As trade tensions continue to skyrocket and markets around the globe are affected, a Chinese government-backed think tank had a memo leaked warning of potential financial panic. China, the world’s second-largest economy, sees the rising tensions as a cause for concern.
Political elitists don’t care about the effects of their policies on the masses, as long as those masses continue to comply with the demands of the rulers. And now that’s evident by a Chinese think tank leaked memo warning of the potential for financial panic of the peasants they rule over. The warning is that leveraged purchases of shares have reached levels last seen in 2015 when a market crash erased $5 trillion of value. “We failed to clean up the leveraged funds after the 2015 market rout; they have staged a comeback in a new guise,” NIFD said.
Bond defaults, liquidity shortages and the recent plunge in financial markets pose particular dangers at a time of rising United States interest rates and a trade spat with Washington, according to a study by the National Institution for Finance & Development (NIFD) that was seen by Bloomberg News and confirmed by a NIFD official.
Obviously, trade wars and tariffs are taxes on those who consume the product not those who produce it (as they just raise their prices passing on the tax to those in the country whose elitist ruling class insists on participating in such ludicrous ideas.) “We think China is currently very likely to see a financial panic,” NIFD said in the study, which appeared briefly on the Internet on Monday, before being removed. “Preventing its occurrence and spread should be the top priority for our financial and macroeconomic regulators over the next few years.”
The study shows that the Chinese government is well aware of the possible effects of a prolonged trade war with the United States. In recent weeks, prominent academics have also begun to question if the country’s slowing and trade-dependent economy can withstand a sustained dispute that includes massive amounts of tariffs (taxes). The trade tensions have already started to weigh on the stock prices and the yuan and could definitely continue in a downward trajectory toward a full-blown financial crisis, which would include the public panicking.
Chinese stocks entered a bear market this week, with the benchmark Shanghai Composite Index falling more than 20 percent from its January high, while the yuan has slumped more than 3 percent in the past two weeks. Investors have been spooked by the escalating trade tensions and fears that the government’s deleveraging campaign will curb economic growth and trigger defaults. –Bloomberg
The think tank said China’s State Council should be ready to implement any market support measures in coordination with the central bank and other regulators, key government ministries, and the police. Meaning when all else fails, more government coercion, force, and violence will be used.
Are you prepared for a financial meltdown? Attempts to pay off all debts should be at the forefront of the minds of those who wish to insulate themselves from the poor financial decisions of the ruling class. Also consider alternative currency, either in the form of precious metals or ammunition. It could help make your survival that much easier.
How To Best Prepare Yourself For The Coming Financial Crisis
When the Soviet Union collapsed the vast majority of the Soviet citizens did not even notice.
They were all broke anyway so nothing changed.
It will be the same here and in China.
Certainly the Chinese will notice. Compared to where they were their rich now. No more famines. The political blowback will be enormous.
K2 is right. China has a VERY LARGE middle class now with disposable income, investments and LOTS and LOTS of leverage amid a very speculative financial environment.
I have been telling this community for YEARS that a recession in China would be CHAOS, simply because they have never had one since becoming Communist/Capitalists.
Grab the popcorn My Peeps, the entertainment value of a Chinese Crash will be stupendous !!! At first. Then it will turn ugly. Very ugly. 🙁
Is “Stuart” and “durangokidd” one in the same? Hmmmm
No. 🙂
That is pretty true. The vast majority of us clown Americans are broke and live check to check and are absolute filthy slaves…so whatever.
For the life of me I don’t understand why people are so impressed with China. With a Billion or so ants and tons of money, you can keep anything a-float for a long time but eventually there will be a Black Swan and China will crash.
It is a Communist run country folks.
Enjoy the show.
All they have to do is keep printing their “paper” currency and keep on going.
Who says it has to stop? Keep building empty cities, empty ports, stockpiling raw materials, sell junk through China-Mart……
There really is nothing that can stop it as long as the Private Central Banks can keep on printing paper notes.
Stuart
Your saying that with an implication that capitalist countries are not subject to Black Swans. China has an abundance of manufacturing facilities and skilled labor which isn’t the case in the US. With US central banking determining the value of money one can have a long debate over how capitalist the US is.
It is a Communist run anthill K2. They will hit the wall eventually.
… and, you bet, the U.S. is subject to Black Swans.
Hell, we invented them!
Black Swans by definition are unknown and hence unprepared for events of great magnitude.
I see more products made nearby. Some coming from the closest large city. Others from towns and cities right next to ours. Nice to know we have producers so close.
Where I lived before there was one big manufacturer of chocolate. We had potato chips, too. But they closed shop years ago. Oh, there were others, but most folded. We used to have a factory that made ovens, big commercial ovens. I don’t know; maybe they’re still around.
Who cares what China’s freaking out over. We, Americans lost so much because of greedy factory owners who deserted America in favor of doing business with China.
_
_
” We, Americans lost so much because of greedy factory owners who deserted America in favor of doing business with China.”
Spoken like a true ignoramus.
Manufacturing left because of two reasons – regulation and unions.
The companies who tried to stick it out here went out of business. How greedy of them.
You’re correct. You are also very rude, dude.
_
Well, it appears you are no longer ignorant.
Well done Sir 🙂
But isn’t the embarrassment of ostentatious ignorance so much greater than that of being the recipient of bluntness?
It is to me anyway.
I read years ago that the Federal G gave tax incentives to companies to leave.
It was called NAFTA.
Stuart
“Manufacturing left because of two reasons – regulation and unions.
The companies who tried to stick it out here went out of business. How greedy of them.”
The US Textile Industry paid $15 / Hr, hardly a high wage yet they fled to obtain Asian virtual slave labor at less that $1 / hr. Industry fled the developed world for the abundance of cheap labor and zero environmental / safely regulations which the civilized world has.China its believed kills over 500 coal miners / yr in cave in accidents. Only small markets of precision ultra high quality goods, usually associated with Germany were not subject to the virtual slave labor onslaught.
Business fled for ultra cheap (virtual slave) labor and the allowing of the mistreatment of same.
Sorry K2, No.
– $15/hr was an enormous wage when the textile industry left. the prevailing wage was less than one third that.
– $1/hr was not a “slave” wage to people accustomed to $1 per week.
The “General Agreement on Tariffs and Trade” placed export quotas on Western manufacturing while placing NO restrictions on places such as Bangladesh. They did this to promote a better wage in those places. In other words, U.S. manufacturing was prohibited from selling our wares world wide but not “developing countries”. (To the morons writing the GATT: How does eliminating Bangladesh’s competition promote higher wages? Hint: it does just the opposite).
Now, I ask you: If I am the management of a U.S. company and legally liable to act in the best financial interests of the owners of my company, the shareholders – what am I to do?
That was the U.S. textile industry’s demise.
As for Chinese coal mines, you are correct (So? Why do I can about their mine safely? Isn’t this about jobs?) but U.S. coal mines are quite financially viable even with our better safety standards. They were being (purposely & proudly) destroyed by stupid EPA regulations until Mr. Trump saved them.
Slave labor is ignorant Liberal nonsense terminology for people willingly bettering themselves.
THE TEXTILE INDUSTRY IS MAKING $15 HR NOW, far less then.
“– $1/hr was not a “slave” wage to people accustomed to $1 per week.”
Its a slave wage to compete against because to do so you have to make 99 cents /hr. Can you live off that?
Chinese coal mines are indicative of the overall lack of safety in Chinese manufacturing that western business preferred rather than those pesky “regulation” you so loathe.
The GATT agreements goal was to industrialize / develop the “developing world” which came at the expense of the Developed World (namely US). Our government has zero right to facilitate any endeavor at the expense of the US people. GATT did just that as it eviscerated US manufacturing.
“Slave labor is ignorant Liberal nonsense terminology for people willingly bettering themselves.”
You need a tour of the rust belt.
Well, I see the moderator has attempted to end this by blanking out the REPLY button, however, Stuart, I don’t think many US companies, especially nowadays, act (or or are required by law-show us that one) in the best interests of the shareholders.
If they did, they wouldn’t be buying back their own shares to the tune of record billions in the last two or more years, at record high prices. Why?
Because their own salaries and bonuses are, in many instances, tied to the stock price.
You’re assuming these ceo’s are acting in our best interests? That my friend is laughable.
No Kevin my friend, you delude yourself. You are just a run of the mill Liberal who likes guns. Your economic postings above demonstrate that beyond doubt.
A Libertarian would champion free market capital flows world wide as well as the right of all people to decide for themselves what they will sell their labor for.
You are however, right about the NSA…. but that is government vs. citizens. Both parties support it. The Left is a totalitarian party. Period.
“A Libertarian would champion free market capital flows world wide as well as the right of all people to decide for themselves what they will sell their labor for.”
“All People”? Since when is our government justifiably concerned about anyone other than Americans? As a primer here is the Mission Statement known as the Preamble. Sell your Labor WITHIN THE United States. Compete with yes SLAVE LABOR? No. That is not in our citizens best interests as the eviscerated US industrial base can attest too.
We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence,] promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.
Key Words Of The Purpose and Role Of Government With Respect Who It Applies To:
To OURSELVES and our posterity. Not Globalist Corporations but OURSELVES the US people.
Kevin, you scold me up unjustly. I just supply the definition. I don’t in any way, shape or form support the egregious manner in which Washington DC has betrayed the American people.
The General Agreement on Tariffs & Trade is one of those betrayals. My point was that the management of American industry had no choice but to do what his fiduciary duty demanded, which was to act in the financial best interests of the owners of the company – the stockholders. It was the U.S. government who put him in this untenable position by betraying him also. He is our next door neighbor and fellow citizen after all.
There were FOUR major reasons for the manufacturing “dispora” to China.
FIRST, it was the National Policy of the NWO in control of the US Government under GHWB as President to facilitate the SYSTEMATIC transfer of American manufacturing to China to enrich the Global Uber Rich Investment Class at the expense of the American Middle Class.
SECOND, China established “Free Trade (commercial & industrial) Zones” giving preferential tax treatment to new companies relocating to China.
THIRD, the US under the NWO gave preferential tax treatment to these new factories exporting to the United States under “Favored Nation Status” for China.
FOURTH, these new factories were able to take advantage of Cheap Labor at $1.00 a day (initially) and Cheap Money with an exchange rate PEGGED at about 6 yuan to the dollar.
This was planned and executed by the NWO RIGHT to enrich the very rich; while simultaneously encouraging the invasion of the US by Mexico and Central American peasants to suppress wages & salaries of the working class: creating greater inequality, not less, in America and impoverishing the working class.
The Middle Class lost 40% of its wealth in this transfer of American Wealth to China. By design. 🙁
durangokidd
“The Middle Class lost 40% of its wealth in this transfer of American Wealth to China. By design.”
Thank You.
You left out that it was done with significant Democrat support too (Bill Clinton). This was not a single party issue as both feed from the globalist corporate hand. Secondly its world wide.
K2: Not suggesting the dems didn’t participate in the systematic dismantling of the American Means of Production, since they always presented themselves as the “Party of the Working Man”. You just have to wonder why ???
But then all you have to do is google the “45 Goals of Communism’ and understand the Eight Point Plan distilled by Saul Alinsky to understand that for Socialism to succeed in America, the dems must impoverish taxpayers (workers), control LSM, generate class and racial warfare, and install government health care.
The NWO has infiltrated both parties, adopted the strategies of Alinsky to control the population and the government. 🙁
So working 6 days a week, 12 hour days till you die or get hurt, then you get replaced, all for very little money is they wsy you want it.
Mate, you are so ill informed I feel sorry for you. It’s been driven by ‘labour arbitrage’ rather than invest in US workers and technology. Unions and regulation in this context are irrelevant. Stockholders and ‘C-level’ types pulled in the bucks while dimbo’s like you lost your job. They are screwing us over because of people like you.
You could have no regulations,have all workers paid minimum wage and it would still be cheaper to make most products in Mexico.
Oh yeah, I am sure Corp America and it’s vile disgusting GREED had nothing to do with it at all…..yeah right.
GREEDY Democrats and Leftist taxed and harassed the business owners to death. Why open a factory in America if the greedy and sick Liberals keep piling on junk regulations?
At a certain point, those who do the producing are going to say NO and go on Strike. Where have I heard that before?
It’s called Going Galt.
CENTURION
News Flash.
GH Bush proposed Free Trade.
Bill Clinton campaigned against it.
Bill Clinton once president signed it into law.
Both Political Party’s are under the influence, if not outright controlled by the globalist cabal. Its not a Dam / Rep problem but rather a corruption problem transcending political affiliation.
” Its not a Dam / Rep problem but rather a corruption problem transcending political affiliation.”
Yes. Absolutely. But people conflate that corruption of using government power for personal business advantage with Free Trade. There is nothing free about it. Free Trade is good. It is the natural order of things. ALL trade iniquities are caused by government – not free trade.
If you don’t believe in the Free Market, you don’t believe in the idea of America. Simple as that.
As for China: Richard Nixon started that ball rolling.
“If you don’t believe in the Free Market, you don’t believe in the idea of America. Simple as that.”
A Free Market being one without tariffs protecting your industrial base? News flash, tariffs were the method of revenue from the Founding Fathers until Free Trade. Tariffs were used to grow the US industrial base. Its fact.
If you don’t believe in the Preamble, in effect the “Mission Statement” you don’t believe in America.
Free markets don’t exist…name one? They are all regulatory constructs or manipulated either physically or financially or both. It is true that both the US and UK used tariffs and then when the UK and then the US removed tariffs their economies declined. Global trade is a zero sum game. If the US had protected its national interests then China would still be a minor player.
I’m seeing more local products too. Who the hell would buy garlic powder from China it blows my mind?
BREAKING GREAT NEWS:
LIBERAL PUKE JUSTICE KENNEDY RETIRES!
Sorry, I just had to shout.
Actually Kennedy wasn’t that liberal.
On June 26, 2008, Kennedy joined the majority in District of Columbia v. Heller, which struck down the ban on handguns in the District of Columbia. At issue was whether Washington, D.C.’s ban violated the right to “keep and bear arms” by preventing individuals from having guns in their homes. Kennedy sided with the conservatives on the Court, holding that the Second Amendment recognized an individual’s right to keep and bear arms. (The decision came the day after the Court’s ruling in Kennedy v. Louisiana, a capital punishment decision written by Kennedy, in which he sided with the liberal justices.) Two years later, in McDonald v. Chicago, Kennedy joined the majority opinion holding that the Second Amendment’s protections for the right to keep and bear arms are incorporated against the states through the Due Process Clause of the Fourteenth Amendment.
Don’t spoil it man. 🙁
Saying he wasn’t “that” Liberal is like saying she wasn’t “that” pregnant.
Stuart
My yardstick measure is the Second Amendment and as you see in the above Kennedy recognized that it:
1. Is an individual RIGHT
2. It applies to the states.
I’m a Libertarian. Too many of the Right & Left pick and choose through the Bill Of Rights selecting what they desire. Many “Conservatives” are in fact Neo-Conservatives and support mass spying of government (a violation of the 4th Amendment), wars for Wall Street. At times the left balances those justice scales in favor of the individual in opposition to the state.
No Kevin my friend, you delude yourself. You are just a run of the mill Liberal who likes guns. Your economic postings above demonstrate that beyond doubt.
A Libertarian would champion free market capital flows world wide as well as the right of all people to decide for themselves what they will sell their labor for.
You are however, right about the NSA…. but that is government vs. citizens. Both parties support it. The Left is a totalitarian party. Period.
(ALL: please forgive my incompetence for posting this above in error)
Stuart
Did the various Free Trade agreements help to increase US manufacturing?
The answer is it facilitated its transfer out of the USA.
Did the above help the United States?
No it hurt the USA by reducing its manufacturing capability. No plausible argument can be made that reducing US manufacturing is beneficial for the USA.
End Of Story
Just because it has the word “free” in the title, don’t make it so. Free trade don’t need no stinking agreements.
Don’t blame freedom for government corruption. Don’t blame Free markets for crony-ism.
The government uses misleading titles on purpose. They get two nice fellows like you and me to spar over something we don’t even disagree about.
Hate government not Freedom. Free Trade is the very essence of Freedom.
Especially don’t let the bastards warp your thinking about Freedom by their misleading use of the term.
“Free Trade Agreements” (a rose by any other name) facilitated this:
“the US lost 54,621 factories, and manufacturing employment fell by 5 million employees. Over the decade, the number of larger factories (those employing 1,000 or more employees) declined by 40 percent.
“A Libertarian would champion free market capital flows world wide …”
China as a prime example, DOES NOT allow the free flow of capital OUT of China. Only in.
Free Trade is not “FREE”. Free Trade as implemented by the Uber Rich NWO is not a level playing field. “Free Trade” is a euphemism used by the NWO to defend a MANAGED TRADE SYSTEM that is managed to their advantage.
FREE TRADE” is not “FAIR TRADE”. Fair Trade is RECIPROCAL TRADE !!! 🙂
like saying she wasn’t “that” pregnant.
She’s not that pregnant until after 24 weeks. Then you can’t abort it.
Kevin’s handful enough. Don’t you start John! 🙂
Chinese think tanks don’t “leak” anything; the question really is who created this document and why they are distributing it.
The NWO wants all people under their control, and work toward this everyday by controlling the economy. They want everyone to work for the lowest wages possible and don’t care about the safety of the worker. It’s about control and money, period. To do this they ,NWO, must start by reining in the most difficult obstruction to their plan….. the American people. The American people will be their biggest hurdle, because of their willingness to fight for freedom and their beliefs and will not accept a dictatorship or live in third world country economy. China’s people are under control and don’t have the means, guns, to rebel. NWO explains it all; that the whole world will be controlled by the elite few, who have all the wealth. Control, control, control.