History Repeats as China Faces Gloomy 1929-Style Crash: “The Parallels with 1920 Are Uncanny”

by | Jul 8, 2015 | Aftermath, Commodities | 69 comments

Do you LOVE America?



    According to some, Greece has been hogging the limelight, while China is going through ultra dramatic market fails, too.

    It’s excesses are glorious in their potential to plummet in a spectacular thud.

    Is China repeating the mistakes and the queasy heights of America’s roaring twenties, poised to relive – or at least statistically mimic – the crash of all crashes on Wall Street that precipitated a grueling Great Depression that dragged on for a decade?

    The London Telegraph argues for the dangerous parallels that China is partying like it’s 1929:

    While all Western eyes remain firmly focused on Greece, a potentially much more significant financial crisis is developing on the other side of world. In some quarters, it’s already being called China’s 1929 – the year of the most infamous stock market crash in history and the start of the economic catastrophe of the Great Depression.


    The parallels with 1929 are, on the face of it, uncanny. After more than a decade of frantic growth, extraordinary wealth creation and excess, both economies – America in 1929 and China today – are at roughly similar stages […] Borrowed money, or margin investing, played a major role in both these outbreaks of speculative excess.


    It was only in the final year that the “escape into make-believe” happened in earnest, when the stock market rose by nearly 50pc. This applies to the Shanghai Composite, too. Stripping out the lowly-rated banking sector, valuations for just about everything else have rocketed, making those that ruled on Wall Street in the run-up to October 24, 1929, look relatively modest. Nor do the similarities end there. As in 1920s America, China’s stock market boom has ridden in tandem with an equally speculative real estate bubble.


    Already, there are warning signs of a slowdown, similar to those that front-ran the 1929 crash – depressed commodity prices and a virtual hiatus in global trade growth. The Chinese economy is like one of those cartoon characters who manages to keep running long after leaving the edge of the cliff, only belatedly to look down and plunge into the abyss.


    Whether any of this turns into a calamitous economic meltdown obviously depends on the rest of the response. Policymakers have learned a thing or two since 1929; we now know that the real damage in financial crises is done not by the crash itself, but by a collapsing banking sector. Stock markets are only a signal of credit contraction to come. Even so, I doubt China has as much of a handle on its banks, and more particularly its shadow banking sector, as it pretends.

    Even if you assume the Telegraph was really wanting to make the comparison for a nifty story, it is pretty clear that the loud and eerie warnings about a coming collapse and global market instability have not been just smoke and mere puffery.

    Will the Greek and Euro drama, along with troubles for China spread contagion as others have warned?

    We must not rule out that it could happen here, too, and be far worse than 2008.


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      1. “Policymakers have learned a thing or two since 1929”

        Well….I think not somehow !!
        Human greed and stupidity NEVER change so history repeats and repeats and repeats, which is precisely what we’re seeing worldwide.
        2015.75 is shaping up to be accurate as usual for Armstrong…

        • Ho Lee Fook
          Wee Tu Lo
          Sum Ting Wong

          and as Scooby Doo would say: Ruh Roh

          But hey, don’t worry everyone because China is the world’s savior. They are the GOOD GUYS and they are waiting to take us away from this fiat based money system and back to a GOLD backed currency. 😛

        • What’s the .75 suppose to stand for? 3/4’s of a day? Lol

          • I believe 3/4 is Third Quarter of the year.

          • no. It’s 3/4 of a year. 2015.75 = September 2015

            • Okay so now the NYSE is down, US airlines is down, Wall St Journal is down. This aint no coincidence. I dont believe in them.

              Just how much of the internet got hacked”? Who they going to point their crooked finger at this time?

              Maybe this is a Jade Helm e-drill. Bring it all down and watch the sheep panik.

              Hope the EBT cards quit later today.
              Bank runs coming.

              • I don’t buy stocks, don’t fly (haven’t since the Korean war) and I’m typing this at an internet cafe, got here by shanks mare. I cast bullets over a coal fire that I’ve rigged with a bellows. What’s to worry? F ’em.

              • Yep.
                Testing, testing..1 2 3……you never know.
                People here were buying food like crazy.

          • Ignorance is bliss. He’s talking about Q4-2015, or the fourth quarter of 2015.

            It must suck to try to make fun of someone for something you don’t understand, only to be made the fool when the truth is pointed out to you.

            It’s the ignorance at this level (read lack of education (read stupidity)) that has doomed the US to it’s current status.

            • Billy Hill
              Current status? How about Doomed to become a Third World Country.

              Beinvenidos fellow Americans to the New Mexico. Hahahaha!

          • .75 refers to the 3rd quarter profit reports or lets just say No profits in this case. GDP does not match stock market prices. stock market prices are way over valued. remember worldcom? remember how there was a discrepancy between the 9 billion in profits worldcom claimed to have made and reality? well the stock markets books have been cooked like worldcom had been and a nasty reality is coming just like worldcom had realized but it’s now on a worldwide scale.

        • The crash of 1929 was a fully scripted crash. JP Morgan and his cronies engineered it over a period of several years. Since they manipulated it up and down they made money with every turn including the last big crash and picking up the busted companies at pennies on the dollar.

          Big companies and those who own them can manipulate the market regardless of “governmental controls or protections” because they are so big. And as long as they make money they do not care who gets clobbered.

          • Cara

            “governmental controls or protections”

            If by some chance the above gets in the way they see to it that such “controls” and “protections” disappear as in the demise of Glass-Steagall. They also influence the administration in power to limit enforcement of the remaining laws (Jon Corzine).

            The reality is that the American people have little more control over their government than a citizen of the USSR did in 1970.

      2. I have never trusted banks or stock markets, if I can’t see it, and touch it, I don’t own it.
        Just my opinion.

        • And a good opinion it is Momma D.


        • Maybe that’s why you’re broke as a joke Mom. Invest today in Microsoft and Apple and live like a queen in just 30 days.

        • Ann Barnhardt was right–“If you can’t stand over it with a rifle, you don’t own it”.

      3. Six months ago it was all about Russia about to go bang and now it’s China’s turn.

        The big fight you need to watch is the ECB and the IMF with Greece being the middle man who was used by the ECB to get some backdoor cash from the IMF.

        China has yet to turn car production into producing tanks like the USA has already done and i don’t think the jewish bankers of the world has it’s teeth into China quite so well as the western world.

        IMF=Zionist banking system, good to see it fall

        • Mr Smith. Well stated. As many awaken people stated over and over there is a chance for humanity to live in harmony and relative peace when and only when we have a total destruction of the so called Zionist money cartels aka: BIS—> IMF—> global central banks but mainly in the UK and the US.

        • IMF= International Mafia Federation , controlled by your friendly Khazarian Banksters Warlords
          Don’t you ever forget, they are not Jews but Khazarians who adopted Judaism to achieve their objectives.

          • Another Anonymous says, IMF= International Mother F—ers!

      4. Any of the Three(United States, Russia, or China} economies collapses and it’s Katie bar the door. World War III will start with in 30 days of that event. Folks TEOTWAWKI has arrived, it’s just down the block and there absolutely no stopping it now. Prepare for worst, but hope(pray)for the best. Very tough decisions will have to be made by everyone of us in the very near future. All IMHO.

        • When the hammer falls, and it surely will….it will fall on all the world that is not spiritually prepared. I’m not talking about a cheap fabrication of spirituality like meditation or zen tactics, etc.

          The preparation of the soul must come first, and everything else will fall into place if worldism/materialism, are put to the side.

          We as, Christian Americans, know time is soon running out and that judgment must first come against a nation that was most blessed in all the world and then turned it’s majority of backs to God. The fake christians, can’t see it or don’t want to see it.

          If that time of chastisement and judgment must come upon the most Christian Nation in the world, why would it not also come against one of the most Non-Christian Nations…like China?

          In a short answer…it will!

          When nearly half the population of a Nation declares to be atheist/secular, and only about 3% claim to be Christian and followers of the doctrine of Jesus Christ, why would that nation “not” suffer wrath, even before America?

          Well, they just might be starting that suffering through their economies. As reported, the lower classes of Chinese have recently been hedging their bets on an ever increasing stock market and the Moms & Pops have invested most all their life savings in order to rise from the levels of poverty.
          Sadly they didn’t have their spiritual priorities in the right place, so, reap as ye also sow.

          The ripple effect is evident, although it might be temporary in USSAG. Only time will tell, but the time of the hammer falling for Americans is getting more narrow every week, as we inch closer to the dreaded end to summer.

          Fall of the year is usually associated with Autumn, however this year, it may be more associated with “fall of the hammer of judgment”.

          Plan accordingly, or play into the trap.

          • Just out of curiosity, which nation do you imagine is “The most Christian Nation in the World”?

            • to you….russia.

              • Probably Ukraine as the Russians are building mosques for the muslim migrants.

                Can you say, “White Genocide? Can you say, “Christian Genocide”? 🙁

          • Bible says at the last point before armageddon, they will turn on Gods people. Then, armageddon WILL COME.
            It doesn’t specify any religion. But it is people who believe on God AND his son.
            This is a worldwide event, not just a country.
            Armageddon will be soon. Watch and fear God. He will bring a end to everything bad.
            EVERYTHING. Count on it. And there is NO hiding anywhere on the face of the earth. It has been written. And it will be fulfilled.

      5. We’ve got to get that to the one world currency, to get the show on the road!!!!

        • They say October 20th, for the IMF to make the announcement.

          • Who is saying that and announcement for what?

          • The IMF is TOAST!!! So much for trying to circumvent FED hegemony. I have a Franklin that says that the IMF plan will be flushed down the circular file in a swirly faster than you can say “Christine LaGarde”. LMFAO!!!

            Any takers? 🙂

      6. So, to keep from going under, suppose China calls for payment of debts it holds. China could cause our country some pain.

        China holds about 1.2 trillion dollars in notes, bonds and bills
        of u.s. debt.

        As the Chinese stock market is over valued, so is the US market and what drives it is lies and private investors. Since the push in the 1980’s more people have their retirement funds connected to the market. The alternate Vegas. If the common people would take their monies out, fire their fund manage, it would be like the bank runs we have seen in Greece. People who have millions today, tomorrow could be in the streets.

        A change is coming and it will hurt. Try to lessen the pain as much as possible. Need to be able to live 2-3 months without access to the bank.

        The main stream media feeds the public B.S. and not reporting whats really going on and many of the public will not watch the news…Lost to anything going on, lost in their world.

        There are a lot of smart people who blog here and see the writing on the wall. But none of us are really for what could happen. I think it will be events one after another, happening so fast it could seem overwhelming.

      7. To much posturing going on to trust anything in this economic climate. Plan to take care of you and yours for a long time.

      8. They are now 3 trillion in the hole in less than 3 weeks! Maybe we should lend them some money.

        • But … but… but the Yuan is the next world reserve currency!!! Buy Yuan!!! LMFAO!!! 🙂

          Folks the hyperinflation that was claimed for the USA will likely happen to China, based upon the CCP’s new “infusion of liquidity” to support the ponzi schemes in Shanghai and Shenzhen.

          The FED is not so stupid. Depression is coming to the USA as I have warned here many times. Dollars will be more valuable and more scarce with lower velocity. Save em if you got em.

          Hamilton’s in plastic coffee cans are a good idea. 🙂

      9. Human nature is as predictable as the tides.

        It continuously repeats itself, and we call that repetition history.

        The circumstances may seem different according to the times, but the nature behind it is the same for every iteration.

        • Buy more Microsoft and Apple, Ron. You can’t lose with these investments.

      10. The sooner everything comes down, the sooner we can start rounding up and arresting all the Corporatist Fascist shit stain filth controlling the shithole of collapsing Murica, and the sooner we can start arresting all the Republican fascist boot licking filth and Demcocratic boot licking shit stains for TREASON, GENOCIDE, and CRIMES AGAINST HUMANITY. The sooner the shithole of Corporatist Fascist Murica falls-the sooner we can start burning and destroying all the Corporatist Fascist evil filthy shit stain Murican flags, disgusting flags representing the most evil vile fascist GENOCIDAL shithole the world has ever seen.

        • Ron,
          Apple and Microsoft are sure bets. Go all in.

      11. The sad part is that most of the gains were just on paper – but if you bought high and sold low your losses are real.

        I actually sell some precious metals every year and have for the past few years – at big losses – then I wait a while, then I buy it back. This gives me capital losses each year that lower my annual contribution to the IRS. The amount you can claim each year is relatively small, so I don’t really worry about missing out on any sudden rally in precious metals, and the rest of my stack is still sitting and waiting. And while this does lower my cost basis for future taxes, it won’t matter if I don’t re-sell those before I die or before the real SHTF.

      12. Part of my investment has been in a fund designed for wealth preservation with the current bubbles and knowing they will eventually burst. It’s now aimed at making money until it all goes to shitand starts to level out. My investment has been stable for a few years. Withh the Monday morning confirmation of Greece and ChiNa going down the shitter they must be liquidating the fund .I got an email today notifying me my shares had been sold. no losses, so it begs the question of why?

      13. Of Course…..none of this affects us here in the USSA.
        We the Sheeples govern ourselves, and have Free Markets too!
        and those radio ads from the FDIC to keep your “money” in the bank are soooo reassuring, Comrades.

        • Yep, trust Uncle Scam! He’s on our side.

      14. If China goes the way of the rest of the world so what? It just means that china can’t buy stuff from the rest of the world. Big deal we have shipped all of our factories there. They will make it at slave labor prices and sell it the same to their own people.

        The good news is that the US will have to build new factories and put people to work building the factories and putting a labor force in them like we did in the 50-60-70-80-90s. Then it all turns around for US.

        Oh shit Sgt. you were having a very nice dream.


        • Yea, i was wondering if you were going to snap back to reality, and remember the principalities of darkness don’t work that way.

      15. Oh Oh! Stock market frozen United Airlines operations halted, ??????


      16. NY Stock Exchange has suspended trading
        no word yet on why

        • proley a practice run for ‘the glitch”.

      17. The US stock market has halted trading due to “technical issues” What a load of crap!The Chinese exchange took a dump last night…suspending trading and I’m supposed to believe that our markets weren’t going to follow suit? What a load of crap! I have a feeling that we are no longer on borrowed time.

      18. Trading halted on NYSE floor
        “Trading in all symbols was halted on the New York Stock Exchange floor Wednesday due to an apparent technical issue.

        “NYSE/NYSE MKT has temporarily suspended trading in all symbols. Additional information will follow as soon as possible,” the NYSE said in a statement on its status page.
        The exchange was investigating the issue that caused the halt, Reuters reported, citing a source. Trading stopped around 11:30 a.m. ET.

        The NYSE said all open orders would be canceled, according to Reuters. The issues seemed to be limited to the NYSE floor, and the exchange said it did not affect the NYSE Arca and NYSE Amex/Arca Options.”

        NYSE Suspends Trading in All Securities

        (above linked to on Drudge Report)
        All Trading Halted On NYSE, CNBC Stunned

      19. China is claiming the have a computer problem as well.

        Is this the opening volley of a cyber war or worse?

        Obama has been notified. Really?


      20. Speaking of money, why haven’t we’ve been “allowed” to see the latest national debt total? Could it be because it’s over the $18,000,000,000,000 (is that enough zero’s?) and “they” don’t want us to know about it? “Things” are starting to get interesting.

      21. Cyber wars? Very interesting!
        First shots in WW3?
        keep your powder dry and talk to the group (if you are in one)Or your families. Let us all hope and pray we wake up tomorrow and find that a mouse eat a wire.

      22. Just heard that the Chinese Stock market is crashing and crashing hard!


        after China comes the US… that’s what financial experts said couple years ago. ;(

        First, Great Britain, then China, then us… Has England’s economy crashed?

      24. Yeah, I don’t always agree with you, Sarge, but this time, I really agree with you!!! Lets hope a rat did it!!!

      25. Is this really the opening volley? Has TPTB moved up the timeline or is this still part of the script? All BS aside, jade helm starts in days and this is how the world economy is going! I’ve watched this site for a long time and you all seem to have your sh.. together so I’m asking if you really feel that we are in to it already?

      26. Who cares? China does not elicit sympathy; fear yes, envy and resentment, yes. It is an authoritarian state so they can just bull whip their people to work doing something, anything. Africa beckons and China can switch to making even more money from the Africans. They can also pull a margin call on the US and ask for their debts to be paid. Many options: as Confucius say, “he who make giant machine selling crap to the US can instead sell crap to Africa.”

        • Good point, But Africa does not have the money to buy their cheap goods, let alone feed itself.
          So how are the going to buy a TV when they barely make enough to eat?

        • China has already been collecting their debt. Buying our water AND lands. Ever notice how our food is changing to..asian food? I mean even in Nashville. And farmers markets. College, buying housing, asian carp in our rivers ( food for them too ), etc. Maybe….they are already here ya think? I know the others are. I think we have basically already been taken over to an extent. But not many even notice that. Perot was right about Nafta. Now we pay the price.
          I figure its all downhill from here. JH may very well start before the 15th. Do you really tell when things will start?? Its called the element of…….

      27. I’m glad the Obama economy is experiencing a recovery summer. We’d all be better off if he was just crowned king and allowed to rule forever. Look how well he has managed the country. Things haven’t looked this good since shit was invented.

      28. The Communist Chinese government has much at their disposal to stop a market crash!

        They don’t even allow anyone to short their markets. They can just dictate new rules to investors or modify market rules on the fly. They can price manipulate stocks at will. They can even make uncooperative investors just vanish!

        Chinese investors that bought with borrowed money may have to come up with cash! If they hold precious metals, look for a sell off.

      29. If I were president…
        I would issue a date where all illegal’s had to be out of the country.
        If caught..then you will spend a lifetime in service to our country in a factory.
        So we don’t have to buy chinese shit.
        Sure. we will put all those folks to work for our benefit.

        China has been doing economic war on us forever.

        The jews have watered down america..and the white are running scared.
        Speak up and they get you fired from your job.

        So an angle for a white dude…
        Get into rental property and rent to all the minorities…get rich off their numbers just like the jews do with banking.

        Time is continuing to water down the blacks with white blood.
        In another round of fucking…the blacks won’t know what race they are.

        So there you go…

        Hitlery will win and then feminism will really be pumped up.

        Feminism is how they are bringing in socialism, then communism.

        It is so gradual, you won’t know what’s going on.

        The best thing a middle aged man can do is plan to have his own businesses.
        Real estate, contracting, web stuff.

        Good luck.

        All preppers should check out MGTOW.

        Youtube had many video on it.

        MGTOW solves all your issues as a man.

        Stop thinking you need a woman.
        Sure, go fuck them….but NEVER commit to them….
        This sets you up for the divorce plantation.
        Her own personal life slave.
        Who the fuck thought of that shit?

        • You must have a problem with women don’t you? Are you a muslim?
          Not all are like what you describe.
          No wonder women are the way they are.
          Pull your head out and use your brain ( if you have one) and think.
          Everything is logic. Remember that.
          Women aren’t that complicated. But man has been conditioned to believe that way.
          Either side has problems. Think. Open your mind.

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