V'S HEADS UP ON CHINA-WHICH HAS ALL THE GOLD AND NATURAL RESOURCES WHILE THE U.S. HAS ALL THE'FINANCIAL TOXIC SLUDGE'-

V WEIGHS IN ON RICHEST MAN IN CHINA SELLING HIS REAL ESTATE- Well lets look at this with some real analysis. Lets crush the China fear mongering in simple ways. First the credit “crisis” that is spoken of is majority in the “Shadow Banking” system. This is a loosely run rag tag of affiliates ranging from local and regional banks, mom and pop businesses and even pawn shops. That being said the major Chinese banks and investment houses do often back a loan in shadow banking. The key thing that often people forget about is that the “problems” China faces is in reality regional and contained. It is NOT systemic. In order to prove that look at the balance sheets of their biggest banks, granted all corporate and governmental entities lie to a degree but there is something to be said of where a bank puts it’s assets. ICBC (biggest bank in China and biggest in the world) balance sheet is rich in hard assets and loans to stable companies in strong economic sectors. Compare that to the ZOMBIE institutions that we have here in the states. All of them filled to the brim on toxicity and drowning in paper with phantom assets to back their books. Our problem is systemic.

While the talking heads gasp at the $23 Trillion Chinese credit bubble. We have blown one that is over $400 trillion and is systemic and pegged to a world reserve currency. Chinese politicians are all degree holders in science, history and economics, unlike ours who all went to slimy law schools. They understand what must be done to achieve economic supremacy. While the west strains at China’s credit bubble, China has been busy draining the west of gold, inking trade deals and setting up currency swaps all the while readying the Petro/Gold Yuan. Game over., Rook G7.

Apr 17, 2014

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