China bank run fears intensify as violent clashes break out this weekend

Concerns are growing over the intensifying risk of a full scale bank run in China, with mass protests held outside bank branches in China’s Henan Province throughout this weekend (July 9 & 10).

Asia Markets has verified video and images shared across Chinese social media platforms, including Weibo and WeChat, showing violent clashes between police and depositors who have been unable to withdraw funds.

A WeChat user who posted photos from the protest in Zhengzhou told Asia Markets the majority of protestors had come from rural areas and have recently been told that their money, which has been frozen for months, will not be recoverable.

This actually happens regularly in China.

The banks in question are small rural, co-op, or local government-owned banks.

They probably played fast-and-loose with the rules, or engaged in some kind of grey-market speculation and lost money, or suffered outright theft from managers.

Now the central government won’t bail them out, but the regular folks think they should be made whole.

Its a feature of all top-down, centrally-planned systems.

Yes, here is the issue. What is really going on is America and the west as a whole are separating from China. Russia is a very small asset of China. Europe thought Russia could be controlled. And they were wrong. China is the largest strategic partner of Russia. India and others like Saudi Arabia are waffling.

The US is trying to break Russia and China right now. But mostly China. China has been going into super debt and printing money that they peg to the US dollar. They say its pegged to a basket of currencies which include the Euro and the Yen but we know that is not true anymore as the Euro and Yen have both dropped around 40% vs. the US dollar. And the Yuan is holding steady at 6.15 vs. dollar. Which means its peg is exclusively to the dollar.

Why this is important? China has not had to service its debt because interest rates have been near zero for about a decade. So China had no cost to super debt. They could go as far into debt as they liked. But as the interest rates rise, they will not be able to refinance and pay the debt service. So they will start to crack. Companies and banks will start to default. And the peg will break. Either China will default on a loan or more likely, China will devalue. Either one will cause a huge thud.

The Fed and the CIA would like you to think that inflation is causing prices to rise. Not true. The dollar is very strong verses everything but oil. Gold, Yen, Euro, Stocks, Bonds, everything that does not need oil to produce is losing value verses the dollar. The Fed and the CIA does not want everyone to see that the US has declared war on China. But that is what has happened. We have reset our Chinese relationship. And the ripples can be seen in the price of of things in America and around the world.

JPM is getting ready for it. There are several business that are zombies within our country do to the lock downs. But there are several businesses that are going to be very hurt because they are just stopping their business with China and Russia and are preparing to do the same with other countries that are too close to China and Russia. America and JPM are positioning themselves for the shock. When the interest rates move up another point or two very quickly, you will see pain all over the world. Its not inflation. Its China being reset by America. Like a dog that first realizes his new shock collar, China will lash out. If the dog breaks the collar the owner loses all control. But if not, authority is determined and everyone calms down in the new world order.

As she said in the movie, “put on your seat belts, its going to be a very bumpy night”. JPM is getting ready for the ride.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.