China Economy

Meanwhile in China, Implosion of Stock-Market Double-Bubble

Bubbles don’t end well for those who don’t get out in time.

US tariffs and threats of more tariffs have not been particularly well received in China, which is already being rattled by corporate credit problems, quakes in the shadow banking system, a peculiar Enron-type phenomenon at provincial and municipal governments called “hidden debt,” and the implosion of nearly 5,000 P2P lenders that have sprung up since 2015. And so today, the Shanghai Composite Index dropped 1.1% to 2,651.79.

This is a big milestone:

  • Below the low of its last collapse on January 28, 2016 (2,655.66)
  • Down 25.5% from its recent peak on January 24, 2018, (3,559.47)
  • Down 49% from its bubble peak on June 12, 2015 (5,166)
  • Down 56% from its bubble peak on October 16, 2007 (6,092)
  • Below where it had been for the first time on December 29, 2006 (2,675), nearly 12 years ago. That’s quite an accomplishment.

This chart of the Shanghai Stock Exchange Composite Index shows the last bubble in Chinese stocks. Note the rise from the last low in January 2016. This rise has been endlessly touted in the US as the next big opportunity to lure US investors into the Chinese market, only to get crushed again:

But what makes Chinese stocks interesting is not the collapse of one bubble and then the collapse of the subsequent recovery, but the longer view that is now taking on Japanese proportions.

The chart below shows the double-bubble and the double-collapse, interspersed with collapsed recoveries and failed excitement:

It is not often that a major stock market goes through two majestic bubbles and then revisits levels first seen 12 years earlier – despite inflation in the currency in which these stocks are denominated.

This whole procedure is somewhat reminiscent of the procedure Japanese stocks went through. The Nikkei 225 Index hit an all-time high on December 29, 1989, of 38,957 intraday, after having surged six-fold over the decade. This was part of a general asset-price bubble, including real estate, at a time when the idea was touted in the US that Japanese companies and banks, with their special and superior way of being run, would take over, or at least buy, the world.

The Nikkei eventually plunged to 7,054 by March 2009. Today, it closed at 23,094, down 40% from its peak nearly 30 years ago. Who knows where it would be if the Bank of Japan hadn’t stepped in to become the largest buyer of Japanese equities and the largest stock-market manipulator, as official part of its QQE program.

Bubbles are great fun on the way up. But when they implode, which they always do, they have a way of doing long-term damage.

By comparison, the US stock market is now in its third bubble since the 1990s – and this one is more magnificent than the prior ones, and it’s not just stocks but most other asset classes, and there is the hope that this Everything Bubble will go on forever, just like there was that kind of hope in China in 2015 and 2007, and in Japan in 1989.

In China, auto sales, which had been super-hot, suddenly plunged in July and August. What could be the reason? Read… Implosion of China’s P2P Lending Boom Hits Consumer Spending
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Democrats POTUS Nominee With 40 Year Old Allegation

Democrats Assault the Constitution Over Kavanaugh

Democrats play dirty in their effort to gain the upper hand against Republicans in the midterms.

Democrats play dirty in their effort to gain the upper hand against Republicans in the midterms.

While despicable to the nth degree and the dirtiest form of gutter politics, Democrats trotted out an accusation of sexual assault supposedly perpetrated by Supreme Court nominee Brett Kavanaugh – and his accuser has come forward. The “last-minute revelation,” which we believe was actually part of a well-orchestrated obstructionist strategy formulated in June by Sen. Dianne Feinstein (D-CA), may best be described as evil genius. With Christine Ford, a research professor of psychology in California, now publicly stepping up to own the accusation, Democrats have gone full “Anita Hill” in their effort to block the Kavanaugh nomination.

First, the details of Feinstein’s #MeToo dog whistle are now known. While the allegation against Kavanaugh — from 35 years ago when they were both teenagers — is serious, it’s also quite dubious. Indeed, even the leftist San Fransisco Chronicle is questiining the timing of Feinstein’s charade, and it’s presumption of “guilty until proven innocent.” The Chronicle editors note, “Feinstein’s treatment of a more than 3-decade-old sexual assault allegation against Supreme Court nominee Brett Kavanaugh was unfair all around. It was unfair to Kavanaugh, unfair to his accuser and unfair to Feinstein’s colleagues — Democrats and Republicans alike — on the Senate Judiciary Committee.”

Right from the get-go, Kavanaugh vehemently and categorically denied having engaged in any such misconduct at any time in high school or after. He was supported in his refutation by 65 women who have known Kavanaugh since high school and vouched for him being a man of high character.

Moreover, the details of the allegation appear spurious. The lone corroborative evidence offered by Ford is a 2012 couple’s counseling therapy session. However, the notes from that session do not match Ford’s current story. For example, the number of individuals involved in the alleged assault is different and Kavanaugh’s name does not appear in the session notes. Both of these discrepancies raise red flags about the credibility of the accusation.

Second, political allegiance is a huge factor that must not be overlooked. Ford is a progressive Democrat donor who’s literally invested in stopping any conservative judge from reaching the Supreme Court. Meanwhile, Feinstein and her fellow Democrats sat on this allegation since July, not asking Kavanaugh even one question about it during the three days of hearings, nor during their closed-door questioning. In other words, there is no question that the timing is a politically calculated play by the Democrats.

Finally, Democrats’ calls to immediately halt the confirmation vote on Kavanaugh in order to investigate this allegation undermine the very spirit of the Constitution and the American judicial system. The foundational concept of “innocent until proven guilty” is what has made the U.S. justice system the envy of the world. Democrats are pushing the dangerously flawed concept of assuming guilt based solely on the seriousness of the accusation and then demanding that the accused prove his innocence. Make no mistake, this is an assault on the Constitution — and today is, ironically, Constitution Day.

Unfortunately, with a friendly mainstream media backing them, this dirty political play gives Democrats a win-win scenario. They have now effectively weaponized the #MeToo movement against Kavanaugh in an effort to dupe women voters. Should Republicans go forward with the vote without conceding to Democrat demands for delay and further investigation, they risk the bad publicity of “not listening” to a victim of possible sexual abuse. Democrats will gleefully use that against Republicans in the midterms. If, on the other hand, Republicans cave to Democrat demands and lend legitimacy to an almost certainly phony hit job, they fall into the trap of further drawing out the confirmation vote until possibly after the midterms, which, worst case scenario, has Democrats regaining majority control. And if that were to occur, what’s to stop outgoing Republicans, particularly anti-Trump squishes like Jeff Flake (R-AZ) or Bob Corker (R-TN), from stalling further or even voting against Kavanaugh?

In fact, should the confirmation vote be delayed until after the midterms, and should Democrats win the Senate majority, their argument will naturally be that the Kavanaugh vote must be delayed until the new Senate is seated because “the people have spoken.” That argument alone would buckle the knees of some Republicans, whose concern over getting along with the new Democrat Senate majority would direct their vote.

In the end, this recent play by Democrats has made one thing patently obvious: The Washington swamp is far from drained.


Update: Some reports suggest Kavanaugh’s mother Martha Kavanaugh, formerly a Maryland Circuit Court judge, may have ruled against Ford’s parents in a foreclosure case. This would establish a potential connection to Kavanaugh and a possible reason for bad blood, though initial reports about this connection may not be accurate. We’ll see what shakes loose.

Secondly, Senate Judiciary Committee Chairman Chuck Grassley (R-IA) blasted Feinstein over her withholding of Ford’s allegation of abuse from the committee for six weeks. He further noted that Feinstein has still refused to cooperate with the committee, stating, “The standard procedure for updates to any nominee’s background investigation file is to conduct separate follow-up calls with relevant parties. In this case, that would entail phone calls with at least Judge Kavanaugh and Dr. Ford. I asked Senator Feinstein’s office yesterday to join me in scheduling these follow-ups. Thus far, they have refused. But as a necessary step in evaluating these claims, I’ll continue working to set them up.”

Hillary Clinton Controls 50,000 FBI Encryption Keys – Proves Mueller’s Witch Hunt is Treasonous

The Clinton cartel has the key to almost all so called private information. This explains much of what has gone on and is still happening.

Our Spirit's avatarAmerican Intelligence Media

With these encryption keys, nothing in our digital lives is off limits to the Clinton’s and their conspirators

President Trump’s new executive order can be sabotaged with these keys; alternatively, he can use the order to prosecute these criminals

Many foreign powers have conspired with the SES and their Queen’s Privy Council overlords since before 1993

CONTRIBUTING WRITERS | OPINION | AMERICANS FOR INNOVATION  | SEP. 16, 2018, | PDF | https://tinyurl.com/y9yhgksg

Hillary -FBI treason Graphic: The Judiciary Report

Hillary Clinton has all of our encryption keys, including the FBI’s. “Encryption keys” is a general reference to several encryption functions hijacked by Hillary and her surrogate ENTRUST. They include hash functions (used to indicate whether the contents have been altered in transit), PKI public/private key infrastructure, SSL (secure socket layer), TLS (transport layer security), the Dual_EC_DRBG NSA algorithm and certificate authorities.

The convoluted structure managed by the “Federal Common Policy” group has ceded to…

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What Is Hezbollah?

When listing the world’s most notorious terrorist organizations, why is it that Al-Qaeda, ISIS and Boko Haram so quickly spring to mind, while Hezbollah is frequently forgotten? In this video, Tony Badran, Research Fellow at the Foundation for Defense of Democracies, explains how the backing of Iran has served to legitimize Hezbollah on the world stage, while simultaneously making the group all the more dangerous. Click here to take a brief survey about this video.

Source: What Is Hezbollah?

Truth News Headlines September 17, 2018