Just Imagine … The Collapse of China By James Reed

     Won’t the money class, and the parasitic university class get a shock, when, not if, China collapses, because what goes up, according to economic gravity, must come down:
  http://www.collapse.news/2018-10-25-china-stock-market-on-the-verge-of-imploding.html
  https://thenationalsentinel.com/2018/09/24/china-backs-out-of-trade-talks-as-u-s-imposes-new-tariffs-this-is-like-the-1930s/
  https://www.zerohedge.com/news/2018-10-23/inside-chinas-5-trillion-yuan-ticking-margin-call-timebomb

“Analysts have begun to look more deeply into the Chinese stock market, and what they have found is “a ticking five trillion share ticking time bomb,” Zero Hedge reports. One analyst, Kinger Lau, a China strategist for Goldman Sachs, has done a comparison of China’s markets today and the “bubble and bust” cycle of 2015. What he found is some good news, particularly because what is currently happening in Chinese markets is “less systemic” than what occurred three years ago:

— Margin financing by brokers is down significantly;
— Hidden leverage (not seen on balance sheets) is less prevalent;
— In sum, the exposure of retail investors to equities is still low.

     For one, if the Chinese markets fall by an additional 10-30 percent, which could happen, there will be 1.2 trillion and 1.7 trillion yuan facing margin calls or risks of liquidation. Lau believes that most borrowers facing these kinds of margin call pressures would be able to meet them by offering up cash, equity, or even properties as collateral. The news site noted further: Even for those who couldn’t secure additional collateral and stock prices fell below liquidation levels, forced selling by brokers has seldom happened, because:

— there are many restrictions on major shareholders disposing shares in China A;
— brokers tended not to liquidate the positions as doing so would trigger more selling pressure and deplete the value of other collateralized shares,
— brokers don’t want to damage the relationship with their corporate clients; and
— in some cases, regulators gave window guidance to brokers to avoid forced selling.

     Fair enough, but the very same kind of margin call Lau and Goldman said isn’t likely happened last week though it was not supposed to. “Would it, perhaps, indicate that borrowers have run out of more collateral to pledged [sic]?” Zero Hedge reported. “And if so, just how long until the next major market selloff triggers the remainder of China’s ticking 5 trillion yuan pledged stock time bomb?”
  https://www.newstarget.com/2018-10-25-china-stock-market-on-the-verge-of-imploding.html
  https://www.newstarget.com/2016-02-22-china-braces-for-civil-unrest-as-collapsing-economy-destroys-1-million-jobs.html
  https://www.newstarget.com/2017-06-27-will-the-next-great-recession-be-caused-by-massive-collapse-in-china.html
  https://www.independent.co.uk/news/business/news/global-financial-crash-central-bankers-warn-back-with-a-vengeance-china-debt-gdp-ratio-a7807811.html

     The crash of China will be extremely painful for colonial countries like Australia. But, I welcome it every time I visit what was once “our” universities, and see how the chattering class have sold us out. To see these anti-Western institutions crumble will be a grand and wonderful thing in these end of days’ time.