Yeah, I know, the ChiComms go to great lengths to create the appearance of having a kinda-sorta quasi-market economy, but when the ruling communist party can pull the plug on it any time they want, set the value of the yuan at any amount they want, and otherwise not-so-implicitly fiatize every aspect of said kinda-sorta quasi-market economy, can anybody really take any resultant economic statistics from it at anything close to face value?
Which makes the appropriately named Shanghai Composite's three trillion dollar plummet over the past few weeks look more than a little suspicious:
China stocks plunged again on Wednesday, even as regulators worked to contain a crisis that has wiped trillions of dollars off the country’s stock markets.
The Shanghai Composite plunged 8% at the market open on Wednesday, before recovering to trade 4% lower by mid-day. The vast majority of stocks listed on the benchmark index were down by 10%, the maximum limit stocks are allowed to fall before being halted. The smaller Shenzhen Composite was off by 3%. …
Since June 12th, the Shanghai Composite has lost an unnerving 32%. The Shenzhen market, which has more tech companies and is often compared to America’s Nasdaq index, is down 41% over the same period.
The question that ought to come instantly to everybody's mind is what purpose Beijing could have for crashing its own stock markets? Well, it occurs to me that currency manipulation to undercut the dollar and boost exports to the U.S. (thus exacerbating our trade deficit) under the guise of the ChiComm equivalent of "quantitative easing" could be part of it. It'd fit right in with Obama's Trans Pacific Partnership scheme, and if anybody on our side of the Pacific balks, what can we or any Western country say, since we made the exact same profligate mistake back in the fall of 2008?
If currency manipulation is a factor, though, it's a very small one. Consider this in the context of Beijing annexing the entire South China Sea and their long and lengthy preparations for war against the U.S. and its Asian allies. Explosively decompressing the Shanghai and Shenzhen Composites creates the sort of crisis atmosphere that ChiComm authorities could use to set their war plans in motion. And that scenario works even if this is just a long-overdue "correction" of a laughably overvalued Chinese market, in which case Beijing could simply activate already existing contingency plans to take advantage of it.
That provides an ominous contextual backdrop for this story:
The NYSE Group, which includes the New York Stock Exchange, has suspended trading in all securities due to "technical difficulties".
The U.S. Department of Homeland Security said there were no signs" that the problems at NYSE and United Airlines stemmed from "malicious activity," CNN reported.
Says the same bunch that let the ChiComms loot OPM networks for over three years without ever being the wiser.
"We will be providing further updates as soon as we can, and are doing our utmost to produce a swift resolution, communicate thoroughly and transparently, and ensure a timely and orderly market reopen," a spokeswoman for the exchange operator said in a statement.
Which it did about about 1:30 EDT. Not that anybody was believing the "it was a faulty router" excuse, but this appears to have not been another ChiComm cyberattack. Mainly because it would have appeared to have failed, and after the OPM bonanza, that doesn't seem possible. Ditto the Obama Regime being able to repulse it.
But here's a slightly different twist on the same nightmare scenario:
The first major sign that all wasn’t going according to script came on June 15th. Chinese had awakened expecting big gains because it was President Xi Jinping’s birthday, but the Shanghai market fell more than 2%. One deeply indebted day trader committed suicide by jumping out a window, his net worth wiped out by the collapse of a single stock that he had borrowed heavily to purchase. The market has since fallen by another 25%—and some fear that prices could go much lower.
In most countries, no one thinks there is a link between a leader’s birthday and the market. That such a theory prevails in China reflects the widespread belief that Beijing’s authoritarian government can produce any economic outcome it wants. Now trust in China’s ability to command and control the economy is faltering. If [that] trust collapses, the global repercussions could be more severe than those from the Greek debt crisis. [emphasis added]
Because, whereas Greece isn't even a pimple on the global economy's ass, Red China actually matters. Because, you know, they have nukes and stuff.
Whether this is a master plan or rank opportunism, all the pieces appear to be in place: Chinese stock market craters, ChiComm government accuses the U.S. of taking it down in a cyberattack (as retaliation for the "false" OPM strike - it was just the pretext for our own attack, dontcha know), calls it an "act of war," and mobilizes. Cruise missiles launch against our Western Pacific naval assets, space weapons deploy against our orbital assets, a full scale "retaliatory" cyberstrike cripples our electrical grid and other civil infrastructure....you know the drill.
From so many different directions, on so many different fronts, the crescendo toward global Armageddon, or at least the fall of America (which amounts to the same thing) continues to build. All that remains is for the Final Act to begin. Is this the trigger? The assassination of Franz Ferdinand, the attack on Pearl Harbor?
We'll soon find out.
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