Prelude to Economic Disaster: Billionaire Liquidates All Real Estate Ahead of Crash

economy-rip

If you were to contact a real estate agent in any major market today they’d likely advise you the market is so “hot” that if you intend on purchasing property you’d better be prepared to act fast. They’ll adamantly point out, contrary to reality, that the housing market has recovered, available inventory is dropping, prices are rising, and they can only go higher from here.

But if you’re paying attention to what’s happening around us, and not just with our own economy here in the United States, then you’d likely have noticed that while many Americans are flying high on hopes of change and recovery, there is an economic disaster of unprecedented scale in the making.

First, we know that the third largest economy in the world, China, is going through a massive credit crunch as bad loans there have soared to near all time highs, meaning that loans are quickly becoming non-existent and credit markets are now frozen. This means that no one is going to be building ghost cities and empty malls in the Peoples’ Republic again any time soon. Moreover, it means no more easy cash. We know what happened in the United States and the rest of the world when the last credit crunch hit.

Second, as Sovereign Man points out, the richest man in Asia Li Ka-Shing (their version of Warren Buffet or Bill Gates with a reported net worth of $ 30 billion) has rapidly liquidated his real estate holdings and is existing the market as quickly as possible.

Here’s a guy you want to bet on– Li Ka-Shing.

Li is reportedly the richest person in Asia with a net worth well in excess of $ 30 billion, much of which he made being a shrewd property investor.

Li Ka-Shing was investing in mainland China back in the early 90s, way back before it became the trendy thing to do. Now, Li wants out of China. All of it.

Since August of last year, he’s dumped billions of dollars worth of his Chinese holdings. The latest is the $ 928 million sale of the Pacific Place shopping center in Beijing– this deal was inked just days ago.

Once the deal concludes, Li will no longer have any major property investments in mainland China.

This isn’t a person who became wealthy by being flippant and scared. So what does he see that nobody else seems to be paying much attention to?

Simple. China’s credit crunch.

But Li Ka-Shing isn’t the only one bailing. Luxury real estate investors are unloading their real estate assets as well in an effort to raise cash and not be the last one holding a dead asset. For all intents and purposes, the music in China has stopped:

Cash-strapped Chinese are scrambling to sell their luxury homes in Hong Kong, and some are knocking up to a fifth off the price for a quick sale, as a liquidity crunch looms on the mainland.

On the domestic front we’ve seen stock markets drop a fairly significant level in recent weeks. So much so that company’s hoping to launch new IPO initiatives have chosen to just sit this one out as they are worried that investors are running out of money to help fund their operations.

You wouldn’t know that, of course, because mainstream media pundits like Dennis Kneale continue to sell Americans on the notion that we’re in a robust recovery:

Yet the economy, both locally and globally, is in vastly better shape than it was when we took that terrible tumble, down to Dow 6,800 in March 2009.

Americans have cut back on debt, and so have companies.

Karl Denninger of the Market Ticker calls this one what it is – a complete lie – and points out that we are nowhere near cutting back on our debt.

I Despise Liars

US debt to present

“Cut back”?  Really?  Worse, ex mortgages this is not true at any level; there is $ 3,733.5 billion in non-mortgage consumer debt outstanding.  That is an all-time high; in Q4/2006 (just before the crash, remember?) that stood at $ 3,047.2 billion or nearly $ 700 billion less.

An awful lot of that increase since 2007, incidentally, is student loans — exactly where it cannot be for sustainable economic progress since the younger generation has to eventually take the reins from us older folks.  This is nothing more than an economic Ponzi scheme with its cheering section led by people like Dennis who refuse to look at and argue from facts.

As for corporate debt it never decreased at all.

Something is amiss, and the fact that no one in the mainstream, which is where tens of millions of Americans get their “facts,” is really talking about it should be a blaring alarm.

There are, however, some Americans paying attention. As in China, it’s the billionaires and elite who have direct access to the puppeteers pulling the strings, and like Li Ka-shing, they have been quietly and rapidly dumping millions of shares of stock:

Despite the 6.5% stock market rally over the last three months, a handful ofbillionaires are quietly dumping their American stocks . . . and fast.

In the latest filing for Buffett’s holding company Berkshire Hathaway, Buffett has been drastically reducing his exposure to stocks that depend on consumer purchasing habits. Berkshire sold roughly 19 million shares of Johnson & Johnson, and reduced his overall stake in “consumer product stocks” by 21%. Berkshire Hathaway also sold its entire stake in California-based computer parts supplier Intel.

Fellow billionaire John Paulson, who made a fortune betting on the subprime mortgage meltdown, is clearing out of U.S. stocks too. During the second quarter of the year, Paulson’s hedge fund, Paulson & Co., dumped 14 million shares of JPMorgan Chase. The fund also dumped its entire position in discount retailer Family Dollar and consumer-goods maker Sara Lee.

Finally, billionaire George Soros recently sold nearly all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares.

The big money, often referred to as the smart money, is getting out of the game and they are dumping these assets on unsuspecting investors.

They know, for example, that earnings growth has now plunged to its lowest levels since 2012.

As these in-the-know elites unload their positions, average investors depending on their financial advisers to tell them the truth are slamming money into these stocks and paying, in some cases, 500 times earnings. Real estate investors are, likewise, overpaying for homes based on the idea that markets are “hotter” than they’ve been in years.

It’s a recipe for disaster and it won’t end well – at least for 99% of people who blindly believe the opinions of their favorite “experts.”

economy-rip---tumb


SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You

REIGN OF ERROR: Kathleen Sebelius a Poster-Child for the Disaster That is Obamacare

Guest post by Investor’s Business Daily

Health Overhaul: The midwife of ObamaCare exits stage left, leaving behind wreckage that once was the finest health care system in the world, less affordable health insurance and patients unable to find doctors and hospitals.

Kathleen Sebelius, the secretary of Health and Human Services — referred to in the increasingly un-Affordable Care Act’s iconic use of the phrase “the Secretary shall determine,” which appears in ObamaCare’s guiding document no fewer than 1,005 times — has determined that it’s time to go.

Or rather it’s been determined for her by a White House in whose parallel universe ObamaCare’s current alleged enrollment numbers represent an imagined triumph of a law illegally and unconstitutionally altered on the fly to meet number-goals she once denied having set and deadlines that became movable goal posts.

In fact, she had become the poster child for the ObamaCare disaster and, politically, had to go.

She was a clueless administrator who, in a famous interview with Jon Stewart on “The Daily Show,” couldn’t explain why businesses were getting a delay in their ObamaCare mandate to provide insurance to their employees while individuals were not getting a delay in their ObamaCare mandate to purchase health care or face a penalty.

The correct answer was politics. It was bad enough that some 6 million people were already losing their insurance, including stage 4 cancer patients. To proceed with the business mandate would have produced a tidal wave of cancellations in advance of a critical election.

It was just one of some 37 politically motivated changes to the law that the president was not constitutionally authorized to make.

Sebelius was also shamelessly corrupt. She personally called privately-held companies regulated by HHS and “asked” them to contribute funding to a non-profit, Enroll America, set up to promote ObamaCare.

She had the distinction of being one of the few cabinet secretaries ever cited for a violation of the Hatch Act when she served as keynote speaker at a Human Rights Campaign event in Charlotte, N.C.

Sebelius, the cruise director on this medical Titanic, did not write ObamaCare.

But she and her minions did write the implementing regulations that have, among other things, shredded the First Amendment’s guarantee of religious liberty and, in the name of helping those in need, have made war on the likes of the Little Sisters of the Poor.

The alleged purpose of ObamaCare was to insure the uninsured, but — as the Heritage Foundation notes — in 2024, after a decade of implementation and nearly $ 2 trillion in new spending, a projected 31 million Americans will still remain uninsured.

Then there was what Politifact dubbed the “Lie Of The Year,” actually a compound lie by President Obama saying that you could keep your plan and your doctor while your family saved $ 2,500 annually in premiums.

In fact, premiums are skyrocketing, and deductibles as high as $ 10,000 prompted one cancer patient to take his chances rather than burden his family with debt.

Even if you have insurance, good luck keeping your doctor or finding a new one; doctors and hospitals leave or are left out of ObamaCare’s restrictive networks.

One of what ObamaCare dubs “exclusive provider organizations” in Florida has seven pediatricians for a county with roughly 250,000 children.

Then there’s the economic harm that ObamaCare is doing as companies stop hiring after reaching 49 employees or restrict them to 29 hours a week to avoid punitive ObamaCare costs.

ObamaCare includes 18 new taxes, fees and penalties, costing taxpayers an estimated $ 771 billion by 2022.

Now the deck chairs are being rearranged, and the Titanic will have a new skipper.


Guest post by Investor’s Business Daily

Doug Ross @ Journal

Disaster averted as bomb explodes on bus near Tel Aviv moments after passengers evacuated.

The bus in Bat Yam after a bomb on board exploded Sunday. (photo credit: Yossi Zeliger/Flash90/Times of Israel)

The bus in Bat Yam after a bomb on board exploded Sunday. (photo credit: Yossi Zeliger/Flash90/Times of Israel)

“A bomb exploded on a bus in Bat Yam on Sunday afternoon, but nobody was injured because an alert passenger had spotted the device and the bus driver had ordered the vehicle evacuated,” reported the Times of Israel. “A police sapper was trying to defuse the bomb when it exploded. He was taken to the hospital for an examination, but was found not to be injured and was quickly released….”

“Police said that early indications pointed to an apparent terror attack,” the Times reported. “They urged the public to be on the alert for additional bombing attempts. Police were searching for the individual who planted the bomb and possible accomplices. The explosion badly damaged the Dan No. 240 bus, which was stopped at the time on the corners of Mivtza Sinai and Katznelson streets in the coastal city, which borders Tel Aviv on the south. All the windows were either blown out or shattered, and seats were mangled. The last passengers were evacuated three minutes before the device exploded, Channel 2 news reported….”

More excerpts:

  • President Shimon Peres later phoned and thanked the bus driver and the passenger who discovered the explosive, saying their actions saved lives.
  • “The nation owes you a debt of gratitude and I would like to personally congratulate you for this act of bravery,” Peres told bus driver Yoger.
  • Initial reports said the bomb contained some 5 kilograms of explosives — enough to cause immense devastation. The bomb that blew up a bus at Burgas airport in Bulgaria in 2012, killing five Israelis and a local driver, by way of comparison, contained 3 kilograms of explosives.
  • “At this point in time we are under the impression that the incident was nationalistically motivated. I urge the public to be aware and report any suspicious activity to the police,” Public Security Minister Yitzhak Aharonovitch said.

————————


Joel C. Rosenberg’s Blog

Experts Fear Nuclear Famine: “A Disaster So Massive in Scale that No Preparation is Possible”

nuke-famine

At last count, there are eight countries in the world that have officially designed, developed and tested nuclear weapons. Another two (Israel and Iran) deny they have built or are building such weapons, but the probability that Israel has them and that Iran is building them is believed by members of the international community to be extremely high.

That being said, it’s only a matter of time before a madman at the helm in any of these ten nuclear-armed states decides to push the button. With the global economy in shambles, the world’s super powers mobilizing military assets, and hundreds of trillions of dollars in unservicable debt soon to be realized by the financial community, how long before history rhymes with previous large-scale events that culminated in the fall of the Roman empire or the World Wars that  devastated tens of millions of lives in the 20th century?

War, it seems, is inevitable. Not just because of the many problems faced by mankind, but because of the nature of mankind itself.

Whether that war is a widespread nuclear conflict involving the world’s super powers, or a more limited event in the middle east involving Pakistan and India, according to a new report published by the International Physicians for the Prevention of Nuclear War, a nuclear engagement (even a limited one) would lead to widespread destruction across planet earth, with at least 2 billion people at risk of starvation or death.

The kicker? The effects will be so long-lasting, according to the author of the study, that there’s pretty much nothing we can do to survive it:

The threat of nuclear war has been embedded in global consciousness since the invention of the atomic bomb. Most fears are focused on blast radius and radioactive fallout; but the long-term effects of a nuclear conflict could be far more concerning.

According to new research from the International Physicians for the Prevention of Nuclear War and Physicians for Social Responsibility, a phenomenon known as “nuclear famine” is keeping experts up at night. The study estimates that more than 2 billion people are at risk.

Its author, Ira Helfand, says even a limited nuclear war could lead to “the end of civilization.”

Helfand theorizes it could occur in stages. The first is climate change. Existing literature shows that a regional nuclear war between India and Pakistan could drastically affect temperatures throughout the world. A 2007 study published in Atmospheric Chemistry and Physics predicts that the soot created by such an event could reduce temps by 1.25°C per year for at least a half-decade.

This would wreak havoc on global crops.

The final stage of this catastrophe is starvation.

With his best guess, Helfand breaks the at-risk into three groups: (a) 870 million people already facing malnourishment, (b) grain-importing nations, and (c) the entire population of China. The first group gets more than 75% of its nutrition from grain, and a significant portion would not be able to afford higher prices.

Grain-importing nations, like South Korea, Japan, most of North Africa, and the Middle East, would be hard hit by trading partners who suddenly decide to stop exporting. Additionally, China’s 1.3 billion citizens would use up their rice and wheat reserves in a few months, and international hoarding may make open-market purchases impossible.

As Helfand has said: ”This is a disaster so massive in scale that really no preparation is possible. We must prevent this.”

With the vast majority of the world’s nations still unable to build the bomb, a blanket approach could work. ICAN pleads that the “very survival of humanity depends on nuclear weapons never being used.”

Fool.com via IPNNW Study

The nuclear-armed nations of the world didn’t just build these weapons so they can look at them. Sure, our leaders may claim these weapons are merely deterrents designed to prevent war, but the fact is, advanced weaponry has always been used for the purposes of conquering. Our modern era is no different.

We came dangerously close during the Cuban missile crisis in the early 1960′s. Cooler heads prevailed that day.

And even if starting a war is unintentional, it could happen. On at least one occasion, in 1983, the United States and Russia were literally minutes away from a full-scale confrontation under both country’s policies of mutually assured destruction. It turns out that was a false alarm - but the world was almost destroyed as a result. This is one of the incidents we know about, and given the secrecy behind such military operations, it’s quite possible that there have been more.

The bottom line is that we must assume these weapons will be used at some point – that should be a given. What we don’t know is the scale of the nuclear engagement. It could be that Russia, the United States, Israel, China and North Korea just start lobbing intercontinental ballistic missiles by the hundreds, in which case we’re all pretty much toast. Or, it could be a limited war, with the conflict in India and Pakistan finally coming to a head.

Whatever the case, even if those dropped bombs detonate thousands of miles away from you, there is a strong likelihood that you will feel the direct effects in the form of an almost immediate climate change, food scarcity, extreme price rises, and the riots and looting that are sure to follow.

As with any disaster, whether its a nuclear war, global financial collapse, or a natural disaster, we can fully expect the worst of the worst. As the IPPNW report notes:

We would have to expect panic on a far greater scale following a nuclear war, even if it were a “limited” regional war,  especially as it became clear that there would be significant, sustained agricultural shortfalls over an extended period.

It is probable that there would be hoarding on an international scale as food exporting nations suspended exports in order to assure adequate food supplies for their own populations.

Though the report suggests it is impossible to prepare for such an event, one could argue that survival is certainly possible.

Assuming we survive the nuclear impact and fallout because we live in a strategic location (or just got lucky!), your most immediate concerns would be food, water and self defense, all of which must be considered before such an event occurs if you intend to improve your odds of survival.

Surviving a nuclear winter will, of course, not be easy. According to the report, two billion people could die as a result – probably within a matter of months or a year. A similar scenario would play out should a disaster like a Super EMP weapon or solar flare take out our national (or global) power grid.

Regardless of the disaster, the aftermath, like any crisis or emergency, is survivable.

From the standpoint of preparedness, this means having long-term food stores and a preparedness plan to go along with them. You’ll first need to survive the initial “die-off” as millions of people search for food and resources. Then, when your own food stores run out, you’ll need to be able to produce your own by way of micro-farming and raising your own livestock.

What it will boil down to is adaptability. We can’t predict what will happen or what we will face. But understanding the potential threats, how to mitigate them when they occur, and the options we have available should our best laid plans fail gives us a much better chance of surviving disasters than just pretending like they can’t ever happen.


SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You

Larwyn’s Linx: Congressional Democrats Give WH 72 Hours to Fix Obamacare Disaster

Send us tips! Bloggers: install a Larwyn’s Linx widget. Get real-time news, 24/7, at BadBlue.

Nation

Congressional Democrats Give WH 72 Hours to Fix Obamacare Disaster: GWP
Lies Corrupt Democracy: Angelo M. Codevilla
Over 1 Million Californians Lose Their Health Care: Poor Richard

The Biggest Glitch Of All: Progressive Government: Shifra
WH memo: ‘limitless threats’ of Obamacare website security flaws: Poor Richard
Hosurance-Brosurance Disaster In Colorado: HayRide

ObamaCare Navigators Trying To Turn Lone Star State Blue?: RS
Joe Biden gets a Detroit woman killed.: Moe Lane
Senate Dem Incumbent Lead Vanishes After Obamacare Rollout: Bryan Preston

NRSC, Dayspring Threaten Blogger With Private Emails, Black-listing: Dan Riehl
Bros and Hos: Obamacare’s Bread and Circuses: Michelle Malkin
The Curse of the Out-of-Touch Strategists: Jen Kuznicki

Economy

Labor Participation Rate Is Collapsing: Moonbattery
Obamacare Is a Mess, Let’s Do Preschool!: Sara Noble
Venezuela’s Hyperinflation: Army Storms Caracas Electronics Stores: Mish

Scandal Central

O’Keefe Takes On Obamacare In Texas: HayRide
ObamaCare: 5M Health Insurance Cancellations: WH Misses Goal by 80% from Lowball Estimate: MagNote
Chicago Television Pitch Man Headed To Jail For Lying To America About Healthcare: Glob

The President’s New Lie: Betsy McCaughey
Saving Hillary Clinton: Ben Shaprio
For every Nevada Obamacare enrollee, 50 Nevadans received cancellation notices: Twitchy

Climate & Energy

EPA Stealthily Propels Toward ‘Massive Power Grab of Private Property Across the U.S.’: Bridget Johnson
Obama and U.S. Economic Suicide: Dennis Avery
EPA Proposes Stricter Control of U.S. Tributaries, Lakes: Farm Futures

Media

Millennials Now Rate Republican Congressmen as Better Able to Handle Policy Than Obama?: Ace
Poll: Majority of Americans Now Say Obama Is Not “Trustworthy,” Up 11-Points Since Last Month: WZ
Jay Carney asked if people who lost plans will outnumber O-care enrollees; Dodging ensues: Doug Powers

Brit Hume on Democrats breaking ranks with Obama: “As bad a political disaster as I’ve ever seen”: Scoop
Sarah Palin: Bill Clinton Was Right, Obama Was ‘Not Qualified’: GWP
Palin On Chris Christie Winning Over Conservatives: Breitbart

Latest ObamaCare Ads Sexist and Demeaning #DemocratWarOnWomen: Nice Deb
Scandal? What Scandal?: American Digest
Quinnipiac Is Now the Latest Poll to Confirm President Subeffective’s Low Approval Rating: Ace

George Will: Young People Are Running Away From ObamaCare In Rational Terror: Nice Deb
HHS Sending Messages To Obamacare Website Users Begging Them To Try Again: WZ
WATCH: More “I’m Obamacare” ads from the RNC: Scoop

World

America’s best weapon against Iran is France: Rachel Marsden
Update on Iran’s Parchin Site: ISIS
DHS and FEMA: Preparation for a Massive Power Grid Drill November 13-14: Angle

Sci-Tech (courtesy BadBlue Tech News

Official Who Wrote “Limitless Risk” Memo Also Refused to Certify Site as Secure, Fired by WH: Ace
Tech firms furious after denied full view of government reply to FISA court: John Ribeiro, PC World
Puzzled Scientists Say Strange Things Are Happening On the Sun: Slashdot

Cornucopia

The Name In the Stone: American Digest
October’s Official Numb-ers: Caution, there will be math!: MOTUS
ToDaZeD visual: Sondrakistan

Image: The Hilarious Hosurance-Brosurance Disaster In Colorado
Today’s Larwyn’s Linx sponsored by: It’s time – Convention of States

QOTD: “Headed by a former field director of Obama for America, Battleground Texas’ sole aim is to turn Texas from a so-called “red state” to another California–that is, almost singularly controlled by liberal Democrats…

Now, however, a video released by James O’Keefe’s Project Veritas over the last few days has revealed that Battleground Texas may actually be gathering data on ObamaCare enrollees from one of the groups enlisted to enroll ObamaCare enrollees.

According to O’Keefe’s video, Enroll America, a “501(c)(3) organization whose mission is to maximize the number of uninsured Americans who enroll in health coverage made available by the Affordable Care Act” is sharing data with Battleground Texas.

Clarence Landry, an organizer with Enroll America, Texas, is seen on the video talking about working with, and cross-pollinating the same data with Battleground Texas… …If Battleground Texas is a Democratic political action committee as is stated in the video, why is Enroll America sharing data with them?” –LaborUnionReport

Doug Ross @ Journal