China- A Profiteers Bagunca (Mess) [Winter (Economic and Market) Watch]
For those of you who don’t remember the Hunt Brothers, here is the background. Fast forward to today, and we see a “mystery holder” of copper stocks at the LME. Let’s see a massive manipulation at the same time China is blowing up, could get very interesting. Just a thought, but does anybody care to wager that this is Chinese or a Chinese stooge? I would not want to be involved with being long any metal now.
Anyone in these markets should start reading so called obscure stories in the China Daily. These stories are just special, take the time to read and reflect on them. They go on and on, painting a revealing picture of what a crony communist capitalist Bubble economy looks like when the wheels come off.
In the first the refiners are pointing finger at crony state oil aparatcheks for in effect profiteering.
In the next China surveys the shortage landscape and decide to “crack down on profiteers”. I would surmise that a profiteer in China is anybody not paying large bribes or a who is not a well connected aparatchek. Even more likely the profiteer IS an aparatchek.
The third story shows how if you aren’t an exporter being crushed by input costs, the Gumnut will step in a slap prohibitive export tariffs on. The idea here is to keep the product domestic where you can be looted and prosecuted by aparatcheks as a profiteer. I am sure the regulation and exemption book is perfectly clear as well, just bring your bribe money.
Here another bureau defends price increases and blames it on the end of a special Gumnut subsidy.
This story describes the major state owned power company taking huge losses on coal prices, which they claim were impacted by “consolidation”. Here a regulator reiterates an order to coal suppliers not to increase prices, It is a little unclear if this is a price control, but that approach was definitely utilized for producers of cooking oil. Here another regulator vows to crack down on speculators.
A taste of real estate conditions and record pollution in Shanghai says alot, but apparently nobody lives in these new places anyway. I was in China during one of these pollution episodes and it took me months to recover. This brings us back to polluting coal which China still uses for 70% of its power generation. Euan Mearns of Oil Drum writes that coal productionis plateauing and unsustainable.
READ FULL POST HERE
Anyone in these markets should start reading so called obscure stories in the China Daily. These stories are just special, take the time to read and reflect on them. They go on and on, painting a revealing picture of what a crony communist capitalist Bubble economy looks like when the wheels come off.
In the first the refiners are pointing finger at crony state oil aparatcheks for in effect profiteering.
In the next China surveys the shortage landscape and decide to “crack down on profiteers”. I would surmise that a profiteer in China is anybody not paying large bribes or a who is not a well connected aparatchek. Even more likely the profiteer IS an aparatchek.
The third story shows how if you aren’t an exporter being crushed by input costs, the Gumnut will step in a slap prohibitive export tariffs on. The idea here is to keep the product domestic where you can be looted and prosecuted by aparatcheks as a profiteer. I am sure the regulation and exemption book is perfectly clear as well, just bring your bribe money.
Here another bureau defends price increases and blames it on the end of a special Gumnut subsidy.
This story describes the major state owned power company taking huge losses on coal prices, which they claim were impacted by “consolidation”. Here a regulator reiterates an order to coal suppliers not to increase prices, It is a little unclear if this is a price control, but that approach was definitely utilized for producers of cooking oil. Here another regulator vows to crack down on speculators.
A taste of real estate conditions and record pollution in Shanghai says alot, but apparently nobody lives in these new places anyway. I was in China during one of these pollution episodes and it took me months to recover. This brings us back to polluting coal which China still uses for 70% of its power generation. Euan Mearns of Oil Drum writes that coal productionis plateauing and unsustainable.
READ FULL POST HERE
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