Saturday, November 30, 2019

China Enters Economic Chaos as Another Massive State Owned Enterprise is Defaulting !!









An important Chinese State-owned enterprise is collapsing; as are multiple Chinese banks. China’s banking sector is showing signs of strain, with more than 13% of 4,379 lenders now considered “high risk” by the central bank. Something is starting to severely crack in China's financial system. Only three days after we posted a video about the self-destructive doom loop that is lacerating China's smaller banks, where a second bank run occurred in just two weeks - an unparalleled event for a country where up toearlier this year not a single bank was allowed to fail publicly and has so far this year no less than five banks high profile nationalizations/bailouts/runs . China is facing the biggest state-firm offshore debt failure in 20 years.China Braces For December D-Day: The unparalleled and Unprecedented Default Of A Massive State-Owned Enterprise. Tewoo , a major Chinese commodity trader, looks poised to become the most high-profile state-owned enterprise (SOE) to default in the US dollar bond market in over two decades. In a fresh sign that Beijing is more willing to allow failures in the politically sensitive SOE sector, Tewoo Group has offered an unparalleled debt restructuring plan that implies deep losses for investors or a trade for new bonds with considerably lower returns. Commodity giant Tewoo Group reportedly could become one of China's all-time high profiled state-owned enterprises to default on a U.S. dollar bond. «Tewoo Group is very likely to default on its 300 million US dollar bond due December 16 » Bloomberg said in a report citing unnamed buy-side sources linked to the firm’s offshore debt manager. Tianjin-based Tewoo has businesses in infrastructure, logistics, mining, autos, and ports, its website said, with presence in the U.S., Germany, Japan, and Singapore. In 2017, the unlisted firm reportedly generated an annual revenue of $66.6 billion and housed more than 17,000 employees. Dollar bonds? It’s the FEDs problem then. This is HUGE! Welcome to Atlantis Report. Tianjin-based Tewoo Group Co is owned by the local government and operates in a number of industries, particularly as regards of infrastructure, logistics, mining, autos, and ports, as reported by its website. It also has footprints in countries, including the US, Germany, Japan, and Singapore. The trader ranked 132 in 2018's Fortune Global 500 list, higher than many other conglomerates, including service carrier China Telecommunications Corp and financial titan Citic Group Corp. It had an annual revenue of US$66.6 billion, profits of about US$122 million, assets worth US$38.3 billion, and more than 17,000 employees as of 2017, according to Fortune's website. Sixty-six billion in revenue but only 122 million in profits ; something is wrong. The loans are all US dollar loans, so it's America's problem. All companies in China are state owned. They get a 51% stake in everything. People are better off not working for the state and just growing their own food, and staying at home, let the government starve. Make them come and take 51% of your rice. The firm is neither listed on any stock exchange nor rated by the top three international rating companies. Tewoo Group's financial difficulties came to the fore in April when it sought debt extension from its lenders and sold copper below market rates amid a cash crunch. That month, Fitch Ratings slashed the company's credit score by six notches in one go to B- to reflect its weak liquidity and higher-than-expected leverage. Tewoo's likely default suggests that Beijing is finding it increasingly hard to bail out troubled SOEs, let alone private firms, after the worst economic slowdown in three decades. It also heightens issues over Tianjin, where it's based, following a series of rating downgrades and financing difficulties endured by some of the city's state-run firms. The metropolis near Beijing also has the topmost ratio of local government financing vehicle bonds to GDP in China. Investors anticipate high debt levels to limit the Tianjin authorities' capacity to lend support to the city's distressed firms, inducing them to reject the latter's debt. Tianjin Binhai New Area Construction & Investment Group Co postponed plans to sell a three-year dollar bond offering in July amid such concern. While bond defaults in China's local market are approaching the record level high last year, there have been relatively fewer missed payments offshore. Fitch withdrew its rating on Tewoo Group in July due to insufficient information to maintain the ratings. It last rated the issuer at B-. Neither S&P Global Ratings nor Moody's Investors Service rates the firm. Bondholders must decide whether to accept the exchange/tender proposal by Dec 9 and 10, respectively, with the settlement date owed on or around Dec 17. Investors are also watching closely to see if Tewoo Group's troubles could cascade to other Tianjin companies. As well as raising concerns over the level of support state firms can expect to receive from Beijing. The Chinese bond market is invigorating itself for an unparalleled shock: a major, Fortune 500 Chinese commodity trader is assured to become the most conspicuous and highest-profile state-owned enterprise to default in the dollar bond market in over two decades. In what Bloomberg labeled the latest sign that Beijing is more prepared to allow failures in the politically delicate State Owned Enterprises sector . Moreover that, or China is just no longer able to monitor the side-effects from its cracking $40 trillion financial system . Commodity trader Tewoo Group ; the largest state-owned enterprise in China's Tianjin province - has offered a record breaking debt restructuring plan that involves deep losses for investors or a trade for new bonds with considerably lower returns. Being state-owned in China no more means being endorsed by the state if the case of a troubled commodities trader is anything to go by. Tewoo Group Corp suggested Friday that investors either endure losses as much as 64% or accept overdue repayment with dramatically reduced coupons on $1.25 billion of dollar bonds. as well as another $1.6 billion worth of bonds lacking such protection, Tewoo subsidiaries have also struggled to make local debt payments, including a missed coupon for a 1.2 billion yuan note in July and another note in June. China is undergoing the worst economic slowdown in three decades, and such events signal a greater willingness by top authorities to allow state-owned enterprises to default – a stark contrast to past assumptions of implicit guarantees. The government is already undergoing additional measures that could ease market stress, including a planned $6 billion U.S. dollar fundraising and multiple cuts to key interest rates. I bet it feels like your walking through a fireworks factory smoking a cigarette in many places in China right now. Trust is the most basic form of money. It is also quickly becoming very rare and difficult to find. It does not matter how secure someone thinks their virtual, fiat, or physical assets are without a great deal of trust in people. Everything shuts down. Another reason that the world economy is facing headwinds from all directions. The complete reorganization of the European car industry, particularly Germany, will have consequences with less employment. Along with BREXIT kiss of death as Britain holding tons of debt paid for by Gulf States (QATAR) under pressure from Iran and Iraq in chaos. All these factors will impact the US economy; a stronger US dollar points to zero US interest rates. This is why China is pushing for the de-dollaring of the world. They want to print their own debt and dump it on the earth like they do with their cheap trinkets. The biggest problem for Red China is the Chinese Communist Party. They have absolutely no clue when it comes to economic issues. They built this monstrosity on debt, and now that banks and businesses are failing, they are like deer in the headlights. Sure, they can bail some out, but what about the debts that reach in all directions. Will other businesses get paid on time by the one that's about to go under. Total China printed local currency equals $37 trillion. Total US currency circulation equals $1.5 trillion. Total Global gold valued equals $7 trillion. China subsidizes everything except real property. The Chinese have painted themselves in a corner. They’ll collapse faster than a happy ending at a Chinese massage parlor. But wait!!! Buy more cheap Chinese crap today with Black Friday's sale prices and help save The Chinese from total despair. The way that China prints are dependent on net exports. Every unit of foreign currency that comes into China is seized by the government, and a proportional amount of Yuan is printed and distributed to the rightful recipient of that foreign currency. If their exports dry up, they can't print anymore. Without those foreign currency reserves, they don't have any cash to shore up their banking system nor to support their corrupt system. This whole thing is about to explode. And this is mere smoke from the fissure. What you will not see until later is how immediate the impact on 1000's of municipalities across China that will no longer get handouts or loans from the CCP. Already an untold number of build-out projects have been halted and left to ruin. A small bank in Austria collapsed in 1929 and led to the Wall Street crash in about two and a half months. In today's fast action systems, the crash from China will take six working days. The Chinese real estate market (bubble) is immense. Prices of investment flats in "empty cities" are dropping like a rock. If that bubble popping triggers a banking collapse by people walking on their second investment home mortgage, it will tube a bunch of "social scores." And, it may trigger the worldwide market and currency reset. If China collapses, how exactly do you think that will play out. The world will probably enter into a new dark age. The global economy would almost certainly collapse without Chinese production and consumption. You would have 1 Billion+ people in chaos. There would be hundreds of millions of people moving around on a continent that already has another billion+ people on it. There would be refugees of all kinds, and the levels of stress on surrounding countries in all ways would lead to a cascading effect of problems and almost certainly regional wars. There would be starvation on a monumental scale that would make Africa look like party planning gone wrong. The consequences would be horrific and far reaching, and if you don't think It would cast America into chaos as well, then you're just not thinking it through. This is HUGE! This was The Atlantis Report. Please Like. Share. And Subscribe. Thank You.











The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

No comments:

Post a Comment

Blog Archive

“Control oil and you control nations; control food and you control the people.” Henry Kissinger


once a standing army is established, in any country, the people lose their liberty.”
George Mason

“Military men are dumb, stupid animals to be used as pawns for foreign policy.”
Henry Kissinger

“If you are an ordinary person, then you can prepare yourself for war by moving to the countryside and building a farm, but you must take guns with you, as the hordes of starving will be roaming. Also, even though the elite will have their safe havens and specialist shelters, they must be just as careful during the war as the ordinary civilians, because their shelters can still be compromised.”
Henry Kissinger

"We don't let them have ideas. Why would we let them have guns?" Joseph Stalin

The people who cast the votes decide nothing. The people who count the votes decide everything.
Joseph Stalin

Governments keep a lot of secrets from their people . . .
Why aren't the people in return allowed to keep secrets
from the government?

PHILIP ZIMMERMAN, DER SPIEGEL

“Some call it Communism, I call it Judaism.”

Rabbi Stephen Weiss

“Anti-Communism is Anti-Semitism.”
Jewish Voice, July - August 1941

Taxing People is Punishing Success
UNKNOWN

There's the rich, the poor, and the tax payers...also known as the middle class. Robert Kiyosaki

The Tax you pay is The Bill for Staying Stupid

Stefan Molyneux


“The modern banking system manufactures money out of nothing. The process is, perhaps, the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and un-mint the modern ledger-entry currency.” Major L L B Angus

The few who understand the system will either be so interested in its profits or so dependent on its favours that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system will bear its burdens without complaint and perhaps without even suspecting that the system is inimical to their interests.
The Rothschild Bros

"Debts must be collected, bonds and mortgages must be foreclosed as rapidly as possible. When, through a process of law, the common people lose their homes they will become more docile and more easily governed through the influence of the strong arm of government, applied by a central power of wealth under control of leading financiers.

This truth is well known among our principal men now engaged in forming an imperialism of Capital to govern the world.

By dividing the voters through the political party system, we can get them to expend their energies in fighting over questions of no importance. Thus by discreet action we can secure for ourselves what has been so well planned and so successfully accomplished."

USA Banker's Magazine, August 25 1924


Cutting Tax Rates stimulates Economic Growth creates more Profit , more Jobs and therefore The Treasury ends up with more Tax Money
UNKNOWN

Taxation is legalized Theft
UNKNOWN

"The Objective of the Bank is not the control of a conflict , it's the control of the debt that a conflict produces . The real value of a conflict , the true value is in the debt that it creates . You control the debt , you control everything . this is THE VERY ESSENCE OF THE BANKING INDUSTRY , to make us all , whether we be nations or individuals , SLAVES TO DEBT " An UNKNOWN Banker

Patriotism is the last refuge... to which the scoundrel clings .... Steal a little and they throw you in jail ..steal a lot and they make you king ....

Bob Dylan


"Corporations are stealing billions in tax breaks, while the confused, screwed citizenry turn on each other. International corporations have no national allegiance, they care only for profit." Robert Reich


There is NO political answer to a spiritual problem!
Steve Quayle


Po
litical Correctness is a Political Stand Point that does not allow Political Opposition , This is actually The Definition of Dictatorship
Gilad Atzmon

The modern definition of racist is someone who is winning an argument with a liberal
Peter Brimelow


When People lose everything and have nothing left to lose , They Lose It !

GERALD CELENTE

Your Greatest Teacher is Your Last Mistake
DAVID ICKE

The one who Controls the Education System , Controls Perception
UNKNOWN

"The world will not be destroyed by those who do evil, but by those who watch them without doing anything."

Albert Einstein

In The Left Nothing is Right & in The Right nothing is Left
UNKNOWN


No man escapes when freedom fails; The best men rot in filthy jails. And those that cried 'Appease! Appease!' Are hanged by those they tried to please
UNKNOWN

Freedom is not Free
UNKNOWN

Don't Steal The Government Hates The Competition

Ron Paul

"Buy The Rumor , Sell The Fact " Peter Schiff


You can love your Country and not your Government

Jesse Ventura


" The Government Works for ME , I do not answer to them They Answer to ME "
Glenn Beck

"Tyranny will Come to Your Door in a Uniform "
Alex Jones

"The Government is not The Solution to our Problems , The Government is The Problem "

Ronald Reagan


"The price good men pay for indifference to public affairs is to be ruled by evil men." Plato


The world is a tragedy to those that feel, and a comedy to those that think...Beppe Grillo

"The people should not fear the government for it is the government who should fear the people" UNKNOWN

"If You are looking for solutions to the world's problems , look in the Mirror , You Are The Solution , You have the power as a human being on this planet " UNKNOWN

"They don't control us , We empower them " UNKNOWN

"Serial Killers do on a Small Scale What Governments do on a large one..."

Serial Killer Richard Ramirez

There is a Class War going on in America, & unfortunately, my class is winning." Warren Buffet

"When the people fear their government, there is tyranny; when the government fears the people, there is liberty."

Thomas Jefferson

"College is a waste of Money"
Albert Einstein

Schools manufacture people who think that they're smart but they're not.
Robert Kiyosaki

Education is what you learn after you leave School
Robert Kiyosaki

" ‏Schools were designed to create employees for the big corporations."
Robert Kiyosaki


"If a law is unjust, a man is not only right to disobey, he is obligated to do so" Thomas Jefferson

Dissent is the highest form of patriotism
Thomas Jefferson

“True education makes you feel stupid. It makes you realize you have so much more to learn.” Robert Kiyosaki


"One day your life will flash before your eyes. Make sure it's worth watching." - Gerard Way

"Aspire not to have More but to be More "
UNKNOWN

The losers in life think they have all the answers. They can’t learn because they’re too busy telling everyone what they know.
Robert T. Kiyosaki ‏

"Failure is simply the opportunity to begin again. -This time more intelligently." Henry Ford

What You Own Owns You
UNKNOWN

If you expect the government to solve your problems, you have a problem. Robert Kiyosaki

"Those who give up their liberty for more security neither deserve liberty nor security." Benjamin Franklin

"None are more hopelessly enslaved than those who falsely believe they are free.” -
Johann Wolfgang von Goethe

"Always trust someone who is seeking the truth , never trust someone who found it" Jordan Maxwell

Be The Change you want to see in The World
UNKNOWN

Failure inspires winners but defeats losers
Robert Kiyosaki ‏

“If you are planning for a year, sow rice; if you are planning for a decade, plant trees; if you are planning for a lifetime, educate people” A Chinese Proverb

"First they came for the Socialists, and I did not speak out--
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out--
Because I was not a Trade Unionist.
Then they came for the Jews, and I did not speak out--
Because I was not a Jew.
Then they came for me--and there was no one left to speak for me." UNKNOWN