THE GREATEST THREAT AMERICA HAS EVER FACED IS THE DEMOCRAT PARTY! I can no longer remain in today’s Dem Party that is now under the complete control of an elitist cabal of warmongers driven by cowardly wokeness, who divide us by racializing every issue and stoke anti-white racism, actively work to undermine our God-given freedoms, are hostile to people of faith, demonize the police, and protect criminals at the expense of law-abiding Americans, believe in open borders. TULSI GABBARD
Monday, November 26, 2018
AT THE BRINK - CHINESE COMPANIES DOLLAR DEBTS REACH TIPPING POINT
$ERVANT OF RED CHINA FOR RAW CA$H, $ENATOR FEIN$TEIN’S DRIVER IS A $PY FOR HER CHINE$E PAYMA$TER$!
“All in all, it was an incredible victory for the Chinese government. Feinstein has done more for Red China than other any serving U.S. politician. “ Trevor Loudon
A NATION DIES OF OPIOID
ADDICTION
AMERICAN BIG PHARMA,
RED CHINA and NARCOMEX PARTNER FOR THE BIG BUCKS
“The drug epidemic is the product of capitalism and the
policies of the capitalist parties, both Democrats and
Republicans. There is, first of all, the role of the pharmaceutical
companies, which have amassed huge profits from the
deceptive marketing of opioid pain killers, which they claimed were
not addictive. Prescriptions for opioids such as Percocet, Oxycontin
and Vicodin skyrocketed from 76 million in 1991 to nearly 259 million in
2012. What are the numbers and profits now?
Residential
developments are seen in Tianjin City May 10, 2018. (Fred Dufour/AFP/Getty
Images)
Chinese Companies’ Dollar Debts Reach
Tipping Point
Domestic debt has long been an
issue for the Chinese economy. But one particular corner of the debt
market—dollar-denominated debt issued by Chinese companies—looks increasingly
in danger of collapse.
Several factors are
contributing to the rising risk of default. Rising interest rates, a declining
Chinese currency, the ongoing U.S.–China trade dispute, and fast-approaching
maturities are causing experts to sound the alarm.
“We will be talking about a major
financial crisis—a dollar debt crisis,” Daiwa Capital Markets’ Kevin Lai told
the South China Morning Post. Lai is the securities firm’s chief economist for
Asia (excluding Japan).
There’s $3 trillion in
outstanding dollar-denominated debt issued by Chinese companies, Daiwa
estimates; most was issued by subsidiaries of Chinese companies in Singapore or
Hong Kong.
So why did China Inc. issue so
much dollar debt?
For one, it’s become difficult
in recent years for Chinese private companies to issue onshore debt, due to
Beijing’s crackdown on leverage. In addition, issuing dollar-denominated debt
opens up a whole new group of buyers—foreign investors. Offshore dollar debt
also offered companies lower yields than onshore yuan debt. Lastly,
dollar-denominated debt is simply easier to use to fund foreign-asset purchases
and bypasses Beijing’s capital-flow restrictions.
Increasing Defaults
Defaults on dollar-denominated
Chinese bonds stood at $3.4 billion in the first 10 months of this year,
Japanese investment bank Nomura wrote in a research note earlier this month,
according to CNBC. In 2017, no dollar bond
defaults had been recorded through October.
Nomura expects more defaults
going forward “against a backdrop of weakening domestic demand, rising credit
defaults, a depreciating RMB and Fed rate hikes.”
This is because more bonds are
coming due. About $33.3 billion in dollar-denominated Chinese bonds are
expected to mature each quarter through the end of 2020, which is a much higher
pace than the $11 billion in maturities through Q3 this year.
Multitude of Risks
Chinese companies had valid
reasons to issue dollar debt: It was inexpensive, and companies enjoyed a good
spread between low-cost debt and high-yielding yuan assets, especially when the
Chinese real estate market was still hot. It also made sense when the
dollar-yuan exchange rate was largely stable. But issuing debt in a foreign currency is difficult
to manage and requires complex hedging.
Given that the yuan has fallen
about 6 percent against the dollar year-to-date, Chinese companies with dollar
debt will be at a disadvantage.
For example, a $100 million
bond paying an 8 percent coupon cost a Chinese company 52.8 million yuan in
annual interest when the USD–CNY exchange rate was 6.6. If the yuan weakens by
6 percent against the dollar, however, then the annual interest cost would
increase by 3 million yuan to almost 56 million yuan per year.
In essence, interest costs have
risen for Chinese companies at a time when the domestic economy is sputtering
and an ongoing trade war is hurting revenues.
And such context is important.
A strengthening dollar on its own isn’t an issue, but foreign exchange
headwinds have become another pain point for Chinese companies already facing
mounting domestic debt. The problem
is especially acute for Chinese property developers, which have gorged on
debt—both in dollars and yuan—in recent years. But the industry is facing a
high so-called “maturity wall,” or debt becoming due, in 2019.
Data from Dealogic shows that
385 billion yuan ($55 billion) of local-currency debt and $15 billion of dollar
debt will come due next year for Chinese property developers, according to a
Financial Times report.
But refinancing, which is
likely the only option for most developers besides defaulting, has become
increasingly difficult and costly.
In past years, property
developers were able to tap into funding through the shadow banking industry.
But recent crackdowns by Beijing have eliminated most options there.
Capital market funding costs
have gone up in recent issuances. Bloomberg data has shown that yields on
Chinese below-investment-grade borrowers have reached 4-year highs. Last week,
Times China Holdings Ltd. and Hengda Real Estate Group Co. both priced two-year
dollar offerings at an eye-wateringly high rate of 11 percent.
U.S. Trade Update: China Has Failed to Modify ‘Unfair’ Trade Practices
A report from the U.S. Trade Representative’s (USTR) office released this week found that China has failed to fundamentally alter its market-distorting trade practices.
The USTR Office released the most recent update on the results of a 301 investigation into China’s trade practices this week. The report covered China’s “acts, policies and practices related to technology transfer, intellectual property and innovation.”
“We completed this update as part of this Administration’s strengthened monitoring and enforcement effort,” U.S. Trade Representative Robert Lighthizer said. “This update shows that China has not fundamentally altered its unfair, unreasonable, and market-distorting practices that were the subject of the March 2018 report on our Section 301 investigation.”
The report details China’s use of various tools “to regulate or intervene in U.S. companies’ operations in China in order to require or pressure the transfer of technologies and intellectual property to Chinese companies.” Chinese officials employ methods that restrict transparency and pressure firms on technology transfer.
“Despite the relaxation of some foreign ownership restrictions and certain other incremental changes in 2018, China’s acts, policies, and practices related to forced technology transfer in China persist,” the report states. One section is dedicated to the volume of concerns levied from U.S. and foreign companies and U.S. trading partners.
The USTR report can be viewed in full on a USTR webpage.
Michelle Moons is a White House Correspondent for Breitbart News — follow on Twitter @MichelleDiana and Facebook.
A NATION DIES OF OPIOID ADDICTION
AMERICAN BIG PHARMA, RED CHINA and NARCOMEX PARTNER FOR THE BIG BUCKS
“The drug epidemic is the product of capitalism and the policies of the capitalist parties, both Democrats and Republicans. There is, first of all, the role of the pharmaceutical companies, which have amassed huge profits from the deceptive marketing of opioid pain killers, which they claimed were not addictive. Prescriptions for opioids such as Percocet, Oxycontin and Vicodin skyrocketed from 76 million in 1991 to nearly 259 million in 2012. What are the numbers and profits now?
OPIOID AMERICA: CHINA AND MEXICO PARTNER TO ADDICT AMERICA
American middle-class is addicted, poor, jobless and suicidal…. Thank the corrupt government for surrendering our borders to 40 million looting Mexicans and then handing the bills to middle America?
Blum has long handed out bribes in the form of “campaign contributions” to other corrupt Democrat politicians so they keep their mouths shut about the staggering corruption that has profitably followed Feinstein from day one!
*
“Our entire crony capitalist system, Democrat and Republican alike, has become a kleptocracy approaching par with third-world hell-holes. This is the way a great country is raided by its elite.” ---- Karen McQuillan THEAMERICAN THINKER.com
WAR ON THE AMERICA WORKER: FEINSTEIN, PELOSI, OBAMA, and the CLINTON CRIME DUAL
“Senator Dianne Feinstein warned, at the time, they had to solve this crisis now—of immigrants coming in illegally and getting these jobs.”
“The Democrats had abandoned their working-class base to chase what they pretended was a racial group when what they were actually chasing was the momentum of unlimited migration”. DANIEL GREENFIELD / FRONT PAGE MAGAZINE
BLOG: FEINSTEIN IS AN ADVOCATE OF AMNESTY, OPEN BORDERS AND NO E-VERIFY TO KEEP WAGES DEPRESSED. THERE ARE 15 MILLION LOOTING MEXICANS IN HER STATE OF CA.
"Ask Jeff Sessions about the charges. Money was flowing into the Clinton Foundation from all over the world, disguised, rerouted through a Canadian charity, all to obscure its origins."
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