Bank Of China Representative: "The Real Economic Crisis Is Just Starting"

Hi ATS,

Have You noticed how Western MSM for telling us there is light at the end of the tunnel??? Well, I trust this China Man a little more; that is a lot more than the blatant Psychological conditioning, and warfare of the Western MSM.

Folks, read on, and listen to the audio clip from zerohedge because We all are in for a long hard ride. Continuing to listen to the TARP benefiting MSM will get us nowhere real quick.

Wake Up, Stand Up,

Sancho


www.zerohedge.com...

Interview with Zhu Min, Bank of China Vice President:

Q. Is overconfidence the biggest risk to the recovery?

A. It's not only overconfidence, it's overmyopic: Wall Street feels the crisis never happened. It seems to me the financial crisis is not over yet, but it has stabilized from a cliff drop. That's one thing. The real economic crisis is just starting.

(Fast forward to the last 40 seconds of the clip).

Here for the full clip.

**********And here***********
www.bloomberg.com...

Sept. 10 (Bloomberg) -- Bankers on Wall Street are suffering from “over confidence” and are “myopic” in the face of a continuing financial crisis, Bank of China Ltd. Vice President Zhu Min said.

“You go to Wall Street, the people feel the crisis never happened,” Zhu said in a Bloomberg Television interview today in Dalian, China. “It’s not only over-confidence, it’s over- myopic. This is too much.”

Zhu’s criticism reflects the growing confidence of China, set to overtake Japan to become the world’s No. 2 economy, in scolding the U.S. for missteps that led to the financial crisis and mounting federal debt. In March, Premier Wen Jiabao said he was “worried” about China’s investment in U.S. Treasuries, now at $776.4 billion, and wanted assurances that they were safe.

Zhu’s comments come after the Standard & Poor’s 500 Index rose more than 50 percent from a March low. The rally has pushed valuations in the S&P 500 to about 19 times the reported earnings of its companies, the highest level since June 2004, according to weekly data compiled by Bloomberg.

Zhu said that the financial crisis, which intensified last year after the bankruptcy in September of Lehman Brothers Holdings Inc., seems “not over yet.”

‘Cliff Drop’

“It’s sort of stabilized from cliff drop,” Zhu said. “But the real economic crisis has just started.”

"the real economic crisis is just starting"
That is because he knows China is gonna walk away from the SOE derivative contracts. That is going to be bad for GS.

No takers? Alright, I'll bite.

It is unsurprising that this news is coming out of china, in my opinion. Of all the wealthy and powerful countries of the world, China is the only remaining country that has not been thoroughly "westernized" and brought into the umbrella of the global culture. China's economy is growing by leaps and bounds, but the great firewall has served to always keep them just that tiny bit separated from the rest of the world, a holdover from their communist roots and cultural roots before that.

As such, China is most likely the single most reliable source for opinion regarding the global economy. It depends on it, but it is detached enough that it can say what it wants without the others coming down on China's throat.

Given China's massive investment in all things USA, to the point that they essentially own the pieces of the American economy that are not pure fabrication, I would take this news very, very seriously. In conjunction with the other thread regarding China's possible backing out on derivatives, it would seem that they are very concerned indeed with the state of the world economy, and the role that the American sector is set to play in its eventual recovery, or perhaps collapse.

To summarize, it appears to be another piece of the puzzle, and one that continues the trend of pointing towards this fall being considerably more severe economically than last year. After all, this is coming from the vice president of what is essentially the second most powerful bank in the world at this point.

waking up and standing up is old history

by the balls........yes

another fine mess we've gotten ourselves into Stanley

Just my opinion, but we should all pay a little more attention to China. They are actually changing the market more than any other country. Granted the US may step in and try to smooth things over from time to time but too many countries holding our debt are siding with the Chinese.

Originally posted by D.E.M.
No takers? Alright, I'll bite.

It is unsurprising that this news is coming out of china, in my opinion. Of all the wealthy and powerful countries of the world, China is the only remaining country that has not been thoroughly "westernized" and brought into the umbrella of the global culture. China's economy is growing by leaps and bounds, but the great firewall has served to always keep them just that tiny bit separated from the rest of the world, a holdover from their communist roots and cultural roots before that.

As such, China is most likely the single most reliable source for opinion regarding the global economy. It depends on it, but it is detached enough that it can say what it wants without the others coming down on China's throat.

Given China's massive investment in all things USA, to the point that they essentially own the pieces of the American economy that are not pure fabrication, I would take this news very, very seriously. In conjunction with the other thread regarding China's possible backing out on derivatives, it would seem that they are very concerned indeed with the state of the world economy, and the role that the American sector is set to play in its eventual recovery, or perhaps collapse.

To summarize, it appears to be another piece of the puzzle, and one that continues the trend of pointing towards this fall being considerably more severe economically than last year. After all, this is coming from the vice president of what is essentially the second most powerful bank in the world at this point.

You may want to do some research.

China is still very much a communist country.

reply to post by calcoastseeker


I have done research, thank you, in fact i have a good friend completing his masters degree in China as we speak. China is as much a communist country as the former soviet states are, no matter how much rhetoric you wish to spew. Communism and Capitalist Free Markets are mutually exclusive, and guess what China has.

[edit on 11-9-2009 by D.E.M.]

I have not read the thread yet just the headline but I agree with the headline.


We were a consumer driven society.

That changed last October.

The blow-back from that alone should leave one with jaw a gap.

reply to post by D.E.M.


I doubt China is the only one to notice that we're a lot worse off than the government would have us believe. The Americans may believe the bankers and the government when they say things are getting better, but the rest of the world is shaking their heads and asking how the US is going to recover without jobs.

reply to post by Sundancer


Oh, they aren't the only ones to notice. They are simply the only ones with enough distance to be able to say anything. Heard anything from the heads of the institutions of Britain or Germany, for example, saying anything? I've only seen them towing the party line in the media and corroborating that everything is going back to normal, based on fractions of percent increases in the EU economy.

reply to post by D.E.M.


See I agree with You from the get go; it's the reason why I posted this. I can only hope most will not disregard the OP because it was from China.

China is huge all over the World. I think there main groups of the PTB, or power brokers'.

I think they are the traditional Western/Europe/Israel, then the Russian/South American bunch, and then China. They are a little different, but from my experience in South America are really trying to reach out to the rest of the World.

This is a very serious message from this China Man, and People should be paying a LOT of attention

I Myself am using these recent stories about China to help guide friends and family.

They speak volumes. I am in the heartland and find these latest developments out of China very relevant to the people I know.

It's like of course, "they get it"

A man once told me,

"Once it hits their pockets, they will listen."

Sounds about right.

reply to post by The_Brave


I'm glad Your reading the news from the Chinese. They really are holding the pressure bandage on the wound. The US would fall tomorrow should the Chinese want, but that would hurt them, and the whole World. I think minus the Western World PTB the rest are trying to find a positive, and fruitful outcome for the all.

Well brother I watched the video a few times this morning.

I am going to do my best to Analise the video.

First off the attitude given by the Vice President of the Bank of China seems to be of one a "king to a surf" attitude. His whole attitude toward the questions given was "Americans are so stupid that they don't even think the crisis took place..." This is pivotal in the way the Chinese are looking at America at the moment I believe.

Question...Is this man being groomed to head up the Bank of China?

If he is then he is going to be a "VERY" powerful man as the Treasurer always has the ear of the king.


Also if you observe the interviewer he seems to be very excited to have this interview. His attitude reminded of my daughters lapdog. All bark and bravado in the presence of the soon to be President of the Bank of China but the interviewer being the lap dog that he is knows his food comes from the guy he is interviewing.

In short the guy in charge of this interview is not the interviewer but the interviewee, the Vice President of the Bank of China.

Question: Does the Vice President of the Bank of China get more respect then the Fed. Reserve Guys at the Old Boys Club.

Answer: Yes.

Secondly notice how the VP of B of C not subtlety states how well the Chinese economy is doing citing some GDP numbers and such while stating that the US economic troubles..or the Wests "is just starting."

One thing to note is the new agreements between the Stans, India, Russia and China. Also one should note the Chinese pouring money into the Alberta tar sands in Canada a few weeks ago with PetroCan.

So China is busy buying up hard commodities all around the world, building its infrastructure while the US is busy fighting two wars with one war on the Chinese border...Afghanistan...check your map.

Remember China has a vested interest in controlling Islam as well as they have a billion or so of them inside the borders of China.

Are we fighting this war for China?

So the overall message from this guy seems to be that China is doing well, America is not, and China wins...

or is this provocation sanctioned by both US and Chinese governments?


I need coffee.