Bengkui for Breakfast

imageWith apologies. the word bengkui may not be  a household word at your place, and it sure isn’t here.

But it’s the Google Translate idea of how  the word “Collapse” rolls into simplified Chinese.

The Shanghai composite (SSE) dropped an amazing 8.48% overnight and, in doing so leads us to concerns that the overblown Chinese market may be attempting to replay the role of the US market in the 1929 crash.

It has been obvious for almost a month to professional chartists (take Kimble Charting, please) that things were on the edge of a slippery slope.

The somewhat more sedate Hang Seng index closed down more than 3%, as well.

To say things are not happy this morning in China is a bit of an understatement.  And with the USA Fed meeting kicking off tomorrow, while there’s virtually no chance of a rate hike this meeting, there will be lots of hard talk about the dangers of collapsing inflationary pressure.

We’ve recently been quietly chanting our own words of warning, too;  In our Peoplenomics columns we have noted that imports from Asia are actually down a bit by container counts this year, and making things worse still, exports are down dramatically as well.

This kind of imbalance  shows up eventually as a major increase in the balance of payments deficit.

The other thing that should happen will be another leg down for gold.  I don’t like predicting such things, but when we are close to end-of-month deliveries, and when world markets are falling, and when oil is down into the $47’s, what do you expect?

Whistling in the graveyard continues with the EU chiming in with the latest version of “Good times are just ahead…”

But the reality is that the futures tells us nothing more than what our Peoplenomics Trading Model told us last week.  Short or cash is how to sleep well at night, nowadays.

Me?  I wouldn’t be surprised to see the down drop 150 for the day and gold down $10-$15.  The big winner today could be the volatility index.

Durable Goods Report

Just out in the past couple of minutes:

New Orders
New orders for manufactured durable goods in June
increased $7.7 billion or 3.4 percent to $235.3 billion,
the U.S. Census Bureau announced today. This increase,
up following two consecutive monthly decreases,
followed a 2.1 percent May decrease. Excluding
transportation, new orders increased 0.8 percent.
Excluding defense, new orders increased 3.8 percent.
Transportation equipment, also up following two
consecutive monthly decreases, led the increase, $6.4
billion or 8.9 percent to $78.4 billion.
Shipments of manufactured durable goods in June, up
following two consecutive monthly decreases, increased
$0.3 billion or 0.1 percent to $239.4 billion. This
followed a 0.3 percent May decrease.
Transportation equipment, also up following two
consecutive monthly decreases, drove the increase, $0.4
billion or 0.5 percent to $77.5 billion.
Unfilled Orders
Unfilled orders for manufactured durable goods in
June, up following two consecutive monthly decreases,
increased $1.0 billion or 0.1 percent to $1,195.8 billion.
This followed a 0.5 percent May decrease.

But of course, if you want to report bigger increases, all you need to do is reduce previously reported data…like so:

Revised seasonally adjusted May figures for all
manufacturing industries were: new orders, $470.1
billion (revised from $470.5 billion); shipments, $481.5
billion (revised from $482.1 billion); unfilled orders,
$1,194.8 billion (revised from $1,194.6 billion); and
total inventories, $649.7 billion (virtually unchanged).

Which would be like putting $100 less in your checking account last month and reporting this month that your income went up…

Madness on Bordering

We have already bemoaned that the combined efforts of the corporate Bush and Obama presidencies has been that about 10% of Mexico’s population now lives in the USA.

But it gets worse today with a report on how this mass invasion at the border is changing the political complexion of America.  Oh, and almost 20% of el Salvador’s population is here now, so expect to dig even deeper for Social Security, ESL expenses, and all those other perks that go with invading America when the Obamanistas are handing out free lunches and bennies.

How to Spin the Warming Debate

Simple:  Kill scientists who don’t go along with the hype from one side (which will become the global climate tax, which will become global government, which yada, yada…)

Flight Safety

Who could make this one up?

Pilot flying from Heathrow to New York ‘invites ex-porn star and X Factor reject into cockpit, gives her champagne and cigarettes and lets her sit on his knee and push buttons because the plane flies itself’.

New topic:

Is Polaroid going after GoPro?

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