What happened to the predicted economic collapse of China ?

[Lancet]

Just wanna add, my in law does air freight, specialising in China, and he says its pretty bad, even with the e-commerce boom. he says sea freight is taking big hits due to low demand for petroleum products (each shipment is now running at a loss), land freight is slowing. He keeps pushing, being the businessman he is..

The real world ecomony is slowing rapidly, most companies are seeing their projections and figures, for example caterpillar:
http://www.zerohedge.com/news/2015-0...pression-looks

The CEO's are resigning cos they see the inevitability of collapse. TPTB can only do so much, they can't manipulate every market in every country all of the time. Sure stocks, gold silver, and other national indicators get the treatment in europe, us and china. Perhaps these companies will be bailed out again or be nationalized in other countries if they threaten to sink the entire system.. IMO they will bail them if if necessary eg banks, GM, ford, etc just to keep the game going that much longer. I dont know if that can be done indefinitely.

i also doubt the ability of BRICs and AIIB to be the saviour when the global economy crashes as these countries are part of it. they may have to save themselves first.

I might suggest that ppl will only realise the game is up when harsh economic realities set in (when real companies lay ppl off and downsize) in every sector of the economy and still see a beautiful stock market. i hate say it, but ppl only awaken when they are personally and individually affected.

JT

[idiit]

Chinese Stocks Suffer Second Biggest Crash In History, 1,500 Companies Halted Limit Down
Tyler Durden's picture
Submitted by Tyler Durden on 07/27/2015

Actually, there is another question: the last time Chinese stocks had a near-record crash, the PBOC somehow "discovered" 600 tons of gold hiding under the couch to prop up confidence. We wonder how much it will "discover" this time.

http://www.zerohedge.com/news/2015-0...ted-limit-down



ppl I follow think this is probably orchestrated by the elites wanting to maintain their ability to virtually create $trillions ( federal reserve notes) out of thin air, loan it to corrupt government officials of sovereign nations with interest and then asset strip the chumps after they have to default. GREECE for example.

all wars lead to gold. all wars are banker's wars and the banksters hate real money; gold/silver .999 bullion.

^ this is why you should not place your lifetime ( sometimes generations) of savings into paper promises ( stock certificates for example) from psychopathic liars.

no one can keep you from selling your physical bullion on the black/grey markets for necessities when the atms, stock markets, banks are closed down by those scoundrels placed in power of the different sovereign nations.

[MorningSong]

For what it's worth, I am not an economics person and words and graphs help my feeble understanding find meaning... From the article at zerohedge.com:

This was not supposed to happen.

After pledging, investing and otherwise guaranteeing the Chinese stock market to the tune of 10% of GDP, and intervening on at least 40 different occasions in the past month ever since China's stock bubble burst in late June, with the subsequent crash nearly taking the Shanghai Composite red for the year, overnight China officially lost control for the second time, when after a weak start to the Monday trading session, things turned very ugly in the last hour, when the Shanghai Composite plunged by 8.48%, closing nearly at the lows, and tumbling some 345 points for its biggest one-day drop since February 2007 and its second biggest crash in history!

Here's more:

China Stocks Suffer Sharpest Daily Fall Since 2007
Worries the flow of government support will dry up sparks heavy selling


By Chao Deng
Updated July 27, 2015 9:02 a.m. ET
76 COMMENTS

China stocks suffered their sharpest daily percentage decline since 2007, as worries mount that authorities are pulling back on measures to prop up the market.

The Shanghai Composite Index ended down 8.5% at 3725.56, its second-straight day of losses and worst daily percentage fall since February 27, 2007. China’s main index is up 6% from its recent low on July 8, but still off 28% from its high in June.

The smaller Shenzhen Composite fell 7% to 2160.09 and the small-cap ChiNext Closed 7.4% Lower at 2683.45.

Analysts say investors fearful the government would curb its purchases of blue-chip stocks sparked Monday’s selling. Others said officials could be testing whether the market can support itself.

Authorities may want to “test whether the market has recovered its resilience,” said Fu Xuejun, a strategist at Huarong Securities. “The government wants to use state funds to stabilize the market, not to prop it back to 5000 points overnight.”

Earlier this month, 21 brokerages pledged to support the Shanghai index as long as it stayed below the 4500 level. Before Monday, China’s main stock market had rallied for three-straight weeks.

Local brokerages estimate that a state-owned fund called China Securities Financial Corp. has spent hundreds of billions of yuan in supporting the market, although authorities haven’t disclosed a total figure.

“The selling of blue chips would be consistent with concerns that the government is withdrawing support from blue chips,” said Gerry Alfonso, director of trading at Shenwan Hongyuan Securities. But “there hasn’t been any official announcement regarding a slowing down of purchases” by authorities, he added.

Monday’s swift fall came as a surprise to many analysts, prompting speculation that officials might step in with fresh rescue measures.

“I am positive that we will see state support emerging again in the next two days,” said Mr. Zhang.

Meanwhile, sharply lower liquidity has exacerbated the volatility. Turnover on the mainland-listed market has hovered about 1.2 trillion yuan ($193.28 billion) in recent days, compared with more than 2 trillion yuan before the market slump, according to Qian Qimin from Shenyin Wanguo Securities.

More than half of the stocks in the Shanghai Composite hit their down limit on Monday. While limits on sharp stock movements prevented hundreds of stocks from logging sharper declines, they also can make it harder for investors to exit positions. China’s market rules prevent share prices from moving freely once they rise or fall by 10%.

Meanwhile, hundreds of stocks that were halted during the throes of the rout have returned to trade. Still, investors spooked that suspensions would lock up capital have been pulling out of Chinese stocks for the past few weeks. Investors sold stocks during 13 of the past 16 trading sessions via the Shanghai-Hong Kong Stock Connect, a trading link connecting the two cities that launched in November. Cumulative outflows now total 39.9 billion yuan.

Disappointing economic data also could be adding to the gloom. Earlier, data showed industrial profits in China falling 0.3% in June from a year ago, after rising the previous two months.

Elsewhere, other Asian markets declined more modestly, pressured by disappointing earnings results overseas.

Hong Kong’s Hang Seng Index fell 3.1%. Australia’s S&P ASX 200 rose 0.4%, Japan’s Nikkei Stock Average fell 1% and South Korea’s Kospi was off 0.4%.

Asian currencies continued to feel the pressure of a strong U.S. dollar amid expectations for U.S. interest rates to rise later this year, with some hitting fresh multiyear lows.

http://www.wsj.com/articles/asian-st...eas-1437961185

And the aftershock in European markets:

Milan, European markets follow Shanghai's drop

Investors nervous over outlook for China's economy

Rome, July 27 - Milan's leading financial index joined other European markets in showing heavy losses Monday after Shanghai Composite Index made one of its worst showings in years. Milan's FTSE Mib lost 1.66% by mid-day Monday to reach 23,116.85 points, while Paris's financial market shed 1.4%, Frankfurt fell by 1.2%, Madrid dropped 0.7%, and London traded 0.2% lower. The losses came after Shanghai fell by 8.5%, its worst one-day fall since February 2007, according to published reports. Investors appeared to be nervous about weakness in the Chinese economy and financial markets-

http://www.lagazzettadelmezzogiorno....-drop-no836491

Here's some update on the US markets...notice all of the red letters (losses) while gold and silver recuperate a bit:

http://www.marketwatch.com/story/wal...ina-2015-07-27

[Rocky_Shorz]

Almost 10% drop in China's stock market today...

[risveglio]

Posted by Paul (here)
So soon there shall be another great monetary reset (already in progress, actually, but not yet so obviously that most people in the most countries see it with certainty.)

Paul, do you have a thread on what you think this reset will be? How the possible IMF reclassification of the yuan fit in or the new BRICS bank fit in?

I have really been enjoying your posts lately though the geek in me always feels a need to start up a game of Civ after reading our world events. Thanks for them.

[ThePythonicCow]

Posted by risveglio (here)
Paul, do you have a thread on what you think this reset will be? How the possible IMF reclassification of the yuan fit in or the new BRICS bank fit in?

I have really been enjoying your posts lately though the geek in me always feels a need to start up a game of Civ after reading our world events. Thanks for them.

Thanks for the kind words, and yes, Sid Meier's Civilization is a fine game (the only one I've played in recent years.)

My financial posts are a bit scattered. Every few months, I might start up a new thread on some aspect of it, but I will then usually let that thread devolve into a wider discussion, beyond the scope of whatever prompted my opening post.

Some of my "financial" threads of the last year:

• Global Currency Reset (SDR's and the New Bretton Woods; by JC Collins)
• The economic train wreck (was "Lindsey Williams warning of May 2014")
• The U.S. And EU Will Collapse Regardless Of Economic ‘Contagion’ -- another fine Brandon Smith article
• The essence of debt money: Banks have exclusive license to interchange

My present expectations are for the serious fireworks to begin in about September 2015, and I've advised a couple of close friends to get out of debt, stocks, bonds, large bank accounts, 401K's, IRA's, by the end of August 2015, even if that means taking a hit on taxes. The initial fireworks might include a sharp rise in the US stock and bond markets and a final sharp fall in gold and silver ... but that would only be because other markets and nations fell first.

Especially get out of debt - debt is almost always predicated on a future cash flow (e.g., you keep your job, so you can continue to pay the mortgage). Downsize. Do whatever you can to minimize your cash flow needs.

Also reduce or eliminate financial entanglements. Increase your financial flexibility.

The debt-money pyramid built around the US Dollar, Dollar denominated debt, and closely entangled Euro and Yen money and debt markets, and all the promises of future value in savings, retirement funds, pension plans, stock and bond valuations, real estate valuations, insurance plans, government social programs ... must and will collapse.

Regarding the BRICS nations and their financial alternative being put into place; I am quite undecided so far as to whether they represent a "better future", or just the usual "looks nice alternative" presented by the real bastards in power, as part of the usual problem-reaction-solution dynamic to control humanity.

[Bubu]

Posted by amor (here)
That Pastor (whose name presently escapes me and who claims to have received word directly from a member of the Elite) said that the Elite will first Bankrupt every nation and person on the planet and then pull the plug. They can pull the plug on the computer system which is really the banking system at any time, bankrupting everyone.

¤=[Post Update]=¤

Pastor Lindsey Williams.

bankrupting everyone will be the last thing they want cause it will cause people to look and be aware. The strategy is to tighten the chains ever so carefully that no one notice they are chained. Its the same as ever. from chaos will arise order.

[ThePythonicCow]

Posted by Bubu (here)
bankrupting everyone will be the last thing they want cause it will cause people to look and be aware. The strategy is to tighten the chains ever so carefully that no one notice they are chained. Its the same as ever. from chaos will arise order.

I would agree ... almost. A few will be made bankrupt, abruptly, and encouraged to riot, to serve as an example to the rest of us, reminding us to keep our heads down and stay out of trouble and be grateful that things aren't as bad for us, and be grateful that the one's in charge are keeping things under control. The many are controlled with demonstrations of the bastards ability to control the few, and the many are made grateful for that control, or at least acquiescent to it.

[idiit]

This Is How Absolutely Insane The Stock Market Crash Is In China
July 28, 2015

From Art Cashin's notes: Shanghai plunged the equivalent of 1485 Dow points (on Monday). The 75 to 1 negative breadth in Shanghai is positively mind-boggling, exacerbated by the fact that hundreds and hundreds of other stocks never even opened due to extreme selling pressure. Those figures convey the image of a selloff that turned into a stampede when the mob realized that "Daddy" had not shown up to stem the tide.

Overnight And Overseas – Shanghai was relatively calm overnight with the operative word being relatively. In the morning session, it plunged 5% (875 Dow points). In the afternoon session, buying of government owned banks cut the day's closing loss to 1.7% (295 Dow points). The small cap index did not do as well.

http://kingworldnews.com/this-is-how...h-is-in-china/

[3(C)+me]

Posted by Paul (here)

Posted by Bubu (here)
bankrupting everyone will be the last thing they want cause it will cause people to look and be aware. The strategy is to tighten the chains ever so carefully that no one notice they are chained. Its the same as ever. from chaos will arise order.

I would agree ... almost. A few will be made bankrupt, abruptly, and encouraged to riot, to serve as an example to the rest of us, reminding us to keep our heads down and stay out of trouble and be grateful that things aren't as bad for us, and be grateful that the one's in charge are keeping things under control. The many are controlled with demonstrations of the bastards ability to control the few, and the many are made grateful for that control, or at least acquiescent to it.

Let's not forget the people who will lose it and become unstable.