Tuesday, July 28, 2015

China losing control as stocks crash despite emergency measures

Margin debt on the Chinese stock market has reached $1.2 trillion. 'We suspect that it’s a matter of time before banks may have to face the music,' Bank of America says
For the rest of the world, it is a tense moment. China consumes 50pc of global coal, 43pc of industrial metals and 23pc of grains, according to World Bank data. Brazil, Russia, South Africa and a string of commodity states face a double-barrelled stress test. The Chinese are freezing imports just as the US Federal Reserve drains worldwide dollar liquidity and prepares to raise rates, calling time on emerging markets that have together borrowed $4.5 trillion in US currency.
The Brazilian real fell to a 12-year low of 3.38 against the dollar on Monday. The South Africa rand hit a record low of 12.69. The Russian rouble flirted with the danger line of 60. It was the same story across much of the emerging market nexus. “One by one the dominoes are starting to fall,” said Societe Generale.


Cederq said...

You thinking WAR Mr. Mike?

Anonymous said...

Got gold? Got silver? Got food, water, guns and ammo stashed? Got a bug-out destination picked out? Got God?

Anonymous said...

This rock started with zero money, now we are supposed to get our shorts in a wad because some collage boy/s say the sky is falling? Many folks never bought into the perception of wealth/money thing, but went done the skill set road instead. When city's start eating each other, the "TRUE WEALTHY", will do just fine and the untouchables will get touched one by one. Perception of wealth does not win wars, put food on the table, or keep one safe. Have a nice day!