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This post was edited by abramicus at 2015-9-10 07:53|
DEVALUE OR REVALUE - A LESSON ON HOW THE TITANIC SANK IN TWO AND A HALF HOURS HITTING THE BOTTOM WITH A SPEED OF 45 KNOTS
As more information surfaces about the events surrounding the sinking of the Titanic, we learn certain lessons about LEADERSHIP that applies both to the ship and the state, as aptly, governments are supposed to man and direct their SHIP OF STATE.
The sinking of the Titanic illustrated lessons in LEADERSHIP that apply quite closely to the events surrounding the modern economic super-Titanic, called CHINA, INC.
First leadership mistake - ignoring the dangers every ship faces - icebergs. The Titanic set sail on April 10, 1912 from Southampton, England, passing by Cherbourg, France, and picking up passengers in Queenstown, Ireland, on April 11, 1912, and thence headed across the Atlantic Ocean. Because of an unusually high tide in January 1912 due to the moon's proximity to earth then, more icebergs than usual had broken off Greenland and floated down into the Atlantic. Captain Edward Smith received a radio message from RMS Caronia of unusually numerous icebergs at 9:00 AM of April 12, 1912. This was confirmed by another radio message from Athenia at 1:42 PM, which Captain Smith relayed to the chairman of the White Star Line who was aboard the Titanic, J. Bruce Ismay, who ordered a southerly course. At 1:45 PM, SS Amerika radioed it passed two large icebergs. At 7:30 PM and 9:40 PM SS Californian reported more large icebergs, which repeated the warning at 10:30 PM but was told to "Shut Up! Shut Up! I'm working on Cape Race (a relay station in Newfoundland)." The Titanic continued at near full speed of 22 knots (maximum was 24 knots). The monthly drops in PMI Manufacturing Index for the past 12 months were icebergs sighted or even floated by. Without exports, most factories would take a hit on their revenues and earnings, some sinking because they could not pay off their debts to banks. Full steam ahead, nevertheless, target is September IMF meeting to crown the Captain with the Tiara of IMF reserve currency for SDR, not that it matters, since the Yuan already commands 6% of all reserve currencies whereas the IMF's SDR commands less than 4%. Keep the Yuan overvalued at 6.20, must be on time for the coronation in New York (coincidentally, where the Titanic was headed to also).
Second failure of leadership - confusion of direction at the top and of execution at the bottom. Having sighted the iceberg, Captain Murdoch, then at the helm, issued a command to steer to the left, as the iceberg was ahead on the right. The second officer, Hitchins, was trained to obey "Rudder Orders" that apply to steam ships, which means that when Captain Murdoch ordered to turn to the right, he had to turn to the right, but Captain Murdoch was trained on sailing ships, and issued "Tiller Orders" to turn right, meaning to set the ship heading to the left. With only four minutes to collision time, and ten minutes needed to correct the mistake, the fate of ship was sealed. It struck the iceberg at the bow to its right and flooded six water tight compartments, whereas it was designed to handle only four. This was the equivalent of the collapse of the Chinese stock market when valuations hit the iceberg of poor earnings, on June 12, 2015, continuing its collapse to July 9, 2015, with aftershocks on July 27 and August 24, 2015.
Third failure of leadership - Chairman Bruce Ismay issued an order for ship to move "Slow Ahead." which turned the holes in the front of ship into gushing fountains of seawater that was being swallowed, literally, by the ship's bow, as a whale would swallow an ocean of krill, and thus, aggravating the damage, and causing the ship to sink in a record 2 hours 40 minutes, at 2 AM, when the hull broke into two, and with the bow dropping off at an incredible speed of up to 45 knots, separated from the rest of the ship by half a mile at the bottom of the ocean. This is the equivalent of China using its foreign currency reserves at a rapid clip of 80 billion dollars a month, half a trillion in six months, after suffering holes in its manufacturing sector, of repeated falls in PMI for the past 12 months or more, and export volumes as well for the same period of time. It is bad enough for the stock market to lose $5 trillion dollars of paper value, it is made worse by China's actual loss of cash in hard earned dollars, already sizable before the stock market collapse, due to lost export markets resulting from an overvalued Yuan, worth at least half a trillion dollars in the past two years, and now another loss of half a trillion dollars cash to keep the semblance of the ship moving ahead to its port of destination, New York, for the crowning glory of the IMF granting China's Yuan an international reserve currency status which China already had achieved on its own to a degree the IMF could not match.
AND SO, THE SAGA CONTINUES OF THE CHINESE TITANIC CONTINUING TO TAKE IN WATER, AS IT MOVES "SLOW AHEAD" TOWARD THE IMF CORONATION EVENT IN NEW YORK, ON ITS MAIDEN VOYAGE TO INTERNATIONAL RESERVE CURENCY STATUS, IF IT DOES NOT SINK BEFORE THEN. AND SINK IT WILL, WHEN THE FED RAISES INTEREST RATES TO STEM DOMESTIC INFLATION. TOO BAD, THE FED HAS TO DO WHAT IT HAS TO DO.
AS WE KNOW, THE TITANIC NEVER REACHED NEW YORK ON ITS MAIDEN VOYAGE.