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Why China's Stock Collapse Could Lead To Revolution
Make no mistake, the bevy of measures put forth by Chinese authorities in an effort to stop a three-week slide in the country’s equity markets collectively trump the QE programs implemented by most DM central banks.
Even if one wanted to argue that the PBoC’s support for CSFC doesn’t amount to outright QE (much as some, Morgan Stanley for instance, claim the LTROs associated with the country’s local debt swap program aren’t effectively QE), “quantitative easing” will never be able to compete with “qualitative arresting” in terms of government heavy-handedness in financial markets.
All jokes aside though, if the reprieve Chinese stocks have received from Beijing’s crack down on “rumor spreaders,” “hostile” foreign short sellers, and just plain old “sellers” fades starting on Monday (which we suspect it might), the Politburo may indeed be forced to abandon all pretenses that the PBoC isn’t directly monetizing stocks. In other words, China may have to abandon the “there’s no such thing as Chinese QE” line once and for all. With that in mind, consider the following from Credit Suisse, who has more on China’s “Draghi” moment.
First, Credit Suisse takes inventory of the extraordinary lengths China has gone to to stop the bleeding.
When a central bank says “whatever it takes”, we think the market should listen. The US Federal Reserve did so in 2008 and the European Central Bank did so in 2012. Is it the People’s Bank of China’s turn now?
The equity market panic has continued, with the Shanghai Composite Index diving by 32% over the past four weeks and share prices of smaller companies dropping even more. The authorities have launched two rounds of confidence-boosting measures over the past two weekends, neither meeting with much success.
The first round of confidence-boosting measures, anchored by cuts in interest rates and stamp duty, failed dramatically, as conventional policies had little impact in stopping the mechanical unwinding of leveraged positions. Over the past weekend, Beijing switched to administrative intervention by banning short selling and suspending IPO processes. State-controlled pension funds and sovereign funds are buying large caps, in an attempt to boost the index. More extraordinarily, the central bank injected liquidity in to the China Securities Finance Corporation Limited (CSFC) to buy stocks, without any pre-set limit in amount or timeline. Still, the measures did not seem enough to stop the market deleveraging and spiraling downward.
Next, the bank takes up an argument we've made quite a few times. Specifically, that the sell-off has implications far beyond the SHCOMP and Shenzhen. First, China is attempting to transition its economy towards a consumption and services-driven model. The sheer number of retail investors that have flooded into Chinese equities this year combined with the severity of the sell-off could very well serve to curtail consumer spending, thus hampering what is already an extremely difficult economic transistion.
Further, the eye-watering array of backdoor margin lending schemes (umbrellla trusts, structured funds, P2P, etc.) investors have employed in an effort to skirt official leverage restrictions have conspired to create an enormous house of cards which, when it collapses, could imperil the entire financial system.
We identify two major channels via which a sharp market correction could affect the real economy. The first channel is consumption. There are about 258mn stock trading accounts opened on the Shanghai and Shenzhen stock exchanges – 83% of the entire population of the US, with about one-third opened over the past nine months. We note a major shift of household savings from bank accounts to brokerage accounts. We estimate that 80% of China's urban households invest in stocks or equity funds, and equity exposure surged to at least 30% of their liquidity assets, from less than 10% at the beginning of 2014. The wealth effect is clear, but we suspect that the length of the market correction matters more than the depth. The Chinese people have kept hold of their jobs ensuring steady monthly cash flows, but generally they are feeling poorer, particularly in the face of adverse market conditions. Auto sales, which account for 9% of total retail sales, underwent a sharp decline, though not entirely caused by the wealth effect. The situation is too fluid for us to make any attempt to quantify the wealth effect, but we are inclined to believe that should the Shanghai Composite Index drop towards 3000 and stay low, we expect retail sales growth to be flat or decline slightly compared with 10.3% yoy as the average of the past five months, taking away the final growth engine, when investment and exports are all facing structural issues and have already decelerated.
The second channel is finance. We estimate that China has about RMB3.7tn in margin financing through brokers' leverage, structured products and equity collateral financing (i.e., companies or big shareholders pledge stock rights to borrow more to invest in the equity market). The actual size of margin financing could be even bigger as we cannot fully estimate underground borrowing and over-the-counter borrowing. Further, some bank credit for real economy investment may have been diverted to the stock market.
Finally, as we said repeatedly over the past several months while watching incredulous as new stock trading account creation hit escape velocity, the collapse of the market has serious implications for social unrest.
Besides the economic rationale behind making an outsized policy response, political considerations are equally important. China has one of the world's highest retail investor participation rates in the equity market. With the drastic fall in share prices recently, we think social stability is clearly at stake.
So what is the next step to head off "social instability"?
Outright, Kuroda-esque stock market monetization.
We are inclined to believe that Beijing will escalate policy responses until they start working. We have listed a few options that we believe Beijing may consider, but stress that unconventional measures probably would work better in current market conditions.
The central bank [has already] injected liquidity to CSFC to buy stocks, without any pre-set limit in amount or timeline. To some extent, this is the Chinese version of QE. Although PBoC is not buying bonds and not yet expanding its balance sheet aggressively, it is taking non-conventional measures to boost asset prices in order to stop market panic, deleveraging and downward spiral.
And because we doubt the situation could be summed up any better, we'll close with what we said on Thursday evening:
"By now it is clear to everyone that what is going on in China is nothing short of the complete collapse of a centrally-planned market into sheer chaos, a bubble which while punctuated by the occasional dead cat bounce, is now finished and it is only a matter of time before all the 'nouveau riche' farmers and grandparents see all their paper profits wiped out and hopefully go silently into that good night without starting mass riots or a revolution."
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The Chinese government will print trillions and support the stock market before it permits a revolution.
The other strategy would be to shut down the stock market for a few days and then announce that all pension funds must allocate at least 30% in the stock market. Shorts will be screwed.
Or announce double tax on short sales profits.
There are so many ways to artificially inflate stock markets.
Outbreak of W W #3 is now a cinch.
China vs Japan
China vs Taiwan
China vs USSA
take your pic
Iran and allies vs USA and allies.
FIFY
Speaking of which, is this just a coincidence?
http://www.nytimes.com/aponline/2015/07/09/world/ap-us-pacific-islands-disconnected.html?_r=0
the last time this happened on a large scale, a "cable disconnect" under the ocean. all of iran was cut off. it was "repaired" and iran came back online. Months later, it came out that israel and the u.s. wrecked iran's computer networks.
There are so many reasons China will have a hard time supplanting the US in the upcoming monetary shift as many in the alternative financial media believe. They think that China’s possible gold hoard is the answer but that would put the power in the hands of the people, which I don’t see the government doing because of this ever present fear of revolt.
china's market has only given up this years gains. wheres the crash? propaganda.
Well, as it goes, the ground level consumers typically move late into the market. Lots of people were wiped out.
It is an absolute crime that short sellers can literally sell a country's future down the drain. Short selling is nothing but financial terrorism, and it amazes me that it's not banned yet. The stock market is a place where everyone comes to invest their hard earned savings in good quality companies - this helps the country grow, and it provides an extra income for millions of people. What short sellers are doing is abusing this privelage and literally destroying the playing field for everyone else. Short sellers should be tried for high treason and terrorism for what they've done to this country its people!
lulz
Agreed MDB.....if bankers and companies weren't corrup from the get go....investing in stocks would be a safe & guaranteed investment.
China’s President Faces Rare Backlash
China hurtles towards its own version of the 1929 stock market crash… and Great Depression
Yes, the Western hand-wringing over China has opened full tap. It's all the rage in the Western media.
"China Hurls"
Fixed
It's the Ukrainian scenario applied to the Chinese stock market, this time. It looks more and more like a Western wet dream: collapse China through its stock market. There are two little issues with this concept, as ZH readers would know already:
1) the stock market is not the economy (not in China, and definitely not in US, Japan, UK, or any Western country of choice);
2) there is no stock market anymore, at least in the classical sense of the term. All we have now is the empty shell of a formerly independent institution, under the direct control of its respective central bank.
The Chinese were caught with the guard down this time, but it's not going to happen again. Probably, being so new at the game, they didn't realize that, when all other players are rigging their game, you'll have to rig yours too, or you'll end up as the sucker in the bar who pays for everybody else. Lesson learned, and watch for payback. Incidentally, I find the latest avalanche or ZH articles singing the demise of the Chinese economy, in the last couple of weeks, rather amusing. I'm sure it's totally coincidental, and unrelated to the new ZH ownership... /s
Please dont tell me jews bought out ZH. Please dont tell me jews bought out ZH.
Always read the small print (this time, located at the very bottom of the page...)
Copyright ©2009-2015 ZeroHedge.com/ABC Media, LTD
ABC Media LTD isn't American Broadcast Company (ABC)-- it's a London-based advertising agency that's a subsidiary of Retail Market International.
Know those pop-ups and banner-ads that are often bitched-about on this site? Well, I'd guess that even the Tyler's have bills to pay, and that ABC Media LTD is their way of doing it.
No down-vote from me, as I kinda had a similar fear ("ABC?!? Awww, shiii...") when I saw the fine-print.
This zh article is crap . Typical propaganda . Chinese stocks gained 15p% in just 6 months ofcourse it will come down . Oh and china economy isnt collapsing or exploding in pieces they just need to handle theri credit more Carefully .
not one your better posts MDB.
MDB,
To curtail short-selling is just curtailing property rights. If I want to lease my stock to get some extra return, with the understanding that the lessee is going to sell it and need to re buy in the future, that is my right as the owner of the stock. Two entities should be free to make that agreement. To tell people what they can do with their property is a slippery slope, granted we've been sliding down for a while. You are the one who is buying the Chinese (like country that blames short selling when their market drops) propaganda hook line and sinker.
Financial terrorism-Central banks manipulating markets up causing a bubble, then when gravity and economic law inevitably cause a crash blaming it on shortsellers!!!
It's hard to tell the difference between rights to do business and committing massive fraud because they often look exactly alike.
There's been a bit of a buzz on ZH about the site linked below. I started reading it again, pretty interesting.
http://redefininggod.com/the-rockefeller-plan-for-the-brics-new-world-or...
Demonizing short selling is the propaganda of every country that has a market for securities. They need bad guys and scapegoats to finger for the market collapse. Point bonus is making is that if the citizenry would just cooperate, central planning including the banning of short selling can eliminate virtually every problem in the world.
It doesn't matter that the crash thus far only wiped out this years gains, the issue it what it does to the credit markets through margin debt, and investor psychology. How many years of gains did the housing market wipe out, just a few, and same with the dot com bust. Not to mention half the Chinese stocks are still frozen so half the market still needs to rebalance.
There is no market in "the market", and it hasn't been for years ! What planet have you landed from ? It's all just a very elaborate kabuki play. By the way, how do you translate "kabuki" in Chinese ?
If you lose 30% of your portfolio value, you must gain 42.9% back to zero, AND you lose your ability to wax poetic about the definition of a crash. The CHINESE GOVERNMENT is sure TREATING IT LIKE A CRASH.
but but china and russia are care about free market an liberty
@ Captain Debtcrash
Have you been ass raped by a ChiCom by any chance?
Iran and allies vs USA and allies.
But doesn't that mean you get USA vs USA? (Ask Lurch Kerry)
All OK as long as the miitary industrial complex is moving that money.
Lol.
Iran has no Rothschild controlled Central Bank, never did, never will.
Ancient Persia destroyed Ancient Babylon.
Modern Persia (Iran) will destroy Modern Babylon the Great (the Global Financial System).
https://www.biblegateway.com/passage/?search=Revelation+17&version=KJV
https://www.biblegateway.com/passage/?search=Revelation%2018&version=KJV
"No man on earth has less taste or talent for criticism than myself and least and last of all should I undertake to criticise works on the Apocalypse. It is between fifty and sixty years since I read it and I then considered it as merely the ravings of a maniac no more worthy nor capable of explanation than the incoherences of our own nightly dreams.
There is not coherence enough in them to countenance any suite of rational ideas. You will judge therefore from this how impossible I think it that either your explanation or that of any man in the heavens above or on the earth beneath can be a correct one. What has no meaning admits no explanation and pardon me if I say with the candor of friendship that I think your time too valuable and your understanding of too high an order to be wasted on these paralogisms. You will perceive I hope also that I do not consider them as revelations of the Supreme Being whom I would not so far blaspheme as to impute to Him a pretension of revelation couched at the same time in terms which He would know were never to be understood by those to whom they were addressed. In the candor of these observations I hope you will see proofs of the confidence esteem and which I entertain for you."
-Thomas Jefferson on Revelation
In other words, TJ was too stupid, or too distracted by less important things, to take the time and effort required to interpret the most important prophetic work of all time.
TJ wasn't a god, just another man.
History is written by the conquerors.
So take history (and the purported words of "great" men) with a lot of salt.
Your heroes were mere men.
Revelation is the work of the one true God.
If YHWH, the Caananite God of War is your "One True God," then sure.
History is indeed written by the conquerors. Like the Roman Flavians and their Talmudic Court Jester, Josephus, who wrote the canonized books of the New Testament. Like the Catholic Church at the Council of Niecea, gutting the Bible of its most powerful allegory after the massacre of the Gnostics. Surely, though, this is not the history to which you refer?
Perhaps you should Seek_Basic_History before you Seek_Truth. It might be best for you to Seek_Help firsthand, as the Predictive Programming that is Revelation (in which all Christians lay down arms and allow Global Serfdom and Death to engulf the Planet) has clearly warped your mind beyond rational countenance.
You certainly ain't qualified to seek anything without "eyes to see and ears to hear."
Ha!
Is that what they taught you in "alt-historee" class?
Let's dissect your erroneous thought process, shall we?
YHWH was the god of the Canaanites? ROFL! Is that why YHWH ordered Israel to slaughter the Caananites?
"But you shall utterly destroy them, the Hittite and the Amorite, the Canaanite..." - Deuteronomy 20:17
Josephus wrote the New Testament? Is that what your Special Ed teacher taught you?
The distinctive writing styles of the NT books tell otherwise: http://www.bethinking.org/is-the-bible-reliable/the-historicity-of-the-n...
"Like the Catholic Church at the Council of Niecea, gutting the Bible..."
First of all, the "Catholic Church" did not yet exist at the time of Constantine and the Council of Nicea.
Second, the oldest manuscripts and papyrii predate the Council of Nicea by more than 200 years: http://www.dts.edu/read/wallace-new-testament-manscript-first-century/
And all are in agreement with one another. The standard practice is to ensure that modern translations adhere to these earliest copies of the papyrii. We therefore know that they are faithful replications of what occurred in the first century.
http://www.bible.ca/ef/topical-the-earliest-new-testament-manuscripts.htm
https://carm.org/manuscript-evidence
"in which all Christians lay down arms and allow Global Serfdom and Death to engulf the Planet"
Finally, Revelation does not teach what you think it does. That would be due to your hero worship, which blinds your mind to the best use of your time while here on Earth in your temporal state. What Revelation describes is exactly the state of affairs we find ourselves in: A Beastly government, ridden by a power behind the throne (the Global Financial System), both of which are soon to be destroyed, after which Christ returns to judge all humankind, punish the wicked, and reward the righteous.
You now have my permission to get of your knees, and stop bowing to that idol of TJ, and the rest of the mere men you worship.
The truth shall set you free.
So many strawmen and red herrings here it makes it difficult to respond, lest I waste too much of my time playing with you. Your statements about the origins of the Roman Catholic Church are patently absurd, as the political entity was established within a century of the supposed death of Christ. Or have you written the Apostles and Saint Peter out of your canon entirely?
It's also not good form to cite the work you're defending in the defense of the work itself. That's why you need multiple primary sources in attempting to validate Truth. But that's part of the Scientific Method, refined during the Enlightenment, whose greatest minds you have already said in so many words were "wasting their time."
Don't believe I said anything about the age of any given book, either. Some are much older than others. The story of the Son (Sun) has been told many, many times before, after all. I merely stated that books like the Gospel of Thomas and the Book of Enoch were utterly purged from Biblical study, and their contents refute Revelation as any kind of Prophecy. Have you read them? If not, why did you let a small group of MEN decide what was and was not "Holy Writ?" Is Constantine your God?
Are you aware of the historical continuity between the Pentecostal movement and the English Church, who are almost single-handedly responsible for reviving belief in Revelation throughout Christianity? Have you looked at any citation regarding the modification of the New Testament by Josephus? Are you aware that all the Trinity religions have historical lineage to polytheistic, astrotheological tomfuckery? Do you have ANY idea what the numerology contained in Revelation ACTUALLY MEANS?
I don't worship men or fictitious sky-daddies. Somewhat hypocritical that you criticize myself for hero worship, only to bow before the primary archetype of the Hero myth, the Christ figure. Regardless, you will find yourself in the same position as the Millerites of the mid-1800s or the Christians of Nazi Germany, both utterly convinced they were living in the End of Days, both utterly unspared the fate before them in the face of ignorance.
Have you considered Mormonism? At least then your Pascal's Wager would be assured, as you'd already be living in the End Times (supposedly). Have a nice afterlife, as you seem intent on pissing this one away on shit you don't fully understand.
Not a single strawman, red herring, nor any other logical fallacy in my reply. I proved, point by point, that you are in error. Rather than accept that you have been corrected, you lash out with even more erroneous assumptions.
The claims of the Catholic Church being founded by Peter are self aggrandizing horse manure. There is nothing further from the truth. The Roman Church founded by Constantine (circa 300 AD) is the Apostate Church that was foretold in 2 Thessalonians 2:3-15 (https://www.biblegateway.com/passage/?search=2+Thessalonians+2&version=KJV), as the “Son of Perdition.” It was this Apostate Roman Church, (~700 years later) that gave birth to both the Orthodox Church and the Catholic Church in the Great Schism in 1054 AD.
There are multiple sources of papyrii and other manuscripts (thousands) that confirm that the original text of the 1st Century was accurately maintained, using the scientific method. The internal consistency of the New Testament documents is about 99.5% textually pure. That is an amazing accuracy. In addition, there are over 19,000 copies in the Syriac, Latin, Coptic, and Aramaic languages. The total supporting New Testament manuscript base is over 24,000. https://carm.org/manuscript-evidence
There is no ambiguity what the Bible teaches about the SON of God, which is obviously not to be confused with the sun. The “gospel” of Thomas (https://carm.org/does-the-gospel-of-thomas-belong-in-the-new-testament) and the book of Enoch (http://www.neverthirsty.org/pp/corner/read2/r00810.html) are not part of the Biblical Canon for good reason. I have read them both, and it is obvious that they do NOT belong in the Bible Canon. https://www.biblegateway.com/resources/asbury-bible-commentary/Canon-Scripture
The book of Revelation is part of the Bible Canon, therefore, “belief” in Revelation goes hand in hand with belief in the entire Bible, so there goes your theory on the “Pentecostal movement and the English Church.” Likewise, your completely unfounded and ridiculous hearsay regarding Josephus somehow rewriting hundreds of fragments and whole or nearly whole papyrii is 100% fail. As far as “Trinity Religions” go, that is a teaching of the Roman Church, and her daughters, the Orthodox and Catholic Churches, and their descendants. The Bible Teaches otherwise- true Monotheism: YHWH the Father, Jesus Christ His only-begotten Son TWO separate beings. The Holy Spirit does not have a name, nor is it ever spoken of as a person. This is what the Bible teaches- and what Justin Martyr, the earliest “church father” (circa 100 AD) taught. And yes, the numerology in Revelation and other prophetic books in the Bible has a clear meaning. In fact, it is 666 that is easily understood once one recognizes both the meaning of “6” and the reference to 1 Kings 10:14 and 2 Chronicles 9:13: https://www.biblegateway.com/passage/?search=2+Chronicles+9%3A13-28&version=ESV
Christ is the son of the living God- as such He deserves worship and praise, unlike mere mortal “heroes.” Your quote from TJ up thread proves that you look to him as an authority figure, his words beyond reproach, which proves your assertion that you do not engage in hero worship false.
We all place our bets- I believe we are in the end times for good reason- all the signs are being fulfilled, and ZH does a great job of pointing that out frequently. How you can miss that while reading ZH shows just how blind and disconnected from reality you are. “Hypocrites! You know how to interpret the appearance of the earth and the sky. How is it that you don't know how to interpret this present time?” – Luke 12:56
You assume much about what I do, and do not, understand. That makes you a fool. I do not assume what you know and do not know- that is the course of wisdom.
“For by your words you will be acquitted, and by your words you will be condemned." – Matthew 12:37
Iran would first have to get a nuke, but the joke's on them: Barry and Kerry said they aint gonna let that happen.
And we all know what smart negotiators Barry and Kerry are.
So, if the farmers and grandparents will lose all their money, to whom will they lose it? Is the Squid in there?
money? it's not money they lose. hell, it's not even currency
when a stock market goes down, what is lost is first the "unrealized gains" made on the valuation of those stocks you hold based on the last trades and prices
and then, the margin calls kick in, at which point you might lose collateral or guarantees, which then can lead to repossessions
(then many can't even understand that they were buying with leverage, or what this really means)
in short: what is often called "paper wealth", or financial wealth
even shorter: what farmers lose is usually their farms
Yes. The losers lose their dreams and delusions, unrealized gains, and a portion of their money, unless they used leverage, then they lose it all. Where does the real money go? To the smart people hedged or who took it off table. Where does the rest go? Up in smoke like all lost dreams, because it wasn't real.
Disagree if China has Cultural Revolution #2, as implied by the article. If they do, they revert to insignificance on the global stage because they'll be too busy purging everything internally. WW3, if it happens, is going to have some strange bedfellows based on whatever the powder keg is.
Anecdotally it appears to me that those who lose "something for nothing" are much more apt to violently react than those who lost hard won earnings. It seems backwards at first glance but I really think it makes sense.
People who work for a living might lose their assets but also recognize that the way they got it still remains...through their hard labor, so they still believe they can earn more.
For those who won it, who got it for no work, those people realize that it may never happen again, and further it is not the result of their actions but others. It firmly reminds them of their dependency and while everyone enjoys the fruits of dependency, no one like FEELING dependent. And FEELINGS drive violence, not rationality.
Too true.
The collapse in 1929 in the USA was NINETY percent.
And of course we all remember the great violence that erupted as a consequence and how we supported Hitler all the way to the end.
So you think they've (TPTB) have kept the Korea situation status quo this long for giggles? Proxy wars are a great way to extend credit and juice manufacturing.
...or announce that all proceeds from short selling are to paid in Pb, high velocity Pb--the true "Fast Money"
any government, or central planner...has only one option when it comes to buying "stuff". That option, is to pay higher than market rates.
So when a central planner (e.g. FED buying GOV debt) steps in to buy at higher than market rates what they do is PROVIDE the incentive for others to SELL!!! which is opposite of what they really want, which is for security holders to actually buy and HOLD those securities.
So...just one more example of government intervention stimulating contrary responses to desires.
The Chinese government will print trillions and support the stock market before it permits a revolution. ...There are so many ways to artificially inflate stock markets.
And all those ways have costs that will ultimately come to bear on those who would spark the revolution anyway. PRc can pick it's poison, but you can't have a centrally managed economy where everyone is happy with their wealth and freedoms. The poles may keep their "paper wealth" but their standard of living will go down just as Abenomics has done to their Japanease neighbors. It will then likely be a choice of reforms or war. I sincerely hope the PRC does not instigate the latter.
War is the distraction.
Being able to blame "capitalism" is priceless.
Is part of plan round eye.
"The Chinese government will kill millions before it permits a revolution."
Fixed it for ya JO.
Grimaldus
...you fucked up, you trusted us. [/kung pow otter]
My advice to you....
If the Chinks would stop being so stupid and switch of a gold standard already they could lead the world into a new Eastern Era. But apparently they are run by people just as stupid as Western leaders.
If the Chinks would stop being so stupid and switch of a gold standard already they could lead the world into a new Eastern Era.
Give me a fucking break. A terminally corrupt political system that makes our sewer of a Congress blush isn't leading the world into shit. Except perhaps a new World War. Depends on how desperate they are to keep power and how many of the Chinese Oligarchy figure it better to liberalise their society as opposed to possibly losing everything in war.
I sincerely believe this was Kissinger, Nixon, etc's end game back in the 70's. Get them dependent on trade and let the worst elements of so-called "capitalisim" destroy the CPC from within.
Damn skippy, NZ. That's exactly what happened.
https://www.corbettreport.com/interview-1046-patrick-wood-exposes-the-te...
Too many people, unfortunately, are still dependent on the "Savior Paradigm." Whether it's being saved by some "Eastern Alliance of Gold and Puppies" or Jeebus Crisp, Sun of Gawd, folks would rather sit on their ass and do nothing than accept that nobody is coming to save you but yourself.
The US has found a way to dumb-down it's people. China has a lot to learn.
It's a two pronged approach: Garbage television and garbage food.
More like three generations of comfort punctuated by "sacrifices" for "freedom". Makes the total economic destruction of a generation seem like just another "sacrifice", like the sacrifice of lives on the altar of Vietnam, and, as in the 80's and 90's, that comfort will reign again in the future.
You left out poison posing as medicine.
Lately I've been hearing rumors of people on anti-depressants and other mind altering drugs getting gender disphoria syndrome (ie becoming trannys), and having that feeling go away when they got off of the meds.
Messing with your brain chemistry with anything outside of changing the food you are eating is never a good idea, in my opinion.
Probably better to go off those meds before having your unit hacked off, probably.
Do they still put Fluoride into the drinking water supply? How did they ever get away with this? By the same token the government should be adding vitamins, antibiotics, tranquilizers etc. because its soooooooo beneficial>!!
Yes, and adding Pax to the air supply.
Must import hispanics...
The US has found a way to dumb-down it's people. China has a lot to learn.
China already did this on a grand scale with Mao's purges. There's a reason those peasant farmers were hoodwinked into the stock market. The PRC exists and holds it's power because it controls a majority dumbed down populace of over a billion people.
Trade growth and reliance on it would have occurred anyway. It was in the end the Chinese who decided being wealthier was preferable to doctrinaire puritanical communism. The Chinese problem now is that it was relying on building towards reserve currency in yuan. But a reserve becomes a reserve via being accepted by everyone else, not because country's declare it so. And a county with so much debt, and debt-addiction, combined with legacy state-controlled industries, and now overtly state-controlled equities 'market', which is also on the ropes ... Well, in what way does the yuan look like a reserve option now? They almost certainly won't get it now. Other countries won't accept it, or fall in line.
And if trade partners are trading goods with fiat, forget about gold and silver as a necessary backstop. It's just a store of redeemable fiat wealth, in someone else's reserve, for the foreseeable future. So these ingrained nationalist dreams and hopes are crumbling in many ways.
Here's a rather interesting wide-ranging discussion re China's regional strategic situation, aims and resistance levels, but it doesn't really incorporate these recent economic and financial developments, which are quickly becoming far more than mere hiccups or passing transients. - enjoy (18 min)
Mearsheimer vs. Nye on the Rise of China
Revolution of the people may happen in the future but it won't be because of the stock market. The government will make damn sure that goes up and up and up. The Chinese government knows the world is watching and one thing they despise is being embarrassed.
Watch this currency crumble only to be "replaced" by Gold-backed Yuan
Watch ALL global currencies falter, only to be replaced by a basket of global currencies, precious metals, and carbon credits. That's the plan, though not from alt-media prognosticators. It's as told by the Bank of International Settlements (of which every BRICS country is a member), the head of the People's Bank of China, and Chatham House (the British CFR, set up as a part of Cecil Rhodes' Last Will and Testament):
http://www.bis.org/review/r090402c.pdf
http://www.chathamhouse.org/sites/files/chathamhouse/field/field_documen...
Watch as the BRICS nations, despite blathering on about raining gold-plated kittens from Heaven, adopt a nearly identical lending model to the IMF and World Bank, using their newfound credit (lent against their gold, of course) to implement "Sustainable Development" (read: Agenda 21) to anyone outside the perview of the "Western" world:
http://unctad.org/en/PublicationsLibrary/osgdp20141_en.pdf
Watch as the BRICS appoint as the top brass of the New Development Bank a bunch of IMF, BIS, and World Bank goons... oh wait, that already happened earlier this week:
http://redefininggod.com/2015/07/globalist-agenda-watch-2015-update-51-g...
Now why did I not read about THAT on ZeroHedge? >__>
What stock collapse?
You guys are delusional!
The Shanghai was at 2000 52 weeks ago! Now its at 3700 down from a high of 5180!
Since June 2014 the Shanghai is still at 3700/2000 = 185%.
Even the Dax is much lower than that!
Who does the MATH when these posters post?
Don't be so impatient, it's only been a couple weeks. We'll have a bit of a consolidation and then the next downhill slide will begin.
By the way, your calcs are wrong. A move from 2000 to 3700 is only 85%.
Well just saying 100 + 85.
Its at 185 % of what it was but its an increase of 85%.
And, its not me who is being impatient; its the Tyler who posted this and says : Revolution imminent!
People think that in a Centrally planned country with ONE party system a counter revolution is easy.
It ain't even tho the capitalist class is gnashing at the bit as they see their crony wealth disappear.
But that is : C'est la vie. What US Oligarchy outsourced it can now try and pull back.
You just don't know with these things. They can blow up very quickly.
One thing is for sure. If Tyler is correct, you can bet that there will be a blood bath.
Good. China needs a revolution. The commies are destroying China.
a little late to the retail sales party
The Gap reported yesterday ... same store sales (year over year) for june.
expected ... -0.5%
actual ... -1.0%
after may's "good" sales (due to 5 fri/sat/sun) when not a mention made ... thomson reuters had the gall to blame poor june (on retail in general) on Q1's port strike.
wtf??
So their expected loss on % was only double what they projected? I'm wondering is everyone out there is using the same economists? Must be the new age economists are told to first make the customer feel good. Truth later.
Hey ZH, put out a list of China bubble posts so far for folks to get a quick primer.
What kind of dumfuk CIA mole came up with this crap? The only thing China is going to do is lay the blame directly on Western bankers. What ever they lose will be angrily extracted via higher prices in the USA and trashing of the USD. And frankly, they have lost nothing yet. a few months of gains? Big deal. It is the West that speaks volumes by claiming a stock market is drop is the terror of all terrors. China will survive just fine. They actually make stuff.
"What ever they lose will be angrily extracted via higher prices in the USA and trashing of the USD". I think we're already taking care of that for them. "They actually make stuff". Agreed. That may save them. At least, it gives them a good shot at it.
The West only hopes that the Chinese will revolt. And to be sure they are actively involved in making it happen. You're right, this is CIA-ish.
S'truth. These little bits of US gov't agitprop have been sneaking onto ZH with increasing frequency.
JTRIG Ops.
Yes, they do 'make stuff'. The problem is, so does bangladesh, Pakistan, India and god knows how many other 3rd world countries.
Besides, the west has run out of money to keep buying the stuff they make.
China better get in line.
I'm still waiting for the US and Europe to collapse.
Me too but it has been postponed for a later occult date.
China will never let its economy collapse, to the moon bitches.
bah,, I think the US will revolt first, or at least they should. They are even banning the words "man and wife" from all the laws. What a sick place USA is.
If Chinese get in a crunch they can run the price of gold up to give their investors something to feel good about.
China is an IMF member. IMF members are prohibited from backing their currencies with gold, or using gold as money. China already screwed their population by recommending they buy PMs, and then collaborating with JPM, Goldman, CITI and the Fed to crush gold and silver. Russians are IMF members too. ALL governments are fiat mongers. How to fight them without violence? Don't buy their bonds and don't keep money in any bank.
clickbait title much?
do you even know what a revolution is? ever read any history of actual revolutions and how and why and what the social conditions were when revolutions occured?
it takes several generations of mass poverty of a majority of population, extreme wealth disparity, very likely overpopulation as well, breakdown in many levels of government and civil order either due to war/waste/corruption, with a possible helping dose of natural disasters where many end up with either barely enough to eat or outright starvation.
oh fuck me, the stock market went bust, it's gonna cause a revolution
Starvation is the key word if you epect a revolt, anywhere. Sad but true. If people aren't hunger they don't give a shit.
New word: "starvolution".
"it takes several generations of mass poverty of a majority of population"
Or a sudden plunge in living standards. If the majority of people lose their life savings all at once, they will riot more often than not, and riots can and do turn into revolutions.
Outside of the major cities in China, there is mass poverty and over the entire country, income disparity is ridiculously high. And yes, in some parts, food is pretty hard to come by. So, if the newly rich have suddenly become the newly or returning poor, there could be enough of a backlash to cause rioting and bring down the government.
Outside of the major cities there is mass poverty, true...but the people don't starve, I can assure you, because outside of the major cities people grow their own food. Not GMO crops, not Monsanto shitfuck foodfests, I'm on about real, grown in the soil food...so revolution...No, sorry to disappoint.
Casinos lead to suicides not revolutions. They need to post warnings "may be harmful to your wealth"
You mean that the path to Regime Change was NOT one reason to attack the Chinese market?
Of course they have only themselves to blame for actually fueling the super-bubble. How's it go again? Aah... "Actions have consequences".
Million guns, tanks, bombs vs. billion people with chopsticks? The Chinese government will win every time. Bring it!
You are forgeting that the soilders are people with family members that have those "chop sticks". You may see one general vs another general. It could get ugly but I doubt it.
... there's no end in sigh
I'm going to mention an historical detail which might sound like I'm being critical of the Austrian cant. The communist revolution in China happened in 1949. It's ongoing. M'k
Why does everyone is the West assume that a market crash in China must trigger violent revolution, when a market crash and falling real wages in the West will always be greeted by passive acceptance?
State of the mind of the sheeples, I guess. China sheeple different from American sheeple and different than Muslim sheeple. Remember when some Danish cartoonists put out some pics of Allah and millions hit the streets? Cars and buildings burned, people killed. In America, taxpayers hit for trillions (robbed of REAL money) to bail out banks. What did they do? Tuned into Dancing With The Stars. Whoopee.
The Chinese are heathens, barely civilized to the Western elite. Our dear leaders think this of all Asians. That mindset was the basis for America's "Manifest Destiny" armed outreach to the barbarians in the 1800s, a mindset that exists in the West to this day.
Mao said that power comes from the barrel of a gun. Well, guess who's got the guns in China?
Two words: Tiananmen Square. Now you bitches can shut up.
You obviously only know the Western propagandist version of events...look up Wei po po, the spelling may be wrong but you can sure get info regarding the ACTUAL events...
Let me just ask you , What would happen if U.S. or U.K. students protesting killed 7 policemen?
"Wei po po" is chinese for "grandmother."
What would happen if U.S. or U.K. students protesting killed 7 policemen? They'd be hailed as freedom fighters and Eric Holder would rebuke the outrageous levels of police brutality that caused the students to have to use deadly force in defending themselves.
Sorry, I only speak Mandarin and 'Nai nai' is the Chinese for Grandma!
I don't know about the U.S. but I can assure you if 7 coppers were killed in the U.K. they'd (The government) be shooting people left right and center.
The maidan protests that happened in the Ukraine could NEVER happen in the U.K. or the U.S, for one the people aren't THAT determined and two Nudelman wouldn't allow it.
Fuck those fuckin dirty whore neo-cons, for puting mine and my kids lives at risk in their quest for world dominance. I hope they ALL get arse cancer and die a painful debilitating death.
...but that's just me!
What's the point of being a millionaire .... if you can't spend it ?
The Chinese can't eat stocks, but they can eat plastic rice.
:)
... "Why China's Stock Collapse Could Lead To evolution"
communist superiority .....and here comes the slaughter.
gulag anyone?
slaughter of the shorts and sellers perhaps?
or maybe just gulags.
the Chinese police have been reportedly dispatched to go after the shorts, sellers, and rumor sources.
it will be interesting to see who and how many are rounded up in the next few months.
better than the movies.
I don't think a revolution is going to happen. Instead of revolting, all the middle and upper class Chinese will just immigrate to the West.
idiotic piece of presstitute clickbate
Oddly enough, I am on the phone right now with a couple of people in China. They are saying that things are normal there. Most likely they are not involved in the stock market
Just trying to sort out what is real and what is hyper-realism.
Hey, all I know is we are safe from economic collapse due to the plunge protection team. They can shut down any real attempt to....what is that forbidden word...oh, yeah, SELL!
Centralized "control"....is a myth. See every "empire" in history.
you wish.
What fucking tripe.
Ok, yes, there was a correction after going from 2000 to over 5000 in under a year. It's now back to 3900 and was playing around 4000 today. Dead cat bounce? Maybe, who the fuck knows. Look at the PE ratio for the SSE. It's a whopping 18x. That's not crazy, the S&P is fucking 20. When these bullshit articles are pulling crazy numbers out they are talking about small cap bullshit companies that were bought up by morons. Exception, not the fucking rule. It would be like waving around amazon, fuckbook and linkedin as examples of how fucked everything in the US is. Oh wait, those are "good" companies whatever that means, despite the endless fucking cash burn and zero dividend.
So lemme see if I get this all straight. China posts double digit growth for decades, all the while the US is crying about how it will all implode. It doesn't.
Then growth slows to ~7% and this is termed a "hard landing". Ignoring of course, that US and western growth is all fiction at this point.
Next strategy has been to take a single fucking line by li keqiang and use it to claim that all china numbers are fake, because well, why not. Are they 100% accurate? no. Is there some bullshit mixed in? YEP. But there is still a SHITTON of the economy which is quite simply never reported in any way and kept off the books.
If one was to believe the tripe coming out of the US, everyone in China is poor and anyone who has a car nicer than a 20 year old fake Jetta is obviously corrupt.
Not the fucking case at all. Beijing ACTUAL median income right now for anyone with actual skills. This is removing low-wage jobs that come with crazy perks and entry-level garbage. Median annual is around $35k+ now. Add in legit experience? You're around $50k+. Doing business for yourself? The damn scrap collectors are pulling $30k+ a year now.
Get away from the major cities, fine, off to poorville. Wages are low, jobs are more limited, but life is fucking cheap. I could sell my cheapest property in this city and buy 10 just like it but twice as big in a small city of 1 million if i wanted to. Their property bubbles popped, but they were never all that big to begin with. And even then, people are using the internet to do their own business now. Do you know what it takes to do business in China? A fucking idea and some money. No one gives a shit about taxes until you get big. Hell, most companies are not even fucking registered, they can consist of a guy and a cart selling shit for 10x what he put into it. Maybe rent out a stall somewhere if they "get big" and hire someone to work for them. If that somehow takes off, ok, then maybe a shitty storefront too. Success? Ok, FINALLY it's time to maybe register it, because now it's something that can be sold off for money and the guy with a cart can retire and it'll be someone else's problem.
Stock market leading to a fucking revolution? Get fucking real. No one's starving, no one's living on the streets. There will be a few stories of morons who went all in at the peak and lost their shirts, but that's not the rule, it's an exception. Dumping maybe 15% of liquid assets into the market? That's more likely. Chinese love risking for big payouts, but rarely do they bet the fucking farm on it.
This is all about planting the idea in people's minds. Not necessarily the minds of the Chinese, but the minds in American and the West.
The next step is to infer that something needs to be done by the West to save the poor, oppressed Chinese peasants and support their revolution against the Red Menace.
Abso - fuckin - lutley laomei, I own 2 businesses in China in the most populated province +100 million people, and guess what? Business is STILL booming, all this hyperbole about China crashing is for the western (U.S) prestitutes and BTFD'ers who are losing big time on their silly little gambling shitfest, all my customers have cash and gold reserves, the yanky/Brit pack have McDonald happy meal toys, fuck 'em. Let's see who collapses first!
Hey bitches, how much do you pay for a pack of ciggies and a night out? I'm talkin a REAL night out with draft beer, girls dancing on the bar, smoking in the pub, drinking till 6a.m. all for 20$?? I was in Ireland last winter, pack of ciggies 10 Euros, beer 6 Euros, no smoking in the bar, Polish bouncers on the door telling you can't come in...what a shithole.
Go and give the S&P a big fucking blowjob you little whore of a writer (Directed to the writer of this sh-article)
Over and out.
Very well written. Thanks.
Thanks. I may of gone overboard, but what really annoys me is that I'm deluded enough to still see the U.S as the country that dreams are made in (Since I was 7) and now I see it turning into a pure shitstorm thanks to some evil, fucking, kiddy fiddlin, Israeli lovin', politicians who are hell bent on destroying mine (and many millions of others) dreams about a place that could of been Utopia on Earth (Laugh if you want, but it's fuckin' true, the U.S. could of and should of been Earths heaven) now it's just a fucking shithole, filled full of sheeple, racists and mongs.
What a fucking sorry state of affairs.
I cry into my 20 cent pint.
If'n you don't like America, you can get the hell out.
If you can't read, shut the fuck up.
not even in the fucking slightest did you go overboard. im not even that fucking old and i remember an america that was still fucking liveable. it's just gone to utter utter utter shit. wages do not go up, decent jobs do not fucking exist for normal people anymore. And even if you fall into a high-demand skillset and make some bank, you are surrounded by a society that is fucked.
try and do business in the US, it's a fucking joke. the mentality is a fucking joke. I had a business opportunity here and needed some very basic work done in the US to handle a portion of it. It was essentially a free money job. Sit back, relax, oversee some crap, help with some sourcing, $90k a year based on projections. I decide to hit up old friends who are down on their luck. Every fucking one of them... wanting to set up a company, wanting benefits, worried about taxes, blah blah blah. Fuck it, not worth it. I intended on paying them cash into an overseas account and sending them a card. $90k of tax free income a year? Not a single fucking taker. I ended up just not bothering because it wasn't worth the risk unless I had someone I could actually trust.
America is fucked because of the mentality. Everyone is fucking scared of breaking some random bullshit regulation that will destroy their lives that business is impossible. I mean, they have good reason to be scared though. Go to jail and you'll be declaring that at every single job you apply for for the rest of your life.
The US just seems to have died in the mid-90s, it lost whatever charm it had left. See the jobs report? It's all bullshit, and all the new jobs are going to foreigners anyways because they can be tied down with the H1Bs, My wife almost fell into that once. They were all out recruiting her, then they discovered that she would just be green carded because of me. Not interested at all anymore. Why? Because fuck, she wouldn't be a slave to them.
That last photo looked like the girls in my Shakespeare class this summer. Q99X2 faces these ruthless hordes everyday of his life. Much concentration needed to escape their wrath. Every response contains humor only hinted at.
"My new EO will outlaw heterosexuality. Homosex is now the Law of the Land. Anyone caught with the opposite sex will be imprisoned!"
_____Bath House
Nothing a simple revaluation of Gold cannot fix.
LOL, revolution my arse. What a load of shits....
The yellow propagandists are out in "farce"!
If your markets can crash your whole society, what you had weren't markets to begin with
My bullshit meter just pegged out. This has langley wet dream written all over it.
There will be NO revolution in China...as much as the U.S. PTB want it...The people on the street don't give a fuck, their view is 'If you can afford to gamble on the stock market, then you can afford to lose it'
Quite true in my view also.
This article and many more like it are the wishful thinking of U,S, sychophants and their dirty kiddy fucking elites. Revolution U.S.A. bitchez.
Burn Hollywood burn.
The US PTB don't want a revolution in China.
Never did.
They want what the Chinese leaders have: Absolute power and authority.
TPP essentially lets them merge under the law with China to get the US under Chinese authority.
Haven't you been paying attention?
That's a good point John, but let me ask you this: What happens the first time a government says NO we won't abide by the ICDS and fuck you and your corporate industry..? Will it be invaded? Will ALL the other nations who signed up to the TTP or TTIP suddenly leave (If they can!) Will the U.S. wage a war for its corporations? Are the U.S. people willing to die for the rights of Monsanto, Coca Cola, Microsoft?
We'll see...!
Agreed. You want to see a revolt, force Japan to have open immigration because of the TPP. Same with a lot of those nations negotiating the TPP.
This is no different from Japan's 1986-1988 meltdown...
You're a little early on the meltdown. The market collapsed in the early 90s. The late 80s - after the Plaza Accord forced the Yen to double in value overnight - was the asset bubble.
Why hopefully?
Chinese peod arent afraid to riot. Sends a message like the trioka is sending to greece...tit for tat
" If you don't hold it, you don't own it. "
Unfortunately for some Chinese, they got greedy and dove into the paper stuff. Called the "Stawk Mawket" which is now a joke in almost every nation, not only China.
I thought Centrally-Planned, Authoritarian regimes were supposed to be more stable and prosperous??
Isn't that why TPTB have been trying to implement world-wide socialism/communism??
Isn't that what everyone says about those systems??
Aren't those who dismiss TPTB's statements as self-serving lies regarded as tin-foil-hat extremists?
Any eyes opening?
Wakey, wakey! Eggs and bacey!
"The authorities have launched two rounds of confidence-boosting measures over the past two weekends, neither meeting with much success."
Massive financial fraud is not a confidence builder.
In a sense, America had a revolution after the 1929 crash. The size of government absolutely exploded.
"This crash, comrades, will enable our Zionist Bolshevik scheme to take over America! We must then plan to eliminate Anglo-Saxon control of the country and give power to a man we shall raise as their last Leader!"
I have a small 457k account and most of it is in the "stable" fixed fund (we have different types of "funds" we can put our contributions in). But about 20% of it was still in Dodge and Cox. I got scared Tuesday and moved it into fixed. And the stock is up like over a percent. One cannot win in this market. I get nothing (around a percent) from fixed. What is going on is very confusing and one does not know what to do. And it's very upsetting
"Why China's Stock Collapse Could Lead To Revolution"
Why stop with China? This is a global problem.
Excuse me.
Doesn't TPP give legal authority over economic transactions affecting trade (ergo all trade) to Asian nations?
Isn't China really the Asian nation that matters in that board?
Isn't that essentially a replacement of US-laws, impacting economics, with Chinese-Laws, impacting economics?
How could anyone think that the US Gov people behind TPP want to bring China down?
They don't want to defeat them.
They want to join them.
The TPP is a fucked up thing. However, it is designed to either contain China or force China, like all the other members, to be controlled by transnational corporations through a regional bureaucracy. The US might want the power of the Chinese communists but it is not interested in sharing that power with China.