Neubarth
At the Ballpark July 30th
My speculation has it that the Chinese economic recovery is all smoke and mirrors. Sure their factories started making product, and sure their people were put back to work when a hundred million had minimal or no jobs, and sure their stock market soared and soared and soared......
BUT, they are not shipping product! Look at the shipping indexes. It ain't happening, folks!
If they are not shipping product, it has to be building up in the warehouses, and/or they are trying to ramp up domestic consumption. I think the pretend house of cards is about to come tumbling down. With them comes the rest of us. They played "Pretend Recovery." Now the world will have to face reality.
China just said that they are not going to honor any underwater derivative contracts on commodities. Why would they renege on commodity contracts if they are doing so fine in their recovery? The thought occured to me that it might just be posturing and a threat to Amercian banks that sell these derivative contracts, but taken in context with the reality of the lack of shipping, I think it bespeaks of something far more odious happening behind the scenes in China.
Could the whole world house of cards be ready to tumble?
BUT, they are not shipping product! Look at the shipping indexes. It ain't happening, folks!
If they are not shipping product, it has to be building up in the warehouses, and/or they are trying to ramp up domestic consumption. I think the pretend house of cards is about to come tumbling down. With them comes the rest of us. They played "Pretend Recovery." Now the world will have to face reality.
China just said that they are not going to honor any underwater derivative contracts on commodities. Why would they renege on commodity contracts if they are doing so fine in their recovery? The thought occured to me that it might just be posturing and a threat to Amercian banks that sell these derivative contracts, but taken in context with the reality of the lack of shipping, I think it bespeaks of something far more odious happening behind the scenes in China.
Could the whole world house of cards be ready to tumble?
