{"id":15955,"date":"2016-01-04T20:06:28","date_gmt":"2016-01-05T01:06:28","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15955"},"modified":"2016-01-04T20:06:28","modified_gmt":"2016-01-05T01:06:28","slug":"chinas-slow-motion-sleight-of-hand-shatters","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15955","title":{"rendered":"China\u2019s Slow-Motion Sleight Of Hand Shatters"},"content":{"rendered":"

China\u2019s Slow-Motion Sleight Of Hand Shatters<\/a><\/h3>\n

The Chinese stock markets broke through 2 circuit breakers today, breakers that were introduced only a few months ago in response to the market selloff, triggered by a surprise yuan devaluation, in August. The first breaker, at -5%, forced a 15-minute trading halt. The second one, at -7%, halted trading for the rest of the day.<\/p>\n

For many people, today\u2019s bust can\u2019t have been a huge surprise, because it\u2019s been known for some time that a ban on stock sales by parties holding a 5% or larger stake in a company, is set to expire on Friday. Beijing may panic again before that date, but it can\u2019t force stakeholders to hold on to large portfolios forever either.<\/p>\n

Xi and his crew should have stayed out of the markets from the start, but that\u2019s not how they see the world. They still think like apparatchicks, and don\u2019t understand that markets are opposed, at a 180\u00ba angle, to top down control. You can either have a market, or you can have central control.<\/p>\n

They pumped up the housing market for all they could, and when that bubble blew they tricked their people into buying stocks. And now that one\u2019s fixing to die too, and that didn\u2019t take nearly as long as the housing bubble. The central control team is frantically looking for the next carnival attraction, but it won\u2019t be easy.<\/p>\n

They should have stayed out of all markets. Just like western central banks. All interference by governments and central banks can only make things worse, a fact at best temporarily hidden by the distortions they force upon markets.<\/p>\n

And we shouldn\u2019t forget that expectations for China as the world\u2019s economic savior determined western central bank \u2018thinking\u2019 to a large extent over the past decade. Like so many others, central bankers too are incapable of spotting a Ponzi when it\u2019s staring them in the face.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

China\u2019s Slow-Motion Sleight Of Hand Shatters The Chinese stock markets broke through 2 circuit breakers today, breakers that were introduced only a few months ago in response to the market selloff, triggered by a surprise yuan devaluation, in August. The first breaker, at -5%, forced a 15-minute trading halt. The second one, at -7%, halted […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2674,2045,124,130,11434,195,202,406,7738,753,11435,862,10655],"class_list":["post-15955","post","type-post","status-publish","format-standard","hentry","category-economics","tag-automatic-earth","tag-beijing","tag-central-banks","tag-china","tag-circuit-breaker","tag-debt","tag-deflation","tag-housing-bubble","tag-raul-meijer","tag-stocks","tag-unrest","tag-war","tag-xi"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15955"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15955\/revisions"}],"predecessor-version":[{"id":15956,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15955\/revisions\/15956"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}