SOFTBANK SON HAS A CHINA PROBLEM ALIBABA HELD HOSTAGE

And it is not going away. Alibaba stock is stuck in the mud. To understand the story, you have to understand China. Bloomberg and CNCB eat up the regulatory clampdown nonsense, which I call the American view. That’s not what’s going on. Americans like everything wrapped into a tight package of cause and effect. China doesn’t engage in short term thinking. But the real target of China is Masayoshi Son.

Unlike the US that dropped Nuclear Bombs on Japan for revenge, China still wants revenge on Japan. Unrequited ancestral hatred from Japan’s WWII atrocities. America is the fast-food centre of the world; they have no memories. China remembers. 

Though trade has greatly improved relations, China remains unforgiving of Japanese atrocities against the Chinese during WWII. These include killing 10 million Chinese. Unit 731 torture, including live dissections. The Japanese also did this to captured American POWs. But Americans have goldfish memories. The Japanese were absolutely out of control. At some point, China won’t care who is pushing Japan’s buttons. Japan has to be careful and cannot rely on the US Politicians to come to their defense.

Now after watching Americans exist Afghanistan, the people of Taiwan, Japan and Australia are feeling a bit uncomfortable with their “fair weather” American “friends.”

The oft-cited claim that the shipping lanes are being blocked is completely false. Shipping experts say the US line is propaganda. Click here for why. The last thing China wants to see is Japan acting aggressively on behalf of the US government. To China, any aggression or bullying in any form from Japan is intolerable. The US seems to be pushing Japan into confrontation, just as they pushed Australia over the cliff. Sending weapons to Taiwan is a great fire starter

Jack Ma tried to launch the ANT IPO but got tangled in his inner shyster. 

Masayoshi Son would have been a big winner both with ANT and Alibaba. But all while the ANT IPO scheme was being hatched, Ma and Son were exchanging drawings; how weird. During this time Son hatched his own plan to sell ARM, the British Semiconductor architectural firm to NVIDIA. This is a $2 billion a year company being sold for a staggering $40 Billion. That alone should raise eyebrows.

The MA Problem:

First Jack Ma claimed he had a 10% ownership interest in ANT. He reported that to Chinese Regulators. But that was false. Through a complex arrangement of offshore corporations and agreements, Ma actually had over 50% control of ANT and some 28 other investors were destined to become billionaires from the IPO. One of the largest proxy investors was Softbank’s Son. That lack of clarity and intentional deception won Ma the wrath of the Chinese Government. In their eyes, Ma was a famed Chinese Billionaire turned ungrateful and dangerous shyster. 

For Ma to be a shyster was bad enough but add traitor:

Shortly before the ANT IPO was pulled, Son had made a deal to sell ARM to an American firm, NVIDIA. In spite of all the entreaties by NVIDIA and ARM to supply everyone with ARM technology, the promise is hollow. America practices hegemony. Ask Intel the endless victim of US Hegemony. This irksome technology blocking strategy always eventually fails, but it causes delays until China can develop its own self-sufficiency. And then the US company has a giant new Chinese competitor. This idea of “Stoping China” doesn’t stop China, it grows China.

More simply nobody can or would want to “STOP CHINA” unless they had a defective brain. It is a weird Nancy Kerrigan kneecapping foreign policy that fails every time. Yet these stupid politicians do it repeatedly. 

Hegemony is a very strange concept. It is completely self-destructive. Yet populist politicians sell this lunacy to the angry dope in the street.

It attempts to block China from obtaining technology. It began with Obama; you know the “cool” but low tech Black guy. Obama blocked sales of Intel X86 CPUs to prevent China from using them in a new supercomputer. China never hid how they intended to use chips when they made the purchase order. Intel was grateful for the sale. Obama intervened and called off the sale. The Cool Black guy was going to “Stop China.” How well did he do?

Obama thought it was a good idea to block intel xenon and X-86 chips so China could not build their proposed Supercomputers.

In April 2015, the administration of President Barack Obama blocked a sale of Intel Xeon processors for China’s Tianhe-2 supercomputer. A few months later Chengdu Haiguang IC Design Co. was producing their own X-86 chips. By June Chinese had their own fast 64 bit RISC chips and built the world’s fastest supercomputer. Who in the heck was advising Obama? Intel was screaming at Obama to no avail. Mr Low tech “Cool” Black guy knew all. Besides Intel did not want to be called Racist by calling Obama stupid. 

Today, China is the world leader in producing RISC-V chips which are open source and have fewer instruction sets than ARM chips. The loss of the sales of Intel to China delivered a death blow to Intel. As a result, Intel missed out on the entire handheld revolution. Intel became untouchable in Asia and it has only gotten worse. 

Chinese Loongson just launched its fast Intel and AMD competitor CPU:

Click here for more. The importance is that this X-86 styled CPU is 100% native-born with Chinese Architecture and a unique instruction set. And it is as fast as AMD’s 1st generation Ryzen. Keep blocking Intel and AMD technology sales and this happens. 

 

Loongson

These Low tech politicians have no comprehension of how technology works. 

This is that Nancy Kerrigan kneecapping foreign policy lunacy. Its goal is to “STOP CHINA.” That is the way stupid politicians think. Look at Vietnam. What were they going to stop then? The domino effect of Communism. How did that work out in Vietnam?  Failure. Then you have Afghanistan. The US was going to stop the rebels in a Civil war. 21 years of wasted trillions and lost US lives for nothing at all. 

So quite naturally these same losers that presided over Afghanistan wanted more US Troop involvement, more bombing. This was Tom Cotton’s view. This was Nixon too. Have to bomb them into the stone age. It always fails. 

Worse, technology has a shelf life like bananas. Block technology sales and your chips rot on the shelf. 

When you block your technology from wide distribution, you are out of business. Intel is out of business in the handheld markets because of Obama, Trump and Biden. Apple dumped Intel to avoid US sanctions over Intel Chips. They now make their own CPU chips. Google is doing the same. These idiot politicians have destroyed history’s greatest semiconductor company. 

Look at Biden now.

He is giving money to Taiwan Semiconductor Manufacturing Company to build a fab plant in Arizona.  For what? To compete with Intel? FAB is the lowest end of the spectrum. Any hint of overcapacity results in bankruptcy. Margins are razor-thin and the work is manpower intensive. The kind of work Americans hate.

Intel is rightly livid about this Biden stupidity. How could you possibly get lower-tech than Obama, Trump and Biden. The three stooges of technology. And all of them have harmed Intel, the greatest semiconductor company that ever existed. 

Because of Hegemony, the world continues to remove American made components to avoid US Sanctions.

Do you realize that Huawei’s 5G has basically removed all US-made components from its boards and telco switches? No Asian manufacturer wants US components because they come with sanctions. Why do you think Apple dumped Intel CPUs and now makes their own in China? Apple wasn’t going to let some flake like Trump or Biden harm them. Apple knows the Hegemony game and so does everyone else at this point, except apparently NVIDIA.

Trump blocked Android but was too stupid to know it was open-source. Did this guy live under a rock in the fog?

The proprietary Android only deals with sync and the Google Store. Since Trump’s threat, Huawei has produced its own Android Interface called Harmony and Samsung has created its own Linux platform. 

The offshoot of this was literally thousands of Google Store competitors appeared all over the globe almost overnight. Trump is terrible for business. He is a lunatic, no intelligence at all but had a propensity to meddle in everything. A full-blown incompetent in all things. 

The point of this discussion is that nothing will stop the dumb politicians from using Hegemony to block Arm Technology and even NVIDIA technology. The deal is worthless to anyone including NVIDIA.

Intel knows this and that is why they are roaring forward with RISC-V, open-source chips that cannot be blocked by stupid politicians.  Intel the greatest semiconductor company in the history of the world, castrated by politicians, the intellectual bottom rung. Of course, Tom Cotton could show his anger and military acumen and bring in the Tanks and blow Intel facilities to bits. He would if he could; he’s that kind of populist idiot. 

NVIDIA already gets all the ARM technology it wants.

How does a competitor that is presently using ARM benefit from going to a competitor like NVIDIA to get ARM technology and at the same time reveal their future chip designs to NVIDIA? It is lunacy. ARM should not be integrated with any chip maker. They license chip architecture and should never be affiliated with a chipmaker. It is a form of anti-trust. 

All during this time, Jack Ma knew that Mr Son was planning to sell ARM to NVIDIA and China figured Ma should have attempted to stop this insanity. Instead, Ma was working his own scheme to include Son as one of his Proxies for the ANT IPO. Both Ma and Mr Son were damaging China. It looked like a shyster convention all at the expense of China and the Hong Kong Exchange. 

Lots of companies oppose the ARM sale to NVIDIA. Microsoft, Apple, Google, Qualcomm and China. Most recently the British Government says they may block the sale on the basis of National Security.  

Boris Johnson has taken the view that triggering a cold war with China is not a good idea. Clearly, he has watched Australia destroy itself by engaging China.  Further, NVIDIA  would suffer no detriment if the deal was blocked. Britain would benefit from increased China trade. There are no reasons for Britain to approve this merger other than wanting to start a Cold War with China. There is NO BENEFIT to Britain to approve the NVIDIA  ARM merger but there is plenty of detriment. 

China’s main thrust is to bury Softbank and Mr Son.  That is how angry China is over the ARM sale. Softbank’s growth has all come from Chinese stocks and investments.

Here are some of the actions China has taken to disabuse Mr Son since the ARM sale proposal:

  1. ANT IPO scuttled. This sent Son’s largest holding Alibaba down 39%.  
  2. Alibaba then fined 2.4 billion dollars. This continued the onslaught against Alibaba stock. 
  3. China torpedoed the DIDI IPO. Softbank was the primary investor, down 36% since the IPO. Click here for more.
  4. China attacked online Chinese Educational stocks and other holdings of Son.
  5. Alibaba had a recent sexual attack of a female employee by her manager. The government is looking into that too, #metoo! Alibaba stock is further depressed. 

Son’s largest holding is Alibaba. China is not about to let Mr Son enjoy a windfall or benefit from an ANT IPO. 

All Son could say was maybe he should consider a buyback of Softbank shares.

Wrong answer Mr Son. China will stop at nothing to block this deal. The deal has to be concluded by March 2022 or the deal is off. So this is going to be a long painful slam of Alibaba and Son. The fact that Son is Japanese is not helping. Japan’s largest trading partner is China. 

Allow me to introduce insider Trader Sen Tommy Tuberville of Alabama, another Trumper slime bucket. 

This Southern Fried Nitwit bashes China day and night, yet secretly owns Alibaba Stock and was selling September Calls at strike $230. When Biden stupidly and illegally delisted some Chinese Stocks, Tuberville congratulated BIDEN in a public tweet showing support for the US to get tougher on China Stocks. All along this Trump slime was selling more Alibaba calls and NOT REPORTING his insider trades. So in addition to being a two-faced Southern Fried Phony self-dealer, he was commenting a crime. 

Alabama seems to have a  surplus of flakes that it elects. How does this state expect not to be the laughing stock of the nation? And to send a self-dealing criminal to Washington that has the IQ of a goldfish is extraordinary. Do these politicians have any morals at all. 

Rest assured, Tommy Tubertrumpville is a Xenophobe by day and a self-dealing inside trader, by night. Another unqualified slime ball self-dealer in the US Senate. He’s been there less than a year and already he’s a slime. Good luck America. 

Little does Tommy Tubertrumpville know, that he is actually helping China crush Softbank and Mr Son, while filling his own pockets of course. 

With DELTA COVID raging, especially in the United States, there is a high likelihood of a global recession. Three public school teachers died this week of COVID in Miami. Florida Gov. Ron DeSantis was quick to point out that these teachers were defying his anti-mask orders. DeSantis, another Trumper idiot, said he was not going to pay Teachers that wore masks to work. The GOP loves this guy. China has to love him too for keeping COVID raging in Florida.

Just yesterday a Carnival Cruise ship at sea announced it has 3 cases of DELTA COVID. Populist politicians are calling for no masks. 

US Consumer Confidence just collapsed to a decade low. That is an ominous sign since the consumer has been carrying the economy for two years. The insanity of renters not paying rent and not being evicted for a year and a half is pushing landlords into bankruptcy.

Joe Biden’s protectionism and continuing Trump’s tariffs have demolished the supply chain and Tariff exemptions ended last month. Inflation is raging. There are food shortages. Biden’s Infrastructure pork house will only inflate US prices higher to the private sector with his “BUY AMERICAN” rubbish. 

And to those that think Buy American is good, it does nothing but cause inflation and strangles the private sector. For example, a small business wants to expand but needs a metal building. Buy American and Biden Tariffs, make rolled steel, the globe’s commodity steel, the stuff any third world country can make, 300% higher than it is anywhere else in the world. Thus the company that wants to expand, can’t afford to build a metal building and will hold off until prices collapse. If the companies are large enough like Ford, they move the Truck manufacturing lines to Mexico where they can get sheet steel at a 300% discount. That kills demand for the US Protectionist sheet steel. 

10 million not paying rent and squatting on rental properties for a year and a half is suicide.

Yet the press and politicians act like a great wrong is committed if the deadbeats are evicted. The mom and pops with a few rental properties will go broke but that’s ok with the media and Politicians.

Even Joe Biden’s claims of wonderful employment show the fastest-growing jobs are bartenders, busboys, and hotel domestics. Oh except for the massive rise in Government workers and Government Unions. That Greedy US Taxpayer has to be made to pay up!

Then through the magic of regressive math. Persons who run out of unemployment benefits are then removed from the pool of workers seeking jobs. So the unemployment rate magically drops when in fact millions remain unemployed as the workplace utilization tanks. Real Black unemployment is running at 9%! 

Biden wants to tax the rich and Corporations while increasing government spending.

You can’t take from the productive private sector and give it to the unproductive government sector without causing a recession. 

And where is Joe Biden? He’s hid’in as if this will all go away. He keeps talking up vaccines. But if Delta doesn’t seem to care if you have a COVID  vaccination, then what is the point of 3 booster shots? Why not 5 or even 10 booster shots?

All these spell Consumer Weakness… and China will pound on Mr. Son and Softbank investments until the cows come home. 

Sadly for Alibaba shareholders, China will not let Alibaba rise until several events occur.

  1. The NVIDIA ARM merger must be called off
  2. Meng Wanzhou must be returned to China; this is a side issue but makes China increasingly aggressive.
  3. Mr Son needs to sell his Alibaba holdings and stop buying Chinese Stocks if he continues to attempt to harm China’s economy.
  4. This is a lesser issue but it grates China’s nerves. Huawei, has offered open access to their 5G networks for experts to find any valid claim of their hardware sending data to Beijing or anywhere else. ITs and Telco engineers know there is no security risk with Huawei hardware. They have published detailed independent reviews but US Politicians in Xenophobic mode don’t care about facts. They only care about populist propaganda. The fact the USA has no 5G seems so insulting to the US that they are willing to lie endlessly about Huawei and in the case of Meng Wanzhou, to kidnap her and hold her hostage.

China is sending clear warning signals to Mr. Son and he is playing games acting oblivious. That is a real mistake. Each day this goes on, Jack Ma runs the risk of criminal charges for his failed disclosures of ANT proxy investors. If China wants to, it can freeze Mr. Son’s Alibaba shares and interests in ANT. China can bring Jack Ma to heel and could fine him, bring criminal charges and force liquidation.

China is no longer playing games with Softbank’s Mr. Son. If the NVIDIA deal goes through, China will blow up Softbank and Mr. Son and Jack Ma. Jack Ma is a disrespectful shyster and as far as I can see, he’s pretty much out of business and his money is not going to leave China.

Don’t buy into the cover story of increased Chinese Regulations. Son and Softbank and Ma are the targets.

 

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