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27 July 2015 @ 07:50 am
RT: Collapse that never happened: China bounces back, discrediting Western analysts  
Caleb Maupin 26 Jul, 2015
All the voices in the US media who gave alarmist predictions in the aftermath of China's stock market plunge earlier in July should be very embarrassed. The aftermath of the market crash has proved China’s economy to be highly resilient.
Since capitalism in China is tightly controlled and not allowed to run rampant, the population is far safer from the harmful effects of market turbulence.
According to the Financial Times, 55 percent of the US public is directly invested in the stock market. The majority of these people have no choice in the matter. They are seniors whose pensions were invested by their employers, or they are employees whose salaries are tied to “stock options” or other mechanisms linking them to the New York Stock Exchange.
As a result of the stock market’s central role in US society, when the financial crash of 2008 occurred, unemployment almost immediately went up to 10.1 percent, the highest it had been since 1983. The rate of hours worked per week dropped to 33, the lowest number ever recorded. Overall, the median household net-worth dropped by 35 percent between 2005 and 2011, according to a Vox Media report. Many people in the United States are still suffering the aftereffects of the financial crash of 2008, despite the widely reported “recovery.”
What makes China different?
Analysts in the US media, probably basing their views on what they know about the US economy, made predictions of catastrophe when China’s stock market plummeted on July 8 and 9. The US press had already spent months describing the “slowdown” in the Chinese economy as proof of impending collapse, at the same time as demonizing China’s President Xi Jinping for allegedly being a “neo-Maoist.” When 1,400 companies filed for a trading halt after a 30 percent drop, the US press went into a frenzy, declaring that the seemingly invincible Chinese economy had finally been brought to its knees.
However, the results were very different than those predicted. Within a week, China’s economy was pretty much back to normal. US economists were shocked to see the country reach the goal of 7 percent quarterly growth, despite so many predictions that it would finally lag behind. China’s plans for massive construction of irrigation systems and high-speed trains were not halted. The “New Silk Road” foreign investment programs are still moving ahead.
How was it that a massive stock market crash had so little impact? How was it that China’s market could crash dramatically, yet society could just move on apparently unscathed? The answers point to realities about the Chinese economy that many Western analysts are unable to comprehend or even acknowledge.
First, only 6 percent of the Chinese population is invested in the stock market. The Chinese stock market is a small club for millionaires and billionaires. China’s industrial workforce, which make up the majority of the planet’s industrial workers, do not have their wages or salaries tied up in “stock options.” The pensions of China’s elderly people are also not at stake with market flexibility. Most of the Chinese population is fully insulated from the chaos of the beloved neoliberal “free market.”
State ownership of industry is very widespread in China. Fifty percent of the world’s crude steel is manufactured in the mostly government-owned Chinese steel industry. China’s state sector controls a great deal of banking and other centers of economic power.
Secondly, despite a huge amount of private ownership, the classic laws of the market studied by economists all over the world do not apply even in China’s vast private sector.
Usually, following a financial crash, there is widespread panic in the stock markets, with investors rapidly pulling their money out. This did not occur in China because the government refused to allow it. Immediately after the crash, the government moved swiftly into action, implementing a variety of “anti-selling measures.” The Chinese government threatened to arrest anyone who was caught short-selling. All major shareholders and directors were blocked from selling stock for six months.
Essentially, the Chinese government stepped in and prevented the natural results of a stock market crash. Corporations were prevented from doing what they would normally and naturally do under such circumstances. The Chinese government gave marching orders, forced market players to do the opposite of what they were inclined to do. The result was a rapid economic recovery that shocked the world.
In China, capitalists are not free to invest as they choose, nor are they allowed to move money around based on what is most profitable. Corporations and assets are routinely nationalized, and wealthy capitalists have even been sentenced to death for harming the public. Last year, several employees of a Shanghai based food firm were taken away in handcuffs when it was exposed that they were supplying rotten meat to clients, including McDonald’s and other major restaurant chains.
The Chinese economy is watched over closely by a huge entity with over 88 million members: the Communist Party. It has direct control of the People’s Liberation Army, and all government officials are subject to its discipline. Most major private corporations have Communist Party officials who are assigned to watch over and monitor their activities. Sometimes these officials can be helpful to corporations. Capitalists can often utilize the government’s assistance in order to make more money, as this is in line with the party’s goal of expanding China’s Gross Domestic Product. However, the Chinese government has the ability to give direct orders to privately owned entities, forcing them to act according to the party’s wishes and against the dictates of capitalism’s much heralded “invisible hand.” China’s economy is now rebounding, with the stock market rising once again, because the Communist Party refused to allow the market to function naturally in response to the crash.
Attempts in the US press to blame the market crash on Chinese president Xi Jinping are highly disingenuous. Articles that make these arguments offer very few explanations why Xi is to blame. They merely quote broadly worded statements from market-oriented Chinese think tanks.
If anything, it was lack of regulations that caused the crisis. The Financial Times reports: “Since they were not subject to regulation, fund-matching companies permitted higher leverage and lower barriers entry.”
There is now widespread investigation into the unregulated practices of fund matching corporations in China, who may have greatly contributed to the events of July 8th and 9th.
Xi Jinping and the rising “Chinese Dream”
While Xi Jinping is hated in corporate boardrooms and on Wall Street, his actions are wildly popular with many people living on the Chinese mainland. The Economist stated: “He is now more popular than any leader since Mao.” On another occasion they described him as possessing “unusual popularity,” saying “Mr Xi has been winning hearts with a ferocious assault on corruption.”
It’s understandable why Xi’s “mass line campaign,” as well as his popularization and revival of the ideas of Mao Zedong and Deng Xiaoping, are refreshing to millions of Chinese people. Many have become alienated and frustrated by rising corruption over the last few decades, coinciding with the expansion of China’s market sector. With headlines such as, “To Reignite A Nation, Xi Carries Deng’s Torch”, the Chinese press portrays Xi Jinping as a champion of the founding principles of the People’s Republic, whipping China back toward building a prosperous socialist society.
China’s highly successful economic model should be studied by anyone who wants to improve the living standards of the human race. When the global capitalist economy reacted to decades of neoliberalism and experienced a horrific crash in 2008, China continued to roll ahead. As the world market reeled in the aftermath of the crash, China’s Gross Domestic Product increased by 9.6 percent in 2008. Chinese industrial production increased by 12.9 percent that year. Since 2009, the wages of Chinese industrial workers have been steadily increasing, with the rest of society keeping up with them. In 2012, the wages of Chinese private sector workers increased by 14 percent.
While the Western world is consumed by austerity debates and its new generation faces a low-wage economy, the standard of living for China is rapidly increasing.
The secret to China’s success can be found in the role of the state. A powerful government, which has its roots in the 1949 popular revolution, has the ability to keep the market under its control. In China, the “rule of the dollar” certainly exists, but it is secondary. It is the population, organized and directed by the Communist Party, which ultimately has the final say in economic matters. While capitalist investment is utilized to strengthen China's economy, the country is spared from the difficulties associated with the market. Capitalism exists, but it is obedient and compliant, existing at the whim of a very strong government, with deep roots among the population.
As China rolls ahead, it should be clear that Xi Jinping’s “Chinese Dream” contains key economic lessons for the entire human race.
http://www.rt.com/op-edge/310774-china-economy-crisis-communist/

Caleb Maupin is a radical journalist and political analyst who lives in New York City. Originally from Ohio, he studied political science at Baldwin-Wallace College. In addition to his journalism, analysis, and commentary, he has engaged in political activism. He is a member of the Workers World Party and Fight Imperialism – Stand Together (FIST). He is a youth organizer for the International Action Center and was involved in the Occupy Wall Street movement from its planning stages in August 2011. He has worked against police brutality, mass incarceration, and imperialist war. He works to promote revolutionary ideology, and to support all who fight against the global system of monopoly capitalist imperialism.

The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.
 
 
 
clothcapclothcap on July 27th, 2015 09:43 am (UTC)
The hegemonists include the zionist currency crooks that control the W. financial system, and deeply plunder it through insider trading and manipulation, profit from creating and sustaining wars through loans to both sides and to weapons manufacturers and from loans for rebuilding in countries their wars have devastated, thus they work to foster conflict.
They profit from the creation of debt by illegitimate sale of their printed paper and sale of permission to add zeroes to computerised accounts of regimes in exchange for interest bearing regime bonds backed by future tax receipts that their private central bank controlled regimes and their civil services legitimise by accepting in settlement of tax demands.
They profit from foreknowledge or creation of national stock market crashes and disasters like 9-11 by placing put options, (betting the value of companies and currencies affected would lose value) then massively selling stocks in the selected victim exchange after creating an atmosphere of negative trust by spreading rumours of the impending crash via conrolled media.
There are other ways, the false demonisation of CO2 (preceded by the less illegitimate demonisation of sulphur emissions whose reduction contributed to warming) led to a new fiat currency, carbon credits, handed over to "approved" businesses and traded on carbon credit exchanges. Many impractical boondoggle businesses such as solar farms, wind farms, biofuel were created on the basis of CO2 demonisation, made viable by subsidies paid for by users via higher energy and so retail goods' prices and "green" taxes. A new Rothschild "charity" bank, the GEF was created, funded by complicit regimes, devoted to funding often despotic regimes, ostensibly to reduce CO2 emissions, guaranteed by land that would be taken over on default and exploited by complicit corporations. The same method is used by the currency crooks' sychophants in the World Bank, IMF and ECB overseen by the crooks' BIS, observable alongside other scams and outright theft in the rape of Greece, the Ukraine, Iraq, Afghanistan, Syria, Libya and many African and other countries.
The banking families and the monarchies and corporations that own the central banks in the West are zionist, mostly jews of Khazar descent whose Kabbalah-Talmud based faith, like that of the Israeli regime, the EU upper hierarchy, UN and freemasonry is luciferian.
Inflation and other means devised by tax exempt think tanks are used to milk the blindsided public and non aligned countries.

British Financial Warfare: 1929; 1931-33; How The City Of London Created The Great Depression
http://tarpley.net/online-books/against-oligarchy/british-financial-warfare/
Rothschild Sting
http://www.biblebelievers.org.au/slavery.htm
September 11th Put Options
http://www.ict.org.il/spotlight/det.cfm?id=675

Links via Dreamvirus - Stock Market
http://everything2.com/user/Dreamvirus/writeups/stock+market
clothcapclothcap on July 27th, 2015 11:12 am (UTC)
RT from the front page
Sweden’s 3rd largest city hit by multiple blasts, police plead for help to tackle violence spike
http://www.rt.com/news/310757-sweden-malmo-blasts-crime/

UK referendum on EU membership to be held next June – media
http://www.rt.com/uk/310793-cameron-referendum-eu-june/

Obama marching Israel to ‘door of the oven’, says presidential hopeful Huckabee
http://www.rt.com/usa/310807-obama-iran-israel-oven/

Turkey summons NATO session amid airstrike campaign against ISIS & Kurdish PKK
http://www.rt.com/news/310806-turkey-isis-pkk-strikes/

Talk of political solution to Syria crisis is ‘hollow, meaningless’ – President Assad
http://www.rt.com/news/310799-syria-conflict-west-terrorists/

Standoff with police at funeral in Istanbul
http://www.rt.com/in-vision/310789-standoff-with-police-at-funeral/

Satanic Temple unveils Baphomet statue, protesters say 'Satan has no place' in Detroit
http://www.rt.com/usa/310781-satanic-temple-detroit-unveiled/
clothcapclothcap on July 27th, 2015 11:18 am (UTC)
Cracking Up and Cracking Down: Spain is Bursting at the Seams
By Joshua Krause July 26, 2015
As the turmoil in Greece slowly yields (for now at least), it is important to remember that the small Eurozone nation is hardly the only one in the EU that is in trouble, both fiscally and socially. In truth, it seems that Europe as a whole can hardly contain itself, and you can strike sparks just about anywhere.
Europe is a fiscal mess with an aging population, ruled by a burdensome continent-spanning bureaucracy, and simmering with ethnic and cultural tensions that range in age from ancient to modern.
So while the media is busy dancing around Greece as if the future of Europe lies solely in their hands, stop and take a look around the rest of that continent. I think you’ll find that the Eurozone could unravel just about anywhere. But if I could pick just one vulnerable country, I think Spain would be at the top of my list of the most unstable nations in the EU.
They have numerous economic problems, including one of the highest debt-to-GDP ratios in the EU, and an unemployment rate that has exceeded 20% for many years now. In response to their fiscal and social woes, their government is rapidly spiraling into an despotic regime that hasn’t been seen since the days of Franco. Just last month the government handed down some of the most draconian free speech laws in the EU.
On June 1, Spain passed a law enacting fines of up to US$33,000 for peaceful protest and filming of police. Critics of what they are calling “the gag law” say it is a step back into dictatorship.
According to the New York Times, citizens under the new law can be fined the equivalent of almost US$700 for “insulting” an officer, and over US$33,000 for recording and disseminating images of law enforcement — which are most important and effective during instances of police brutality and abuse of power.
Peaceful protesters could face fines of up to US$664,000 for participating in an unauthorized protest outside government buildings.
Critics of “the gag law” have already begun civil disobedience by sitting in front of government buildings wearing gags around their mouth. “Fascism wants to gag the people,” one sign read.
As for why their government is moving in this direction, you need not look any further than their northern border for an explanation. As I’ll explain in a moment, there is a very good reason why their government is behaving this way.
For the past few years there has been an explosion of secessionist sentiments in the Catalonian region of Spain. This is a region that has its own culture, language, and shared history, that is unique from the rest of the country. But, more importantly, this region generates more economic activity and government revenue than any other in Spain. If there is any chance in hell for Spain to pay down its debt now, that chance is certainly gone if Catalonia forms its own nation.
Continues http://www.activistpost.com/2015/07/cracking-up-and-cracking-down-spain-is.html
clothcapclothcap on July 27th, 2015 11:56 am (UTC)
China stocks suffer biggest one-day loss in 8yrs, Shanghai Composite drops 8.5%
27 Jul, 2015
Chinese stocks on Monday saw their sharpest single day decline since 2007 after a renewed sell-off despite government efforts to prop up the market. China’s industrial index fall to a 15-month low adding concerns to the country’s economic health.
The Shanghai Composite Index closed down 8.5 percent at 3,725.56. The Shenzhen Index fell 7 percent to 2,160.09. Hong Kong's benchmark Hang Seng index dropped 2.8 percent to 24,356.55
More than 1,500 shares listed in Shanghai and Shenzhen dived by the daily limit.
The large fall in Chinese stocks comes after last week’s recovery when they had the longest stretch of gains in almost two months, with the Shenzhen on Tuesday gaining 20 percent from a July low.
Investor sentiment was also soured by poor economic data from much lower-than-expected PMI reading that reflects the state of the country’s manufacturing. The early data released Friday showed that manufacturing activity in July was the lowest in 15 months.
"A rapid, post-rout rebound in mainland 'A' shares has ended, and the market has entered a stage of fluctuations, with investor sentiment increasingly unsteady," fund manager Yang Delong at China Southern Asset Management told Reuters.
Chinese shares started falling dramatically in mid-June with market value shrinking by over 30 percent and losing up to $4 trillion in capitalization in about a month. Then at least 1,430 of the 2,800 companies traded in China stopped trading. To support share prices the Chinese authorities cut interest rates, suspended initial public offerings, relaxed margin-lending and banned large shareholders from selling stakes. The government injected about $14 billion into the markets earlier in July to relieve the collapse.
Full incl graphs http://www.rt.com/business/310824-china-stocks-pmi-drop/

China stocks edge up for 4th straight session, Shenzhen gains 20% from July low
http://www.rt.com/business/310388-china-stocks-growth-investors
Chinese stock market bubble hits record $6.5tn – Bloomberg
http://www.rt.com/business/266224-china-stock-bubble-boom