Last week Oleg Deripaska revealed his concern over the financialisation of physical aluminium. He called for output cuts, effectively to take the place of funded “dark” inventory, in order to bring the market back to equilibrium.
Then Reuters reported at the weekend that Chinese banks and companies –which had tried to seize commodity collateral which had been pledged for loans, now defaulted upon — had found the metal in question never existed.
But read it all. (h/t Melinda Romanoff)
Bwahahahahaha.
Slightly related, for those of us wanting to prepare for when the $#!t hits the fan.
http://www.myfoxny.com/story/19578206/fake-gold-bars-turn-up-in-manhattan
What a surprise. China, the country that is to take over world economic supremacy, has been defrauded by those multi billionaire industrial tycoons. Anybody could make billions by pledging non-existant collateral for bank loans.
They make Bernie Madoff look like an amatuer.
We always said this was going to happen.
http://blogs.news.com.au/heraldsun/andrewbolt/index.php/heraldsun/comments/yes_theres_a_slippery_slope_and_bernardi_slipped_on_it/
When I hear this kind of stuff, it still gives me a chuckle to think of the parchments found describing the efforts of the emperor Charlemagne to control speculation in wool futures.
Couldn’t happen to a nicer bunch of SOBs.
Here’s the twist.
When the populace finds out they’ve been robbed, whom do you think the Party will blame?
That’s what’s keeping me up at night.
“…whom do you think the Party will blame?”
Posted by: Melinda Romanoff at September 19, 2012 9:36 PM
Uhhhhhhhh, George W.?
Jamie-
Gary Fuller has some ideas of what’s being “aimed”.
Go look at this one.
There’s a bigger bubble in the Middle East, but fewer grandparents and parents to care for.
I wonder if the $30 million of missing maple syrup ever existed.
I think the party, sorry, The Party, is blaming Japan this week. Anyone but themselves.
I wonder if someone mentioned the words inside job in relation to the maple syrup, could they be sued. I guess they could so I will leave it alone.
$30 million of missing maple syrup? Hummmmm.Gotta be a Lieberal/NDPee in there some where,what with all them sticky fingers.
As to the “dark” al-u-min-ium,sounds like the “light” concrete Queerbec de-construction companies prefer to use.
Melinda
Giving or allowing yourself to think other cultures either care or think in the same way as ours has pretty much help lead us to this interesting point in history. The Chinese are and do not act or behave as we do, its a very interesting learning curve to work day to day on ground with ordinary chinese.
They do not broker criticism of themselves or their country Honour is a far more important concept to them than we in the west understand, those that dissent are an almost insignificant minority . Notice that for all the dissent that our media tries to tell us exists in China and is suppressed, look back and see how even some chinese that are assimilated into our culture still turn out to support the homeland.
I’m not making a huge case against your comment but just advising caution on reaching a conclusion based on “human nature” as understood by an indigenous western society
DSV-
You assume much about me and my sense of direction and biases. When $187 Billion cash is reported to be leaving a country, monthly, you start to think about the Chinese slang term, “Luo Guan” and the implications it might have on the overall health of an economy and its people.
Asian “face” is not an unfamiliar concept to employees of Asian companies. Asian racism isn’t either.
I just do the math and note the evidence when it appears.
Geez, didn’t something like this happen with ABCP back in 2008?