Galt's Gulch

China's epic collapse

Posted by $ blarman 8 years, 9 months ago to Economics
2 comments | Share | Flag

Wow. Can you imagine what would happen to the US if all that manufacturing in China suddenly stops? What if China sells off more of its US bonds in order to try to prop up its own monetary system? Can we say big trouble for the US?
SOURCE URL: http://www.bloomberg.com/news/articles/2015-07-09/the-chinese-stock-meltdown-that-makes-the-greece-saga-look-trivial?cmpid=BBD071015_BIZ

Add Comment

FORMATTING HELP

All Comments Hide marked as read Mark all as read

    -
  • Posted by freedomforall 8 years, 9 months ago
    Virtually all the actions and results of the Chinese markets have (and will) happen in the US markets because neither is a free market. They are both controlled by and for the benefit of cartels who use their power to eliminate free market competition, to insure cartel profits, and to transfer risk from cartel members to innocent bystanders (taxpayers.)

    The Shanghai market rose 150% in a year. Now it has lost about half that gain so it is only UP 80% in a year.

    The Chinese would have to find a buyer for the bonds, and take a big loss to sell them. Why do that when they can just create credit from nothing?
    Reply | Mark as read | Best of... | Permalink  
    • Comment hidden by post owner or admin, or due to low comment or member score. View Comment
    • Posted by $ MichaelAarethun 8 years, 9 months ago
      80% is not a bad score. As for T Bills why would they sell them? We have some investors that buy them at zero per cent interest knowing the worst that will happen is the loss of buying power due to inflation and devaluation. A great many foreign countries to that including Iran and Saudi Arabia.

      :Last I looked the Brits owned a bigger chunk than the Chinese.

      So on the whole it's an internal problem as suggested and 80% is not bad.

      Not if it hampered their credit in the oil importation market ....
      Reply | Mark as read | Parent | Best of... | Permalink  

FORMATTING HELP

  • Comment hidden. Undo