"...all due respect, you got no f*****g idea what it's like to be Number One. Every decision you make affects every facet of every other f*****g thing. It's too much to deal with almost"
- Tony Soprano
Last week while the US stock market debated Bernanke's "taper" of QE comments, the rest of us celebrated our Independence Day Of course, there was more things taking place in the world news that test some one's conviction like more unrest in Egypt, a possible financial crisis in Portugal, continuing civil war in Syria and this tidbit: the People's Bank of China(PBOC) has had it with its various regional banks. The central bank stated over a year ago that it would not guarantee regional banking transactions in an attempt to slow down the use of credit resulting in over building of malls, apartments and offices. Apparently, this memo fell on deaf ears as there was the largest spike in short term notes to $1trillion yuan or $163B in dollars. This credit does not show up on bank's balance statements and used by banks in poor financial condition to hide shortfalls in cash which was the Lehman MO before it died.
Contrary to Bernanke's Fed who likes to talk to the market, the PBOC placed strict limits on short term credit which caused a spike in rates on these Chinese financial transactions. The central bank didn't blink and whether the message was received only time will tell because this is a time bomb with nuclear financial destruction written all over it. There are over one million new apartments that have not turned on the electric meter because no one lives in them. That is unbelieveable!
Liars and Crooks: President Obama said that he will delay the company mandate in his Affordable Care Act until 2015 in order to give companies time to adjust. Yeah, right! Instead of a nation of part time workers in 2014, we will have time to seek that second part time job before 2015 as the economy improves or we collect food stamps.
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