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.
China isn’t just another booming Emerging Market economy trying to cool down excesses in fixed-asset investment and transition to a consumer-based economy. That notion is an odd-confluence of propaganda from Beijing and hopium from Wall Street.
Vietnam and China are in a red-hot standoff in the South China Sea over China’s oil rig in Vietnam’s 200-mile exclusive economic zone. But inaction in Congress has boxed the US into a corner.