China

Paul Craig Roberts writes that the admirable and honorable truth-teller John Pilger warns us that nuclear war is closer than we think.

In the latest escalation between two nuclear powers, China has turned the war threat amplifier up to '11' by threatening India (in an article published a Chinese state-controlled newspaper) that it could conduct a "small-scale military operation" to expel Indian troops from a contested region in the Himalayas.

Just as we warned, the EM exuberance has faded and China's torrid trade growth has suddenly slowed dramatically. Offshore Yuan is spiking after both China Imports and Exports dramatically missed expectations.

China customs administration announces data in yuan terms in statement:

Much to everyone’s surprise, China's economy showed impressive growth numbers as the economic growth rate will very likely come in at 6.6% which is a bit higher than the official government estimates which were calling for a 6.5% growth rate (but lower than the historical growth rate). For 2018, the market seems to be expecting a 6.3% growth rate.

Source: tradingeconomics.com

Authored by Kevin Smith, Tavi Costa, and Nils Jensen via Crescat Capital,

Crescat Capital's Q2 letter to investors shouold be retitled "everything you wanted to know about the looming bursting of the world's biggest credit bubble... but were afraid to ask..." Don't say we didn't warn you...