Posted on 08/03/2021 8:24:28 AM PDT by elpadre
TOKYO – China is so keen to maintain control over its sprawling and expanding economy that it’s even willing to go communist.
For all the claims from Communist Party bigwigs that President Xi Jinping isn’t on an anti-wealth crusade, the losses are too jarring to dismiss as “capitalism doing its thing.”
Indeed, the more than US$1 trillion of market capitalization losses tied directly to Xi’s recent policies has China bulls mutating into China bears.
First, it was Jack Ma’s Ant Group getting stomped by Xi’s regulators. Then Didi Global and the $100 billion private tutoring sector got the boot. Next up is Tencent Holdings, China’s top social media and video game platform.
On Tuesday, state media derided online gaming as “spiritual opium,” clearly riffing off a famous Mao Zedong-ism.
That appears to answer investors’ questions about whether Xi’s crackdown on tech and tutoring companies will stop there. The emerging question is how much the blunt-force trauma inflicted by Xi’s regulators will cost China’s wider economy?
Jack Ma’s outspoken honesty in deriding Chinese regulators invoked a severe backlash that has left his future unclear.
A bridge too far?
Economist Scott Kennedy at the Center for Strategic and International Studies speaks for many when he worries that Beijing is going “too far” in ways that will damage growth in the short run and innovation in the long run. (continues at link)
(Excerpt) Read more at asiatimes.com ...
Coming to America soon. The Democrats are jealous of the CCP.
Gotta admit...that post is creeping me out. Not an AI guru but I am a retired IT guy as well as a long time (60+ yrs) reader of science fiction.
History shows that nations on the financial rocks often go to war to solve their internal problems.
Just sayin’.
Absolutely right - and there are millions of Chinese people who own and work for these entities. If Xi thinks he has to destroy them to save himself, big trouble is brewing. The Mandarins may well decide it is less trouble to dispose of a single unpopular Emperor.
Great observation
Russia is close by and can offer the most for the least effort
Amen
Xi definitely has a big problem
Killing China will be necessary to solve it
I’m retired and get tired in the late afternoon. I have been watching China videos on youTube.
Last summer, the heart of China on the Yangtze river was severely damaged by flooding. This year, similar flooding is extensive on the Yellow River.
As a Red Cross Volunteer I worked in shelters with a few hundred people. There was a video from China showing a shelter with 76,000 people. I can’t imagine that
They were complaining tht there was no government help.
In Katrina there were thousands, perhaps tens of thousands flooded. In China, there are untold millions.
The national economic impact has to be traumatic .
“ Chinese securities are sinking from overregulation and control, not earnings related. It was always just a matter of time before this happened. Kept away from Chinese stocks for this reason.”
I don’t own any Chinese stocks because they’re *murdering communists*.
Same here. Also retired IT and enjoy sci-fi stories. But that post about the Google AI guy made me pause and wonder. So many possible scenarios! Is AI the puppeteer pulling Biden's strings?
"Collosus: The Forbin Project"
https://www.imdb.com/title/tt0064177/
On Steve Bannon’s War Room he has been railing about his for a few days now and he sees it exactly the opposite of your post, not saying either of you are right or wrong...
Chinese Companies have been allowed to list themselves and go public in US Capital Markets like the NYSE and NASDAQ.
They have been allowed to do this without providing any audited financial results, like all American Companies and Companies in every other country...
A law was passed by the US Congress that required these companies to provide audited financial results...but to this point NO Chinese Company has complied and nothing has been done about it...
As these Chinese Companies have gone public, without providing audited financial data, they have reaped up to 1 trillion in capital infusions.......
So the Chinese Companies go public, reap billions in capital and then get pulled from the Exchanges, after they have been paid....thereby screwing whoever paid them the money....
Where does the money come from ??? Primarily Investment Banks and Hedge Funds who have dumped billions into Chinese Companies...
Where do these Hedge Funds and Investment Banks get the money to throw into these Chinese Companies...??
Primarily the money comes from US PENSION FUNDS....
So that 1 trillion in stock market loses are not coming out of the Chinese Companies they are coming out of US PENSION FUNDS....
Bannon’s point is, this is creating the Mother of Unfunded Pension Fund liabilities...to the tune of 1 trillion $$$ and counting....
Basically every time China pulls one of these companies off the NYSE or NASDAQ, they are screwing US Pension Funds....remember the Chinese Companies most of whom have already been paid after they went public....and we have no idea if these companies are legitimate because none of them have provided audited financial results...
Talk about Economic Warfare on a Gigantic Scale.
We are screwed, China has played us, big time, and at this point, there’s not much we can do about it.
p
Excellent post!
Thank you for that Bannon recap.
I recall Trump calling out this fact...that these Chinese cos are allowed to trade on NYSE/NASDAQ with NO regulation!
God bless Bannon for calling this out....fwiw.
So, we wonder....where are our politicians and where are these pension fund managers screaming out about this?
I’m speculating that this is exactly how they’re all being paid off.
They’re saying to heck with us.....their pockets are nicely lined.
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