Category Archives: Politicks

U.S. Multinational Company 3M Outed For Selling Masks and PPE To Foreign Governments While U.S. States Look for Products….

Apparently it took the invocation of the Defense Production Act to stop 3M from selling masks and PPE to cash paying foreign governments; forcing them to supply the U.S. federal government and states instead.  WATCH:

Source: by Sundance | The Conservative Tree House

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Then this…

President Trump Invokes Defense Production Act Taking Control of 3M Production…

Stunning Clip Shows Billions In Gold, Cash Hidden In Chinese City Mayor’s Basement

Chinese police searched the house of Zhang Qi, 57, the former mayor of Danzhou, and found a large amount of cash, as well as 13.5 tons of gold in ingots in a secret basement of his home, according to local media.

In addition to the mayoral post, Qi held others including Secretary of the Communist Party.

According to unofficial reports, in addition to the $625 million worth of gold, cash worth 268 billion yuan ($37 billion) was discovered [ZH: seems highs to us].

The video prompted some witty social media responses…

Luxurious real estate with a total area of ​​several thousand square meters, which the former city manager had been reportedly hiding, was the icing on the cake in this massive haul for the Chinese Anti-Corruption Committee.

Qi was investigated by the Central Commission for Discipline Inspection (CCDI), the party’s internal disciplinary body, and the National Supervisory Commission, the highest anti-corruption agency of China, in September 2019.

According to China’s anti-corruption laws, Qi will be executed.

Source: ZeroHedge

Why America Has All The Leverage In China Trade Negotiations, In 3 Charts

Those curious who is more impacted by the sudden re-escalation in trade hostilities between the US and China can get a quick answer by looking at the market reaction to Sunday’s unexpected news: while the S&P is down barely 1%, overnight Chinese stocks plunged nearly 6%, their biggest drop in over three years, indicating just how much more sensitive to every twist and turn in trade relations Chinese stocks are.

Of course, one can counter just how smaller – and far less relevant – the Chinese stock market is in comparison to the S&P500, which is also the basis for the vast majority of household net worth for Americans, and global investors (whereas in China, it is the local housing that is far more critical and accounts for roughly 70% of household net worth).

But it’s not just the stock market that shows why China should tread very lightly in its ongoing negotiations with Trump, or why the US president has decided suddenly to re-escalate. Below we lay out [ ] charts showing just why the US indeed continues to have the upper hand in negotiations with China, starting with the relative importance of the US and European economies to China rather than vice versa.

As the first chart below from Deutsche Bank shows, the US and Europe are “much more important for China than China is for US and Europe” as China remains the nation with the highest beta, or the highest relative impact, from a 1% move in either direction for either the US or the Euro area.

https://www.zerohedge.com/s3/files/inline-images/US%20China%20relative%20importance.jpg?itok=iXqy1JCi

Second, whereas the US is now actively contemplating the launch of MMT, and exploding the US twin deficit by issuing virtually unlimited amounts of debt – which it ostensibly can do as long as the US Dollar is the world’s reserve currency – China is already near its leverage peak. In fact, as shown in the chart below, both China’s willingness and ability to lever up is now quite limited according to Deutsche Bank’s Torsten Slok.

https://www.zerohedge.com/s3/files/inline-images/China%20willingness%20and%20ability.jpg?itok=rL6mXCii

Last, and certainly not least, is what we said back in January represented a “tectonic shift” in China’s economy, when we observed that this year, for the first time in history, China’s current account deficit will turn negative meaning that China will henceforth need financing from the rest of the world, and specifically the US. Which is why, as we said five months ago, it is not Beijing that has leverage over the US, but rather the US whose ability – and desire – to allocate capital to China could mean all the difference for China’s economic growth, or lack thereof.

https://www.zerohedge.com/s3/files/inline-images/China%20current%20account%20deficit.jpg?itok=E8NcTR6h

Finally, and tangentially, assuming trade talks collapse and Trump follows through on his threat of hiking taxes on Chinese imports, it would, as Torsten Slok shows in his latest chart, push US tariffs – which are already higher than most advanced economies – higher than many emerging market countries making the US one of the leading protectionist countries in the work.

https://www.zerohedge.com/s3/files/inline-images/US%20tariff%20levels.jpg?itok=0aUb3gwr

That alone would cripple China’s economy, and is perhaps the main reason why Trump decided to once again flex his muscles, if so far only on twitter.

Source: ZeroHedge

Trade Deal Dead: Trump Says 10% China Tariff Rising To 25% On Friday, Another $325BN In Goods To Be Taxed

So much for months and months of constant leaks, headlines, tweets, and press reports that US-China trade talks are going great, and are imminent amid an ocean of “optimism” (meant solely to sucker in amateurs into the most obvious bull headfake since 1987). 

Just after noon on Sunday, President Trump tweeted that 10% tariffs paid by China on $200 billion in goods will rise to 25% on Friday, and that – contrary to what he himself and his chief economist, Larry Kudlow has said for months, talks on a trade deal have been going too slowly.

And, just to underscore his point, Trump also threatened to impose 25% tariffs on an additional $325 billion of Chinese goods “shortly.”

With the tariff rate on numerous goods originally set at 10% and set to more than double in 2019, Trump postponed that decision after China and the US agreed to sit down for trade talks; following Trump’s tweet it is now confirmed that trade talks have hit an impasse and that escalation will be needed to break the stalemate.

It was as recently as Friday that Vice President Mike Pence told CNBC that Trump remained hopeful that he could strike a deal with China (at the same time as he was urging for a rate cut from the Fed).

Curiously, on Wednesday, the White House – clearly hoping to sucker in even more naive bulls to buy stocks at all time highs – said the latest round of talks had moved Beijing and Washington closer to an agreement. Press secretary Sarah Sanders said, “Discussions remain focused toward making substantial progress on important structural issues and re-balancing the US-China trade relationship.”

In recent weeks there were multiple reports that China and U.S. were close to a trade deal, and an agreement could come as soon as Friday. Major sticking points the U.S. and China have been intellectual property theft and forced technology transfers. There has also been disagreement as to whether tariffs be removed or remain in place as an enforcement mechanism.

While it was not clear why Trump has decided to escalate his tariff policy, the most obvious explanation is that for a White House, which has been obsessed with pushing the S&P to record levels, this was the last lever it had at its disposal. And now that the S&P is back at all time highs, the lies can end, if only for the time being.

Source: ZeroHedge

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S&P Futures Plummet As China Said To Cancel Washington Trade Trip, All Eyes On S&P 2,890

https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/teaser_desktop_2x/public/2019-05/Mnuchin%20phone.jpg?itok=PM8jbQPu

 

Steven Mnuchin better have the PPT on speed dial tonight…

Charon took the newly dead across the river Acheron or Styx if they had an obolus to pay for the ride. Those who could not had to wander the banks of the Acheron for one hundred years. Corpses in some regions in ancient Greece were buried or burned with 2 gold coins, called an aureus on their eyes to pay the fare.