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Month: October 2018

Global Bubble Update: Obscure Chinese Company Soars By Half A Billion After Buying $50 Million Sapphire

We are now in that phase of the bubble cycle where pivoting to a sapphire results in unprecedented market cap gains. Shares of Yulong Eco-Materials, a tiny producer of fly-ash bricks based in Pingdingshan, China, surged as much as 950% on Wednesday – forcing the Nasdaq to halt trading four times within the first 30 minutes of trading – after the company revealed that it had completed the purchase of the Millennium Sapphire, a 17.9 kilogram gemstone that Business Insider described as “an icon in the world of art and gems.” Indeed, Yulong shares soared while US indexes ended slightly lower on the day, weighed down by a sharp drop in IBM and other tech stocks. Cannabis shares, the bubbly investment trend du jour, also sold off. The company paid $50 million for the stone (which it touted as a bargain in a press release). “We are extremely pleased to have completed the purchase of this undervalued world class asset for $50 million,” CEO Hoi Ming Chan said in a statement. “The most recent appraisal for the MS (September, 2018) was $60 to $90 million. World wide news headlines of the then unnamed rough sapphire purported the value between $90 to $500 million in 1996 when it was discovered.” But in the buying frenzy that ensued, investors apparently overlooked the fact that the company is also in the process...

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430% Property Tax Hike Drives ‘Black Panther’ Leader’s Chicago Home Into Foreclosure

Via WestCookNews.com, Cook County says the Maywood boyhood home of Illinois Black Panther Party leader Fred Hampton is worth $141,920. Its tax bill: $8,430, or an effective property tax rate of about six percent. Property tax rates that high– more than five times the national average– have become standard in inner-ring Chicago suburbs like Maywood. But the $700 per month tax bill has proven too rich for Hampton’s son, Fred Hampton, Jr. He’s asking for donations to help him stop the County from auctioning off the home next Tuesday. The tax bill at 804 S. 17th Avenue spiked more than 400 percent this year, to more than $8,000 from just $1,919. That’s after its previous owner, Hampton’s uncle, Bill, died and the property lost three tax exemptions, including one that freezes tax bills for seniors, according to the Cook County Treasurer. Hampton, Jr., who in 1993, was sentenced to 18 years in prison for throwing a Molotov cocktail into a Korean-owned clothing store in Englewood (he was paroled in 2001), told the Chicago Sun-Times he “doesn’t know” how he fell behind on payments for the home. He is president of the Uhuru Solidarity Movement, which has called for an end to capitalism and for white Americans to “take responsibility for the fact that white society rests on the pedestal of the oppression of African people” and pay reparations to black Americans for their “stolen wealth.” It...

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Obama’s National Security Advisor Continues To Work For The Saudis

Among the major revelations connected to the murder of journalist Jamal Khashoggi at the hands of the Saudis is just how resilient and unshakeable relations between the Washington deep state and the Saudi royals actually are. Or rather we should say it has created an atmosphere where “hidden in plane sight” truth of America being joined at the hip to one of the Middle East’s most brutal autocratic regimes can no longer be ignored by the mainstream, or can no longer be shaded from public view by another David Ignatius puff piece fawning over Saudi “reformer” despots.  A new Daily Beast investigation has revealed that Obama’s first National Security Adviser, James L. Jones, now works for the Saudis — and despite a growing public movement of Western companies and media organizations to divest and distance themselves from their previous close relationship with the kingdom and events sponsored by crown prince MbS — Jones is refusing to budge. As The Daily Beast concludes in its report, “It’s another sign of the deep reach of Saudi money into the Washington elite.” James (Jim) Jones, USMC (ret.), former National Security Advisor to President Obama. Image source: The National While noting the heat that Trump-connected individuals have lately taken over their close ties with the Saudis, The Daily Beast uncovers Obama-era officials’ continuing deep ties: But Obama World isn’t without close connections to the Kingdom. A company helmed by Jim Jones, then-President Barack Obama’s first National Security Adviser, has a contract...

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Chinese Verbal Intervention In The Market Fails As Stock Rout Accelerates

This morning, when we reported that the latest flood of margin calls, resulting from $600 billion in shares pledged as collateral for loans and representing a whopping 11% of China’s market cap, sent the Shanghai Composite tumbling 3% to the lowest level since November 2014, we noted that local government efforts to shore up confidence in smaller companies had, quite obviously, failed to boost sentiment… or stem the selling. So, as many expected, just before Beijing announced the latest batch of stagflationary economic data including retail sales, industrial production and fixed asset investment, of which the most important was Q3 GDP which printed at 6.5%, the lowest level since Q1 2009, and missing consensus expectations even as inflation has continued to creep higher… … the central bank delivered another round of massive verbal intervention, telling investors stocks are undervalued, the economy is sound, the central bank will use prudent, neutral monetary policy and keep reasonable, stable liquidity. Additionally, according to a Q&A statement with Governor Yi Gang posted on the PBOC website: the PBOC will use monetary policy tools including MLF lending to support banks’ credit expansion the PBOC to push forward bond financing by private cos. the PBOC says recent stock market turmoil was caused by investors’ sentiment the PBOC is studying measures to ease cos.’s financing difficulties the PBOC to push forward bond financing by non-state firms;...

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Stephen Hawking: Time Travel More Likely Than The Existence Of God

Authored by Eric Mack via Forbes.com, In Stephen Hawking’s universe there was no room for God, because the famous cosmologist came to believe that the entirety of existence was created out of, well… nothing. As he explains in his final book, “Brief Answers to the Big Questions,” before the Big Bang there was nothing, not even a God to create the universe. “I think the universe was spontaneously created out of nothing according to the laws of science,” Hawking writes. “There is no time for a creator to have existed in.” He goes on to explain that the only God who could be consistent with the laws of physics would be a deity who never directly influences the workings of the universe. “These laws may or may not have been decreed by God, but he cannot intervene to break the laws or they would not be laws.” While the existence of God makes little sense to Hawking, he’s more open to the possibility of something that most people might consider much more far-fetched: time travel. Hawking famously held a party for time travelers but did not send out the invitations until after the party. No one showed up for the festivities. But the scientist writes that there is still some hope that traveling back in time could be possible according to the laws of the universe.  He pegs this notion on the...

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