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Chinese CAT-Equivalent, Sany, Finds Itself In Liquidity Crunch, Seeks Covenant Waiver

Tyler Durden's picture


Over two weeks ago we first described what at that point was merely the hint of trouble at Australian mega-miner Fortescue which is slowly but surely losing the fight with insolvency courtesy of plunging iron ore prices, whereby it was once again proven that bonds always have a better grasp of the situation than equities. Sure enough the cash crunch which we predicted was imminent at Fortescue, has since hit the company over the past several days, as the firm is currently in dire liquidity straits, desperate to renegotiate covenants and get waivers that allow it to continue operations even as creditors get the short stick (in exchange for some serious money upfront). It is unknown whether it will succeed, although judging by its halt from trading until next week by which point it hopes to restructure its debt, things are certainly not rosy for the megalevered iron-ore company. In retrospect, FMG AU is lucky to be alive as is, having had a comparable near-death experience back in 2007/2008: should its bondholders end up owning the equity, so be it. However, another far more troubling and certainly underpriced covenant renegotiation has struck, this time impacting Chinese conglomerate Sany Heavy Industry, a company which is the Chinese equivalent of US Caterpillar and Japanese Komatsu, which is owned by Liang Wengen who is mainland China's richest man with a $10 billion net worth, and which is so big and diversified that under no circumstances should it be forced to request covenant waivers, especially not under a soft-landing scenario for China. And yet this is precisely what it did.

From Reuters:

Sany Heavy Industry Co Ltd, a major heavy machinery maker controlled by one of China's richest men, is asking its lenders to waive a financial covenant on $510 million of loans, Basis Point reported, highlighting the growing risks facing the industry in an economic downturn.

Why is this mega-corporation, which has RMB 50 billion in income in a good year, has a $12 billion market cap, and 70,000 employees, suddenly in liquidity crisis?

Unpaid bills owed to companies in China's coal, steel and heavy machinery sectors jumped by a fifth in the six months to June as growth in the world's second-largest economy slowed, reducing manufacturing, and demand for a range of commodities.


Sany, which competes with Caterpillar Inc and Japan's Komatsu Ltd and which this year bought privately-owned German concrete pump maker Putzmeister for an estimated 360 million euros ($464.6 million), has $160 million in onshore loans and $350 million in offshore loans, according to Thomson Reuters data.

Which covenant is being breached:

The company, controlled by Liang Wengen - who is worth $8.1 billion, according to Forbes - is asking its lenders to waive the net debt to tangible net worth covenant - one of the terms of its loans - and to respond by the end of next week, Thomson Reuters publication Basis Point reported, citing sources. It did not name the lenders.


According to sources, the current requirement on net debt to tangible net assets is at less than 0.8 times, Basis Point reported.

And the punchline:

Its loans receivable - amounts creditors expect to be repaid at a specific date - more than doubled to almost 23 billion yuan ($3.63 billion) at end-June from six months earlier.

In other words the company which competes with Caterpillar (which already warned about some truly scary global trends) not only has a major debt problem, not only suddenly can not collect what is owed to it by various trade partners (which is the real red flag here), but also is suddenly facing collapsing profits: "The shares fell to more than 2-year lows late last month after Sany posted a 28 percent drop in second-quarter net profit - its biggest quarterly fall since 2008."

And that, ignoring the propaganda for a second, is what is really going on in the Chinese economy: a gradual and encroaching halt, in which vertical trade linkages are collapsing as there is simply not enough loan growth and liquidity (either localized or global) to keep the run-rate in place.

Hopefully the Fed and ECB can print enough "wealth" to somehow bail China out soon, because any hopes of the contrary are now forever dashed.

In other news: one gently used Cat 797F for sale, some minor dings. Great fuel efficiency.$5,000,000 OBO


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Fri, 09/14/2012 - 16:24 | 2796848 kaiserhoff
kaiserhoff's picture

What?  You mean no one pays rent in ghost cities?

No one could have seen this coming;)

Fri, 09/14/2012 - 16:35 | 2796910 DoChenRollingBearing
DoChenRollingBearing's picture

Yet more proof we can relax about China "taking over the world".  The USA will prosper or decline (latter) because of our OWN unwillingness to take on our problems.

And this POS co. in China?  Just stick with CAT.

Or better yet: GOLD!

Like I've been telling all at ZH since I joined...  ;)

Bari, Italy has a loy to say for itself, a very nice city.  It has been a real pleasure staying here, highly recommended.

Fri, 09/14/2012 - 16:48 | 2796955 NotApplicable
NotApplicable's picture

"Malinvestment, bitchez!" -- Mises

Fri, 09/14/2012 - 17:23 | 2797056 Gringo Viejo
Gringo Viejo's picture

I'd like a covenant waiver my own damn self.

Fri, 09/14/2012 - 21:46 | 2797821 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

China, the giant POS.

Sat, 09/15/2012 - 22:31 | 2799758 RockyRacoon
RockyRacoon's picture


German company...  Somebody is kidding, right?

Those Krauts sure have a sense of humor!

Fri, 09/14/2012 - 16:58 | 2796975 vast-dom
vast-dom's picture

just wait till our Chinese friends dump all their US paper. TBT bitches!

Fri, 09/14/2012 - 17:07 | 2797009 LongSoupLine
LongSoupLine's picture

I don't care how big that CAT 979F looks, it's still not big enough to keep up with Bernank's printers.

Fri, 09/14/2012 - 18:48 | 2797338 Bunga Bunga
Bunga Bunga's picture

There is even no one to collect free money in ghost cities.

Fri, 09/14/2012 - 16:25 | 2796859 JailBank
JailBank's picture

CNBC did not report this.

Fri, 09/14/2012 - 16:28 | 2796871 ACP
ACP's picture


Fri, 09/14/2012 - 17:19 | 2796994 e-man
e-man's picture

...but CNBC did have Kim Kardashian on to give her perspective and analysis on the markets racket.

Fri, 09/14/2012 - 17:04 | 2796998 Dr. Engali
Dr. Engali's picture

Shit they only know one word...Apple

Fri, 09/14/2012 - 16:27 | 2796863 Yen Cross
Yen Cross's picture

 Tyler(s) have been, "UnEQUIVOCALLY" , Fair and cutting edge, on all of these topics!

   Shit Z/H readers! Tyler even gives " Aircraft Carrier( battle group), positions" all over the world!  If that isn't fair,I don't know what is?

Fri, 09/14/2012 - 16:31 | 2796867 JohnKozac
JohnKozac's picture

Soros reiterated last week, "China will have a hard landing."

This article supports what he said.Also, I read the streets of Shenzhen and Guanzhou are not safe a tnight due to the masses o funemployed peasnats wandering about at night "mugging" people who stay outside their fenced/gated community.

Looks like things are changing there......"Progress ?"


On the bright side, Liang Weng was awarded the "Putzmeister of the Year Award."

Fri, 09/14/2012 - 16:45 | 2796946 onebir
onebir's picture

Guanzhou has been like that in places for years. If Shenzhen has become disorderly too, that's not good.

Fri, 09/14/2012 - 17:10 | 2796995 You Didn't Buil...
You Didn't Build That's picture
Home Depot Suffers Epic Defeat In China



(Reuters) - Home Depot Inc, the world's largest home improvement chain, will close all seven of its big box stores and cut 850 jobs in China

Read more: Yeah, that Guanzhou train station area is seedy sort of like some of our bus stations. Shenzen on quiet streets... be careful. Too bad about Shenzen but I did not feel too safe on quiet streets there even back in 2008. High unemployment results in dire circumstances for many so some feel they have nothing to's a bad situation. They do not have all the "social safety nets" that we have---no SS, no unemployment insurance, EBT cards, free cell phones, etc. I hope the global economy improves but I am not optimistic.
Sat, 09/15/2012 - 13:10 | 2797039 e-man
e-man's picture

That's because no one wanted to buy all their crap that's Made in Ch...oh, wait.

Fri, 09/14/2012 - 23:36 | 2797990 Blizzard_Esq
Blizzard_Esq's picture

Obviously this was bound to happen. USA is DIY since labor is expensive and any CHINESE with any money say DIFM, "do it for me" since labor is relatively cheap there...

Fri, 09/14/2012 - 16:41 | 2796870 cougar_w
cougar_w's picture

Hell yeah, all my feline homiez are doing waivers 'n shit. We gangsta. Best not be mess'n.

Fri, 09/14/2012 - 16:46 | 2796943 Wakanda
Wakanda's picture

Word cougar - my Maine coon cat got yo back.  We be rollin' in dead rodents.

Fri, 09/14/2012 - 16:28 | 2796872 dick cheneys ghost
dick cheneys ghost's picture

Pass the Sweet and Sour Shrimp

Fri, 09/14/2012 - 16:36 | 2796915 Wakanda
Wakanda's picture

Sany may look like Cat but still taste like chicken.

Fri, 09/14/2012 - 16:49 | 2796960 NotApplicable
NotApplicable's picture

I LOLed.

Fri, 09/14/2012 - 17:34 | 2797103 TheFourthStooge-ing
TheFourthStooge-ing's picture


Sany may look like Cat but still taste like chicken.

Ah, ah, Sany of course being Chinese citizenism citizen cat equivalentationism is ruefully not of essence felinity much so prosperously. Compositioned it fowl birdings the pigeontarity and crowlike dangdang, for tastingness to the chicken verisimilitude. The preparedness mixing the crustiest bits being twice-cooked salamander to crispity, the hot and sour sauce immersion beholds a liquidity crunch deliciously.

Fri, 09/14/2012 - 16:29 | 2796880 q99x2
q99x2's picture

Oh boy what bargains. A bankster can now pick up Chinese corporations with infinite Bernanke bucks - penny on a dollah.

Fri, 09/14/2012 - 16:32 | 2796895 cougar_w
cougar_w's picture

We call that "a trap".

Sure the ChiComs will sell you something sucky sucky fi' dollah, and then not let you take anything out of the country, and then a year later send around the goon squad to re-nationalize your candy ass.

Fri, 09/14/2012 - 16:36 | 2796914 kaiserhoff
kaiserhoff's picture

You can always get your money INTO a commie country...

Fri, 09/14/2012 - 16:44 | 2796938 LULZBank
LULZBank's picture

You can never get your money OUT of a capitalist country...

Fri, 09/14/2012 - 16:51 | 2796965 NotApplicable
NotApplicable's picture

Which makes me glad that "countries" don't really exist, but rather, are merely abstract figures of the imagination. ;)

Fri, 09/14/2012 - 17:02 | 2796989 LULZBank
LULZBank's picture

You did'nt imagine that...

Fri, 09/14/2012 - 17:02 | 2796990 Yen Cross
Yen Cross's picture

 capitalist country? " I think you mean"Banana Republic"?   The U.S. of A taxes all earnings abroad!

Fri, 09/14/2012 - 16:35 | 2796890 aint no fortuna...
aint no fortunate son's picture

but wait, isn't that new stimulus program about building new roads to those ghost cities? Invisible cars driving on empty roads to ghost cities, does Ben have a part time consulting job I wonder?






Fri, 09/14/2012 - 18:27 | 2797276 Bunga Bunga
Bunga Bunga's picture

The economic effect of throwing money onto empty streets is zero.

Fri, 09/14/2012 - 21:11 | 2797719 aint no fortuna...
aint no fortunate son's picture

hasn't stopped him so far

Fri, 09/14/2012 - 21:12 | 2797724 aint no fortuna...
aint no fortunate son's picture

as is the economic affect of throwing money into insolvent wall street banks but that hasn't stopped him either

Fri, 09/14/2012 - 16:32 | 2796892 kaa1016
kaa1016's picture

I tell you, even though I made money trading this QE3 rally, I just have a feeling that one day in the not too distant future we're going to wake up to a nasty headline from somewhere about something and this market is going to tank. The only difference is that the belief that the Fed can save the day will have been shattered. Prices are disconnected from reality right now. Anyone long this market better own some puts.  

Fri, 09/14/2012 - 16:36 | 2796911 Yen Cross
Yen Cross's picture

You are soooo full of shit! How many times did you sell the " Bernanke PUT"?  

Fri, 09/14/2012 - 16:39 | 2796925 cougar_w
cougar_w's picture

this market is going to tank.

Okay couple things here:

1) It's not actually a market so stop calling it that. 2) The worst that would happen is the remaining humans working the Exchanges will run for the hills, extracting all of 1% of the "market" activity they currently represent. 3) The algos will tough it out because like honey badger, they just don't care, and keep trading pennies on 2 nano second hold times to churn the fucker up 2% on the day and fuck you if you missed the "rally".

That's just how it is. Ben Bernanke can read as much into as he wants to, but it don't mean shit.

Fri, 09/14/2012 - 16:45 | 2796944 LULZBank
LULZBank's picture

Very eloquent and insightful analysis.

Have you considered writing for WSJ?

Fri, 09/14/2012 - 17:29 | 2797078 cougar_w
cougar_w's picture

You know, I think they would catch me writing "...but it don't mean shit' and revoke my journalistic license.

But thank you for the kind encouragement.

Fri, 09/14/2012 - 17:05 | 2797003 kaiserhoff
kaiserhoff's picture

The cat's on a roll.

Fri, 09/14/2012 - 16:43 | 2796937 onebir
onebir's picture

'which is so big and diversified that under no circumstances should it be forced to request covenant waivers'

Erm, it's a construction equipment manufacturer*: sales are first derivative of construction activity. Wouldn't you expect it to run into trouble in a construction slowdown?

What's interesting is this is happening right after a stimulus announcement. Maybe Zoomlion will be next...

*& apparently less diversified than it's major competitor:

Fri, 09/14/2012 - 16:49 | 2796958 LULZBank
LULZBank's picture

Whats lacking with the stimulus announcement is a concrete plan to create jobs and revive the economy.

They can start cleaning the Himalayas with toothbrushes. Imagine all the economic activity and jobs it will create.

Fri, 09/14/2012 - 16:45 | 2796942 buzzsaw99
buzzsaw99's picture

Typical. The CEO is reportedly worth $10B but he won't even bail out his own company. Just like in the usa. Greedy bastard.

Fri, 09/14/2012 - 16:46 | 2796948 LULZBank
LULZBank's picture

Why bailout when the future is not bright or even orange.

Fri, 09/14/2012 - 16:50 | 2796963 buzzsaw99
buzzsaw99's picture

Just stiff bondholders, shareholders, employees, taxpayers, and run off with the loot. It's the american way!

Fri, 09/14/2012 - 17:05 | 2797000 LULZBank
LULZBank's picture

You mean "US Citizenism" at work.

Fri, 09/14/2012 - 16:48 | 2796952 Seer
Seer's picture

Talk about tell-tale signs!  That's a big yellow, dead looking canary in that there coal mine!

Fri, 09/14/2012 - 16:52 | 2796967 NotApplicable
NotApplicable's picture

No, no, 'e's uh,...he's resting.

Fri, 09/14/2012 - 17:03 | 2796993 Seer
Seer's picture

Yeah, "resting," that's the ticket! :-)

Awaiting the "next growth cycle," which will never come...

Still waiting for the Aussies to come to the realization that their economy is springing a leak and is heading down.

Fri, 09/14/2012 - 17:51 | 2797173 Dr Benway
Dr Benway's picture

Dude Oz is running on fumes of desperation and hopium.. The newspapers have gone into hyperdrive spruiking property and stock, with the SMH gradually turning their property and business section into de facto advertisements. Everyone is repeating the brainless mantra of how important it is to have CONfidence, and how now is a great time to buy because times are so gloomy.


On a bigger scale the problem is that both countries and companies nowadays try to juice the market confidence instead of letting it grow organically by good performance.


Check out my updated expose of an enormous Australian investment ponzi, it is banned information in Oz:

Fri, 09/14/2012 - 21:17 | 2797755 Seer
Seer's picture

Yes, good Dr, I was being soft on this issue...  I note (elsewhere) below that I think that Australia is going to be the biggest thud yet heard (they've delayed the longest, becoming WAY over-addicted to exports to China).

Sat, 09/15/2012 - 00:13 | 2798027 MisterMousePotato
MisterMousePotato's picture

No, it's an ex-canary.

Sat, 09/15/2012 - 01:53 | 2798123 Citxmech
Fri, 09/14/2012 - 17:03 | 2796996 LULZBank
LULZBank's picture

LULZ were had!

Fri, 09/14/2012 - 17:01 | 2796986 kito
kito's picture

meanwhile, russia is preparing for its currency to play a prominent role in the worlds future reserve basket.....doing the opposite of the western central banks............

Fri, 09/14/2012 - 17:15 | 2797041 Dr. Engali
Dr. Engali's picture

Okay kito I would like for you to explain how you justify a reserve basket of currencies in the future ( which I believe will happen) without a hyper inflationary event in the U.S.

Fri, 09/14/2012 - 23:41 | 2797994 uff the fluff
uff the fluff's picture

Reserve basket printed to infinity. No go for launch or lunch.

Fri, 09/14/2012 - 17:02 | 2796988 TrulyBelieving
TrulyBelieving's picture

        We all know what's coming. World economies are slowing down. Lawlessesnes reigns at all levels of govt. Hate growing, hunger growing, income shrinking,job market shrinking.   Regulations and taxes eating us up. Inflation kicking in. Society is breaking down at all levels, from morality of the people to corruption from the rulers.  As it was written and history proves it out, a society will not last with these evil undercurrents. Prepare now while it is still light, for great darkness awaits us.        

Fri, 09/14/2012 - 17:06 | 2797007 LULZBank
LULZBank's picture

Oh c'mon... dont be so doomatic. It was just coz of a movie...

Fri, 09/14/2012 - 17:11 | 2797030 Seer
Seer's picture

Morality has very little to do with it*.  Population overshoot, happens to all organisms that exceed the carrying capacity of their host.

* As a matter of fact, I'd argue that it presents a distraction/cloaking of the real problem (which TPTB, the eternal rulers on the planet, like for us to not focus on lest humans realize that they don't need gods and masters).

Fri, 09/14/2012 - 17:05 | 2797002 Yen Cross
Yen Cross's picture

" covenant wavers" are code for "Trading Band" expansion!

Fri, 09/14/2012 - 17:10 | 2797024 miker
miker's picture

China will pay the price for light speed growth coupled with a corrupt government structure.  Yea they are maniacs (like the Japanese) but quality and values will always trump the opposite.

The world faces a real possibility of world-wide depression.  Brought on by years of inflationary monetary policy,  a hugely deflationary demographic structure in the developed economies, and of course, a huge debt overhang of historic proportions. 

Really, when it gets down to it, we can do just fine without most stuff in the western economies.  Deflation bitchez. 

Fri, 09/14/2012 - 17:28 | 2797062 Dr. Engali
Dr. Engali's picture

So now the DHS decided that 1.2 billion rounds of hollow points isn't enough. So they ordered an additional 200 million rounds of.223 and 176,000 rounds of .308 caliber hollow point boat tail (HPBT) rounds.

Fri, 09/14/2012 - 17:32 | 2797095 e-man
e-man's picture

You know, they could save a lot of time and money by moving directly to the 107 mm howitzers. Enough screwing around with the small arms race...

Fri, 09/14/2012 - 19:07 | 2797404 seek
seek's picture

Cute comment, but seriously, Howitzer's won't do what they need to do. It's pretty obvious they're looking to cover a massive area (i.e. the whole fucking country), not deal with a few fortified point targets. Plus, it's probably a fucked-up employment program that will have lots of recurring job openings when the shit goes down.

Look, a lot of this ammo order stuff is just conspiracy-mongering nonsense as it's for normal training. The SSA and NWS orders in particular were at the noise level and appropriate volumes for their security officers and training, no big deal at all.

The only orders that matter are the billion+ .40 and .223 rounds for DHS, which has claimed it's for ICE. The .308 order is noise, too.

These orders have to be taken seriously, as there's no fucking way those orders are just for ICE and FPS as DHS claims, and the DHS has moved to make future orders classified.

ICE has 20,000 employees, and the Federal Protective Service (the other agency DHS says this is for), 2,100. If all of them were firearm qualified (which isn't even close to true) you'd need ~25 million rounds per year for training (500 rounds per qualification every 6 months). This is 5% of the DHS orders.

The DHS literally doesn't have enough firearm-qualified officers in under its jurisdiction to account for this quantity of ammunition, nor could the officers they do have use any reasonable percentage even during a crisis. With current staffing levels these orders could cover ammo needs for more than a decade.

Crazy as it sounds, I think DHS is being honest when they say it's for training. Disingenuous, but honest. It forces me to think that this is in preparation for a huge number of new firearm-qualfied officers joining the ranks, an American Gestapo, if you will. It's a nightmare scenario. It would have to be incredibly massive, for as an example training and arming every TSA agent (all 60,000 of them) would take "only" about 120 million rounds, (assuming 1000 rounds per agent for basic training, and then another 1000 rounds per year for qualification, and this is generous. US Marines shoot about 1000 rounds in basic training) That's just 10% of what they ordered.

DHS is buying enough ammo to supply 600,000 "troops" through basic training and qualification for a year. That's the same size as the entire active-duty US Army. Even if these are five-year contracts, we're looking at ammo to support a larger group of people (say 100K) equal in size to all major federal law enforcement agencies combined. For comparison FBI: 14K sworn officers, 30K total, ICE, FPS, another 25K, SS is less than 5K, and only 20% of that is sworn officers. There's nothing outside the scale of an army that can explain the DHS volumes.

Just one more sign something big is coming.

Fri, 09/14/2012 - 20:40 | 2797655 e-man
e-man's picture

+100 You provide excellent insight and analyis to the subject.  One can only speculate as to what lies in the future. 

I don't think it is so much about civil strife due to economic conditions.  The US has been through several depressions without triggering large revolts.  A drastic change in "policy" on the 2nd amendement however, might lead to expectations by the government of "something big" heading their way.  Not saying I think this will happen, just one of many possibilities.  

Sat, 09/15/2012 - 03:27 | 2798169 jonjon831983
jonjon831983's picture

\thanks was wondering exactly about how much is used in training.


Any link I can look up more info?

Sat, 09/15/2012 - 13:33 | 2798816 seek
seek's picture

I'd just google most of it. There's a wide variation in training and qualification ammo use, I know a few PDs in my area are as low as 200 rounds (NYPD's qualification process used a whopping 95 rounds, and 45 of those are practice!)

For the marine qual, it varies as there's no set number, but the concensus I found (which matches my experience from talking to guys at the range) is that it's 1000 rounds in basic training. Obviously they blow through a lot more in the field, often times just to reduce inventory headaches (It's a pain to return ammo, so it's routine to be told to burn though unused ammo for "practice.")

Best keywords for google are "firearm qualification rounds"

Fri, 09/14/2012 - 17:26 | 2797065 Democratic koolaid
Democratic koolaid's picture

"covenant" Holy war! Yen cross?

MIKER "light speed growth" what is that refering to? transportation? Japand and Korea are adicted to warcraft and the related epilepcy that makes then not like China. The last decade was a good thing for the developing world. Austrailia is a Souvern Country in the 21st century and part of existing organization outside the sphere of Chinease influence.

LULBank's "doomatic" comment was right you depressed pessimist's.  keep drinking your Koolaid. 

Fri, 09/14/2012 - 17:31 | 2797086 Yen Cross
Yen Cross's picture

Putting words in my mouth? You are so typical, of one size fits all banter! Would you like a new "coffin" for the next " Full MOON"?

Fri, 09/14/2012 - 17:40 | 2797129 Democratic koolaid
Democratic koolaid's picture

That was a facinating non-explenation of jibberish. You chinese comunist, how do they salute?  "fool moon" ? dont Transfer you Psychotic Illusions!

Fri, 09/14/2012 - 17:48 | 2797162 LULZBank
LULZBank's picture

Why you say, I say. Why you no listen me? Its same same but different.

Me so hawnee... me love you long time.

Fri, 09/14/2012 - 18:01 | 2797191 Democratic koolaid
Democratic koolaid's picture

I was Agreeing with you LULbank on that explicit Video. I was trying to engage the conversation Board alittle.

Fri, 09/14/2012 - 18:09 | 2797226 Yen Cross
Yen Cross's picture

HEY! "dip shit", if you want to engage the board, get edukated! I'm "whistling" Capitalism out of my "bung hole"!" I stand corrected" next " Blue Moon", for you!

  LULbank bank is a great poster, [btw]

Fri, 09/14/2012 - 18:47 | 2797327 Democratic koolaid
Democratic koolaid's picture

Keep Drinking your Koolaid. I'm not buying what your selling "dip shit". :-)

Nice Brown nosing On LULZbank. bhahaha.

Sat, 09/15/2012 - 12:16 | 2798608 LULZBank
LULZBank's picture

Sorry bud, was just messin about. Just that your spell and ideas seemed to be coming out in a rush, in your post.

I know you were agreeing with me, thank you, and I was only jesting. Nothing personal, they say its a fight club were we Bitchezz just joke around..

You engaged alrite, BTW... LOL

Fri, 09/14/2012 - 17:38 | 2797121 Seer
Seer's picture

"Austrailia is a Souvern Country in the 21st century and part of existing organization outside the sphere of Chinease influence."

I can't stop laughing!  (and no, not because you can't spell) Australia is a one-trick pony that's going to be the first to crash BIG (as their big client, China, hits the skids).  The only other country that's in the same league of denial is Canada, but they've got more than just one pony (and they're right next to their biggest trade partner, so transport costs are more manageable).

Fri, 09/14/2012 - 17:46 | 2797148 LULZBank
LULZBank's picture

Its friday night... Bruv musta had a line of coke or summin' the way hes hyper typing. If the avatar is his real pic...

Fri, 09/14/2012 - 21:24 | 2797775 Seer
Seer's picture

Yeah, and for someone who's only been a ZH member for a little over a week!  I'm thinking of a word...

Fri, 09/14/2012 - 17:56 | 2797181 Democratic koolaid
Democratic koolaid's picture

It's alright that the subject went over your head seer you must have been looking at your feet. Here is Something more layman for you :-)
do You see anything aplicable with China here?

Australia or Austro-Asia to you I would asume is in a great position moving Forward and I beleave no insult is in order for your Canadian coment because you must have been joking. Canada is in A better position then Australia!  Keep Drinking your Koolaid.

Fri, 09/14/2012 - 21:12 | 2797741 Seer
Seer's picture

WTF IS your point?  If you cannot state it then it's not YOUR point, now is it?

MY point is that Australia is FUCKED.  It's a fucking island that's WAY over-populated and immensely hooked on $$ from exports to China (which is falling off a cliff).  It's steeped in the Kool-Aid.

All the NATO this, NATO that shit is MEANINGLESS.  It's about PHYSICAL RESOURCES, and Australia, though it has coal, has really very little else should it look to be self-reliant (not with the population that it has).  Got water?  Ag land is rapidly going to shit.

Canada has lumber, oil, (ugh, "tar sands" too), WATER (FRESH WATER!) and has more arable land.

And no, I'm not Canadian.  I happen to know people in Australia and Canada.

Fri, 09/14/2012 - 17:27 | 2797070 Yen Cross
Yen Cross's picture

Romney needs to find a "Happy Spot" somewhere between " John Mc Cain & Howard Dean"!  Romney needs to "step-up". and crack the whip!

Fri, 09/14/2012 - 18:41 | 2797292 Democratic koolaid
Democratic koolaid's picture

Mitt cant breathe on Barack or CNN and that homo Anderson will call him a racist. Best he can do is expose like he has attempted Obama incompetence on foreign affairs issues.  

Fri, 09/14/2012 - 17:33 | 2797097 quasimodo
quasimodo's picture

Chinese, CAT and equivalent do not belong in the same sentence


Fri, 09/14/2012 - 18:14 | 2797240 Democratic koolaid
Democratic koolaid's picture

Buy stocks in shanghai on one of there Holidays.

Fri, 09/14/2012 - 18:19 | 2797251 Yen Cross
Yen Cross's picture

" their"?

Fri, 09/14/2012 - 18:18 | 2797250 savagegoose
savagegoose's picture

pity theyre both broke and in debt,  they could have issued ea other 3 month payment bonds for goods delived. ie iron sent to sany in exchange for a payment  bond that FMG used to buy finnished tractors and cranes. or visa versa, doesnt matter no interest would be paid, they exchanged goods to cvlaue for a reciept to  have goods returned in 3 months to equal vcalue.

Fri, 09/14/2012 - 19:08 | 2797412 WallowaMountainMan
WallowaMountainMan's picture

another 'golden nugget award' to this zh writer. top of the line stuff.

not o/t, but my hunch is that the big B Bernak also has this level of understanding and just fired the last salvo hoping to front run the collapse. i mean, after all, there is no reason to leave the last arrow in the quiver, even if it's bent and crooked...

might as well hope it works...

back to the wilderness go i

Fri, 09/14/2012 - 20:03 | 2797568 Atomizer
Atomizer's picture



With the news of Caterpillar Inc. being downgraded and an impending need for new equipment picking up building ruble, bodies and sorts. I would go long on CAT. I don’t write the script, the central planners do.. 

Someone has to initiate an equipment backlog pipeline demand.

Bomb drop sound effect 

Fri, 09/14/2012 - 22:01 | 2797840 57-71
57-71's picture

The 797 F as depicted in the story post is a POS.

Poor reliability, and terrible parts supply management - ie no parts.

Typical CAT new product releases since 1992.

Fri, 09/14/2012 - 22:23 | 2797862 Element
Element's picture



"Hopefully the Fed and ECB can print enough "wealth" to somehow bail China out soon, because any hopes of the contrary are now forever dashed."


Wasn't the great global economic hope the other way around last month?

Sat, 09/15/2012 - 14:59 | 2799002 jonjon831983
jonjon831983's picture

Hmm missed this one!


"China signs currency clearing memorandum with Taiwan to make yuan convertible on island"


"After the deal becomes effective in about two months, Taiwanese banks will be able to take yuan deposits and convert yuan into the New Taiwan dollar. The conversion will allow Taiwanese investors on the mainland to cut foreign exchange costs by skipping the current process of first converting their yuan earnings into U.S. dollars."

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