China & Its Debt Problems


Shanghai-8-25-2016

With a total debt of almost 250% of GDP, China’s debt problems are well known. Meanwhile, the government is working on resolving the issue by following the playbook of US investment banks and creating securities structures to offload bad debt (remember CDOs?). The slowing economy has caused rising defaults. Analysts suspect the NPLs ratio to be 30% of bank loan portfolios versus the official ratio of 1.81% as of the end of June 2016.

The corporate bond market is also feeling pressure as 41 companies have defaulted on R25.4bn of bonds since the beginning of the year. In an effort to restore confidence in the banking sector, Bank of China and China Merchants Bank sold off some of its NPLs as securitized products. It seems like an asset swap to other banks with 50-60% of the book being sold to other banks. Furthermore, 95% of the riskiest tranches were sold to a state-owned asset manager. Meanwhile, in an effort to support growth, the Chinese government is promoting lending to small and micro businesses, which carries higher risk and reduces peer-to-peer lending.

Corporate debt is estimated at 145% of GDP with the non-financial state-owned enterprises representing half of the bank credit. Chinese banks have a greater concentration of individual customers with the top customer of Agriculture of China accounting for 7% of its loan book and the top 10 customers comprising 17% of its loan book.

Copper-8-25-2016

Chinese credit is currently growing at 2x GDP, meanwhile, fixed capital investment growth slowed to 3% during 2015. Watch copper that is used for loan collateral in China and has recently broken weekly technical support with a Directional Change during August and the next turning point in October. A breach of the $2.00 level will indicate further lows.
Categories: China
Tags: China

US budget deficit approaches $600bn, public debt to reach 77% of GDP


Slower revenue growth and large spending will expand the US budget deficit to $590 billion in the fiscal year ending September 30, according to the Congressional Budget Office (CBO). * Read more US…

Source: US budget deficit approaches $600bn, public debt to reach 77% of GDP

U.S. Olympians Are Taxed on the Value of Gold in Medals


Olympic Medals

Believe it or not, someone can work hard to get into the Olympics and if they win the gold or silver medals, the Internal Revenue Service (IRS) is there waiting for their cut. Yes, American Olympians must pay taxes on the value of the medal. They also need to pay taxes on their prize money. This is so outrageous that it is rising to Congress after insistence that such awards should be tax-free, especially when they represent the nation.

The taxman is without mercy. It has long been assumed that Matthew the Apostle was a tax collector. Such people have always been regarded as sub-humans who prey upon the citizens for the state. The IRS is not much different, as is the case for tax-collecting agencies around the world. Their interpretation is to always tax regardless of morality.

Canadians Officially Pay More on Taxes Than Food


Broke Consumer

It’s official. Canadians now spend more on taxes than they do on food. Well, politicians have to eat first. Their kids have to be educated to rule their generation. The Fraser Institute has calculated that the average Canadian family now pays $34,154 in taxes in total, which includes all the “hidden” business taxes that are passed along in the price of goods and services. They have distinguished the visible and hidden taxes that would now equal 42.4% of the total average Canadian family income in 2015, which they have estimated at $80,593. The Fraser study estimates the average Canadian family spends $30,293 on housing, food, and clothing or about 37.6% of the family’s income. This will only get worse for politicians always know how to spend other people’s money while pretending they will someone give them more, which never materializes. In the 1930s before income tax, the woman traditionally stayed at home to raise the children because it was normal for one income to suffice to feed the family. Now it takes two incomes and the women MUST work in the average family. It is no longer possible to survive on just one income.

Marriage-Divorce 1900-2012ECM-1970-2084

The divorce rate has risen with taxation. The number one reason for divorce is always money. The divorce rate peaked in 1981 with the peak in the Economic Confidence Model that marked the peak in the last public wave. What has transpired since then was an initial decline in divorce began with the Reagan tax cuts and the same is seen in Britain with Maggie Thatcher and Canada. Now note that also marriages have declined from 10.8% in 1982 to only 6.8% by 2012. Marriage is on the decline and children are living with their parents into their 30s. Now 18 to 34-year-olds who live with their parents has reach a record high of 31.5% in 2015. The birth rate has fallen from about 40 per thousand to only 10 per thousand from 1775 to 2000.

The bigger government grows, the lower the standard of living. But taxes are also reducing birth rates and marriages. Talk to girls under 30. The majority say they do not want to bring in children to this world.

Something is seriously wrong. But government is addicted to stealing the people’s money. That means this will not end very nicely.

Germany to begin Conscription Once Again


Merkel Explains

Germany is to reestablish conscription into the military which had been suspended on July 1st, 2011 after 55 years. The Merkel government now sees a major security risk and is shifting its policy justifying conscription once again. The duty to service may be argued that it is tension with Russia, but it is really domestic terrorism. They simply refuse to admit that the refugee issue has become a major European crisis.

Hacked Documents Shows Obama/Soros Behind The Refugee Crisis In Europe – Episode 1055


From X22 Report The Greek people are being squeezed for everything they have, which will most likely turn into an uprising.UK predicts housing will fall by 1%, which means it will be even more.BREX…

Source: Hacked Documents Shows Obama/Soros Behind The Refugee Crisis In Europe – Episode 1055

Nazi Collaborator George Soros Works to Enlarge Electorate by 10 Million Voters by 2018


His goal is to collapse the US economy and then buy up the assets of the country on the cheap and sell them all to China for a very very large profit.

Venezuela Ramps Up Gun Destruction, Bullet Registry


Hillary is watching this and getting ideas!

Government Preparing for World Wide Civil Unrest – Why?


Pentagon

ft-1998A number of emails have come in asking if we are advising government since they are now enlisting firms to research a rise in civil unrest. The answer is no! Nevertheless, everyone knows of the accuracy of our computer systems and our cycle of war models. It was the CIA that came to us demanding I create the system for them in Washington after the model predicted the fall of the Russian monetary system in 1998. I declined. I did offer to run any study for them on our systems. I was told that was not acceptable for they had to “own it.” I said no way. I believe their position was they did not want anyone else to possess the forecasts. I have also been asked am I not afraid of government? I respond, the only way they will ever get access to what our system forecasts is to leave me alone and read our services. So this is the Mexican standoff as they say. We agree to disagree.

True, the Pentagon is now funding universities to try to model the dynamics of the rise in war. Sure they are trying to copy what we have achieved. They are the government after all. They know I cannot be threatened for I would rather be dead than held as some slave. They are attempting to model large-scale civil unrest across the world no less. You can guess where they got that idea from. I have been told by programmers they contacted to try to program what we have accomplished with Socrates. Good luck. It takes more time than what even money can buy. If you do not understand HOW cycles function at the core, no programmer could ever figure this out. This is not some simplton program if this then that.

20070410 Movie Pi

I have been told that slander and imitation are the ultimate level of flattery. When the model predicted the peak in the Real Estate Bubble to the day in February 2007, they were calling it Armstrong’s Revenge. They thought locking me up would somehow stop the model from working so they kept me in contempt of court using a statute 28 USC §1826 which says the maximum time anyone can be held in civil contempt was 18 months. They kept rolling it every 18 months to pretend they were obeying the law. I was finally released only after 7 years merely because I got into the Supreme Court and they had no choice but to release me or suffer an international disgrace.

ECM-Wave-2002-2011 - RJust after the model forecast the peak in 2007 to the day once again, I was hauled into court and Judge Keenan then tried to discredit our model claiming I stole the idea of Pi from a movie by that name. This transcript above shows how they deliberately lie to try to cover-up anything. Accusing me of taking the idea from a Movie named Pi which did not come out until 1998, just illustrates how fundamentally dishonest these people really are. They think they can just say anything and the world will believe them no matter what they say. They are incapable of ever telling the truth and that doesn’t bother them in the slightest. Think of the worse kid in high school who enjoyed beating up people or stealing what they had. Look them up. More likely than not, they ended up in law enforcement. This transcript is the example of absolute corruption beyond belief. They could care less that you can simply Google the time when such a movie came out. That doesn’t matter. They declare something and to them that makes it true. This was all about trying to discredit a model that forecast the crash from 2007 into 2009 rather than helping society, they seek only to destroy it.

That turning point 2007.1589 picked the very day of the high in the Shiller Real Estate Index and it was published in 1979, 20 years before the movie. However, it also marked the very day Goldman Sachs sold its infamous ABACUS 2007-AC1 $2 billion Synthetic CDO. They timed that perfectly to the very day of our model.

The court tried to discredit the model. That illustrated they were worried its forecast was coming true. You can bet they analyze every word. These people have no morals and think they can just force society to be economic slaves forever. Nobody has ever beating this game even once in history. Time is on my side, not theirs.

Why Brexit Was Inevitable – EU Very Byzantine


Regulations

Pythagoras’ Theorem: 24 words

Lord’s Prayer: 66 words
Archimedes’ Principle: 67 words
10 Commandments: 170 words
Gettysburg Address: 286 words
US Declaration of Independence: 1,300 words
US Constitution and all 27 Amendments: 7,818 words
EU Regulations on Sale of only Cabbages: 26,911 words