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Chinese Tech company Hauwei under Investigation

  • Writer: Duane Fletcher
    Duane Fletcher
  • Feb 1, 2019
  • 3 min read

Some of you may have notcied this in the news over the last few weeks. It is the begining of a very ugly fight between Canada, the U.S., and China. The United States Justice Dept. called for the detaining of the Hauwei CFO in Canada.

The Canadian authorites oblied and arrested Meng Wanzhou, the CFO of Hauwei. Now let me tell you, she is not just the Chief Financial Officer of the company, she is the owners daughter. This is a very big fish for the Canadian Mounties to haul in.

The Justice Dept. warrent alleges that she was party to a vast scheme that stole tech from American companies, and laundered the procedes. Some of you may ask, if they are a legitimate comapnay, why would they have to launder their money? Well because they stole tech and sold it to Iran apparently.

Needless to say the Chinese are up in arms about this. They have staged protests, and their government is demanding her release. They say that her incarceration is inhumane.

Their response would be laughable if they themselves in Asia hadn't recently been so harsh to Americans' abroad. American exchange student Otto Warmbeir was beeten within an inch of his life then sent back to the U.S. He was accused of stealing a N. Korean propaganda poster to take home as a souvenir.

Really guys, you're beating people to death for petty theft? Most recently a Canadian computer contractor was sentenced to death for trafficking drugs. He had in his possesion enough drugs for them to charge him with trafficing.

Yet they say that we North Americans are 'inhumane'. I can guarantee you that our prison system is a country club compared to theirs. ...Pardon the cliche'.

The recnet death sentence issued to Robert Lloyd Shcellenberg, the Canadian computer contractor, is their latest outrage. He was given 15 years for his indiscretion. When he tried to appeal they sentenced him to death.

A great deal of Canadian's and American's say this is because China, as a whole, has been caught stealling. So instead of appologizing, they act out this way. This Canadian man being put to death is purely political.

As a matter of fact they have arrested several Canadian's who have done absolutely nothing wrong. It is our Western belief that they are taking hostages as if they were a robber trapped in a bank. They are surrounded, they are outgunned, they're are news crews filming, ...but they have the hostages though.

The State Dept. in the U.S., just issued a travel warning on China. They say that Chinese companies and other entities are delibritly trying to lure Americans and others to China. Once you get there they will try to make you take their side of some global argument they are having with someone they have stolen from.

They will offer you a job, they will offer you a free air line ticket, they will offer you free lodging, etc... If the wind doesn't blow their way you will become nothing more than a hostage. If you try to leave after sensing the ill will or being victim to misstreatment, they will deny your exti visa and force you to stay.

It is my belief that all involved need to re-think your relationship with China. If they get caught hacking, or stealing copyrights, they turn into terrorits on you. Then you become a pawn that can't talk about whats going on as if you have Herpes or something.

In any event the U.S. State Dept has issued travel warnings. They are also advising companies that have purchased Hauwei computers to rip their chips out and replace them with something more secure. ...That is unless you don't mind the Chinese listening in to your every conversation and hacking your computers.

They are also advising against buying any 5G devices or services from them if you are a business. They have been deemed untrustworthy. Now all they have to do is bring thier CFO to America without her escaping... good luck.

Regarding Mr. Schellengerg's death sentence for trafficking, we are all praying for you. The U.S. should bear the lionshare of the responsibilities in retallions like that. After all the U.S. asked the Canadians to arrest Ms. Wanzouh, apparently not reallizing American's and Canadians in China could be held hostage.


 
 
 

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    A Pandemic is ravaging China.  Is it a bio-weapon or was it an accident?  Can our hero help to stop it from Cascading any further?

 

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Stock Market Update
(Stuck with the Overbuild)

 
   I normally don't give out stock advice but here goes nothing.  Stay away from China Realty.  They are going through some things right now that is crippling their stock market.  Its the Evergrande scandal.  
   A few decades ago the Chinese fell in love with Caterpillar (CAT).  They bought up an Armada of bulldozers, back hoes, cranes, and steam rollers.  They started building not just new modern neighborhoods, but entire new cities.
   They are now known as 'Ghost Cities'.  They are called that because apparently no one lives  in them.  That's right they built at least a dozen entire new cities and they are all virtually empty.  
   The reason being is that their millennial age group is virtually non existent.  That means they have hardly anyone there that is aged 18 - 35.  This is because of the laws in China regarding married life and children.
   It's not illegal for them to have more than one child, but its similar to being deemed criminal.  The Communist government turns its back on your family if you have more than one child.  That amounts to no grant monies for college, or other government funded assistance programs.
   It wasn't until they discovered the Internet, and Facebook they changed their law.  Now they can have up to three children per family and still expect government assistance.  They are birthing their new millennial group.
   As it is right now China's new millennial army should be about three years old.  They better hope they don't get into a war with anyone.  What would they do, draft a bunch of three year old's?
   In any event their love affair with building new sky scrapers is over.  Evergrande stock plummeted and left the world market scratching their heads.  They apparently had several large interest payments to pay on the loans they took out to build the cities.
   Many thought that the Chinese government would step in at the last minute and do a cash injection.  That's what they had been doing but were reluctant this time.  They let it default and then directed state backed banks to scoop up the abandon new cities at cost.
   Banks all over the world use real estate as an acceptable collateral.  When Evergrande defaulted it sent their entire index spiraling down.  Now they are stuck with this huge overbuild.
   Some people think that its their just deserts.  After all they have been accused with enough intellectual property theft to fill up those cities with knock off products.  Putain City in Northern China has been accused of being one of these cities.
   It is rumored that the entire city is filled with hundreds of manufacturing plants and warehouses that only deal in knock-off products. Could you imagine if they had a dozen of cities like that.  The rest of the world would go bankrupt.
   In any event the real estate market is real bad for them now.  This is not the first time something like this has happened either.  Emerging Markets Asia has apparently lost its luster also.
   That index was accused of only harboring products and services that had been spirited away from American businessmen.  Right now the smart money is on American Tech.  American Tech is the best sector to invest in because the recent chip shortages will soon be over.  Not to mention the fact that lots of these guys are building new chip factories here in America.  
#ProblemSolved
   

 
 
Elon Musk
vs
Twitter

  
 

   Elon Musk has set his sights on a new company.  He wants to own Titter.  This is not sitting well with some of their board.

   They have sworn to take a 'Poison Pill' if Elon tries to buy them out.  They sound like cornered KGB Agents threatening to take themselves out.  Its ridiculous.

   If you know anything about Twitter Stock, you know that it's not worth $54 Billion.  I would estimate it at about $30 to $35 Billion.  Let me tell you why.

   Over the last year Twitter Stock has fallen from $70 a share to $40.  This, in my opinion, is because they have gone political.  They have their own opinions about politics, and hate speech now.

   Twitter is kicking its users off the platform every five minutes now.  This has resulted in the company stock going down.  If Elon Musk is smart, and he is, he could just wait for them to soap box and kick users off to get the stock cheap.  

   This amounts to a 'Unrealized Debt Potential'.  It's possible that the resulting law suits by users could amount to $5 to $10 Billion.  These lawsuits against Twitter wont be over until two to four years from now.

   This would leave any new Conglomerate on the hook if they want to buy the company.  Actually he can have the company for 10 easy payments of $2.89 billion.  This would give him 100% of the shares available.

   The 'Poison Pill' Twitter is waiving around, wont stop their stock from falling.  The problem with the stock has to do with the management playing God.  Believe it or not.

   Lets say that Will Smith gets kicked off Twitter tomorrow.  He tweeted to Chris Rock to keep his wife name out of his 'f&%#king mouth'.  Twitter deems that as violent hate speech and bans him.

   Will still has fans.  They would bash the bejesus out of Twitter for trying to silence him.  The stock falls again and again for petty things like this.

   This is why I think the stock is not worth $54 Billion.  They have internal issues they need to address before they lose users.  Of course, is they lose users they wont get money from advertisers either.  

   If you don't want to take my word then lets look at the NFT Jack Dorsey put out.  Dorsey is the founder of Twitter.  Last year his NFT was worth $29 million, today no one bids over $10k.

   He has lost his luster.  I think its because he keeps kicking users off the platform.  His vision of freedom of speech is getting him sued left and right.

   

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