Finally Good News

…from the quill of Antisthenes

 

1. China’s National Audit Office in its diligent audit of the nation economy managed to miss 3 trillion yuan (a mere US$473 billion)* apparently all on its own, without help from the Goldman Sachs consultants. The amount represents a debt by local authorities. The Chinese auditors are now in great demand all over the world and the end of financial troubles is in sight.

2. Cosco, China’s biggest shipping firm came under more fire for withholding payments for vessels it had chartered, as it haggles for cheaper rates. The boss of Baltic Exchange called on Cosco to honour its contracts, but if the Chinese hold firm in a true red Maoist tradition and do not pay, Australians could be buying even cheaper toys this Christmas.

3. An as yet unconfirmed rumour has it that following successful careers, two world famous financial wizards are now ready to offer their services to the public; their previous engagements terminated by a few disgruntled clients. The firm of Berlusconi&Papadopulos Prudential N.L. is just about ready to advise clients how to follow in their footsteps to prosperity and even further. Only bigger, still relatively solvent countries to apply.

Additional partners with proven record are being head-hunted for the soon to be booming firm. At the moment it seems to be a toss between Australian Prime Minister Julia Gillard and Chinese Peoples’ Republic Ever Helpful Assistant Treasurer Wayne Swan. Another fiscal genius, known only by his initials ‘bho’ apparently took a deferred option since he has a large sandpit of his own and there is still some sand left.

4. As Europrotektors are being sought to save penniless bankers of Europe, Goldman Sachs International Adviser Mario Monti has been appointed as such for the area formerly known as Italy. More Goldman Sachs experts are readying themselves to save Euro Free Fall Zone. George Soros expressed interest in Hungary, but another contender of similar background awaits in the Champ Elysees wings.

2 + 2 = 7

*/ Beijing Fost Economic Consulting

About Antisthenes

A Greek philosopher, a pupil of Socrates. Led a revolt, with Diogenes, against the demands of the city-state and the sophistication of life. Accepted the interrelation of knowledge, virtue, and happiness; and sought the ideal condition for happiness in return to primitivism and self-sufficiency. Rejected all social distinctions as based on convention, scorned orthodox religion as a fabrication of lies, and studied early legends and animal life in order to arrive at a true understanding of natural law. The individual was free and self-sufficient when he was master of his passions, secure in his intelligence, impervious to social or religious demands, and satisfied with the poverty of a mendicant. Needless to say, a person who on the Fog of Chaos adopted the Athenian philosopher's name has nothing whatsoever in common with him.
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5 Responses to Finally Good News

  1. rosencrantz says:

    Re item 1 – So 3 trillion is only 1/12 of the total. No big deal in gigaeconomics of XXI century. From Andrew Bolt’s blog:

    A Chinese academic and well-known Chinese TV personality says China is on the edge of a crash:
    Larry Lang (Xianping), chair professor of Finance at the Chinese University of Hong Kong, said in a lecture that he didn’t think was being recorded that the Chinese regime is in a serious economic crisis—on the brink of bankruptcy. In his memorable formulation: every province in China is Greece.
    The restrictions Lang placed on the Oct. 22 speech in Shenyang City, in northern China’s Liaoning Province, included no audio or video recording, and no media…
    Lang’s assessment that the regime is bankrupt was based on five conjectures.
    Firstly, that the regime’s debt sits at about 36 trillion yuan (US$5.68 trillion). This calculation is arrived at by adding up Chinese local government debt (between 16 trillion and 19.5 trillion yuan, or US$2.5 trillion and US$3 trillion), and the debt owed by state-owned enterprises (another 16 trillion, he said). But with interest of two trillion per year, he thinks things will unravel quickly.
    Secondly, that the regime’s officially published inflation rate of 6.2 percent is fabricated. The real inflation rate is 16 percent, according to Lang.
    Thirdly, that there is serious excess capacity in the economy, and that private consumption is only 30 percent of economic activity. Lang said that beginning this July, the Purchasing Managers Index, a measure of the manufacturing industry, plunged to a new low of 50.7. This is an indication, in his view, that China’s economy is in recession.
    Fourthly, that the regime’s officially published GDP of 9 percent is also fabricated. According to Lang’s data, China’s GDP has decreased 10 percent. He said that the bloated figures come from the dramatic increase in infrastructure construction, including real estate development, railways, and highways each year (accounting for up to 70 percent of GDP in 2010).

  2. taurus says:

    Chinese century of collapse of commerce? So here we go again, and again the warning will be ignored by our very wise betters:

    “To keep its growth model sustainable in the longer term, China faces a huge domestic reform agenda,” Australian Treasury Secretary Martin Parkinson told a conference at Peking University this week….
    “In 1980, investment accounted for around 35 per cent of Chinese GDP, and private consumption around 50 per cent. By 2010, these numbers had effectively swapped: consumption 34 per cent of GDP, investment 49 per cent. No other successful economy has been so reliant on exports and investment to drive growth.”…
    Xiang Songzuo, deputy director of the Centre for International Monetary Research at Renmin University, said: “I’ve just finished a survey trip to Guangdong and Zhejiang provinces, the two major export provinces of China. The survey shows that exports to Europe and US, especially to Europe, have decreased dramatically, particularly with light industry, including toys, clothes and fabrics; a 20 per cent decrease might be seen until the end of this year or the beginning of 2012.
    “Other sectors like machinery, electronics and cooking utensils are all affected by the lowered demand from Europe…
    He predicted there could be severe consequences. “Local governments will face financial difficulties, increased unemployment, then social instability.”
    This week, there have already been unusually large-scale protests in Guangzhou and many such disturbances go unreported in China’s tightly controlled state-run press.

  3. A Hard Landing to be sure. Or I will therefore swear that central planning works.

  4. Mariya says:

    I had been waiting a very long time.

  5. Dra Culla says:

    So sad!

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