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Duterte: China’s Xi threatened ‘war’ over sea oil

Public Policy

Philippine President Rodrigo Duterte said Chinese counterpart China Xi Jinping warned him there would be war if Manila tried to enforce an arbitration ruling and drill for oil in a disputed part of the South China Sea.

In remarks that could infuriate China, Duterte hit back on Friday at domestic critics who said he has gone soft on Beijing by refusing to push it to comply with an award last year by the Permanent Court of Arbitration in The Hague, which ruled largely in favour of the Philippines.

Duterte said he discussed it with Xi when the two met in Beijing on Monday, and got a firm but friendly warning.

“We intend to drill oil there, if it’s yours, well, that’s your view, but my view is, I can drill the oil, if there is some inside the bowels of the earth because it is ours,” Duterte said in a speech, recalling his conversation with Xi.

Philippines: Duterte welcomes visiting Chinese navy ships in Davao

“His response to me, ‘we’re friends, we don’t want to quarrel with you, we want to maintain the presence of warm relationship. But if you force the issue, we’ll go to war’.”

Duterte has long expressed his admiration for Xi and said he would raise the arbitration ruling with him eventually, but needed first to strengthen relations between the two countries, which the Philippines is hoping will yield billions of dollars in Chinese loans and infrastructure investments.

The Hague award clarifies Philippine sovereign rights in its 322km Exclusive Economic Zone to access offshore oil and gas fields, including the Reed Bank, 85 nautical miles off its coast.

It also invalidated China’s nine-dash line claim on its maps denoting sovereignty over most of the South China Sea.

Duterte has a reputation for his candid, at times incendiary, remarks and his office typically backpedals on his behalf and blames the media for distorting his most controversial comments.

Duterte recalled the same story about his discussion with Xi on oil exploration in a recorded television show aired moments after the speech.

He said Xi told him “do not touch it”. He added Xi had promised the arbitration ruling would be discussed in future, but not now.

OPINION: Philippines: Rodrigo Duterte’s pivot to China

Duterte said China did not want to bring up the arbitral ruling at a time when other claimant countries, such as Vietnam, might also decide to file cases against it at the arbitration tribunal.

It was not the first time the firebrand leader has publicly discussed what was said during private meetings with other world leaders.

His remarks came the same day that China and the Philippines held their first session in a two-way consultation process on the South China Sea.

They exchanged views on “the importance of appropriately handling concerns, incidents and disputes involving the South China Sea”, the Chinese Foreign Ministry said in a statement that gave few details.

Rodrigo Duterte on US relations: ‘No more military exercises’ – Talk to Al Jazeera

Source: Reuters news agency


33 Comments on "Duterte: China’s Xi threatened ‘war’ over sea oil"

  1. Davy on Fri, 19th May 2017 7:11 pm 

    Oops, that messes with someone’s fiction.LOL.

  2. makati1 on Fri, 19th May 2017 7:18 pm 

    Duterte, is a realist. He sees who is really the power in Asia and the South China Sea. Only a fool would side with the insane U$ in this situation, and he is no fool. I can relate to someone my own age, who sees the real world. The UN is worthless, as is the World Courts. They are owned by the empire.

  3. Anonymouse on Fri, 19th May 2017 7:50 pm 

    Do we have a source for this speech where Durete said China threatened war with the Philippines? Just as importantly, is this China’s ‘official’ position? Its our way, or war? Hardly seems something that one president would say to another. I mean, the only presidents that openly threaten war, are almost always amerikan ones.

    Like get China’s response to this alleged threat.

  4. makati1 on Fri, 19th May 2017 8:16 pm 

    BTW: “This messes with someones fiction”.

    Nope! It supports it. The Ps will NOT go to war at the whim of the U$. I see the Ps moving away from the empire and towards China as a means of self protection and economic gain. It would be suicide not to. And that is a plus for the Ps and me. The last two presidents have been U$ ass kisses and would have taken the Ps into a stupid proxy war with China. Not so Duterte. I would like to see more Russian ans Chinese ties with the Ps and fewer or no U$ ties.

  5. joe on Fri, 19th May 2017 11:50 pm 

    Zzzzzzzzz, eh, Im sorry did someone order a mcPresident on the mcMedia with a veiled threat on the side?

  6. Cloggie on Sat, 20th May 2017 12:02 am 

    Eventually US bases in the Ps, Australia and NZ are going to be replaced by Chinese ones. China is systematically working towards dominance of the South China Sea. They began with these artificial islands and now Duterte got the message. China is still modest for a country of 1350 million and its giant globalist economy and ditto trade surplusses.

    The Ps are in the crosshairs of the coming confrontation between the US and China in the SCS.

    I would have a hard time deciding which place is better to survive, the US with a looming CW2 or the Ps. Both are very bad options.

    And the cards for Australia are also very bad, as the senior leadership knows all too well:

    If the US gets thrown out of the SCS, Australia is lost… for the West.

    The US led West is in its final years. There is going to be war everywhere: civil wars in Europe and the US, after confrontation with China in the SCS or after Trump is torpedoed.

    Japan occupied the Ps after it was cornered by the US by an 100% oil boycott.

    China will occupy the Ps. In that case you don’t want to be an American in the Ps.

  7. makati1 on Sat, 20th May 2017 2:04 am 

    Cloggie, China does not have to, and will not, “occupy” the Ps. No need to. They already own all of the major businesses here. Manila’s Chinatown is the oldest in the world. A great place to shop, by the way. I’m not worried.

    As for the U$ and China going to war. Nope. Not going to happen. Why? $$$$$! China has the U$ by the economic balls and the U$ knows it. Not only can China take down the U$ economy at any time, but it can also explode an EMP nuke over the U$ and destroy it’s ability to wage war. Even the U$ Navy knows it cannot get a ship within 1,000 miles of China if China doesn’t want them there. If the U$ tries to start a war here, China will finish it. It would be national suicide for the U$ in so many ways. More likely a war in Europe or the ME.

    You are about as delusional as Davy if you believe what you said. Too much U$ MSM brainwashing propaganda Koolaid. Better to be a friend of the devil than his enemy.

  8. Cloggie on Sat, 20th May 2017 5:16 am 

    China does not have to, and will not, “occupy” the Ps. No need to.

    They will in case of an armed conflict with the US, to eliminate the threat of US bases in the Ps, according to the same logic why Japan invaded the Ps in 1942: to remove the Americans.

    Not too glamorous Americans POW in the 1942 Ps:

    Could be you in a couple of years.

  9. Cloggie on Sat, 20th May 2017 5:49 am 

    Here a map of the situation of 1942:

    The US had imposed an oil boycott against Japan, so they were forced to get it elsewhere and that could only be the Dutch East-Indies, the fourth oil producer at them time after (from the top of my head): the US, Venezuela and Romania (supplier Germany).

    And the US colony Ps was exactly in between Japan and the Dutch East Indies, so it had to be occupied.

    The Ps are also located between mainland China and the US. The Ps, Taiwan and Korea will be invaded by China in case of an all-out war between China and the US over the South China Sea. The purpose of these artificial islands built by China in the SCS have one purpose only: make military bases out of them and declare Chinese sovereignty over the entire SCS.

    Chinese territorial claims:

    These claims have one purpose only: to prepare to drive the US navy out of the SCS.

    America is being held hostage by its own futile exceptionalist claims, imposed on the US population since early 20th century by the real rulers of the US, euphemistically described as “deep state”.

    Americans begin to understand in whose interest they are being used as cannon fodder to attempt to conquer the entire world (hint: not in their own). The real enemy of the US population is not in Moscow or Beijing, but in Washington.

  10. makati1 on Sat, 20th May 2017 5:56 am 

    Cloggie, you only hope your guess is correct, whereas my knowledge is more so. This is NOT 1939. This is 2017.

    China can keep the U$ out of the Ps by simply sinking all of their ships long before they get to the Ps. Any ‘war’ with China by the U$ will be financial, cyber and/or EMP, not occupation. That is only a tactic that can be used by the U$ against small, harmless countries like the ones they have ‘invaded’ for the last 70 years. China is not going to be invaded, nor is the Ps by China. Odds are, the Ps would fight on China’s side.

    The next big war will be over in a day. The loss of most American cities is guaranteed. I would not want to be near one. I prefer the jungles of the Philippines which does not have a bulls eye painted on it and a dozen nukes aimed at it. The farm is 80 miles from any possible target here and behind a mountain chain.

  11. Cloggie on Sat, 20th May 2017 6:13 am 

    China and the US are not going to nuke each others cities, under no circumstance. This is about geopolitical dominance. The US can use its navy to cut off all supply lines to China. For that you need naval bases. The US has completely encircled China with these bases:

    Chinese counter strategy: New Silk Road. Avoid being completely dependent on sea routes and develop overland infrastructure (road, rail and pipelines) with the rest of Eurasia, out of reach of Anglo navies.

  12. Davy on Sat, 20th May 2017 6:32 am 

    Makati, you have to inject the US into every discussion. Makati, this is a discussion between Duarte and Xi not the US. Are you telling me the rest of the world are such children they can’t have relationships without the US? Is something does not fit into your equation suddenly it is the US trump card that ruins your hand. Maybe your cards are just shitty.

    You are incapably of dealing with your fiction being destroyed and this is a clear cut case plain and simple. This is also true for mouse. He has this elaborate anti-Americanism of a Canadian millennial in some kind of mind warp that comes with a vicious circle of the mistaken. You guys even include the emotions of this religion in your language and grammar. I mean it is hilarious and reminds me of NK and Baghdad Bob.

  13. Davy on Sat, 20th May 2017 6:58 am 

    More mega ambitions of mega cities and dense complexity set to fail spectacularly. Much like American suburbia that is a construction of a non-future based on happy motoring, China is developing into dense regions of mega cities in complexity to trade in modernism that is set to fail horribly for all those millions of unfortunate inhabitants who are embracing this false future.

    “Rising Occupancy In China’s Fake Manhattan Is “Mostly Government Driven”

    “China’s copy of Manhattan is no longer a ghost town, Bloomberg reports. But that doesn’t mean it has forever forestalled a “day of reckoning” for its debt-fueled growth. The northern city of Tianjin drew negative press coverage a few years ago because of a newly built replica of Manhattan complete with a mock Rockefeller Center that was created as part of a massive government infrastructure project but for years was little more than a ghost town.”

    “Bloomberg saves one notable detail for the last paragraph of the story, citing an official who offers some local perspective: The city is supposed to play in important role in China’s “one belt, one road” initiave, another massive debt-fueled trade and transport infrastructure project meant to replicate the ancient Silk Road trade routes that connected Europe and Asia. The government-funded expansion aims to join Beijing with the surrounding Hebei Province to create a mega city of 100 million people.’

    “But even as China signs up foreign partners for its latest scheme, offering financial inducements like a $50 billion infrastructure investment in Pakistan, a key U.S. ally, some at least are showing unease at the massive debt-fueled spending necessary to bring the project into reality. In a diplomatic showcase years in the making, Chinese President Xi Jinping invited leaders from 29 countries to hear his pitch about the “one belt, one road.” But what’s notable is that India, the worlds fastest growing and second-most populous country, didn’t even bother to send a delegation, warning that the “unsustainable debt burden” required to launch the project would be a disaster for the countries involved.”

    “The story notes that though Tianjin’s growth rate slipped to 8% last year – down from 9% the year before – it still outpaced 6.8% YoY rate for the broader Chinese economy in 2016. But that’s a pretty low bar: China’s economy grew in 2016 at its slowest pace in 26 years.”

  14. makati1 on Sat, 20th May 2017 8:02 am 

    Cloggie, you have NO idea what is going to happen or not happen. No one does. I just know that I am in a much safer place than you or any one living in the EU or U$. You can suck up all the U$ MSM Koolaid you want, but that does not change reality.

    Odds are good that Russia will do a first strike on the U$ before China ever does anything. The U$ is NOT going to attack China. That is all bluster/bullshit. The U$ might cause the EU to get into a war with Russia. THAT is more likely. YOU are the one who should look at concentration camps.

  15. Anonymouse on Sat, 20th May 2017 1:46 pm 

    mak, clog-fraud routinely implies he is in direct telepathic communication with various world leaders, figureheads and other notables. He sees himself as a low-rent combination of the Oracle of Delphi and the Amazing Kreskin. He is always informing us of various world leaders private and personal motivations, as if he has a direct line to them.

    When he is not pulling off that amazing trick, he is telling us exactly how the future is going to unfold. Whether its telling us the amazing oil-free, alt-powered, flying robo-car paradise to come is a done deal already, or, informing us of man-baby trumps private thoughts…or thought even, clog-fraud is always on that job.

    You can tell clog-fraud he has no idea what is going to happen, but it wont do any good. He has embraced this notion he knows-all, and sees-all, at a level deeper than thought.

  16. Cloggie on Sun, 21st May 2017 7:03 am 

    This just in: ‘West is just double talk, I want more ties with Russia & China’ – Duterte

  17. Davy on Sun, 21st May 2017 7:49 am 

    Translation: I am going where the money is. He is a whore like all the rest. Russia and China are in the business of buying friendships these days not unlike the west. They are appealing friends because they don’t put hypocritical conditions on their gifts like the west does. Duterte is just a pawn for the rich of his country like anywhere else.

  18. Cloggie on Sun, 21st May 2017 8:00 am 

    He is a whore like all the rest.

    I would say he is the leader of a small country, caught between the world’s economic #1 and #2 (and coming #1) and trying to survive.

    Duterte bets that China will prevail in the struggle for dominance over the South China Sea (I would bet that too and so does Australia’s leader Malcolm Fraser [*]).

    It is the fate of small countries to be the satellite of bigger countries and Duterte knows that. Better go with the winner. That’s what every woman does, whore of no whore.


  19. Davy on Sun, 21st May 2017 8:52 am 

    “Duterte bets that China will prevail in the struggle for dominance over the South China Sea”
    Others are betting this region will remain a multipolar area. I doubt China will dominate anything but its continental near abroad. Dominance is unlikely in an important area of commerce inhabited by multiple other countries. A primary player yes, dominance no. Pure dominance is an obsolete 20th century phenomenon of super powers and empires that is fading into dust heap of history.

  20. Hubert on Sun, 21st May 2017 1:57 pm 

    Western Countries needs to start de-funding China and move their factories elsewhere.

    Stupid Chinese are getting too big-headed for their own good.

  21. makati1 on Sun, 21st May 2017 5:55 pm 

    Hubert, it will never happen. Those factories are there as long as China’s prices are lower than any other country. The U$ Elite sent them there to make more $$$$. Capitalism in it’s 21st century form. You enjoy those low costs every time you buy a “Made in China” item.

    Do you mean that China wants to remain an independent country and not become an American colony? Why is that wrong? “Big Headed” describes the U$ totally. Not to mention arrogant and stupid. Insane really. The sooner the U$ goes down, the better for the rest of the world.

  22. Davy on Sun, 21st May 2017 8:32 pm 

    “Farming the World: China’s Epic Race to Avoid a Food Crisis”

    “So how can China produce enough safe food for its growing population if they all start eating like Americans? The simple answer is it can’t. It takes about 1 acre (half a hectare) to feed the average U.S. consumer. China only has about 0.2 acres of arable land per citizen, including fields degraded by pollution.”

    “China lost 6.2 percent of its farmland between 1997 and 2008, according to a report by the United Nations’ Food and Agriculture Organization and the OECD. And local governments continue to swallow fields for more-profitable real-estate developments. The Chinese Ministry of Agriculture did not respond to requests for comment on this story. Officially, the rate of land conversion has slowed since 2007, when China announced a goal of “maintaining 1.8 billion mu of farmland” (120 million hectares). But local governments that have relied for years on land sales to fund growth can circumvent restrictions by counting marginal land as arable, or re-zoning urban areas as farms. More alarming for the nation’s planners are reports that almost 20 percent of China’s remaining arable land is contaminated.”

    “A change in diet is accelerating the search for overseas supplies. Beef sales to China have risen 19,000 percent in the past decade. Imports of soybeans, used in animal feed, have grown so fast that the government quietly dropped the grain from its self-sufficiency list in 2014. “China needs to import as it is unable to produce everything from its limited farmland,” said Li Xiande, a researcher with the Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Sciences, who said the country bought 106 million tons of cereals and soybeans abroad in 2016. “The country aims at self-sufficiency in staple grains and all other imports would be based on market demand.”

    “But most Chinese farms are much smaller. China’s 260 million rural households work 120 million hectares of farmland—making the size of the average plot per rural family less than half a hectare, according to Zhong Funing, head of the International Research Centre for Food and Agricultural Economics at Nanjing Agricultural University. New laws in November have eased the ability of companies to acquire larger tracts of land, but the government remains wary of change that would unsettle its vast rural population. Even with a modest average farm size of 13 hectares, the country would need fewer than 10 million families working the land.”

  23. GregT on Mon, 22nd May 2017 12:41 am 

    “Farming the World: China’s Epic Race to Avoid a Food Crisis”


    Resistance is futile, you will be assimilated, just Like Davy.

  24. makati1 on Mon, 22nd May 2017 1:02 am 

    It seems that the “World” is moving on without the U$ …

    “World Leaders Gather in Beijing While the US Sinks into Irrelevancy”

    “These EU member state leaders included Italian Prime Minister Paolo Gentiloni, Spanish Prime Minister Mariano Rajoy, Polish Prime Minister Beata Szydlo, Greek Prime Minister Alexis Tsipras, Czech President Milos Zeman, and Hungarian Prime Minister Viktor Orban. Moreover, had British Prime Minister Theresa May not been in the middle of a general election campaign, she would have been in Beijing. Nevertheless, she sent British Chancellor of the Exchequer Philip Hammond in her place.

    The United Nations Secretary General, Antonio Guterres, was there, along with the President of the World Bank Jim Yong Kim and International Monetary Fund Managing Director Christine Lagarde.

    Also present in Beijing were the presidents of Turkey, Philippines, Argentina, Chile, Indonesia, Kyrgyzstan, Belarus, Kazakhstan, Switzerland, Kenya, Uzbekistan, and Laos, as well as the prime ministers of Vietnam, Pakistan, Sri Lanka, Serbia, Malaysia, Mongolia, Fiji, Ethiopia, Cambodia, and Myanmar.

    Ministerial delegations from Afghanistan, Australia, Azerbaijan, Bangladesh, Brazil, Egypt, Finland, Iran, Kuwait, Lebanon, Maldives, Romania, Nepal, New Zealand, Saudi Arabia, Singapore, South Sudan, Sudan, Syria, Tanzania, Thailand, Tunisia, Uganda, and the United Arab Emirates were at the Beijing summit.

    France, which was experiencing a change of presidents, sent former Prime Minister Jean-Pierre Raffarin.

    … the United States was represented in Beijing by an overrated desk clerk …”

  25. Cloggie on Mon, 22nd May 2017 2:32 am 

    World Leaders Gather in Beijing While the US Sinks into Irrelevancy

    Welcome to the Eurasian century.

    Sorry PNAC, but this stunt was in vain:

    (Wikipedia removed the entry for Program for the New American Century. Website has been removed for years)

    Sorry mr Rubin, Edelman, Steinberg, Kagan, Zoellick. Mazzeltov!

    ‘US losing world leadership, Europe can replace it’ – EU top diplomat Mogherini

  26. Cloggie on Mon, 22nd May 2017 2:36 am 

    Anybody an idea what this is with Trump, Sissi (Egypt) and a Saud:

    A new ritual?

  27. Cloggie on Mon, 22nd May 2017 3:56 am 

    PNAC may no longer exist, but it has been replaced by CNAS. And no, it is not a new fruit juice, but stands for “Center for a New American Security”, which still sounds a little like “Program for a New American Century”, but then far more modest. Here the Sanhedrin’s view on the South China Sea tensions:

    Despite numerous calls for a more cooperative relationship, U.S.-China ties appear to be on an increasingly competitive trajectory. Nowhere has this seemed more apparent than in the South China Sea.

    CNAS has correctly identified the most likely hot spot of future confrontation. The author tries to pretend that he is concerned about freedom of navigation, as if that were under threat. It isn’t. The real issue is freedom of navigation of the US navy in the South China Sea.

    Furthermore, the United States has also significantly expanded strategic engagement with Southeast Asia, particularly with the littoral states of the South China Sea.

    The US is setting itself up as the protector of ASEAN interests… against China.

    it is imperative that U.S. decision-makers find a comprehensive and long-term approach to managing U.S. interests in the South China Sea.

    This is like talking about German or Chinese interests in the Gulf of Mexico. As a reminder, China has 1350 million inhabitants, where the US is halfway into third world population and hence status, and has a huge trade balance shortage with China.

    The article makes it clear that China and the US will be focused on each other for the foreseeable future, which is extremely good news for Europe and Russia, not unlike the US and USSR were very pleased with the British/French and German competition in the thirties and did everything they could to make the contestants go at each others throat… to intervene later.

    the locus of geostrategic competition between a rising China and the established dominant power, the United States.

    Exactly. The US navy is like an attack dog positioned near China’s front door. China would like to see the attack dog go home.

    The US wants to dominate the entire world and openly says so and precisely that motivation will become its ultimate demise, because the entire world is quietly beginning to organize resistance against the parvenu.

    the National Intelligence Council—which is preparing to roll out a new estimate—declared in its 2012 forecast that “In a tectonic shift, by 2030, Asia will have surpassed North America and Europe combined, in terms of global power, based upon GDP, population size, military spending, and technological investment.”

    That’s more like it. What this means is that Russia needs to be incorporated in the alliance. With the present power structure in the US this is not possible. Washington needs to go first and this can only be initiated by the European-American population. The Trump presidency is a first promising step, although the hegemonic Washington “swamp” so far managed to largely sabotage Trump-Putin rapprochement efforts.

  28. Davy on Mon, 22nd May 2017 4:45 am 

    “Resistance is futile, you will be assimilated, just Like Davy.”

    What’s da matter greg? Are you only able to study a safe narrow band of greg news? I know, greg must read greg approve sources or it might confuse a greg sanctioned agenda.

  29. Davy on Mon, 22nd May 2017 5:17 am 

    “World Leaders Gather In Beijing While The US Sinks Into Irrelevancy”

    Yeap, the US unipolar world is sinking into irrelevancy but I would hardly say the US is sinking into irrelevancy. This is more Bric hype. Do we read anything on Brics these days? Why, because they sank into a failure and now are irrelevant. We are all sinking into a global irrelevancy. It is those who preach a Paris Berlin Moscow empire or a new Eurasian century that are confused. Empires and superpowers are gone as trends and so is the idea of trade blocks and military blocks in relation to a new domination.

    As a counterweight to the US and the dollar China has become a world power. This is good because having all our eggs in one basket is risky. Unipolar power is bad because it corrupts quickly and is destructive except for a few. If you think China has what it takes to dominate the rest of this century then you know little of what China is facing with its increasingly obsolete 20th century export driven economy, its food predicament, and its dangerous overpopulation into unsupportable mega regions. You can drink that Kool-Aid and feel that rush of anti-Americanism but you are actually showing how deceived you are.

    We are all heading into decline and decay together on our short bus of globalism. Of all the power centers of the world some of the most difficult times ahead will be in China. Europe and the US are hostages to this dangerous Chinese situation. There is no decouple and no resulting benefits to a self-destructing China. The US and Europe are also self-destructing but so much is happening so fast in China it appears they may head the line to dangerous decline. IF NK goes hot we are going to see an accelerated Chinese problem. I see this Silk Road hype as just another Chinese smoke screen for what is really going on in Asia and especially China.

  30. Davy on Mon, 22nd May 2017 5:47 am 

    The reference data is US but is a global reality. This reflects global bubbles that are slowly experiencing a downturn and point to a nearby global recession. This news is disregarded and dismissed as the unreality of our herd mentality of central bank omnipotence leads us into a new and worse financial crisis. We have been habituated into believing in a status quo that likely is set to end as markets are bid up and nations talk about grand trade initiatives. This is all the usual hype that comes just before the storm.

    “Shocking Admission From NY Bankruptcy Judge: “Chapter 11, 15 Filings Have Exploded”

    “A stunning soundbite was captured by a Bloomberg reporter during last week’s event at the American Bankruptcy Institute. According to judges speaking at an ABI conference Thursday in Manhattan, the U.S. Bankruptcy Court for the Southern District of New York is seeing a sharp rise in cases this year, with Chapter 11 and Chapter 15 filings outpacing national averages. “Chapter 11s and Chapter 15s have exploded” said U.S. Bankruptcy Judge Shelley Chapman, speaking at American Bankruptcy Institute event, cited by Bloomberg reporter Tiffany Kary. The numbers for the bankruptcy court which serves Manhattan are, frankly, horrifying: Chapter 11s have tripled in the first quarter of the year, while Chapter 15s for companies seeking U.S. aid for a reorganization in a foreign court have increased sevenfold, Chapman added.”

    “We Now Know “Who Hit The Brakes” As Loan Creation Crashes To Six Year Low”

    “According to the latest Fed data, the all-important C&I loan growth contraction has not only continued, but over the past two months, another 50% has been chopped off, and what in early March was a 4.0% annual growth is now barely positive, down to just 2.0%, and set to turn negative in just a few weeks. This was the lowest growth rate since May 2011, right around the time the Fed was about to launch QE2. At the same time, total loan growth has likewise continued to decline, and as of the second week of May was down to 3.8%, the weakest overall loan creation in three years. Another loan category that has seen a dramatic slowdown since last September, when Ford’s CEO aptly predicted that “sales have reached a plateau.” Since then auto loan growth has been slashed by more than 50% and at this runrate, is set to turn negative some time in late 2017. Needless to say, that would wreak even further havoc on the US car market.”

    “Here’s the bottom line: unless there is a sharp rebound in loan growth in the next 3-6 months – whether due to greater demand or easier supply – this most accurate of leading economic indicators guarantees that a recession is now inevitable. How accurate: every single time C&I loan peaked, a US recession follow. We doubt this time will be different.”

  31. Cloggie on Mon, 22nd May 2017 7:51 am 

    Do we read anything on Brics these days? Why, because they sank into a failure and now are irrelevant.

    BRICS, that’s for 90% China and Russia and anything but a failure or irrelevant.

  32. makati1 on Mon, 22nd May 2017 8:21 am 


    You might want to check out what is happening in the real world, not the U$ MSM one.

  33. Davy on Mon, 22nd May 2017 8:26 am 

    “BRICS, that’s for 90% China and Russia and anything but a failure or irrelevant.”

    The hype and the narrative of a new Bric superpower bloc is now a failure and irrelevant. Where is the Bric Bank news these days? How about the photo ops with smiles and handshakes? As far as China and Russia and all those supposedly huge deals that were actually small what is happening there? I never said China and Russia are insignificant. My point is the anti-American agenda of a big Bric block is a non-event. The Silk Road initiative will likewise fade into irrelevance once all economies fade into recession and debt dysfunction which is close at hand. The Silk Road initiative is just more of the same of debt with pretend. China is one huge bubble and is looking for new bubbles to inflate as its bubbles at home begin to deflate.

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