China has been accused of censoring reports about thefinancial chaos in the country, stopping its citizens from looking for reports about what’s going on.
China’s “Black Monday” has sent share prices around the world into freefall, and has led to renewed worries about a slowdown in growth in the country. But its citizens don’t seem to be able to find out why.
Baidu, the country’s biggest search engine, is censoring results related to the chaos, according to George Chen, managing editor of the international edition of the South China Morning Post. When searching for the Chinese characters that translate to stock disaster, the results say that “Due to related rules & policy, some search results won’t be shown”.
Chinese news sites are mostly hiding the stories on their front pages — though they are covering the huge collapse.
On Monday, the Dow Jones Industrial Average plummeted 588 points. It was the 8th worst single day stock market crash in U.S. history, and it was the first time that the Dow has ever fallen by more than 500 points on two consecutive days. But the amazing thing is that the Dow actually performed better than almost every other major global stock market on Monday. In the U.S., the S&P 500 and the Nasdaq both did worse than the Dow. In Europe, almost every major index performed significantly worse than the Dow. Over in Asia, Japanese stocks were down 895 points, and Chinese stocks experienced the biggest decline of all (a whopping 8.46 percent). On June 25th, I was not kidding around when I issued a “red alert” for the last six months of 2015. I had never issued a formal alert for any other period of time, and I specifically stated that “a major financial collapse is imminent“. But you know what? As the weeks and months roll along, things will eventually be even worse than what any of the experts (including myself) have been projecting. The global financial system is now unraveling, and you better pack a lunch because this is going to be one very long horror show.
Monday August 24, 2015: Massive Decline of the Dow and then Partial Recovery on the same day,
The free market mechanism or a carefully engineered speculative rebound?
The Confiscation of Financial Assets resulting from stock market manipulation. The Massive Appropriation of Savings.
Billions of dollars of wealth moving from one hand to another.
Plenty amongst you will be talking about economic cycles, and opportunities, and debate how to ‘play’ the crash, but all this is useless if and when a market doesn’t function. And just about all markets in the richer part of the world stopped functioning when central banks started buying assets. That’s when you stopped being investors. And when market strategies stopped making sense.
Central banks will come up with more, much more, ‘stimulus’, but what China teaches us today is that we’re woefully close to the moment when central banks will lose the faith and trust of everyone. After injecting tens of billions of dollars in markets, which thereby ceased to function, the global economy is in a bigger mess then it was prior to QE. The whole thing is one big bubble now, and we know what invariably happens to those.
More QE is not an answer. And there is no other answer left either. Those tens of trillions will need to vanish from the global economy before any market can be returned to a functioning one, and by that time of course asset prices will be fraction of what they are now. It may not happen today, but that doesn’t matter: what’s important to know is that it WILL happen.
The Standard & Poor’s 500 index also fell into “correction territory,” meaning that it’s down 10% from a recent peak.
The global sell-off was triggered by growing concern over a slowdown in China and the Federal Reserve’s non-stop creation of money called “quantitative easing” which devalues the dollar.