2nd Shanghai trading halt this week; another 7% drop

[68Camaro]

Subject says it all. Look at any finance page for details.

[Country]

Stock markets have the feeling of 2000. Perhaps we have finally reached the bottom of PMs. Time will tell...

[68Camaro]

Without suggesting that this week's issue is "the big one" - how about a fresh thought experiment on what that might look like, especially if it was purposefully engineered.

What if the Chinese purposefully crash their market and their currency - or at least *appear* to? They devalue the yuan over and over to the point where they *need* (or so they say) to sell US treasuries in order to keep themselves afloat. They end up buying back all their debt using their selling of their (worthless) US notes at a premium in terms of yuan. Then ... They announce to the world that they have 15000 tons of gold and will be moving to a new gold backed currency.

[theo]

That sounds like a plausible scenario, if the Chinese are instigating.

As I've said in the past I think the true existential currency crisis will occur in concert with some other significant event like a massive terrorist attack (dwarfing 911) or regional/global conflict that involves some use of WMDs. So the end of our current financial regime will be blamed on ISIS, Iran or China; certainly not on fiscal or monetary policy.

I believe this is more of a speed bump than "the big one." If the economy grows too much or if the markets continue to appreciate without pullbacks, it could touch off inflation. However it is interesting that this pullback occurs less than 5 months after the correction in August.

The true crisis will happen with little or no warning. You will wake up one morning and find that your bank is closed and your credit cards don't work.

[agmoose]

That sounds like a plausible scenario, if the Chinese are instigating.

As I've said in the past I think the true existential currency crisis will occur in concert with some other significant event like a massive terrorist attack (dwarfing 911) or regional/global conflict that involves some use of WMDs. So the end of our current financial regime will be blamed on ISIS, Iran or China; certainly not on fiscal or monetary policy.

I believe this is more of a speed bump than "the big one." If the economy grows too much or if the markets continue to appreciate without pullbacks, it could touch off inflation. However it is interesting that this pullback occurs less than 5 months after the correction in August.

The true crisis will happen with little or no warning. You will wake up one morning and find that your bank is closed and your credit cards don't work.

And this keeps me stacking/prepping. Double bonus today, bought ammo and gold.

[Silverfondler]

Without suggesting that this week's issue is "the big one" - how about a fresh thought experiment on what that might look like, especially if it was purposefully engineered.

What if the Chinese purposefully crash their market and their currency - or at least *appear* to? They devalue the yuan over and over to the point where they *need* (or so they say) to sell US treasuries in order to keep themselves afloat. They end up buying back all their debt using their selling of their (worthless) US notes at a premium in terms of yuan. Then ... They announce to the world that they have 15000 tons of gold and will be moving to a new gold backed currency.

I think this is a legitimate play out there. It's no secret in recent years the Chinese have been buying, in their respective terms, exponentially more Gold than ever before. I believe I may have read somewhere, something about the Chinese not being exactly forthcoming either on the actual amount they are purchasing. I do know they, as a government actually encourage their republic to buy gold (in any form).

I am also interested in why they are building islands off the coast, now. And, building runways, etc.

In relation to the Chinese. Recent events in other parts of the world are keeping this plot alive. Unfortunately or fortunately however you view it, seemingly making the picture clearer. It also seems like the chess moves are accelerating as of recent.

I believe there can be a similar situation, happening here in the USA as well. Similar to the original rhetoric, devaluing our currency. For what? I'm not sure, I can only speculate. But I do think it could be in play with what the Chinese could be up to as well. Domestically, we are also potentially setting up for what some would call a seamless transition into martial-law. Now, if that were the case - all following scenarios are terrible.

Talking out loud it almost seems like both forces are on their final stretch for making a major move. Chinese with accumulating gold and making it a gold back currency, etc. why? To become the strongest currency and potentially economy, etc. in the world. Right? Then you have the USA who are systematically putting other nations into debt by first bankrupting them, cutting them off, not purchasing Oil (which is part of their national budget). In effect taking control of said nations (in so many words). If this were in fact the play, it is actually quite brilliant. One economy/currency becomes the new force, awesome. But, in fact the country that just gave up the strongest currency - now owns control of arguably the most precious natural resources we have on earth. Along with, again, arguably the most powerful armed forces in the world to protect it. Counter - Attack.

[johnbrickner]

Are the Chinese smart? A drop in the stocks would effectively do to the Chinese people what it does to us, they spend less. However they already do and are encouraged by their government to buy gold. Hence, they would buy more for the security it provides especially if the Yuan is going down at the same time.

China appears to be behaving as if they want the recognition of a major power in the world. This is why they are getting the Yuan recognized internationally, making deals to omit the U$D in trades with other countries, engaging in corporate espionage, building islands in the China sea, landing strips, etc. They do it because they can, and we cannot stop them. We being the largest most powerful Empire in the history of our world. Same with Rus into Ukraine.

Additionally, China is making deals and spreading good will with other countries we are tending to piss off and/or have natural resources China needs and is obtaining at the source.

I say the slow and methodical Chinese are Empire building and as time goes on they will continue to do what they will because we cannot stop them. At some point the needle will shift and they will be Empire instead of u.s. (note lower case U.S.). I think such an event as a gold backed currency will be for the most part, their final move to prove such. But, they will continue to fly under the radar as much as possible and give the appearance of something other than even after they make such a move.

[Treetop]

At some point the needle will shift and they will be Empire instead of u.s. (note lower case U.S.). I think such an event as a gold backed currency will be for the most part, their final move to prove such. But, they will continue to fly under the radar as much as possible and give the appearance of something other than even after they make such a move.

I personally HIGHLY doubt this. The west didnt spend the years since ww2 reshaping the world in our image (through the worldbank, imf and the US military) to let it fall to a place like china, a nation who builds its military up specifically to challenge us. Look up "democracy" on wikipedia sometime. If they didnt change the entry it goes through the nations switching to it since ww2 among other things. Go through the list nation by nation, WE were involved directly or indirectly in all of them. Not exactly freedom we gave them, but more then what many of them had before, and with a western flavor of course. china is the reason the western countries failed to get the start of global governance through the Cagw issue btw. They built up a coalition that defeated the one before the last and made the recent one in paris basically meaningless. It is clear they dont want a seat at the same table but rather their own table.

I admit I might be reading to much between the lines of various events over the last several decades but this is my take. This isnt exactly just a Us empire either because in many ways the rest of the west holds us up and is lifted up by the actions of the Us over decades. Even if at home they give voice to other things. the consistency of how they support certain agendas though rings like the real truth to me and while the west might fall to china I dont think china rising above the west is even possible if the west still exists. I expect a war economic or otherwise will be initiated. I think china knows or expects this as well based on their actions. They are rather concentrated, have trouble ffeeding themselves, rely on imports, and have a tenuous grasp on power wouldnt be so hard to fight them if it came to it. Much easier then russia even though russia is smaller.

All this is just speculation of course and my own take on various global events, but I just dont think tptb will ever let china rise above us on its own without being challenged in a major way.

[Rosco]

TreeTop I like your Post but think the USA alliance is weak an we are damaging our selves with the Bull XXXT the politissues are Spreading to get Elected