$3.2 Trillion Wiped from Chinese Shares in Just 3 Weeks
Oil prices take notice of Chinese economic implosion.
A stock market crash there has seen $3.2 trillion wiped from the value of Chinese shares in just three weeks, triggering an emergency response from the government and warnings of “monstrous” public disorder.
… Underscoring growing jitters amid the three-week sell-off, police in Beijing detained a man on Sunday for allegedly spreading a rumour online that a person jumped to their death in the city’s financial district due to China’s precarious stock markets. __ http://www.news.com.au/finance/economy/chinese-chaos-worse-than-greece/story-fnu2pycd-1227430761673
Oil prices have tumbled on news from China, in anticipation of an Asian economic slowdown being tacked on top of a slowdown in Europe.
There are only a few types of investment the Chinese people are allowed. Real estate, local stock markets, etc. These local investments are none too sound. Wealthy Chinese are moving large amounts of money overseas in ongoing capital flight — just as they are sending their children overseas for education, and sending their young pregnant women to the US to give birth, thus creating American citizens out of a new generation of the dynasty.
Accendo Market’s Mike van Dulken says, what he’s calling, the “Great Fall of China” is behind the oil drop. Tanking Chinese stocks have “solicited continued concerns about demand from the world’s number 1 basic materials consumer.”
We’re seeing the same impact in other commodity markets. Copper has fallen to a 5-year low over the past 2 trading sessions and iron ore has fallen for the last 9 sessions in a row. Iron has fallen below $50 (£32.39) a tonne for the first time since mid-April.
“The Great Fall of China” doesn’t look like it will stopped anytime soon either. The Chinese government’s numerous attempts to prop up prices haven’t done much so far and Citi said Monday that shares have further to fall.
Deutsche Bank backed that view Tuesday, with analyst Nick Lawson saying in a note: “Bubbles have a nasty habit of reverting back to and beyond the mean.”
Chinese companies have decided to take matters into their own hands and they just found a better and easier solution — suspend the companies’ stocks from being traded at all.
That means commodity prices could be in for further pain, which in turn could hit stock markets around the world ___ http://uk.businessinsider.com/great-fall-of-china-oil-copper-shanghai-composite-2015-7?r=US
Commodity prices are up in the air, as North America seems to be the only economic driver at this time. And with Obama as US President, that is cold comfort for a global economy.
China and Russia Hold Hands on Lover’s Leap
From a distance, Russia and China may seem immune to [insurrection and revolution __ ed.]. For now, both economies appear to be relatively prosperous compared to sickly neighbors like the European Union and Japan. Both have large foreign reserves: [$100 billion in Russia (down from $450 billion over a year ago __ ed.] and $3 trillion in China. Though there have been regular street protests in Russia since late last year, and a visible power struggle has been under way within the Chinese leadership, neither regime appears to be in imminent danger of collapse. In foreign affairs, the two governments exude confidence, even arrogance: at mid-year, China was bullying neighbors like the Philippines in the South China Sea, while Russia was propping up the Syrian dictatorship of Bashar al-Assad in defiance of the United States, Europe, and the Arab League.
Upon closer examination, however, both governments are saddled with economies that have lost their most dynamic means of growth. They are facing the imperative of far-reaching restructuring in order to avoid stagnation or recession in the coming years; but it’s questionable whether either regime has the strength to push through the changes necessary to hold off crisis. Meanwhile, by the summer of 2012 each faced the possibility that a recession in Europe would spread eastward, inducing a “hard landing” for their economies at a sensitive political moment.
… Since the beginning of the twenty-first century, China and Russia have been [a drag on the world __ ed.]. They have been autocratic, resistant to the spread of freedom, occasionally belligerent toward their neighbors, and increasingly [preposterous — to say nothing of di-NOSS-aurus! __ ed.]. They have consistently joined together in order to block Western initiatives in the UN Security Council and to defend dictatorships like Iran, North Korea, and Syria. __ http://www.worldaffairsjournal.org/article/coming-collapse-authoritarians-china-and-russia-face-endgame
Please note: The article linked above was first published in 2012. It requires little updating, although the specific situations for both countries have worsened as predicted. Content in square brackets above represent a liberal editorial paraphrasing.
Both China and Russia are poisoning themselves into a corner. With unbalanced economies, demographic time bombs, top-down dictatorial governance with few freedoms, poor educational systems, brain drains, capital flight, angry neighbors — these leviathans of tyrannical mismanagement are waiting for some bad chickens to come home to roost.
It is ironic that Russia has been seeking a safe haven in China, and Greece has been seeking a safe haven in Russia. “Keeping up appearances” can only go on so long, if the underlying fundamentals are corrupted.
Readers of Al Fin are unlikely to be surprised by such developments, but the chumps and dupes who get their information exclusively from the skankstream of western media or the super-toxic skankstreams of Kremlin, Beijing, or Muslim propaganda, will be completely unprepared for the things likely to happen next.
As expediency forces China to take over more Russian oil fields, farm land, commerce and industry, and production for Russia’s military, the bear host shrinks while the parasitic dragon grows. Nothing personal, only business
The meltdown of 2015
China’s economic and political problems are music to the ears of Putin, who must feel he can negotiate better terms for the handover of the Russian Far East.
https://www.vox.com/2015/7/9/8916609/china-economy-crash . . . Sooner or later, China will experience another cycle of collapse and revolution . . .