Investing

China steals US drone

  • Last Updated:
  • Dec 18th, 2016 9:02 pm
Tags:
None
Deal Addict
May 28, 2006
2389 posts
181 upvotes

China steals US drone

not making this up lol.

Gold spike, USD dropping, stock market slight drop. Obama statement at 2:15pm. Sounds childish but might be serious stuff going on.
22 replies
Deal Fanatic
Jun 27, 2007
5507 posts
1956 upvotes
who cares?
priced in :facepalm:

Obomo can draw a new red line. Nobody is taking him seriously
And Chinese will return it after copying most internal stuff
It's easy to grin when your ship comes in and you've got the stock market beat.
But the man worthwhile is the man who can smile when his shorts are too tight in the seat 😃
In Fed We Trust - Make ES Limit Down Great Again!
Deal Addict
May 28, 2006
2389 posts
181 upvotes
yeah over reaction probably. Expecting gold to drop and usd to go back up.
Deal Fanatic
Jun 3, 2009
5735 posts
1585 upvotes
Montreal
Psycho44 wrote: not making this up lol.

Gold spike, USD dropping, stock market slight drop. Obama statement at 2:15pm. Sounds childish but might be serious stuff going on.
It's probably not a civilian drone but an Autonomous Surface Vehicle sent out for oceanic mapping aka spying. There are Chinese SSBN's and SSN's stationed nearby so it's a subtle message to Trump after last week's the "One China" comment.
Jr. Member
Jul 29, 2010
144 posts
28 upvotes
ottawa
gold has been declining since July and this doesn't look like any kind of bottoming pattern. ^ agree with USD.
Deal Addict
Mar 10, 2010
1888 posts
656 upvotes
dlhunter wrote: who cares?
priced in :facepalm:

Obomo can draw a new red line. Nobody is taking him seriously
And Chinese will return it after copying most internal stuff
You'd prefer Obama go to war with China?
Deal Fanatic
Jun 27, 2007
5507 posts
1956 upvotes
no to wars, but this made me question everything
Sign of support

Image
It's easy to grin when your ship comes in and you've got the stock market beat.
But the man worthwhile is the man who can smile when his shorts are too tight in the seat 😃
In Fed We Trust - Make ES Limit Down Great Again!
Deal Addict
Jul 28, 2009
1370 posts
381 upvotes
i don't understand why it's a big deal, Chinese govt aint putting their economy at risk over this
Deal Addict
May 28, 2006
2389 posts
181 upvotes
There's tension that's been brewing for years over many islands in the south China sea between at least 5 countries. The islands are not important but if own the islands you own the waters x km's surrounding them and the south China sea is rich in oil.
China just recently planted anti-missles and anti-aircrafts on some of the islands and created an island of it's own in the south China sea loaded with military airstrips and military installations.

The United States have upped their military presence in the South China seas. Every country is ramping up their military hardware there's bound to be a tipping point and teasing the United States is not very smart.
Newbie
Sep 18, 2016
2 posts
1 upvote
It is just unmanned drone!!! China has every right to clear the trash from the water. so that no ship will bump into it. BTW it is a spy drone haha
Deal Addict
User avatar
Dec 8, 2010
2564 posts
992 upvotes
Psycho44 wrote: There's tension that's been brewing for years over many islands in the south China sea between at least 5 countries. The islands are not important but if own the islands you own the waters x km's surrounding them and the south China sea is rich in oil.
China just recently planted anti-missles and anti-aircrafts on some of the islands and created an island of it's own in the south China sea loaded with military airstrips and military installations.

The United States have upped their military presence in the South China seas. Every country is ramping up their military hardware there's bound to be a tipping point and teasing the United States is not very smart.
It's crazy, though, when you look at the maps - the islands are so far away from China, and so close to other countries - look at where China claims is its land!

Image
Deal Fanatic
Jun 3, 2009
5735 posts
1585 upvotes
Montreal
daverobev wrote: It's crazy, though, when you look at the maps - the islands are so far away from China, and so close to other countries - look at where China claims is its land!

Image
Did you skip any history and geography classes when you were younger? How is Guam or Hawaii even close to the US? Many islands in the Caribbeans are European too. :lol:
Deal Addict
User avatar
Dec 8, 2010
2564 posts
992 upvotes
cn_habs wrote: Did you skip any history and geography classes when you were younger? How is Guam or Hawaii even close to the US? Many islands in the Caribbeans are European too. :lol:
Hawaii isn't less than 100 miles away from other nations that claim them. Big difference. Look at the map - loads of those islands are within the UNCLOS EEZs of other nations.
Deal Expert
Feb 29, 2008
30106 posts
5547 upvotes
Montreal
cn_habs wrote: Did you skip any history and geography classes when you were younger? How is Guam or Hawaii even close to the US? Many islands in the Caribbeans are European too. :lol:
They're inhabited islands with a population. These are rocks.
Deal Addict
May 28, 2006
2389 posts
181 upvotes
Guam and Cuba from what I read from 1 article so correct me if I'm wrong were given to the American after they won the war with Spain.

Now these uninhabited islands China's claiming because we Western countries call the body of water surrounding them the South China sea. In Vietnam they call it bien dong which I think translated means East Ocean.

Anyways China lost the UN tribunal claims for these islands but are still militarizing them. They've put soldiers on these islands. They tried putting an oil rig in the sea near the islands. I was in Vietnam when this happened and it was insane. Rioting broke out in Vietnam and people were smashing what they thought were Chinese factories and beating up anyone they think were from China. Ships between Vietnam and China were being rammed against each other daily.

China is preparing for something big and no one is stopping them until it's too late.
Deal Fanatic
Jun 3, 2009
5735 posts
1585 upvotes
Montreal
daverobev wrote:
Hawaii isn't less than 100 miles away from other nations that claim them. Big difference. Look at the map - loads of those islands are within the UNCLOS EEZs of other nations.
What about Guam or the Falklands? Distance has nothing to do with whether a country has any claim to a territory at all. That's history lesson number 1.
mr_raider wrote: They're inhabited islands with a population. These are rocks.
Many islands in the South China Sea are much bigger than you think as you are clearly confusing Diaoyu which is located in the East China Sea. :lol:

How does China seizing a US navy spy drone even draw more media coverage than months of bombing and killing of Yemeni civilians by key Western allies in broad daylight? That's the million dollar question there.
Deal Fanatic
User avatar
May 11, 2014
6582 posts
9090 upvotes
Rankin Inlet, NU
Regardless of the outcome of this... this is a non-issue for investments.

I think a larger issue at the moment is the capital flight occuring in the Chinese market. Yuan has been devaluing and the PROC has been propping up the currency by selling down their US Treasuries. Anectodally, the sell off is even bigger as many countries where it is believed that China holds more treasuries (Belgium etc.) have also seen large sell downs as well.
http://ticdata.treasury.gov/Publish/mfh.txt

China still has $3 Trillion in foreign reserves, but I am curious as to how the economy there is going to respond with this level of capital flight. The economic quality, underhanded-ness, restrictive trade barriers, lack of profit-motive is partially the reason why I've never invested in broad-based ETFs that contain Chinese companies (eg. Vanguard Emerging Markets ETF). I also have a hard time believing companies like HNA Group can continue to buyout multiple hotel groups, airlines, aircraft leasing companies, airport management, catering companies to a total of tens of billions of dollars this year alone, have less than 1% return on asset, and still be viable long term.

I will say this here, anyone wanting to invest in emerging markets, there often is a reason why they remain "emerging" in that they have fundamental economic, governance barriers which do not allow them to grow. Of course, there are success stories (eg. Chile, South Korea, Taiwan etc.) but there are often disappointments (eg. Brazil, China, Russia etc.). If you are a passive investor, you may want to skip broad based Emerging market ETFs for this reason. I would pick a specific company ADR as you can judge the merits of a single company instead. Sometimes, a single country ETF (more common on the US exchanges) may also be a safer bet.
Support your local Credit Union!

RRSP where you can deposit with a Credit Card, earn rewards investing!
RFD Saskatchewan Pension Plan
Deal Expert
Aug 2, 2001
18945 posts
10527 upvotes
In my opinion, China has had the luxury of "do it with confidence and no one will say no" because of the passive nature of most western governments. Russia also does this, such as when they took back part of the Ukraine.

The US will soon be run by a different type of leader who is expected to be a much stronger presence than previous leaders. It would be wise of China not to poke the US bear because they are unable to handle a serious response from the US, let alone one started by an individual who ran on a platform of making American strong and cancelling many trade deals. Perhaps Trump will be much more passive than the character he portrays. But perhaps he will be exactly like the character he portrays, and that's bad news for a country like China that runs around thinking it owns everything.
Member
User avatar
Mar 11, 2017
310 posts
69 upvotes
BC
China to return U.S. drone seized in South China Sea, according to today's The Globe and Mail.

Top