to open an account for them.
Scientist who argued against global warming would agree.
Alex Jones said David Rockefeller loved what he saw there in his 1973 trip.
Maurice Strong loved it so much he moved there:
http://www.canadafreepress.com/index.php/article/23141
Now, there was that little matter of the $1,000,000 payment by check from the UN.
Where else would you go till the heat is off?
"The 78-year-old Strong, who seemed to disappear from the international radar screen when his name became linked to the United Nations Oil for Food scandal in 2005, went to live quietly in China, a country he has long touted as the superpower poised to replace the United States of America."
Dude is an undercover eugenicist:
Maurice Strong Interview (BBC, 1972) - YouTube - http://bit.ly/wd4Ixo
Also owns Crestone, Colorado. His new age hideout:
https://en.wikipedia.org/wiki/Crestone,_Colorado
Maurice Strong, owner of a controlling interest and his fiancée Hanne Marstrand visited the development and "fell in love with it." The Strongs were inspired to create a world spiritual center and began granting parcels of land to traditional spiritual organizations.
But he might be on the way out, taking his carbon footprint with him:
http://www.canadafreepress.com/2007/cover051707a.htm
All in with a 2-9 off suit, whoop dee doo.
How long till they are called on it?
Hahaha... Good luck China
China will get hyper inflation before the US. Who would have thought. And we know what the Chinese are like, they will flee the YUAN in droves, buy USD and throw everything else into stocks. China is actually creating WEIMAR style...by design. Amazing stuff.
They wont be buying stocks, those with any wealth know its all BS, at the drop of the hat the state could reappropriate it all.
Wealth is going offshore or into PMs.
The Chinese are the worst investors on the planet. So I would not be surprised they sell off their currency on mass and throw it all into stocks get this massive rally and a HUGE spike inflation. Amidst EZ going to hell, US falling to pieces in 2012. Topped off with China completely imploding, then war. Timeline? Within 12mths
...or maybe less. Anyone got odds on global war?
The way Iran's going I'd say around 20 mins...
LOL...
I'll take 5 dollars on 1913. I win. Haha.
"The Chinese are the worst investors on the planet"
Yikes!!!
There is some stiff competition for this award.
Maiden Lane is one of my favorites.....buy stuff nobody can price at full price, hold it to maturity, and hope nobody is still around who remembers when it all "matures".
This would explain the Bloomburg TV interview of Maarten-Jan Bakkum, an emerging markets strategist at ING and I believe Deirdre Bolton of Bloomberg TV.
When asked by female talking head if China would have a hard landing, he ING talking head said no and that China was to smart.
That's all you need to know... ING and Bloomberg talking heads think China is to smart. Econ and Finance 101 all rolled into one ladies and gents. No worries here.
Just repeat to yourself the people running China are too smart.
Prepare to embrace the suck as they say.
Look out hyperinflation! Here comes China!
Pandora Style Beads
gold
As long as they only recreate the entirely fake shell companies shouldn't take too much work.
The global financial crisis has reached such a rotten state that every major government in the world is doing all its best to fabricate data and manipulate the stock market as much as possible.
This gives me the impression that everything is so bad that those at the top is extremely fearful that another collapse would wipe out almost everything. If the next collapse is not going to be severe, they would not even bother to persistently manipulate the data and the market. The fact that they persist in their manipulation means the next collapse has to be massive. And they are desperately doing all they can, including commiting fraud, to support the market.
Will the status quo wins at the end of the day? Or will the market prevail once again?
great post, nobody wants to be in control of the first major economy/country to collapse but they know its coming.
Agree with GH that this comment rocks. While those schizoids at the top are increasingly terrified that collapse is inevitable, they simultaneously believe the situation is manageable (delusion). The MSM is instructed to feed that message to the digest/obey matter (sheeple).
Has The Squid found it's largest client yet????
Yep, sure it will come out eventually.
And remember, "When Jim O'Neill walks through turn-style sideways, he going to Bangkok"
Looks like the Shangai and Shenzen indexes finally found an intermediate low.
Let's see how high they can push it by squeezing the shorts.
Shorts don't get squeezed these days they just suffocate from being covered with tons and tons of Benny bux.
like ZH hedge says, good for like a week. I'd say less 2days. But China still gets another dose of inflation. Companies will still flip out over there and buy up massive USD forwards. HK has been doing it even with their index meltups.
False break out. Don't even think US stocks will make much of it...and Europe they are done and dusted.
Maybe a new top. We short on that.
It seems all I ever do is read what your wrote on whichever page I come across on here, and then proceed to junk you.
Bit difficult squeezing shorts that don't exist, given you can't short equities on the Shanghai or Shenzen exchanges.
Quiet- Blutarsky is on a roll.......
The bankers and politicians say "I have a dream, and that is to bankrupt my country with massive debt and inflation."
"I am not going to do the right thing. Heck no, I am going to do what is extremely wrong."
Shit! Even a kid on drug can make all those stupid public policy that they are making.
and how is this different from ZIRP in perpetuity, when inflation sans housing is maybe 9%? oh sure, Ben won't actually hold a gun to your head - he'll just force you to watch youself bleed out.
Tyler: Want Asian news? Get Asian media sources, not BB. They take many releases out of context and hype it up for Americans. This all part of discouraging investors away from Asian markets.
"Man who push on chop suey noodle to get wonton attention end up with egg drop soup on face".
Neoconfucius
confucious say no more bubble equals trouble
http://visualwhore.files.wordpress.com/2010/03/bubble-squid.jpg
Once you let bubble squid sex you, you never satisfied again by anything but more bubble squid.
China H-Shares likely to close 3% up, pushing Western markets to gap up above critical resistance.
China might force investors money into the market at gun point-but over here it's accomplished with a different sort of blood chilling method-
******************
"It appears that the Treasury isn’t going to guarantee money markets after December 18th and only funds that were in money markets on September 19th.
I think it's pretty clear that they’re trying to drive money back into the markets. It’s a dangerous and desperate move."
The U.S. Treasury Temporary Guarantee Program (the "Guarantee Program") provides a guarantee to participating money market mutual fund shareholders based on the number of shares invested in the fund at the close of business on September 19, 2008. Any increase in shares in the account after the close of business on September 19, 2008, will not be guaranteed.
http://globaleconomicanalysis.blogspot.com/2008/11/sideline-cash-theory-...
This could raise the stock market and it most likely will, but it could make people withdrawl those funds as cash, taking their ball and going home. The latter would be healtier for the market, but let's not bet on it.
U.S based muni bonds are thee short position to be in right now.
Can I post a chart? Will Tyler let me post a chart? I just need one to show this glaringly obvious asset dosconnect and how it ties into this post.
You could post it on photobucket or tinypics and then copy the .jpg link to here..
I'd like to see your chart.
Geezus Fucking Christ
The creeping bubble: Just when y'all thought it was safe to get back in the water, thinking that the bubble had already burst 4 years ago and is "stabilizing" (love that word!) you might get your legs bitten off one day because of....The Creeping Bubble. Just under the radar.
Today we got several glimpses of new bubbles in the making: consumer credit up while incomes and net worth still are in decline, US stocks drifting higher on terrible news out of Alcoa (lead off batter for the Dow and a whiff of what's to come in declining earnings) and horrific Europe banking system news, and now China following suit and reflating their stock bubble.
Add to that buoyant commodities (especially oil) which drift higher in the face of demand destruction and create sub-bubbles in dependent asset values. And the mega bubble in shadow banking paper which has exploded since 09, the junk bond bubble, and even the Treasuries bubble
A credit bubble, a stock bubble, a commodities bubble, an agricultural land bubble, a junk bond bubble, we already know about several precarious currency bubbles.....all resting on a banking system with its own mega-bubble in shadow banking which in turn rests on the support of broke sovereigns in crisis. lol. Nothing to worry about
With all these bubbles, where's mine?
the only bubble worth bubbling about comes from chardonnay grape.
Not quite a bubble...
You forgot the worldwide Gold and Silver bubbles.
SARC
After reading this article on the Chinese plan, well, ...it's all about the tea. See video for confirmation.
http://www.youtube.com/watch?v=phIIcJSm4Zs
This show of ''force'' must be do to the residual affect of the British hopium war huh? Lol
No hard landing in China - told you sooooooo. Boring world we live in.
It's year of the dragon this month. didn't ya know?
Civil servants (i.e. politicians) should be prohibited from investing or trading in the stock market.
It is exactly because of the politicians' participation with their dumb money in the stock market that they continue to intervene in inflating the market to save their own ass. It was never about being re-elected. It's about they putting their entire life's savings into the market and is now panicking to salvage their savings from possible collapse with whatever intervention necessary even if it means having to go for hyperinflation.
China is gonna have some serious problems with inflation.
Especially if the Bernank goes for QE3--which I think he will.
The good news? Chinese girls still have sexy asses.
What's the point of building more shopping malls and condos if nobody has money?
I just don't understand.
Well, I do. It's called command and control theft.