Thursday's Top 10 with NZ Mint: A Golden Glob for 2 Golden Yobs; China's inflation problem; Manawatu's Copper thieves; Dilbert

Here are my Top 10 links from around the Internet at 10 to 8 pm, brought to you in association with New Zealand Mint for your reading pleasure.

I welcome your additions and comments below, or please send suggestions for Friday's Top 10 at 10 via email to bernard.hickey@interest.co.nz.

I'll pop any surplus suggestions I get into the comment stream.

1. China's inflation problem - WSJ.com reports Chinese inflation was stronger than expected in October.

This is what happens when you tie yourself to the currency of an empire in decline.

All the cash gets pumped into your economy and prices go through the roof.

The G20 meeting should be some grumpy affair.

The Chinese want to keep their factories.

The Americans want the jobs back.

The rest of us want them to stop fighting and stop squashing us.

Here's the WSJ:

The faster-than-expected rise in inflation helps explain the Chinese central bank's recent urgency in tightening monetary policy. On Wednesday night, just before the data were published, the People's Bank of China ordered banks to hold back more of their funds from lending, raising the reserve-requirement ratio by half a percentage point. The move to tighten bank credit came less than a month after the central bank raised benchmark interest rates for the first time in nearly three years.

Speaking at a forum Thursday, deputy central bank governor Hu Xiaolian said the central bank will continue to manage inflation, though she complained that the U.S. Federal Reserve's drive to push down interest rates is contributing to rapid inflows of capital into emerging-market countries.

The country on Wednesday ordered its major lenders to park more cash at the central bank, showing its renewed concern about inflation.

The move came just after China reported its second-largest monthly trade surplus this year, and highlighted the nation's unusual economic position ahead of this week's summit of the Group of 20 major economies in Seoul. China and some other emerging markets are increasingly concerned that their strong economic rebound from last year's global slowdown will result in inflation and asset bubbles, while the U.S. and other developed economies are expanding weakly if at all.

2. It couldn't have gone to a nicer pair - Nick Krause at Stuff reports the NZ Shareholders Association have awarded this year's Golden Gob to Mark Hotchin and Eric Watson. Bless em...

3.  Fraudulent property developing real estate agent convicted - Yay! Nice to see someone with a white collar is likely to be spend some time behind bars. The SFO has the details here. These two roosters hydraulicked their way to NZ$13 million from Westpac and BNZ. Mortgagee sales recovered less than NZ$10 million. Sigh.

This case relates to the property development activities of Mr Aryasomayajula and Mr Cavanagh in 2005 and 2006. The two endeavoured to acquire several properties with sub-division potential with a view to developing second dwellings on sites and selling the developed property for a profit.

Neither man had sufficient personal wealth to finance, or obtain finance for, several property developments simultaneously so embarked upon a system of engaging “trustees” to purchase properties on their behalf. Mr Aryasomayajula and Mr Cavanagh then used the trustees’ names and personal circumstances in applications for finance, a fact the trustees were aware of and for which they were paid a fee.

All costs of the finance, including mortgage payments during the development, were to be met by Mr Aryasomayajula and Mr Cavanagh through one of their companies. Mr Aryasomayajula prepared and submitted loan applications to various lenders, particularly Westpac Bank and the Bank of New Zealand, in the names of the trustees.

However, without the knowledge of the trustees he altered their personal financial situation in order to make their position more acceptable to the lenders. In addition to false income, asset and liability information, forged valuations were also created.

4. Not that I'm necessarily a fan, but... - Singapore's GDP is about to overtake that of its near neighbour and former big brother Malaysia.

I lived in Singapore for a couple of years and like a lot about it, but not it's lack of political and media freedom. However, they've got their economy right. Here's Bloomberg on the milestone.

The government acted by investing in export-based industries. It built new container terminals for Singapore’s port, the genesis of the country’s development; reclaimed land offshore to attract companies such as Exxon Mobil Corp. and Royal Dutch/Shell Group for a S$30 billion oil refining complex; and moved into high-tech industries like electronics and drugs.

“Economic development does not occur naturally,” said Ravi Menon, a senior official at Singapore’s Ministry of Trade and Industry.

“This is where free marketers are disenchanted with Singapore. The government has never hesitated from guiding the development process or intervening in markets where it believes such intervention will lead to superior outcomes.”

5. Looks like the Too Big To Fails won - The Australian reports that the Basel III process appears to have failed to put up the measures to control the Too Big To Fail banks to the G20 meeting. That includes measures to control the Australian banks.

AUSTRALIA'S big four banks will not be swept into a new regime covering global banks deemed too big to fail. They may, however, still be forced to carry more capital than smaller regional banks.

The G20 summit in Seoul is expected to sign off on the new minimum capital and liquidity requirements developed by the Basel Committee on Banking Supervision. However, it has had trouble responding to a request from the G20 Summit in Pittsburgh in September last year that it come up with recommendations for managing "systemically important financial institutions".

The Basel Committee on Banking Supervision was meant to have announced recommendations last month, along with the new minimum capital and liquidity requirements for all banks, but the decision was deferred.  

And here's the SMH's version for good measure.

6. Where were you Wolly on the night in question? - The copper bugs have been out in force again in the Manawatu, the NZ Police report with some alarm...

Police fear they could find themselves investigating a death, if thieves continue to risk their lives to steal copper wire. Last night (Monday, 8 November) copper wire was cut from around 10 transformers in the Halcombe area causing a brief power outage, and prompting energy company Powerco to issue a warning about the dangers to the lives of the thieves and local residents.

In August this year over 30 of the iconic wind turbines in the Manawatu ground to a halt when thieves broke to dig up copper wire bands. Other reports of theft have been made to Police from around the Manawatu and Rangitikei areas. Aside from the fact that these thefts can cut lifelines to people's homes the thieves are exposing themselves and others to the risk of electrical shock and increasing the risk of electrical fire.

Detective Sergeant Ash Gurney, from Palmerston North said: "Trying to make a quick buck out of the theft of scrap metal has become a continuous industry of late but is making a few dollars really worth a life. It is a dangerous game these thieves are playing and they need to be stopped before someone dies."  

7. Ireland's dangerous slide - Watch this space. Ireland and the European debt markets appear to be nearing some sort of crisis. FTAlphaville reports the latest signs.

LCH.Clearnet, one of Europe’s biggest clearing houses, is asking members to stump up more cash to trade in Irish bonds.

8. Cracking graphic from Time.com  - Click the image to see the full graphic showing how even the conservative mainstream press in America are picking up on the decline of empire and the hollowing out of the middle class by an increasingly wealthy and few plutocrats. HT John via email.

 9 Gold standard price - If the US dollar was to move back onto the gold standard, the price of gold would have to rise to US$5,000/oz, Angry Bear writes with this helpful chart below. Click on it for a bigger version.

10. Totally relevant video - Investment bankers discuss false asset valuations and how auditors can be duped.

"They will believe us. The auditors and regulators are stupid. No one will notice because they are all stupid. Please understand. Most people are stupid and don't care"