Even the comrades in Beijing know that China’s credit tsunami has unleashed a dangerous speculative mania that has no parallel in human history.
In China’s debt-fired economy, lenders are going to take the heat.
As the world’s biggest net importer of crude, China is in a vulnerable position: utterly dependent on oil imports, at a time when its economy is beginning to wobble.
A sign of how serious the problem has become.
It’s so bad a trusty Communist Party newspaper exhorts the people to buy homes in a ghost city because there’s “no downside for home prices.”
Transferring bad debt from local governments to the central government does not address the cost of resolving the bad debt. Because bad debt doesn’t just disappear.
The Japanese Defense Ministry refused to speculate why Russian activity had suddenly soared, just when both countries are trying to hash out a mega-energy deal.
Many in the industry believe that in China, 90% of the high-profile wines, like certain Bordeaux, are fake. Devastating thought if you keep wine in a refrigerated vault as an asset class. And prices have collapsed. But it’s not all doom and gloom, not with California wines.
Grins were on the faces of CNPC executives as they celebrated a blockbuster 30-year deal for Russian gas. For some, however, those grins might turn to grimaces; CNPC has been caught up in a series of highest profile corruption investigations.
The unthinkable just happened to Microsoft in China.