“Fasten Your Seatbelts”: Kyle Bass Previews The Collapse Of China’s $34 Trillion Banking Sector

Earlier this month, Kyle Bass asked a funny question in a discussion with CNBC’s David Faber. To wit: “If some fund manager in Texas is saying that your currency is dramatically overvalued, you shouldn’t care on a $10 trillion economy with $34 trillion in your banks. I have, call it a billion –  it’s so small it should be irrelevant and yet somehow it’s really relevant.”

Bass was referring to China’s penchant for firing off hilariously absurd “Op-Eds” in response to anyone who suggests that the country may indeed be experiencing the dreaded “hard landing” or that a much larger yuan devaluation is a virtual certainty. The People’s Daily literally laughed at George Soros when the aging billionaire said he was short Asian currencies in Davos. “Declaring war on China’s currency? Ha ha,” PD wrote. Chinese media also called Soros a “crocodile,” a “predator,” and said his yuan gambit “cannot possibly succeed.” Continue reading

Chinese Yuan Could Give the IMF “a Shock It Isn’t Prepared For”

 

 

On Monday, the Chinese yuan joined one of the most elite clubs on the planet: the International Monetary Fund’s Special Drawing Rights basket of reserve currencies.

CURRENCY OLD WEIGHT NEW WEIGHT
U.S. Dollar 41.90% 41.73%
Euro 37.40% 30.93%
Chinese Yuan 10.92%
Japanese Yen 9.40% 8.33%
Pound Sterling 11.30% 8.09%

*Source: IMF Continue reading

China Rocked By Another Massive Chemical Explosion

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This is the second explosion in Shandong, which both follow the huge and deadly explosion in Tianjin. Continue reading

Chinese generals urge PLA to expand navy as war risk rises

Generals call on military to shift focus from land forces to maritime power amid higher threats of conflict from several directions

Two senior Chinese military leaders have called on the People’s Liberation Army to beef up its naval capacity and combat readiness amid a higher risk of “warfare on the doorstep”.

In a 5,000-word article published on Friday in People’s Daily, the Communist Party’s flagship mouthpiece, General Cai Yingting, commander of the PLA Nanjing military area command, and his political commissar General Zheng Weiping, said the PLA should learn lessons from the war with Japan that ended 70 years ago.

Continue reading

PLA could use neutron bomb in event of US invasion: Duowei

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One online article said a neutron bomb could take out a US convoy of M1A2 Abrams main battle tank and M2A3 Bradley infantry fighting vehicles, killing all military personnel without doing significant damage to the vehicles themselves. Continue reading

PLA Navy conducts drill in western Pacific

A training drill involving PLA Navy airplanes and warships was conducted east of the Bashi Channel in the Western Pacific June 10, the People’s Daily reported, citing a military spokesperson.

Chinese navy spokesperson Liang Yang said the ships and aircraft carried out several exercises simulating real combat conditions in waters east of the Bashi Channel, situated between the south of Taiwan and the Philippines. Continue reading

South China Sea dispute: China state paper warns of ‘war’ unless US backs down

This wouldn’t be the first time China has threatened war with the United States. Some years ago, Colonel Meng Xianging said there would be hand-to-hand combat with America within the next ten years. In 2005, Chi Haotian, Vice-Chairman of China’s military commision saying conquering America is a must for its survival and that America must be exterminated. In 2007, China also threatened to nuke the U.S. Dollar — a claim it can still make good on.

What’s more, the average American is too busy following the Kardashians to even know what’s going on outside the national borders, let alone outside their own homes.

 

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Beijing: A Chinese state-owned newspaper said on Monday that “war is inevitable” between China and the United States over the South China Sea unless Washington stops demanding Beijing halt the building of artificial islands in the disputed waterway.

The Global Times, an influential nationalist tabloid owned by the ruling Communist Party’s official newspaper the People’s Daily, said in an editorial that China was determined to finish its construction work, calling it the country’s “most important bottom line”.

The editorial comes amid rising tensions over China’s land reclamation in the Spratly archipelago of the South China Sea. China last week said it was “strongly dissatisfied” after a US spy plane flew over areas near the reefs, with both sides accusing each other of stoking instability. Continue reading

Merchant ships could be used as cover to move PLA subs into open sea

This is also exactly why China and a few other nations wanted to ‘combat piracy’ in the open seas. They used this as a cover to patrol areas they really had no need to, show their presence and the ability project power. At the same time, they got a win-win because they received good public reactions as they successfully portrayed themselves as fighting terrorism.

 

Chinese merchant vessels could be used as cover to allow PLA ballistic missile submarines to penetrate the “First Island Chain,” extending from Alaska to the Philippines, during peace time, according to Chinese Rear Admiral Yin Zhuo, cited by state-run People’s Daily. Continue reading

China achieves breakthrough in pulse weapons technology

China has achieved a technological breakthrough that could help introduce pulse weapons to the People’s Liberation Army’s arsenal, reports the Global Times, a tabloid under the auspices of the Communist Party mouthpiece People’s Daily.

According to the report, the Xian Institute of Optics and Precision Mechanics of the Chinese Academy of Sciences has successfully developed a third-generation X-ray pulsar simulation source. The technology, which can create an X-ray pulsar source in X-ray tubes to generate arbitrary waveform pulses, officially passed evaluation tests on Jan. 17. Continue reading

China’s 2nd aircraft carrier nears construction phase: report

The construction of China’s second aircraft carrier appears to be imminent, reports the Global Times, a tabloid under the auspices of the Communist Party mouthpiece People’s Daily.

On Saturday, the official microblog of the Changzhou city government in east China’s Jiangsu province posted that a local company, Jiangsu Shangshang Cable Group, has won a tender to supply cabling for “China’s second aircraft carrier.” Continue reading

US ‘may pull back to central Pacific’ due to China’s DF-21 missile

After all the technology the Clintons had given the Chinese during their tenure, it shouldn’t come as a surprise. America even trained the PLAAF for combat readiness on American soil, sold them super computer technology for nuclear weapons labs that has helped them build the nuclear weapons they have today.

 

Erich Shih, a military expert from Taiwan, says the United States may withdraw its forces from the Pacific First Island Chain–which stretches from Alaska to the Philippines–to the Second Island Chain in the central Pacific as China’s expands its force projection capability, according to the People’s Daily. Continue reading

Japan upset as Chinese paper prints mushroom clouds on map

TOKYO/BEIJING (Reuters) – Japan on Tuesday vowed to make a stern protest to China after a regional Chinese newspaper printed a map of the country with mushroom clouds hovering over the cities of Hiroshima and Nagasaki and accused the Japanese of wanting war again.

The neighbours have a long history of tense relations. Beijing bristles at Japan’s inability to properly atone for its invasion of China before and during World War Two, and its occupation of large parts of the country.

The newspaper, the weekly Chongqing Youth News from the southwestern city of Chongqing, printed the picture in its latest edition, Chinese media reported, though it appeared later to have been removed from the paper’s website version. Continue reading

PLA completes next-gen nuclear submarine tests in S China Sea

The People’s Liberation Army Navy has successfully completed its first organized tests of China’s new generation of nuclear submarines, reports the Communist Party mouthpiece People’s Daily.

“Our country’s new generation of underwater weapons and equipment carries the dream of a powerful national military,” said Fei Zhigang, director of the research unit. “No matter how much risk it puts us under, it’s worth it!” Continue reading

China Revamping Its Military To Increase Battle-Readiness

Vice Chairman of the Central Military Commission Xu Qiliang wrote a piece in People’s Daily (Chinese) clarifying how the military would enact reforms in the wake of the Third Plenum. The fundamental goal is to increase the efficiency and battle-readiness of the military. According to Xu, there is still a large gap between China’s military and the world’s leading military (presumably a reference to the United States). Major goals of the reforms include fully bringing China’s military into the information age, revamping the command system for joint combat, and reforming the leadership structure. Continue reading

Radio Silence

Pentagon, State Department silent on threatening reports outlining Chinese plans for nuclear attacks on U.S. cities

State Department spokeswoman Marie Harf and Pentagon spokeswoman Cynthia Smith would not respond when asked about the highly unusual Chinese reports published Oct. 28 in numerous major Communist Party-controlled television and newspaper outlets.

The Chinese reports included maps showing nuclear strikes on Los Angeles and the Pacific Northwest, along with the resulting radiation plumes stretching thousands of miles across the western United States. Continue reading