China; "Giant Ponzi Scheme" that will CRASH!

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CCP CHINA in DECLINE

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Jun 25, 2013
 

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China’s “Giant Ponzi Scheme” Won’t End Well: Jim Rickards

..By Aaron Task | Daily Ticker – 2 hours 54 minutes ago...

The fever in China’s financial system seems to have broken overnight, bringing relief to global markets -- at least for the moment.

In overnight trading, the Shanghai Composite ended down just 0.2% after falling nearly 6% intraday. Meanwhile, the overnight repurchase rate – a key measure of interbank lending in China– fell 47 basis points to 6% after hitting a record 12.85% on June 20, Bloomberg reports. Global assets rallied in reaction following steep declines in recent days: Major European bourses rose more than 1% Tuesday and U.S. proxies were up 0.5% in recent trading.

Related: China Slowdown Now a Clear & Present Danger

Traders took solace in comments from Ling Tao, a deputy director of the Shanghai branch of the People's Bank of China, who attributed the recent spike in interbank lending rates to “seasonal factors” and said: "We will continue to closely monitor changes in liquidity in the interbank market…and we will step up communication with the market to stabilize expectations and guide market interest rates into a reasonable range."

Tao’s comments may signal the end of the recent scare but by no means indicate that China’s banking system is on the road to recovery, according to Jim Rickards, senior managing director at Tangent Capital and author of Currency Wars.

Related: China’s Credit Bubble About to Implode: Fitch Analyst

“It’s a giant Ponzi scheme,” Rickards says of the wealth management products being marketed by Chinese trust companies.“There’s a lot to be concerned about.”

In a nutshell, the ‘shadow’ banks borrow from China’s state-controlled banks, use the funds to finance construction projects and sell bonds tied to those projects with yields far above bank savings rates.

“The Ponzi scheme is going on with retail investors…they don’t want 1% or 2% in the bank or even less,” Rickards explains.“The quasi banks come along and say ‘we’ll give you 6%-7%-8%.’ They take the money, invest in these assets that are completely non-productive [with] no way to be able to pay off the debt.”

Related: Don’t Look at Bernanke, China Is Driving This Meltdown

In true Ponzi scheme fashion, the key here is that the shadow banks use the proceeds from the latest asset sale to pay off investors from prior ventures.“They never sell the assets,” Rickards says.“They sell [new] products and use that money to pay off the old guys.”

China’s leadership is well aware of this problem, he adds, which explains why they’ve recently stood by as the spike in interbank lending rates caused a cash crunch and accompanying market freakout.

Watch the accompanying video to hear Rickards’ prediction on how long China’s Ponzi scheme can last and why he says “there’s no good outcome.”
CCP CHINA in DECLINE

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Jun 25, 2013
 

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“there’s no good outcome.”
CCP CHINA in DECLINE

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Jun 25, 2013
 

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“The Ponzi scheme is going on with retail investors…they don’t want 1% or 2% in the bank or even less,” Rickards explains.“The quasi banks come along and say ‘we’ll give you 6%-7%-8%.’ They take the money, invest in these assets that are completely non-productive [with] no way to be able to pay off the debt.”

Just like any other ponzi scheme, they will be totally wiped out!
OVERTHROW the CCP PIGS

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Jun 25, 2013
 

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"In true Ponzi scheme fashion, the key here is that the shadow banks use the proceeds from the latest asset sale to pay off investors from prior ventures.“They never sell the assets,” Rickards says.“They sell [new] products and use that money to pay off the old guys.”"

And when the SUCKERS stop "investing" the whole thing COLLAPSES!
OVERTHROW the CCP PIGS

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Jun 25, 2013
 

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...and the SUCKERS are getting wise now, and nobody is investing in China anymore, and those who did will inevitably lose their capital.

That's the way Ponzi Schemes ALWAYS end!
CCP CHINA in DECLINE

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Jun 26, 2013
 

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What IS a Ponzi Scheme, you may ask?

A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation. The Ponzi scheme usually entices new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. Perpetuation of the high returns requires an ever-increasing flow of money from new investors to keep the scheme going.[1]

The scheme is named after Charles Ponzi,[2] who became notorious for using the technique in 1920.[3] Ponzi did not invent the scheme (for example, Charles Dickens' 1844 novel Martin Chuzzlewit and 1857 novel Little Dorrit each described such a scheme),[4] but his operation took in so much money that it was the first to become known throughout the United States. Ponzi's original scheme was based on the arbitrage of international reply coupons for postage stamps; however, he soon diverted investors' money to make payments to earlier investors and himself.

from wiki
OVERTHROW the CCP PIGS

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Jun 26, 2013
 

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As is becoming increasingly clear, CCP China is just a big Ponzi Scheme!

Get your cash OUT before it crashes!
OVERTHROW the CCP PIGS

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#10
Jun 26, 2013
 
Hurry!
The CCP is DYING

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#11
Jun 27, 2013
 
People in China are withdrawing their cash and exchanging it for foreign currency, or buying gold now.
The CCP is DYING

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#12
Jun 27, 2013
 
There's a good summary of OTHER Ponzi Schemes here:

http://en.wikipedia.org/wiki/List_of_Ponzi_sc...
CCP CHINA in DECLINE

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#13
Jul 8, 2013
 
The markets are collapsing in China again today.

Nobody wants to put money into an obviously collapsing Ponzi scheme!
CCP CHINA in DECLINE

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#14
Aug 13, 2013
 
Update on the doomed CCP China Ponzi scheme here:

http://www.marketwatch.com/story/revisiting-c...
CCP CHINA in DECLINE

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#15
Aug 13, 2013
 
Primitive barter arrangements are becoming the norm as the CCP China banks fail.....

12 August 2013 Last updated at 10:23 ET

China: Property debts 'repaid with alcohol'

Ordos was dubbed "the biggest ghost town in China" thanks to its many imposing apartment blocks which remain unsold and empty. They were built to accommodate hundreds of thousands of people, as local authorities - made rich by the region's coal production - sought to cash in on China's construction boom. Many citizens who'd speculated on the property market were left with massive debts. But some are finding innovative ways of getting back into the black, according to Taiwan's Want China Times.

It spoke to one businessman who claimed to have repaid 2m yuan (£210,000) in debts using the Chinese spirit baijiu, which he'd got hold of by bartering a car with a liquor factory manager in Sichuan province. Creditors were initially reluctant to accept alcohol as payment, until they found they could use it to repay their own debts, the paper suggests. It says distillers have also been cashing in by offering baijiu in exchange for property, which is then converted into cash by selling them at half-price.
ASIAN LATIN AFRO MID EAST

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#16
Aug 13, 2013
 
US is world biggest banking Ponzi Schemers! JAJJAJAJJAA

The US Fiat Dollar Ponzi Scheme: Digital Money Used to …
globalresearch.ca/the-us-fiat- dollar-ponzi-scheme-digital-mo ney...

In the Hoisington Quarterly Review and Outlook (First Quarter 2013), Dr. Lacy Hunt wrote and we quote:“The Federal Reserve is printing money.
Biggest Ponzi Scheme
www.biggestponzischeme.com

Biggest Ponzi Scheme in US, a Warning of the Most Devastating Event to hit America since Great Depression!
The 10 Nastiest Ponzi Schemes Ever - Business Pundit: Your …
www.businesspundit.com/the-10-nastiest-ponzi-...

Ponzi schemes popped up all over Haiti in the early 2000′s.... since the US GDP historically grows at 3-4%, is to continuously lure in fresh suckers.
US Economy Giant Ponzi Scheme - Yahoo! Voices -…
voices.yahoo.com/us-economy-giant-ponzi-schem...

Jan 10, 2009 · Satirical look at the economic crisis ... Bernard Madoff and the 50 Billion Dollar Ponzi Scheme Bernard Madoff, former NASDAQ stock exchange chairman,…
Shattering the American dream: The US government’s Ponzi scheme ...
www.voxeu.org/article/shattering-american-dre... ...

Shattering the American dream: The US government’s Ponzi scheme . Richard Evans, Laurence J. Kotlikoff, Kerk L. Phillips, 4 May 2012
ASIAN LATIN AFRO MID EAST

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#17
Aug 13, 2013
 
Biggest Ponzi Scheme
www.biggestponzischeme.com

Biggest Ponzi Scheme in US, a Warning of the Most Devastating Event to hit America since Great Depression!
Biggest Ponzi Scheme - Gold Investment
1goldinvestment.com/biggest-ponzi-scheme

And Thus Began the Biggest. Ponzi Scheme Recorded in History!... The Dollar Doomsday Guide: How to Make a Killing as the American Ponzi Scheme Collapses;
West fascist world worst

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#18
Aug 13, 2013
 
The Biggest Ponzi Scheme In The History Of The World
theeconomiccollapseblog.com/archives/the-bigg... ...

America: Where Hard Working, Productive Members Of Society Pay For The Health Care Of Everyone Else; ... The biggest Ponzi scheme in the history of the world. g.
Calhoun Times - America s biggest ponzi schemers

calhountimes.com 10 days ago

Aug 03, 2013 · America’s biggest ponzi schemers - When it comes to Ponzi schemers Bernie Madoff and Lou Pearlman are rank amatures when …

List of Ponzi schemes - Wikipedia, the free encyclopedia
en.wikipedia.org/wiki/List_of_Ponzi_schemes

Most of the clientele were American and Canadian retirees but some Costa Ricans also ... This made Zeek Rewards the largest ponzi scheme in history by number of ...
CCP CHINA in DECLINE

Port Moody, Canada

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#20
Aug 13, 2013
 
"In true Ponzi scheme fashion, the key here is that the shadow banks use the proceeds from the latest asset sale to pay off investors from prior ventures.“They never sell the assets,” Rickards says.“They sell [new] products and use that money to pay off the old guys.”"

And when the SUCKERS stop "investing" the whole thing COLLAPSES!
CCP CHINA in DECLINE

Port Moody, Canada

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#21
Sep 6, 2013
 
Won't be long now!

The signs of the coming collapse are EVERYWHERE in CCP China!

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