Saturday, July 4, 2015

The Middle Kingdom, China, is Teetering on a Dangerous Precipice of Self-Destruction by Stock Manipulators!
Most of you have heard about China’s problem with its stock exchange. A group of manipulators are shorting a highly leveraged stock market. What they are doing is basically allowing China to fall into an economic downturn which was never intended. How this happened has more to do with Chinese National Character than any other factor.

The Chinese are very serious gamblers. So much so, that the political elite of China made the right decision to locate most of the gambling establishments in Macau [a former Portuguese colony] rather than on the mainland. If they had placed the casinos in easy access to every Chinese citizen, the political elite realized that their citizens would be gambling all day long.
How they became such inveterate gamblers is not really known. However, they have historically engaged in highly leveraged activities including real estate speculations which ended in massive foreclosures mounting into the trillions of dollars. Rather than mark the mortgages down to the market, the Chinese officials kept the non-performing loans on the books as if they represented the true value of the real estate in question.
So fiction substituted for reality.

Then along came the real serious gamblers –the stock market manipulators who numbered in the hundreds of thousands, if not the millions, who placed a margin call [payment] on a stock and when the stock failed they had to pay the full amount of the stock price plus the broker’s commission and other fees. It is not working too well. For unknown reasons, the leaders of China cannot stop the market speculators from shorting their calls and basically creating a chaotic market which has fallen almost 30% in the past few days. This type of run in a lightly controlled market like China can lead to the eventual collapse of the economy where everyone pulls their money out of the banks and remain in cash; spending or earning nothing.This type of economic self-implosion is quite rare; but it does it occur when a market is highly leveraged and there is no actual cash to back the speculations; other than wishful thinking.
This means while China tries to expand along a new Silk Road it will have to contend with internal financial turbulence that can delay its growth for months, if not years.
China cannot afford that kind of delay. The economic forecasts and central controls are based on a ‘controlled economy’ that must grow about 6-7% per year.
That is not happening now.

President Xi knows that. So he is arresting many of the senior Communist Officials whom he considers corrupt [an easy determination] and places them in prison as both a distraction from the main problem of slow/no growth and extreme high margin speculations. I wish that the great Middle Kingdom will resolve its problems as quickly as possible; otherwise the world at large will feel the ripple effects of China imploding financially.
While Greece falls, let us make certain that China will be able to endure its own miscreant behavior long enough to be able to create the New Silk Road. Otherwise, the weight of the Middle Kingdom will be too heavy for the world financial systems to bear.


  1. Yep i agree, strong China is model to continue.
    People do not get it, but strong China is only way that we in Europe get american middle class suburbs, Americans to stop thinking that Nazism can save them, Russians to stop thinking that Siberia is area forbidden to American capital... Capitalists needs bail out from Chinese, and Chinese needs to bail them out so that they can bail in from Chinese so that Chinese will not have to go back to Communism and that Mr. Xi can continue arresting rich hard core commies who would accept return of Dr. Stalin. This is ok, game.
    And those little stingy euro-capitalists they want to sell port of Salonica to China, they do not want that Greek capitalists do that, God forbid in combination with Russians. Cool.

    1. And who can be against this?
      You get world war when differences among capitalist classes are too wide. Right now party seems ok. Yes people suffer, but really who cares about them.

    2. I hope Putin will finish this story, with few nukes.. We little ones do like this story, nothing for us there. Tunis is good example to follow.

  2. Americans could eat blood from their broken noses, very soon, all German companies are producing poisonous, fake and more expensive food for eastern Europe, Sprite bought in CZ republic have aspartame, in Dresden not, Nestea 40% of less tea, every possible product same thing... Meat of swine in germany is of swine, in Prague it is of chicken remains... and so on...

    Putin must protect us very soon.

    1. From now, when ever some pinky skinned germanic looking person ask me something on english i will greet him with Hail Hitler. And will gladly send him wrong way, plus gratis, i will show them where is closest mud. Ugly swine skinned race. America have also too many swine skinned people also. Luckily this time Israel can zap them easily. But no need to for hurry in 20 years such are going to be in minority in USA as they breed less among them self and they have on average 4 times more homosexuals.
      Jews made big mistake to mix too much with them, waste of genes.

  3. CIA will try soon to meddle in to Greece when Greeks call Putin and they will try with uprising, and when that fail, civil war is next, and then will have to try with Turkey if they really would like to do anything, then we communist have chance to start killing all those Greek capitalist cancer who would support capitalists and put them in to concentration camps. That is important to start with civil war in Greece before Turkish intervention if CIA start medeling. Military must start shooting reactionary Greeks right away, there must be front against them, so that Greek people know that Turkish support them.
    But if Turkey try something, than we have Kurdish uprising and and Russia will destroy all Turkish airports. Lets not forget that Russian air force is better than American Su-27 and Mig 29 are much better in dog fight than F-16 and F-15.
    Beside Turkey does not have so many airfields like Russia have in region. Meaning USA lost first battle.
    Will someone join on US side after that, only idiot would join than.
    Obama have order to get US capital in to Caspian oil, well i do not see how that is possible with this idiotic capitalistic policies.
    And every sane person must be against idiots.
    It would be good also to nuke Istanbul and Ankara also so that Turkish must beg for peace and allow connection from Crimea to Greece and than to socialist Egypt. After that we need to make liberation of Libya. After that Italy can take Albania and start rightfully demanding Austria to liberate Austria from Austrians, Italy should connect it self to Hungary. If i were Russia i would not meddle in to Ukraine or Baltic. I would just occupy Austria with Italy after nuclear attack on to Ankara and Istanbul. Or if Italy do like to stay netural, in that case we from Slovenia, Croatia and Hungary can start together with Russia attack on Austria. Austria must pay. Who gets Austria he is winner. No one would dare to help because no one would try to risk too much. And you are winner.
    Yugoslavia in 1988 had to attack Austria also.

  4. Yes there's been a bubble in Chinese equities and real estate. So what? How could there not be? In a place like that and such conditions there's gonna be a bubble. It would have happened anywhere and Chinese national character played a small role. Only someone like the Norwegians would have not done such things...

    The interesting question is why is China growing at all? It's products are crap, mostly. They make all this crap for nothing and sell it to everyone who buys it. The real shame is that European and American manufacturers move their operations there to make good products but putting everyone out of work.

    The Chinese make so much cash that they have to buy trillions in US government debt to recycle all this cash back to the US. America is so vulnerable to this that the Chinese could crash America if they wanted...they just don't do it because they need a healthy US market. But if the issue was important enough they would let America fall, and they've said so and everyone knows this. So there can be no real crisis or war with China so everyone planning for one go home. It can't happen. Save the money on that one.

    America has had no growth for four decades because all of what would have been wealth created here has been sent to China, and that's the simplist and more accurate way to look at it. All of China's wealth is from American workers losing their jobs, losing their incomes, losing losing losing so that this amount of wealth would be tranferred to China. Kissinger and Les Gelb and Joe Nye worked this out in the 1970s to end the cold war with China. With China the program was to make them rich so they wouldn't be communist anymore...whereas in Russia the program was to make an elite rich by tearing apart the state and selling it's assets....

    So there you have it.

    I don't like the Chinese much. They are a hive and have no style or class. Yes they like to hoard gold and they gamble and like sex and so forth like the Japanese. But the Japanese know how to make things and they are very clean and value their fellow countrymen. The Chinese are dirty, stupid, and they don't care about the quality of anything and they don't care about each other and treat each other like dogs.

    As for me I stay away from there and will never set foot there and I prefer to never buy any of their shitty products.

  5. I don't like asia much but if I had to go I would go to the Phillipines because although they are terribly corrupt they are crazy happy people. They have personality and fun. The women are way sexy and life is grand there. Other asians are too reserved and focused. The Phillipinos are focused on having a party. Okay so they don't accomplish much but they're more fun to be around, sort of.

  6. Asian women are horny. I don't know why but they have high libidos and can't get enough of sex. It's no wonder why asia is so full of people. Asian men are of normal sex drive for compared to men elsewhere, but asian women are just horny...all the time.

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  10. One thing I like about asians is their common sense about race.

    Asians are racists and they don't apologize for it.

    In particular asians don't like negroes much, and it's really funny to see Chinese in Africa bribing negro politicians and giving away presents and pretending to like negroes....

    When in fact no negro can set foot in China because they are hated there.

    Sort of like in Lincoln's home of Illinois where it was illegal for free negroes to set foot there ether because they were hated there...

  11. The stories I could tell about Chinese showing up in African countries and gaining access to things by helping negro politicians plunder their countries LOL...

    If I told what I've seen no one here would ever shake hands with a negro or a Chinaman again.

    It's rampant, widespread, and very, very ugly. Yet you never hear a word about it from people who love negroes and Chinese.

    It's the real reason why Americans and few Europeans can compete there...they aren't willing to totally plunder these countries like their own nigger leaders and the Chinese do with such ease...

  12. Germans were slaves of their Turkic asiatic steppe masters. And today Putin can liberate them from their Chinese capitalistic masters, and their Mr. Bush. Putin could do much better job than Jews are doing now in USA. Mr. Bernie is not strong enough. Putin can also cure them from homosexuality. Germania is mental disorder. It would be funny to watch Germans building new gas chambers for them self, we will allow them to be very industrious in that aspect. Also it very funny to think for Americans that they can land anything on to Euro continent. Because Russians said that this time they will not fight Germans, if Germans will move finger while we are liberating Austria from Austria, Germans will zapped. I recommend chemical attack on to German cities before we give them order to build gas chambers for them self.

    1. It would be very interesting to watch americans, because if they would be against chemical attack on germans, than they would have to show it somehow, for instance if Bush would have something against seeing german bodies making fast uncontrolled movements while lying on streets, than what could Bush do other than pressing red button, but i do not believe Bush will do that, because all rich will have to run away than to south and leave US :)
      USA does not have chance...

    2. To Austrians we can say, you will not be gassed with VX2 like Germans, we will allow you to be our slaves, and will allow your females to get on our sexual organ, again. Israel can take Switzerland. We will allow also Great Israel and finally create peace there.

    3. And all that without having even one Russian tank entering even one European country from Russia, just by nuking Istanbul and sending ships to Salonica, than Niš, Belgrade, Budapest... Who would say anything...:)
      Here we have on Niš airport, Russian "help" centre...
      HA HA HA
      Orban is wise guy also...

    4. Russian protection of Europe is much cheaper also. Russian army is much cheaper, and US army is expensive plus unable to operate on EuroAsian land mass. Plus Russians are unable to pillage so good like western racist germanic capitalists are. And in Russia there is job. Someone would have to control all those German slaves in Siberia.

    5. If nothing, we can have roasted swines in Siberia. Anglos are also Germanic group?, ...ah... yep, yes they are.
      Stupid Bush do not get that our liberator Putin is: i will explain it in way for you to understand: like Hitler, but one who won war on East, and plus Hitler who have nuclear weapons :)) HA HA HA... Try to go against that germaniacs. :))

    6. This time Mickey Mouse cannot work because Micky does not have health care, and is overworked, and his Mini does not have pregnancy leave... And Mickey is investing in to China too much so we do not understand Mickey because we do like this new strange house of Mickey, and Mickey like Richy now. Mickey is now sexual.

  13. Communist president of Czech republic also hates Germans.

    Our communist prime minister who s party is legal successor of communist party of Croatia said to people when he was asked about bad situation: "We did not say that we will do revolution when we come to power." HA HA, Lets not forget that we all communist on one level must listen Putin (centre of International really is in Moscow and under control of KGB), and it is helping very much that Putin is getting closer and closer to heart. :))

  14. When we look buildings now in Minsk, Belarus they are waaaaaay much in better situation than in Ljubljana, Slovenia, streets better, facades in good situation, refreshed buildings... And Slovenia today is 23,000$ per head and USA 47,000$...
    LOL Salaries getting larger in Belarus, everything cheaper in Belarus...
    People must get rid of American leprosy very very fast... They even cheat on numbers like USSR was. Capitalists must be dead very fast.
    Belarus is now overtaking Slovenia, ha ha...

  15. Capitalism is dead 100%, now i get why those US super houses looks so good, and so impossibly cheap, well... they were built before 2007... :)
    Unimaginable... They were unable to rot so fast how fast capitalism went down, for ever:))

    1. And Germany will be soon be in worst situation in Europe :)... They really do not have any chance to survive up there... Putin does not have to shoot even one bullet :)
      It is over.

  16. We would love to help Americans but Bush is still thinking how he will be able to help him alone. American people are really great people, but Bush should be killed. American people are much better than Russians BUT BUT this childish policy should stop... Because we cannot make better common future if american people will follow Bush. Then we must shoot on each other because of some Bush for something which went down. Also i think that centre of communist international should be in Chicago under control of CIA, that would be logical, why not...

    1. Real Communist International was made in USA, now, that just have to be official. Why should Moscow be centre of it under control of some rich capitalist called Putin?

  17. All these financial systems hitting the rocks at the same time does seem like unseen hands pulling the strings...again. I seem to remember the reason for an Asian facility with numbers is because of their rice growing skills over generations and maybe they cannot resist using this skill in gambling like some high powered card counter. I think for me this kind of sums up China at the moment this is both scary, yet strangely attractive and a good reason not to tussle with the Chinese. By coincidence I was reading Orwell's 'Why I write' on Kindle and he said you can tell a lot by a countries marching style. He said the Nazi goose step would never have worked in GB because everyone would just have laughed, you need the fear factor for folk not to guffaw at a silly marching style. The Chinese style just looks like they mean business, serious business.

    1. John Meynard Keynes said,

      "The reason why it's called the 'invisible hand' is because it's not there."

  18. Oh I forgot happy 4th July to all you folk. I was looking for a house to rent in October and came across a place in Sandwich in Kent. It belonged to Thomas Paine and anyone could stay there, I understand he was a busy boy and contributed to both the US and French revolutionary documents, while I have trouble writing a note to my son's school. Oh well, I just have not got his common sense..

  19. Anyway, I got to thinking when ISIS start losing traction and their fear factor (Simon Cowell's next show!) and they no longer are the 'bogie' man of the minute. To those people who set these things up, I give you 'Satan's Disciples!' this is a good name as it really will get the Christian fundamentalists all riled up as well, uniform wise I was thinking black hoods with a rope tie. I was thinking every time SD's name was used in the media I might get a few pennies like the bloke who invented the tester on the side of Duracell Batteries.

    1. American Indians went in to history books because they needed buffalos for food, while germiniacs needed buffalos for fur as they needed agriculture for food, same would happen with those people today who need capitalists for food while there is internet and corporations.
      With adoption of Internet folks, age of capitalists ended in 2007, yes, capitalism is monster with 9 heads but that era with some fat big human pig heads ended.
      Government is government, it can aristocratic, teocratic or bureaucratic, that is something totally different. But as long as they are one who live of work of others then they will protect people, people get hurt if those who rules are part of economy.

  20. Its interesting how the Chinese tend to be gamblers but that does not translate into their slow and steady approach in foreign policy. I wonder, as they become more aggressive military, will their generals, officers, pilots, captains and the like will gamble in their strategic initiatives on the battlefield.

    This boom bust is bound to happen as communism translates to capitalism. Look at what is going on, former state enterprises and regular businesses are going public on the market, the public is now allow to speculate and God knows there are plenty of them, margin accounts are now allowed to the public.

    There are too many people chasing too few stocks. In addition, when a company goes public those people chase the bid on that company in ways only dreamed of in the US. Its a perfect storm and this stuff is unstoppable.

    What scares me is that China may have to gin up a war to control its restive population. They may need the distraction and the resources.

    Siberia, the East Pacific, Taiwan, North Korea, Central Asia and other areas are all up for grabs in one form or another. The dance between Chinese, US and Russian policy is going to get very interesting.

    I would bet that they are going to finalize their position in the Spratleys and the coordinate to take Taiwan while the Russians push hard in the Ukraine area to distract and diffuse US forces.

    Working together, the Chinese and the Russians can scatter and weaken deployments during a time when the US population is tired of war and in massive debt from previous adventures. Much like the feeling after Vietnam.

    Only the nukes are holding back full scale upheaval at this point but their are wedge areas where they can make advances far short of a nuke conflict.

  21. Dr Steve, I'm an Aussie and this was on TV last night "Foreign investors on hunt for Aussie farms"
    I remember as a kid people used to talk about the Yellow Peril well it looks like they're buying up Australia!

    1. That is not happening because Chinese are buying, that is happening because your capitalists are selling you. For you Australians it would be best to start some fundraising so that Russian pacific fleet can hold up there in Vladivostok.

      You were swimming there while you could, but now while Australia is still expensive now they will sell you, because capitalists sell only when price is big, and when they do not have plans to invest for price to go even bigger.

      Chinese are buying because they plan to invest and pump price as new masters to sell you later to other Chinese. As Australian capitalists do not have enough capital to invest in to pumping price more to sell it later for even more them self. That is capitalism.
      If you are afraid of yellow peril, you will be able to buy some bucket of yellow paint for your self. They will see that also.

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    3. If you were smart you would had some Tito there (as king with successors) than you would be able to have workers-self management companies who would buy that private land from those farmers or they would make their own.
      But because that is dangerous for capitalistic model, those capitalists would rather sell your land to chinese capitalist.
      Simple as that.
      And they are not stupid, as they all know too well we would really like to kill them all... They are always afraid that some Dr. Stalin or nationalisation would stop them while they sell your asses, you think he would sell those farms to some Australians if he can get 1$ more from Chinese ... lool

    4. Or Australians (if Americans would adopt my idea) could call US army and request liberation from their own and Chinese capitalists, and then US corporations would give access to their infrastructure and automatic management for you to found your own 50-50 coopts. Of course under rules of Chicago climate exchange international - our communist international

    5. Or you can start looking around world (on Alibaba or DH Gate) for cheaper buckets of yellow paint.

  22. The Chinese are just crooked. They're hacking into everyone and stealing everything on the net and the USG does nothing about it.

    They kill all kinds of people sentenced to death there over nothing...nothing...and harvest organs from living people.

    They have no human rights to speak of...none.

    Western manufacturers there make good products but the ones made by the Chinese companies there are all garbage.

    The Chinese have almost all the lithium in the world so as long as the public wants lithium batteries they have a monopoly.

    I think we should cut ties with them until they shape up. And the US should repudiate our debt.

    So there.

  23. Would first like to make the point, that I have no idea what I'm talking about. I mean just a few months ago I was hacked by a virtual private network with Chinese characters and twitter pages jumping at me. for all i know, i was part of a robot army on my cell phone. that said, I know nothing of hacking... I'm merely having fun...

    1. America is in a currency war with other nations. Principally China. Despite what your article might entail, that China's markets will somehow have to survive if the world as we know it is to move along - imagine if America was somehow technically sabotaged. Imagine if America was doing everything in its power to defeat China's new Silk Road.

    2. The technical means to achieve this (as a non-hacker or computer expert) might be through yet undetected signals, transmitted in ways the Chinese have not caught onto. For a dope like me, that might include A) initial ELF/VLF or some new quantum transmission, similiar to what submarines might receive. B) A radio wave transmission hacks into multiple targets, like companies hooked up to stock exchanges, wherein accounts, like asymmetrical robot armies, continually short futures, causing stocks to be dumped.

    Well I don't even know if such a task could be achieved. But I have no doubt that China is on top of such possibilities, if they haven't thought of it offensively, before I even typed this silly bit of speculation.

    If anything, i believe China is already well versed in such tactics, for themselves, against other nations. I think they have likely invested more in asymmetrical warfare than perhaps any other country in the world - if they are smart - and that they will likely only start using such tactics up-front, when things get dirty. I'm sure, in essence, that China has guerrilla cells all over the world.

    That said, I really believe that the key to the worlds success and over all health, is in "getting along." But America might be too busy dancing on a wire rope, tactically, to notice.

    My over-arching opinion of the world, as a monetary framework, is that all markets are constantly intervented with and manipulated. I believe this is true whether this involves intervening with free markets, which are aguably worse than a disaster as we speak, or dealing with currency war manipulations. The charade needs to end. It is merely a question of how.

    Stock Market Rigging is No Longer Conspiracy Theory

    That said, after studying particular markets for years, and pulling out of the market less than 5 years ago, after finding out that Scotia Mocatta was shorting the market on a leveraged position that i felt was naked shorted. While talking to many market analysts and phoning up the Canadian Investor Protection Fund, without good getting proper answers, I've personally walked away from it all.


    1. So what is the answer. I would think that there are many answers, non of which governments are embracing strategically.

      1. Secure and strengthen or electrical grids against EMP, etc.

      2. Encrypt all internet communications, civilian and what not.
      Use strategies like MaidSafe and Mega Net Encryption.

      3. Use blockchain technology layered into encrypted internet communications, to control and make less expensive, important data streams. For example, banks can have blockchains for the public accounts, business accounts, etcetera, if not for different branches.

      4. Use blockchain technology for intrabank and Forex trading. Think like Ripple

      5. Use old-fashioned stock exchange hand signals for hardened locations. What the hell is wrong with employing people anyway? Plus always have back-up teams ready for disaster, no differently than fire fighting squads. While it can't take the place of computers, it can carry out the most important basic functions.

      6. Secure multilateral trading platforms for gold and cryptocurrencies. George Soros and many others are already doing this with BitGold. While i don't recommend BitGold, and yet have hope for it, i have reservations against who they have hired, and how they are going about their business, as I've already complained to private placement holders to have their business model diciplined. But i do think this business model is the future of last resort.

      7. Make speed bumps in trading exchanges mandatory, that work against HFT. Bring back Glass Steagel. Make the US Treasury, etc, able to print its own currency, while banning the Federal Reserve. Fire everyone at the CIA, etc. This is a very small part of what has to eventually be done. I could go on and on...

      Anyhow, I'm definitely no expert. But any improvement, is way better than none.

    2. Here is an article about Citibank exploring their own use of their own coin... Now that is the future, IMHO. This article is just the tip of the iceberg. However I don't think citibank is taking it far enough. Think of block chain ciphers as digital tally sticks. You first want to reduce scalabity and increase transparency by creating many different blockchain ciphers perhaps. The coins might be equal in value but are systematically accounted for differently, by country, branch, business account, or personal account. In some parts of the UK, historically, tally sticks were used for each different customer, often. That's how sophisticated and scalable such a system can become.

      In either case, I think govenments are going to have to throw out most of their useless hackers, and hire cryptologists which respect privacy and the rule of law. For hackers are arguably corroding our financial system and ability to maintain itself. Transparency should only come with warrants, and not hacking. Its called the rule of law. When marketing agencies and the like provide intelligence, to governments, its a slippery slope.

  24. So why even talk about cryptocurrency solutions? Its simple really. It has a lot to do with giving solutions to Dr. P's article on China's stock market problems.

    In the future, governments and/or terrorist groups wouldn't be able to manipulate foreign stock markets to their advantage. Even with currency wars, because each cryptocurrency account would be guarded by a secret key - which only the banking customer or whoever else would be in possession of. In short, there would be no denial of service attacks or bot armies.

    The only problem with this issue, is that of customers losing their private keys. Personally I think an algorithms should be constructed that makes the same private key every time, that interfaces with unique biosignatures. That way nobody can lose their private keys. And preferably a biogsignature that is more than just on the skin. I like near infrared spectroscopy, or stuff like that, which is used to identify blood vessels.

  25. Maybe this is all margin account activity, as Dr. P states. Maybe it is just all gambling, or what we call in the West, credit markets with no credibility. That said, I know I went off on a tangent, but I had to have fun and speculate... because I do wonder.

  26. Curious newspaper articles that make you think in circles:

    1. how attackers can use radio signals and phones to protect secret data:

    2. banking heist yields up to 1 billion

    3. hacker reveals how devastating an attack on the stock market can be

    4. hackers are gaming the stock market, with a simple stupid approach

    5. how russian hackers stole the nasdaq

    6. the latest short selling strategy: hacking and why short sellers can be worth rooting for

    I can see how this approach can easily border on the domain of psychological warfare

    7. financial analyst uncovers unexplained market patterns created by bots

    this may just be a war between traders, but there might be no difference someday between a war between traders and nations, if nobody can tell the difference.

    8. Syrian hackers claim AP hack that tipped stock market by 126 billion. is it terrorism?

    just imagine for a second what a misinformation campaign can do to crash specific stock markets as a prelude to war....

  27. I'm with Dr. P on China's bad markets, having to do with bad credit. i do not believe hacking has anything to do with it.
    i use this website for entertainment purposes

  28. 0. China's Stock Market is Now Worth Over 10 Trillion
    - Capital controls are being introduced- Plunge protection teams are being formed (they are new at this, evidence might suggest).- they are slashing policy rates, benchmark lending rates, which results problematically in more leverage/speculation- they don't want to reign in the rates as their shadow market lending system might go bust, and their bid for the RNB to be included with the IMF
    1. Chart for Margin debts in China growing exponentially
    2. China hunts for manipulators as stocks tumble
    3. Many say Chinese debt related to their stock market and shadow banking system is entirely internal, and that China can merely have a debt jubilee. However if this wastrue, China's inability to export and invest globally may drastically change how the world functions.
    4. China has about 20% of America's US Treasuries, for example, as of April 2015. has a value of $1263.4 billion USD.
    5. China's foreign currency reserves were known as 3.73 trillion, as of April, 2015 excludes Hong Kong and Macau, and is denominated mostly in US treasury Bonds and institutional bonds.

  29. 6. A) China also has a sovereign wealth fund valued at 746.7 Billion, under China Investment Corporation.
    B) China also has a sovereign wealth fund valued at 547 Billion, under SAFE Investment Company.
    C) Hong Kong has a sovereign wealth fund valued at 400.2 Billion, under Hong Kong Monetary Investment Portfolio.
    D) China also has a sovereign wealth fund valued at 5 Billion, under the China-Africa Development Fund.

    7. I speculate China may have in or about 10 to 30 thousand tons of gold to declare. I won't even bother trying and prove this. I will say that I partially follow Eric Sprott, who allegedly does private placements for one of China's sovereign wealth funds. That said,I also think he's wrong lots, and I'm just fine with that.

    8. 60 countries invest in China's Silk Road Gold Fund's AIIB - the Final Tally

    9. How China Covered the World in Liquidity Swap Lines
    "...counterparty countries have also tapped their yuan liquidity lines when they're cut off from dollar funding, making China a critical lifeline for bolstering FX reserves and helping to alleviate shortages of imported goods (supra)."
    Internationalization of the Renminbi
    China's Bond Market is now the third largest in the world, at 4.24 trillion USD. is very low GDP to debt ratio.

    10. China Rallies Around Yuan as IMF Mulls Reserve Currency Inclusion

    11. China will capitalize on the Euro's decline
    "China is the only player able to make offers to buy troubled assets, support faltering security prices, and re-connect a fragmented Europe. Oddly, China superficially resembles the USA during the Marshall Plan years: the only man left standing with money in his pockets, and overseas investment in mind (supra)."

  30. #5 and 6 are sort of the same thing. Just don't know of anyway to simplify the data inclusively.

  31. #0 is an old article. Think they've lost 30% in market cap since.

    Also left out the most important part. Think I may have read yesterday that the shadow market cap was estimated to be around 37 trillion. That's the demon chasing China down the road.

  32. GAO Report - so timely with the NYSE freezing up, along with United Airlines, etc

    in other news, China market cap down by 20% from market highs. Not 30% like i said before. Maybe I'm hearing different things, with my unscholarly dishelved approach

    1. ya i've heard it was 30% and 20%. Stratfor Intelligence, for all its boring crap, says in or about 30% since July 1st.. Seems to me that the NYSE will suffer severe plunges now, as Chinese sovereign wealth funds pull institutional bonds and stocks from North America. Think people are more worried about liquidity now, and proving you are solvent may prove next to impossible for a lot of people in the near future with a contagious lack of confidence.

      I expect to see tons of capital controls and/or cyber attacks, which accomplishes the same things - along with sudden glitches, plunge protection team action, and stock market breakers being short circuited right here in North America, should things persist. This may just be the beginning.

      if it gets bad enough, there may even be cyberwarfare and/or assymetrical warfare & terrorist attacks - however they might be defined without a dictionary or a professor. I think it could easily go that direction if people don't actively put out fires and open diplomatic channels, while doing the proper field work behind the scenes. But something tells me its likely too late for that. because an ounce of prevention is always worth more than a pound of cure/flesh...

  33. 1. Chinese Media Blames Soros, "Hostile" Foreigners For Stock Bloodbath

    2. Russia may ban Soros charity in NGO crackdown Think i read another article today where they actually did ban him from Russia. Either the article was corrected and pulled, or this one is out of date.

  34. so what to do now China? maybe a tax on all stock market purchases for 1. a stability/ plunge protection fund, and 2. an AIIB venture capital fund for state directed enterprises to help reign in P/E ratios.

    get control of your people!

  35. a tax for higher P/E ratios, for sellers and short sellers might also work. this might help discourage short term investors in high P/E ratiod stocks, while stabalizing markets. funds raised could be used for a plunge protection fund, an AIIB capitalization fund, and/or an electronic security fund.

  36. no clue. im stovk market illiterate . but i know enough to state with ease that Chinese stocks r overvalued. i also know that during the 2008-9 crash stock merely reached fair market P/E ratios in NA. i also know that there is way more debt out there tham world than GDP to cover it. im no socialist but it seems to me that stocks r more akin to economic warfare than a place to speculate your retirement on. because its easier to discipline the markets and kill your neighbour off than it is to find fair value.

    futures do

  37. Well I think I lost this argument with Dr P. Not that I actually believe anybody is arguing with me. But I actually never thought China et al would go bust "first" before everyone else. I knew there were problems, but I thought BRICS et al, was waiting on the Eurozone and others to go bust... but nope... It looks like I"m wrong about much.

    Seems China might actually lead the world into bankruptcy at best. Still think they have a lot going for them albeit - amongst a huge assortment of problems. I will never underestimate them, that's all I'm sure about at this point...

    I will be forever watching....

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