2016 – US dollar warning : the beautiful isolation of the « global reference currency »

Note for our readers — Following our monetary research work under the form of a surveillance of several months, our team is worried again about the US dollar. After a calming two year time, the dollar is heckled again within today’s new multi monetary world. Surprised by the conclusions of its own analyses, presented here below exclusively to you, our team of experts wishes to warn you, the GEAB readers, about the possible danger threatening the dollar. 2016 could very well be the year when the dollar wall will fall…

To explain the current financial turmoil, all official accusing fingers are pointing to a single guilty party: China, the ideal guilty player, the same way Greece and the euro currency were at their time. It is true that evidence seems to be on the side of those accusing fingers, due to the recently unstable Shanghai stock market and its low values. Continue reading

Chinese stock markets plan ‘circuit breakers’ against volatility

Chinese stock markets have proposed “circuit breakers” to freeze trading if stocks rise or fall too fast, after recent fluctuations on its bourses [sic] spooked global markets, a news report said Tuesday, dpa reports.

The Shanghai and Shanzhen exchanges would see trading stopped for 30 minutes if a key index rises or falls by 5 per cent within a day.

An intra-day change of 7 per cent would cause trading to be stopped for the rest of the day, the South China Morning Post reported, citing the exchanges. Continue reading

Bank of America warns of ‘lethal’ damage to China’s financial system as deflation deepens

‘Deflation, Devaluation, and Default’ loom in China this year. The denouement for Shanghai’s bourse will not be pretty, says the US bank.

China is at mounting risk of a financial crisis this year as growth sputters and deflationary pressures trigger a wave of defaults, Bank of America has warned.

The US lender told clients that a confluence of forces are coming together that threaten to chill the speculative mania on the Shanghai stock exchange and to expose the underlying fragility of China’s $26 trillion edifice of debt.

“A credit crunch is highly probable,” said the bank in a report entitled “Deflation, Devaluation, and Default”, written by David Cui and Tracy Tian.

Continue reading

State-backed China Shipbuilding to raise $1.4 billion for naval buildup

(Reuters) – State-backed China Shipbuilding Industry (601989.SS) plans to raise up to $1.4 billion through a private share sale to buy assets used for building warships, the first time Beijing is tapping the capital market to fund its military expansion.

The move comes as China creates its own military-industrial complex, with the private sector seen taking a key role, as the country gains a new sense of military assertiveness and deals with a growing budget to develop modern equipment including aircraft carriers and drones. Continue reading