Luxury Chinese Boat Launches, Sinks Immediately

Tyler Durden's picture

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rajat_bhatia's picture

See. They need a floating currency!

Elooie's picture

I'm trying so hard not to laugh at my desk right now.

Troll Magnet's picture

coming soon to a walmart near you!

MsCreant's picture

Currently available at a Wallmart near you.

akak's picture

Will the yellow smiley face on the price sign have slanted eyes?

(OK, stupid question --- if they don't all by now, ...)
(At least we know why they are yellow.)

Haywood Jablowme's picture

 

So when's the maiden voyage for that refurbished navy carrier they're working on again??

 

nope-1004's picture

 

So the best way to sink a Chinese boat is.....

Put it in water?

 

akak's picture

The naming of the traditional Chinese boat as a "junk" might have been a clue.

Curious how they managed to foresee their main 21st century export hundreds of years before the fact.

theXman's picture

Actually the characters "??" means Wine Steel. But to ordinary Chinese they sound like Wine Jar. 

Fish Gone Bad's picture

China, known for poisoning pets and children, now known for making shitty boats as well.

dwdollar's picture

"In China, you float boat. It not float you."

Triggernometry's picture

Ummm, hey Ren?

 

Stimpy, you idiot!!

SMG's picture

Perfect metaphor for the Chinese economy perhaps?

vato poco's picture

Metaphor for the long-term survival of the giant Three Gorges Dam, as well?

boiltherich's picture

You think that is bad you should try their baby formula. 

prains's picture

melamine milk for all........hoooooray

Smithovsky's picture

I'm going to go out on a limb and say that the person who gave a -1 to everyone above is of Chinese origin.  

Me no rikey!

e_goldstein's picture

Nah, but maybe they lined the hull with all that overpriced tungsten Robert Ruben sold to them.

chumbawamba's picture

Shut your uselessly flapping jabber lips long enough to read this article, then send it to something like 3-7 friends.  Then you can resume chattering like parakeets.

www.economicpolicyjournal.com/2011/10/atomic-bomb-that-is-about-to-explo...

Tuesday, October 11, 2011
The Atomic Bomb that is About to Explode at the Federal Reserve

I have consistently contended that Federal Reserve chairman Ben Bernanke is something akin to a mad scientist who, in his development of new "tools" to manage monetary policy, is probably unaware of all the nuances and ramifications of the new tools he is developing. Indeed, one problem with one of his new tools may be about to blow up in his face.

It turns out that Bernanke's decision to pay interest on reserves held at the Fed by member banks has some twists to it that make what he is doing likely illegal. The blog Uneasy Money points this out in a post titled, Is the Federal Reserve Breaking the Law:

In a comment earlier today to this post, David Pearson shocked me by quoting the following passage from the Financial Services Regulatory Relief Act of 2006:

Balances maintained at a Federal Reserve bank by or on behalf of a depository institution may receive earnings to be paid by the Federal Reserve bank at least once each calendar quarter, at a rate or rates not to exceed the general level of short-term interest rates.

As I said to David Pearson in my reply to his comment, I am flabbergasted by this. The Fed is now paying 0.25% interest on reserve balances while and the interest rate on 3-month T-bills is now 0.01%. Yet the statute states in black letters that the rate that the Fed may pay on reserves is "not to exceed the general level of short-term interest rates." In fact, as can be easily seen on the Treasury’s Daily Yield Curve webpage, only on rare occasions was the 3-month T-bill rate as high as 0.25% in 2009 and it has been consistently less than 0.20% for most of 2009 and all of 2010 and 2011.

Got that? The Fed, as I have pointed out a number of times, is paying interest to bankers many times what is available in the marketplace and this turns out to be illegal.

Now it just so happens that the Congressional wording is a bit sloppy and says the pay out of "earnings" instead of interest, and you can be sure Bernanke is going to attempt to dance on the head of this pin , but the spirit of Act is clear, Fed member banks aren't supposed to be receiving payouts from the Fed that are greater than what they can get in the open market.

In other words, Bernanke is breaking the law, and one would think that now that this is public, he will have to cease paying interest at 0.25% to Fed bank members.

And as for him getting the law change, good luck to Bernanke trying to get new legislation through Congress, with the current anti-bankster sentiment in the country. Is there a Congressman around who will vote to allow the Fed to pay banks 25 times the current market rate?

This is where the atomic bomb explodes. Since Bernanke started paying interest on reserves (especially excess reserves),excess reserves have climbed from a few million to $1.6 trillion. If Bernanke stops paying interest at 0.25%, the money is likely to fly out of excess reserves and into the economy quicker than you can say, "hyper-inflation fiat money".

Maybe Bernanke will find a way to squirm out of this mess or simply ignore the law, the way recent Presidents have ignored many laws, but it will be nice to know that when the trials come Bernanke will be up there, with the other lawbreakers, having to explain why he ignored the law and paid the banksters interest 25 times greater than what is allowed by law.

--

I am Chumbawamba.

chumbawamba's picture

That goes for all of you, in case any one of you gets personally butthurt.

-Chumblez.

flacon's picture

Chumba, 

> " Is there a Congressman around who will vote to allow the Fed to pay banks 25 times the current market rate?"

The Congress IS THE FED'S FETUS IN FETU. 
http://en.wikipedia.org/wiki/Fetus_in_fetu

 There are TWO United States:
http://supremelaw.org/authors/freeman/freeman4.htm

 

Pope Clement's picture

Flaco- Thanks for the Freeman link

AustriAnnie's picture

"when the trials come Bernanke will be up there, with the other lawbreakers, having to explain why he ignored the law and paid the banksters interest 25 times greater than what is allowed by law."

Like he has had to explain all his other illegal actions?  Gimme a break.

If Bernanke and all the other banksters are actually punished for breaking the law, well, I'll eat my iPad!  It just is not going to happen.

There has been no respect for the law by the Fed up until now, why would they suddenly be held accountable?  The law will be changed to accomodate a "flexibility" regarding rates, or whatever they have to do to get their way.


fajensen's picture

The risk is very small, but ... leave out the battery: The lithium will make funny pyrotechnic colours with your stomach acid, the surgeon stitching up that mess will retire in luxury - eventually.

old naughty's picture

Akak,

The name translated to "Liquor Steel"...why/what? Your guess is as good as mine?

As to how they managed to foresee...hundreds of years before the fact? Guess they would have to hyper-jump back to their future, to their re-drawing board.

Wait, weren't there significant influence in the early part of last century from Europe to have the communist party established in China?

Hummmmmm.

OldPhart's picture

You sure that isn't a homonym?

Maybe "Lick Her Still"?  (sophmoric, yeah, I know, but it's been a long assed day)

o2sd's picture

In fact, Chinese 'junks' were far superior vessels to European ships for nearly 800 years. They had sealed, isolated compartments in the hull, so that a leak in one part of the hull would not sink the ship (unlike the Titanic, whose hull segments were not sealed, and you know the rest).

The Chinese 'junk' was the first vessel to have a foresail, so they could tack against the wind hundreds of years before European vessels, which relied on the trade winds.

As the for ship in the video, it looks like European design. Maybe if they had modernised the design of the 'junk' for the 21st century with new materials, it would float.

But dont let the FACTS get in the way of your frothing-at-the-mouth China bashing. Carry on ...

European American's picture

The boat seemed to have a shallow hull. The angle of launch was steep. The boat appeared to angle in off center. Probably not the boat. Primitive launching method. "Junk Launch".

Marigold's picture

I agree, the frenzy of China bashing here although some are extremely witty is frightening and this from the supposedly ZH intelligent elite.I shiver to imagine what Joe Sixpack and his ilk are thinking if the sinking of some small boat in China draws such a rabid response and outpourings of shadenfreude. In any case it seems that Amerikan politicians have already sniffed blood and are busy getting ready to implement Smoot-Hawley No.2.How American centric their world is. Please don't forget that made in Japan, Taiwan and Korea labels were originally indications of poor quality.The Chinese cock may yet have the last crow !

jeff montanye's picture

excellent points all and, as you note, the sinophobia will turbocharge the decline as it spills out into international financial relations.  

Shooting Shark's picture

Yes, yes, it was the launch angle, but you take the thing in its totality, so F 'em, and have some SchadenF*ckyoutoo.  A rocket launched incautiously deserves the same respect as a boat launched improperly--none.  If your point is that the boat would have been fine with somebody else launching it, well, that hardly sticks up for your red commie pals.

 

mjk0259's picture

Not so good at finding things with them though. Like North America.

SilverRhino's picture

This happened to the Swedish Navy as well back in the day.  

If the mandarins had not have stopped Zheng Ho the New World would have been Chinese.

CClarity's picture

That's a "luxury" boat?

akak's picture

Well duh!

Did you see any shackles anywhere on it at all?  I hear that it actually has some seats on it, as well --- although that is just a rumor.   And what hygenic facilities it has!  Did you know that there are actually restrooms on it?  Yep, no more hanging one's ass over the gunwales!  (Of course, the toilets still empty directly into the river --- but now one can pollute in luxurious privacy.)

Why, I bet they only allow 200 people on the roof of it while in transit, too!

CrankItTo11's picture

It actually sunk because of the toilets (aka, giant holes) in the floor. Someone thought that would be a luxurious feature.

AldousHuxley's picture

"luxury" as in "unleaded" paint from china.

toothpicker's picture

whatever floats your boat

CrankItTo11's picture

And who doubts their Ghost Cities are falling apart as we speak?

akak's picture

Good thing ghosts aren't picky about little things like moldy drywall and crumbling substandard concrete.  I hear that ghost dogs are just wild about the flavor of melamine, too.

Freddie's picture

It gets worse.  The chinese also "thin out" rebar. Anything to lower the cost.  They also run steel mills a bit cooler to save money which mean inpurities in the steel melt remain.  Bad drywal, bad concrete and bad rebar.

taxpayer102's picture

Best way to sink the United States in debt - buy Made in China products

Bruin4's picture

I cant believe I am saying this but there is something so remarkably sad about this that I actually feel sorry for the Chinese. I am no naval engineer but look at that POS.

Forgive me ZH I know not what I say