Wednesday, July 15, 2015

China and the World Financial Manipulators - It takes a Communist Country to stop the Financial Corruption


Just a week ago, here is what world financial analysts said about the economic collapse in China.


Daily Mail, London

China's tumbling stock markets plunged even further today, intensifying fears the country was tail-spinning towards the biggest financial disaster since the 1929 Wall Street crash.
Almost $3trillion (£2trn) – more than the entire economic output of Brazil – has been wiped out since markets went into reverse just a few weeks ago, posing a bigger headache for many global investors than even the Greek debt crisis.

China's government, regulators and financial institutions are now waging a concerted campaign to prop up the nation's stock markets – a move that failed spectacularly in the 1929 crash that triggered the Great Depression.


Here is what the experts said just three days later.


The Toronto Star

China’s battered stocks rebound as officials tighten market controls

Government takes desperate measures to shore up market, while feared internal security police announce they have begun investigating investors accused of ‘maliciously’ shorting blue-chip shares, as bubble bursts.


The Washington Post

BEIJINGChina’s stock market recovered sharply in volatile trading Thursday after the government announced further measures to restore investor confidence, including forbidding major shareholders from selling.

Shanghai’s benchmark share index rose 5.8 per cent on Thursday, reversing direction after sliding 3.8 per cent earlier in the day. But it has still lost around a quarter of its value since a peak in mid-June.

In the latest in a series of desperate measures to shore up the market, regulators banned major shareholders, corporate executives and directors from selling stakes in listed companies for the next six months.

Officials also announced that banks could roll over loans backed by shares.

But, for some investors, it was the entry of the feared Public Security Bureau (PSB) that really changed sentiment.

The powerful internal security police announced they had begun an investigation into a dozen individuals and institutions accused of “maliciously” shorting blue-chip shares.

The state news agency Xinhua said the move showed regulators would “punch” anyone who violates regulations and the law “with a strong fist.”

But if those moves calmed some of the panic in the markets, it was far too early to declare victory, analysts said.


In the course of a couple of days the stock market experts had declared the worst financial depression since the Great depression of 1929 would befall China.  A couple of days later the strong and immediate reaction of the Chinese government to the market manipulation had driven out the devils and restored the market completely, recovering the $3.2 trillion within days.

The instantaneous action by the Chinese stock regulators and Chinese government left financial experts bewildered, prognosticators stunned, and crooked financial manipulators running for the border.  It seems odd that none of these tactics were employed by our government during the 2009 American financial collapse.

For comparison purposes, the loss of wealth to American households in the 2009 recession totaled an astounding $14 trillion, and the worldwide loss was $34.4 trillion.  Clearly the screams of "depression" by the economic experts about China's $3.2 trillion in lost value, which was erased in a matter of hours, were either efforts to further drive down the Chinese market value, were the result of algorithms gone mad, or were deliberate lies to undermine the Chinese market.

Our little recession of 2009 cost Americans more than four times as much money as the temporary Chinese drop.  We are still trying to recover from 2009 six years later.  China did it in about 48 hours.  Six years later no one is in jail for causing the 2009 crash while the Chinese are preparing to prosecute brokers within a few hours and in China they take corruption and stealing from the public seriously.

It seems as if our financial experts are worthless when it comes to knowing the Chinese market as the latest flurry of lies and scare tactics demonstrate.  This swift and decisive action in China should tell us we continue to depend on a corrupt financial system here in America that is immune from government threats and prosecution.

There are a few things the Chinese can teach us about managing the parasites on Wall Street and their protectors in Congress.

No comments: