The John Batchelor Show

VIDEO: Shanghai Slump

July 28, 2015

Monday  27 July 2015  / Hour 1, Block C: Gordon Chang, Forbes.com, in Seoul, in re: En Chine, forte (re) chute de la Bourse [ http://t.co/rwuBCm3Oge http://t.co/T8OzfAoLzm ] [Original Tweet:https://twitter.com/lemondefr/status/625666578521137152 ]   Shanghai Composite Index fell 8.5% in the last session, hasn’t yet opened this morning. Euro stocks responded to Chinese govt intervention.  Beijing intervened, created credit, buoyed it by demanding that no one short-sell, and took half the stocks off the board for weeks. Sunday: rumor that the state govt was paying loans to banks – no exit strategy. Every time they try to exit, people race out of the mkt.  People panicking, not thinking rationally: "The first moment I can take my money out, I will."  Is the central govt now required to save the mkt – predicament: can't save it but have committed themselves to doing so.  Ergo, 因此, failure of confidence in the Chinese regime.  They have to keep this mkt up; cannot; Party is at extreme jeopardy/risk. If the Party explodes, is Washington prepared? Absolutely not.  The US intell community said that Xi consolidated control- despite evident disunity, it won't change its evaluation.   Have vested interest in a nuclear-armed dictatorship in China. And blaming he US for the Chinese mkt fall – which is ludicrous US has paid billions for intell, and many bright analysts – but assembled press releases are garbage.  Our intell apparatus cannot deliver real intell.   The Shanghai-HK Connect lets foreigner buy specially in the Chinese mkt, but when it fails, there's panic around the world.  Vietnam, Bangladesh, India, USA – fleeing Chinese capital to these; $800 BILLION this year.  Shanghai just opened – down 4% in moments. Look for rescue in the later part of the afternoon trading session.  In American Midwest, unfair predatory Chinese trade practices haven't endeared China to our citizens.