Category Archives: government fraud spending collusion

Is the Chinese Company Evergrande Causing a US Financial Crisis?

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China Evergrande shares plummet on default risks

EVERGRANDE GROUP

Evergrande is one of China’s leading lenders for everything from property to autos. The company has 2.3 trillion Chinese yuan in assets, which equates to about $355 billion in USD, according to the lender, which employs 200,000 workers.

By 2022, Evergrande expects to reach 3 trillion yuan in total assets, 1 trillion yuan of annual sales and 150 billion yuan of annual profits and taxes to become  “one of the world’s top 100 companies.”

FACING DEFAULT ON BILLIONS

Rating agencies say Evergrande Group appears unlikely to be able to repay all of the 572 billion yuan ($89 billion) it owes banks and other bondholders, as reported by the Associated Press, which also noted Beijing is likely to step in to prevent systemic damage.

“I suspect the Chinese government is on top of this, and I don’t doubt they will deal with it severely, but I don’t think it will have the global effects the market is suggesting this morning,”  said Carlyle Group co-founder David Rubenstein during an appearance Monday on “Mornings With Maria.”

One U.S. investor in China tells FOX Business “just about every bank in China has exposure to the company,” which explains the heightened contagion fears.

U.S. INVESTORS?

According to Factset data, BlackRock has some holdings in Evergrande across several units, while Goldman Sachs, JPMorgan and JPMorgan have small, fractional holdings. “I don’t think the major US banks are on the hook for very much money,” Rubenstein noted. sourceChina's Property Problems Go Beyond Evergrande | Barron's   related reading

Source: News that real-estate giant Evergrande Group—once China’s top property developer, now Earth’s most heavily indebted—has reached the brink of collapse is causing what you might call “market jitters” today. Evergrande reportedly told banks that it won’t be able to meet the interest payments due today on its loans, and the Dow has responded by tanking more than 700 points so far, the Nasdaq by sinking by 2%, and the S&P 500 by dropping more than 1.5%, that index’s greatest volatility since May.

Why does a single property developer in China have traders sweating bullets? Because the total debt that Evergrande has amassed ($305 billion, literally 2% of China’s GDP) suggests it may be too big to fail, and could have a ripple effect on the global economy if it did. That’s crippling nervous analysts with PTSD; some are calling this “China’s Lehman Brothers moment,” believing it’s unfolding much like the scenario in which Lehman Brothers declared bankruptcy during America’s housing crisis, setting in motion the 2008 global financial crisis. The situation has investors angry enough to assemble in the plaza outside Evergrande’s Shenzen headquarters and protest over the troubled investments—something of a rarity in China, apparently.

Evergrande’s problems began last year, when Beijing clamped down on the amount of debt that big real-estate developers can owe. The way Evergrande grew so large, to a market cap of $50 billion at its peak, was by borrowing money—that $305 billion. (One estimate says as much as two-thirds of its liabilities could be cash that people put down for homes that have not been finished yet.) Evergrande responded to Beijing’s clampdown by selling properties at serious discounts to shore up its bottom line. Despite that fire sale, the company still struggled to make interest payments on its enormous debts, leaving it teetering on default.

Obviously, this liquidity crisis has been months in the making. It also didn’t sneak up on traders: Evergrande’s shares have plunged by 85% since the start of the year. China’s real-estate market has also been looking more and more like an America-circa-2007-esque bubble. Here’s video from the city of Kunming, of 15 unused skyscrapers being demolished last month after sitting vacant for nearly a decade:

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Perkins Coie Lawyer Sussman Took Orders from Hillary in Russian Collusion Fabrication

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Joe Biden’s National Security Advisor, Jake Sullivan is not exempt either. He was always Hillary’s secret agent man including the back channel in the beginnings of the Iran nuclear deal. His fingerprints are all over the Perkins Coie, Clinton campaign and Russian collusion lies. He needs a subpoena along with dozens of others and should be stripped of his security clearance.

Hillary Clinton attends Jake Sullivan-Maggie Goodlander ...

In part from Yahoo News: In the closing days of the 2016 race, former Secretary of State Hillary Clinton tweeted: “Computer scientists have apparently uncovered a covert server linking the Trump Organization to a Russian-based bank.”

She also shared a lengthy statement from Sullivan, one of her top advisers.

“This could be the most direct link yet between Donald Trump and Moscow,” Sullivan claimed. “Computer scientists have apparently uncovered a covert server linking the Trump Organization to a Russian-based bank. This secret hotline may be the key to unlocking the mystery of Trump’s ties to Russia… This line of communication may help explain Trump’s bizarre adoration of Vladimir Putin.”

Sullivan added: “We can only assume that federal authorities will now explore this direct connection between Trump and Russia as part of their existing probe into Russia’s meddling in our elections.”

“Alfa Bank” is mentioned nine times in special counsel Robert Mueller’s report, but never in reference to the alleged Trump-Russia server story. In his December 2019 report, DOJ Inspector General Michael Horowitz said the FBI “concluded by early February 2017 that there were no such links” between Alfa Bank and the Trump Organization.

A bipartisan Senate Intelligence Committee report from 2020 did not find “covert communications between Alfa Bank and Trump Organization personnel.” The Senate said that “based on the FBI’s assessment, the Committee did not find that the Domain Name System activity reflected the existence of substantive or covert communications between Alfa Bank and Trump Organization personnel.”

INDICTMENT

But read on.

FNC: Former Director of National Intelligence Ric Grenell said the indictment of Perkins-Coie attorney Michael Sussmann by Special Counsel John Durham is an important development in the probe into the origins of the FBI’s investigation into connections between the Trump campaign and Russia, but is not necessarily key to the entire genesis of the Russia investigation.

Grenell, who also served as President Trump’s ambassador to Germany, called the entire probe “such a ‘swamp’ situation” and added that Sussmann was simply one of the subjects of 63 transcripts released while he was DNI, after Durham requested them.

“I hope that we have a lot of time to focus on these issues going forward. The media that pushed this, I don’t believe that the FBI officials were duped by an outside lawyer working with Hillary Clinton who lied about his client,” Grenell, speaking on “Fox News Primetime,” said of Sussmann.

“Michael Sussmann, whoever he is and whatever lie he told, we released his transcript … There is a treasure trove of information of people lying under oath in these,” Grenell said.

As Durham, a former Connecticut federal prosecutor, is investigating the origins of the Russia investigation, Grenell advised that the original Russia probe continued past September of 2016 not because of “some lawyer [lying] to the FBI about who he was working for – because the FBI leadership knew this information was wrong –  they continued the investigation because it would help Hillary Clinton.”

RELATED READING:

The First Possible Prosecution from the Durham Investigation

“Everybody in Washington — lobbyists, newsrooms, a whole bunch of people — wanted Hillary to win. So what did they do? They allowed this opposition research to become part of the DOJ and FBI. That is so scary to think that politics permeated into the DOJ and to the FBI. This is what we call political prosecution, and when it happens in third world countries we call it out.”

Host Lawrence Jones added that one person of interest to him who is allegedly connected to the Sussmann case is current Biden national security adviser Jake Sullivan. The Vermont native previously served under Clinton when she was secretary of state and further advised her 2016 campaign.

“Sussmann claimed [evidence presented to the FBI] it was a tip from a cybersecurity expert who had nothing to do with Hillary Clinton, even though he worked for her. Total coincidence, sure,” he said.

“I guess it is also a coincidence that Hillary tweeted about it around the same time: Jake Sullivan … signed off on that tweet. Now, that’s significant.”

As the Washington Examiner reported, Clinton tweeted that “computer scientists have apparently uncovered a covert server linking the Trump Organization to a Russian-based bank,” later adding a statement from Sullivan:

“This could be the most direct link yet between Donald Trump and Moscow… This secret hotline may be the key to unlocking the mystery of Trump’s ties to Russia… This line of communication may help explain Trump’s bizarre adoration of Vladimir Putin,” wrote Sullivan at the time, according to the outlet.

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Hillary Clinton’s other secret agent man was Marc Elias who headed up the Perkins Coie law firm. He hired Crowdstrike and Fusion GPS. Another fact is he was the campaign lawyer of record for Kamala Harris when she ran for president.

Democrat Lawyer Behind 'Russia Dossier' Pressures Nevada ...

Was it Eco-Health, NIH or Wuhan and the Money that Killed so Many?

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The US-based, non-profit research group EcoHealth Alliance in 2014 received a US$3.1 million, five-year NIH grant to understand the risk of a novel bat virus spilling into humans in China, as had happened in the Sars outbreak in 2002.

“It would have been irresponsible of us if we did not investigate the bat viruses and the serology to see who might have been infected in China,” Fauci, whose institute was responsible for the grant, testified at a congressional hearing in May.

Research was undertaken in partnership with the Wuhan Institute of Virology, with a budget of between US$120,000 and US$150,000 a year under the grant, according to documents released by The Intercept.

Part of the work included exploring whether newly discovered bat viruses had the potential to infect people, and it is this aspect of the research which has come under scrutiny.

Wei Jingsheng, in a new report about his upcoming book called “What happened in Wuhan,” stated that he first heard about the Coronavirus at the World Military Games in Wuhan in October 2019. source

Chinese defector Wei Jingsheng tried to warn US officials.

source

Alerted by the news, he returned to the US and notified the CIA and FBI about what he had heard. The Agencies already knew him because he defected to the United States back in 1997 after leaving the Chinese communist party. Mr. Jingsheng said that he also alerted US politicians with connections to Trump and then alerted the Chinese human rights activist Dimon Liu.

Mr. Wei said that he found out more about the virus from one of his contacts in Beijing. He also noted that through Chinese activist Dimon Liu he spoke to politicians in the house about the dangers of the outbreak and that he also expressed his concerns to people in the Trump white house in 2019.
Wei said he would not reveal what politicians with ties to Trump he spoke with but states that the politicians could have reached the President immediately.

Chinese Human rights activist Demon Liu revealed that Mr. Lei told her about the virus at a dinner with her husband, a retired CIA agent, on November 22, 2019.
Liu said in a statement, “I couldn’t quite believe what he was saying,” Liu went on to say. “At that time, I had thought that the Coronavirus could not be worse than SARS. And SARS, as we knew from experience, was not that contagious, and it could be contained. I thought at the time that was the case. Okay, there was an outbreak, but the authorities and the advance of medical sciences would be able to contain the spread of it.”
Liu states that she wanted to pass the information that Mr. Wei gave her to Trump’s deputy National security advisor Matt Pottinger but decided against it because, as she puts it – “I didn’t send it to him because so many things were so incredulous,” she said. “I wrote it, but I didn’t send it because I decided it was better if Wei talks directly to Matt Pottinger.”

China hits back at Wuhan lab leak 'conspiracy' after Biden ...

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KEY POINTS

  •  27 scientist published a letter in The Lancet last March denouncing lab-leak theories.
  • 26 of the 27 scientists have ties to Wuhan Institute funders or researchers.
  • Lead scientist says letter was written for “our collaborators” in China for a “show of support.”

In March of last year, 27 scientists wrote a letter to medical journal The Lancet denouncing claims that COVID-19 could have originated in a lab. It’s now been revealed that 26 of those 27 scientists have ties to the Wuhan Institute of Virology – that’s what we call a conflict of interest.

In The Lancet letter, the scientists stated, “We stand together to strongly condemn conspiracy theories suggesting that Covid-19 does not have a natural origin.” But, according to the Daily Mail, “The orchestrator of the letter, British zoologist Peter Daszak, [had] a conflict of interest through him being president of the US-based EcoHealth Alliance, which has funded research at the Wuhan Institute of Virology.”

Additionally, the Telegraph is reporting that a February 8th email released under an FOIA request reveals Mr. Daszak wrote The Lancet letter after being asked by “our collaborators” in China for a “show of support.”

That tanks Mr. Daszak’s credibility – and the other scientists don’t fare much better.

“Other signatories…include Prof Kanta Subbarao, who spoke at a conference in Wuhan – part organised by the Wuhan Institute of Virology. Dr John Mackenzie, of Curtin University of Technology in Australia, [also] put his name to the letter, but failed to mention he was still listed as a committee member of the Scientific Advisory Committee of Centre for Emerging Infectious Diseases at the Wuhan Institute of Virology,” the Telegraph reports.

The list goes on and on until…

“Dr Ronald Corley, a microbiology expert from Boston University – has been found to have no links back to funders or researchers at the Wuhan institute,” according to the Daily Mail.

When all is said and done, 26 of the 27 Lancet letter scientists have ties to funders or researchers at the Wuhan Institute of Virology. Even members of the scientific community don’t believe Daszak & Co. wrote the article in good faith.

“I was a little perplexed and a little bit upset with five very good scientists, some of whom I know well, who I thought stepped way out beyond what they should have been saying, based on the data available to all of us,” said David Welman, a professor who advises the U.S. government on biological threats and risks.

“These were not scientific papers, they did not present scientific evidence, they did not analyse and support scientific data, they were presenting opinion, they did not belong in scientific journals,” said Richard Ebrigh, chemistry professor at Rutgers University.

Since its publishing, the Lancet letter has been instrumental in slapping down lab-leak “conspiracy theorists.” Now, it won’t be so easy.

Deputy CIA Director Says Here Comes al Qaeda Again

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Leaving Afghanistan and abandoning Bagram Air Base immediately created a terror state. Did anyone contemplate that?

Meanwhile, the Taliban has named Mohammad Hassan Akhund, a longtime ally of Taliban founder Mullah Mohammad Omar, to serve as the country’s acting prime minister. Akhund, who was the Taliban’s foreign minister before the U.S. invasion in 2001, told the United Nations in 1999 that “we will never give up Osama [bin Laden] at any price.”Hibatullah Akhundzada, considered the “emir” of Afghanistan by the Taliban, is a strong al Qaeda ally and proud father of a suicide bomber known as the “commander of the faithful.” Current al Qaeda leader Ayman Zawahiri reportedly swore allegiance to him as the “emir of the believers” in 2016.

Al Qaeda could reconstitute in Afghanistan and regain the capability to threaten the U.S. in “one to two” years, intelligence chiefs said Tuesday, revising downward estimates that were previously issued by the Pentagon.

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“The current assessment, probably conservatively, is one to two years for al Qaeda to build some capability to at least threaten the homeland,” said Lieutenant General Scott Berrier, director of the Defense Intelligence Agency (DIA), at an annual summit hosted by the Intelligence and National Security Alliance, with panels moderated by CBS News.

“That said, DIA is not going to take…their eye off the ball of terrorism,” Berrier said.

CIA deputy director David Cohen said at the same event that the agency was keeping “a very keen watch” on the terror network’s activities in Afghanistan, adding there is evidence its militants are returning to the country.

“[W]e are already beginning to see some of the indications of some potential movement of al Qaeda to Afghanistan,” Cohen said, “but it’s early days, and we will obviously keep a very close eye on that.”

The Taliban, who seized control of Afghanistan in a stunningly rapid takeover last month, are known to have maintained close ties with al Qaeda and are suspected by analysts of harboring senior operatives.

Both U.S. officials said Tuesday that intelligence agencies were working on ways to continue intelligence collection without a troop presence or embassy in the country, acknowledging current capabilities had been meaningfully reduced by the U.S. withdrawal. Lawmakers, counterterrorism experts and former intelligence officials have expressed concern over how reliable so-called over-the-horizon capabilities can be without networks of informants to guide them.

“We’re thinking about ways how to gain access back into Afghanistan with all kinds of sources,” Berrier said. “We are prioritizing that effort.”

Cohen said the agency would seek to maintain a network of intelligence assets within Afghanistan, but that operating from a distance and absent a physical presence was not a “new” challenge for the intelligence community.

“As we work from over the horizon principally…we will also look for ways to work from within the horizon, to the extent that is possible,” Cohen said. “But we will approach this in the way that we have approached the counterterrorism mission in many places around the world for a number of years, and I think, as a community, we continue to get better and better at doing that.”

Speaking at the summit on Monday, Director of National Intelligence Avril Haines said Afghanistan did not currently top the list of international terror threats, saying the “greatest threat” came from militant groups operating in Yemen, Somalia, Iraq and Syria.

The U.S. has Frozen $9.5 Billion in Assets Belonging to Afghanistan Central Bank

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The U.S. has frozen nearly $9.5 billion in assets belonging to the Afghan central bank and stopped shipments of cash to the nation as it tries to keep a Taliban-led government from accessing the money, an administration official confirmed Tuesday.This amounts to roughly one-third of the country’s annual economic output. International aid flows represented roughly 43 percent of Afghanistan’s economy in 2020, according to the World Bank.Afghanistan Economy: Hard to recover - CGTN

The official said that any central bank assets that the Afghan government has in the U.S. will not be available to the Taliban, which remains on the Treasury Department’s sanctions designation list. Additionally, as the Taliban began their march through Afghanistan, the Biden administration cancelled a planned shipment of physical dollars due to be delivered to the country and directed the International Monetary Fund to renege on its long-planned release of funds to Afghanistan. More detail and context here. 

The United States’ principal competitors in Beijing and Moscow see a potential opening with the U.S. departure. While there is little thought that China or Russia are interested in aiding Afghanistan’s development – instead seeing the country as both a playground for great power influence and, on the part of Beijing, a mercantilist maneuver critical to clinching its Belt-and-Road initiative in South Asia – it is possible that China and Russia can actually leverage U.S. sanctions and the restrictions major financial institutions will face in dealing with Afghanistan to empower the Taliban and their own interests. The Taliban meanwhile may welcome China and Russia filling the void of western finance and aid while also taking advantage of the departure of U.S. restrictions on poppy production to return to state controlled narcotics sales, furthering enriching themselves while continuing to impoverish the Afghan people.

Beyond the reserves, the United States also sends roughly $3 billion per year in support for the Afghan military, or roughly 15 percent of the country’s gross domestic product. The funding can only be spent if the secretary of defense “certifies to Congress that the Afghan forces are controlled by a civilian, representative government that is committed to protecting human rights and women’s rights,” according to a congressional summary of the legislation. This funding is expected to stop flowing as well, along with smaller pots of money, such as $20 million for recruiting women to the Afghan national security forces.

About 80 percent of Afghanistan’s budget is funded by the United States and other international donors, John Sopko, the special inspector general for Afghanistan reconstruction, told Reuters in the spring. A spokesman for the White House Office of Management and Budget declined to comment on the status of congressionally approved funding for Afghanistan. NATO Secretary General Jens Stoltenberg said at a news conference Tuesday that NATO has suspended aid to the Afghan government as well. “We have of course suspended all support, financial and other kinds of support, to the Afghan government, because there is no Afghan government for NATO to support,” Stoltenberg said. “No money is transferred; no support is provided.” More context here. 

Meanwhile, China, Pakistan, Iran and Russia will keep their embassies in Kabul open and functional while most other nations have shuttered and evacuated their embassy operations. China is making financial moves to support the Taliban while doing the same to takeover the now former US air base in Bagram.

The UN Secretary General held a half day conference seeking to raise the $606 million which humanitarian agencies say is urgently needed to provide life-saving aid to millions of Afghans over the four final months of the year.

Among other things, the money is needed for critical food and livelihood assistance for nearly 11 million people and essential health services for 3.4 million.

‘Starvation’

Guterres stressed that Afghans were experiencing “one of the worst humanitarian crises in the world” even before the Taliban takeover on August 15.

Some 40 percent of the country’s GDP was already drawn from foreign funding, and half of the population was already dependent on humanitarian aid, according to the UN.

Afghanistan is also facing a devastating drought and mass displacement in addition to the impact of Covid-19.

Fears now abound that other countries’ reluctance to deal with the Taliban could push Afghanistan over the edge.

Guterres announced that the UN would release $20 million from its Central Emergency Response Fund to support the humanitarian operation in Afghanistan.

Under the leadership of acting central bank governor, Haji Mohammad Idris, a Taliban loyalist who has no formal financial training, the central bank has been moving to restrict dollar outflows amid a pause in foreign aid and a scramble by some Afghanis to get savings out of the country.

Further controls are expected to hasten the afghani’s depreciation against the dollar, exacerbating inflation in a country where more than a third of the population lives on less than $2 a day.

“It’s a matter of concern that the remaining physical cash of U.S. dollars is going to reduce further,” said an Afghani banker. “With the restrictions we are predicting the dollar will reach more than 100 afghanis to the dollar.”