Loading ...(It may have lost 1 trillion in Potential Stock BUYS ,if it obtained Reserve currency statis ! ,or Did the US NOT want this to happen.)
(Was it US Engineered)?
China’s DOWN MOVE Decoded:
So much for the hidden story behind the up move. Why are China stocks crashing? There seem to be two reasons, which when taken together negate the notion of any increase in yuan SDR/ADR allocation (as explained above).
- China’s Hacking U.S. government workers. A June 4th Washington Post article stated that 4 million federal government workers were hacked by China. On June 23rd that number was bumped up to 18 million workers and on July 9th revised up yet again to 22+ million hack victims!
This is very serious indeed, as it can lead to blackmail and limitless secrets that can be used for illicit purposes that harm national security. It is undoubtedly an embarrassment for the Obama administration.
- China’s artificial “Island Building” in international waters. A CNN article asks “Should U.S. worry about China’s island building binge?” We say yes!
This is a very challenging situation in our view. It makes the U.S. look weak and can cause a war as these are free waters and not considered part of China by virtually anyone.
In my opinion, the above two early June events have probably caused the U.S. to put extreme pressure on the IMF to NOT permit a change of status in China’s Yuan ADR/SDR currency allocation. When the U.S. started to pressure the IMF due to the Hack, the word got out to retail “investors” and the late buyers were forced to sell stocks and take big losses.
As evidence that this is occurring it must be asked why U.S. government bonds spiked over 2 full points from a low on June 11th when China topped on June 12th. So bonds made a low, and China a high at the same time for no known reason?
1. China’s boom/bust example is really a crystal ball view into the psychology of “investors’ around the world today. It’s likely depicting what will happen to the S&P 500 in the future. The only question is when?
2. If China does not get the increased reserve currency/ADR gift from the IMF, the payback for their U.S. hack attack and their island building will be very expensive indeed. Why payback? Let’s turn to Samuel Johnson, the famous 18th century English writer:
“Revenge is an act of passion; vengeance of justice. Injuries are revenged; crimes are avenged”
Good luck and till next time…
by Victor Sperandeo