BREAKING: Panic Spreading Across Financial World After People Wake Up To Nasty Surprise

Fears over China’s economy sent stock markets tumbling worldwide on Monday, the first trading day of the year.

The selloff was sparked by a new report showing China’s manufacturing sector contracted during the end of 2015, according to CNN Money. The Shanghai Composite index plummeted nearly 7 percent for the day before trading was halted, while the Dow Jones Industrial Average and Nasdaq fell over two percent on Monday morning.

“Even though the manufacturing report was disappointing, it’s just the latest sign of a slowdown in China. Analysts said selling in Chinese markets was also driven by other factors, including the scheduled lifting of bans on IPOs (public offerings) and sales by larger investors,” CNN reported.

“With headwinds both domestic and external, investors feared a hard landing may be inevitable and rushed to the exits,” Emma Dinsmore, CEO of R-Squared Macro Management, wrote in a client note.

“More fluctuations in global markets are expected now that the U.S. Federal Reserve has started raising interest rates. The government needs to pay more attention to external risk factors in the short term and fine-tune macroeconomic policies accordingly so the economy does not fall off a cliff,” Caixin chief economists He Fan said, according to Business Insider

Another source for concern with investors is the volatility in the oil markets caused by rising tensions in the Middle East. Oil prices spiked 3.5 percent after news that Saudi Arabia (the world’s second largest oil producer) was severing diplomatic ties with Iran.

Ted Cruz Just Made A Big Time Announcement About Trump That Will Thrill Supporters Of Both

Senator Ted Cruz recently pulled ahead of Donald Trump in one Iowa poll for the Republican presidential nomination; but, despite the close race, Cruz doesn’t harbor enmity toward his close rival.

Cruz responded to one reporter when asked if he thought that Donald Trump would target him now that he had pulled into the lead in Iowa. He said: “I continue to like and respect Donald Trump. While other candidates in this race have gone out of their way to throw rocks at him, to insult him, I have consistently declined to do so and I have no intention of changing that now.”

Today, Cruz spoke about Trump also working in a possible Cruz administration: “There is no doubt that Donald Trump would be a phenomenal negotiator with China and if you look at TPP (Trans-Pacific Partnership), I have come out against TPP, it is an incredibly long and complicated mess of a bill.”

Do you support Ted Cruz? Like the page:

Cruz also said: “It has more pages than the Gang of Eight amnesty bill and Obamacare bill combined. And I support free trade, but free trade that benefits American workers- that opens up foreign markets to our products, to our agriculture, to our goods and services. There is no doubt that Donald Trump would be a tremendously effective negotiator to help us open up foreign markets.”

The Trans-Pacific Partnership is an extensive free trade agreement between the U.S., Canada, and 10 countries that was negotiated for many years; its drafting was finished on October 5th, 2015.

Trump has spoken out against the agreement, saying: “The TPP is a horrible deal. It is a deal that is going to lead to nothing but trouble. It’s a deal that was designed for China to come in, as they always do, through the back door, and totally take advantage of everyone. It’s 5,600 pages long, so complex that nobody’s read it. This is one of the worst trade deals. And I would, yes, rather not have it. We’re no losing over $500 billion in terms of imbalance with China, $75 billion a year imbalance with Japan.”

China Just Made An Aggressive Military Move That Has U.S. Officials On High Alert

China plans to establish its first military base in Africa, in a country that already hosts a U.S. military facility.

“[China is] going to build a base in Djibouti, so that will be their first military location in Africa,” U.S. Army Gen. David Rodriguez, the commander of U.S. Africa Command, recently told defense reporters.

Djibouti is a small nation positioned at the mouth of the Red Sea. It already “hosts about 4,000 U.S. military service members at Camp Lemonnier, which, according to its website, is a Navy-led establishment that supports and prepares ships, aircraft and other deployments for ‘regional and combatant command requirements,’” International Business Times reports

The Chinese base will serve as a logistics hub allowing the Asian nation to “extend their reach” into Africa. China is the continent’s largest bi-lateral trading partner, totaling over $200 billion last year, which is up from $10 billion in 2000.

Image Credit: Google Maps

Image Credit: Google Maps

China announced in a white paper in the spring that it intends to expand its naval presence beyond primarily protection of its coastal waters to “open seas protection.”

The U.S. has for decades been the primary naval presence in the Middle East/North Africa region. “U.S. global leadership is predicated heavily on the U.S. role in protecting and to an extent controlling sea lanes of communication,” J. Peter Pham, direction of the Africa Center of the Atlantic Council, told The Hill. “If China establishes itself as a fellow protector of the global commons, then it certainly increases its stature.”

“Sen. Chris Coons, D-Del., a senior member of the Senate Foreign Relations Subcommittee on African Affairs, said the U.S. has to be vigilant in the face of China’s growing ambitions”, according to The Hill. 

“Overall, China’s presence in Africa is certainly something we need to pay more attention to, but not just in Djibouti. Africa’s middle class is growing faster than ever, and the continent offers great opportunities for partnerships between both governments and the private sector,” Coons said.  

As reported by Western Journalism, China has also been rapidly constructing military bases on artificial islands near international shipping lanes in the South China Sea. Last month, the U.S. sent a naval destroyer near these islands to challenge China’s claim that the artificial island chain is within its territorial borders.

ISIS Just Ticked Off ANOTHER World Power, And It Could Cost Them In A Big Way

Amid reports that Chinese military forces are quietly closing in on Syria as part of a plan to support Russian efforts against ISIS, China has publicly sworn to avenge ISIS’ execution of a Chinese citizen.

In its online English language magazine on Wednesday, ISIS  said it had killed captives from Norway and China, showing pictures of the dead men under the heading “Executed.”

On Thursday, China’s Foreign Ministry confirmed the Chinese citizen’s identity as Fan Jinghui.

“The Chinese government strongly condemns this savage act devoid of humanity and will certainly bring the criminals to justice,” it said in a statement.

“The Chinese government will resolutely oppose all forms of terrorism, and resolutely strike at any violent terrorist criminal activities that defy the bottom lines of human culture,” the statement said. “China will continue to strengthen anti-terrorism cooperation with the international community to maintain peace and tranquility in the world.”

News of the execution came as English news media were reporting a buildup of Chinese military assets in the Middle East.

China was “planning on joining the fight against ISIS ‘in the coming weeks’,” the Daily Express reported, citing an unnamed Syrian army official as its source.

“It is known that China has joined our military operation in Syria,” said Igor Morozov, a member of the Russian Federation Committee on International Affairs, who said Chinese advisers had already arrived in Syria.

“The Chinese cruiser has already entered the Mediterranean, followed by its aircraft carrier,” Morozov said. The Daily Express reported that Chinese warplanes would launch from an aircraft carrier for attacks on ISIS.

h/t: CNBC

Trump Just Made A Big Time Move That ‘Will Put China On Notice That America Is Back…’

U.S.-China relations have been deteriorating as of late, with diverse issues including the U.S.-China trade imbalance, China’s devaluation of the yuan, Chinese cybercrime against the U.S., and China’s increasingly aggressive moves against its neighbors all playing a part.

Now, Donald Trump has released a plan of how to reform the U.S.-China economic relationship.

Trump writes that the “most important component of our China policy” is “leadership and strength at the negotiating table.”

He berates President Clinton for his comments following the inclusion of China in the World Trade Organization (WTO).

Speaking of China’s inclusion in the WTO, Clinton said that it is a “good deal for America. Our products will gain better access to China’s market, and every sector from agriculture, to telecommunications, to automobiles. But China gains no new market access to the United States.”

Trump writes that “none of what President Clinton promised came true.” Instead, since China joined the WTO, “Americans have witnessed the closure of more than 50,000 factories and the loss of tens of millions of jobs.”

The US trade deficit with China stood at a whopping $318.7 billion dollars in 2013.

Trump writes in his position statement that “America fully opened its markets markets to China but China has not reciprocated.” Instead, China has erected a “Great Wall of Protectionism” of “unlawful tariff and non-tariff barriers to keep American companies out of China.”

The statement continues: “When Donald J. Trump is president, China will be on notice that America is back in the global leadership business and that their days of currency manipulation and cheating are over.”

Trump outlines four goals of his plan.

First, he wants to “bring China to the bargaining table” by “immediately declaring it a currency manipulator.” In the plan, he writes that “economists estimate the yuan is undervalued by anywhere from 15% to 40%.” He also states that such currency manipulation, in tandem with other Chinese trade policies, has “resulted in chronic U.S. trade deficits, a severe weakening of the U..S manufacturing base, and the loss of tens of millions of American jobs.”

Second, Trump insists that he would “protect American ingenuity and investment by forcing China to uphold intellectual property laws and stop their unfair and unlawful practice of forcing U.S companies to share propriety technology with Chinese competitors as a condition of entry to China’s market.” He notes that the Chinese government ignores “rampant cybercrime, and, in other cases, actively encourages or even sponsors it-without any real consequences.”

Third, he writes that his plan will “reclaim millions of American jobs” and revive American manufacturing by “putting an end to China’s illegal export subsidies and lax labor and environmental standards.” He then claims that “no more sweatshops or pollution havens” will be stealing the jobs of American workers.

Fourth, he wants to strengthen America’s negotiating position using a three-pronged approach. He wants to lower the corporate tax rate to keep American companies and jobs “here at home,” attack the debt and deficit so China “cannot use financial blackmail against us,” and bolster the US military presence in the East and South China Seas to “discourage Chinese adventurism.”

What do you think of Trump’s plan to prevent Chinese trade abuses?