China pauses in meltdown – globe shudders

By   /   January 6, 2016  /   14 Comments

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What does all of this mean? It means the massive money printing programs only stalled the inevitable corrections to the bubbles that money has created. Add in the impacts of climate change and we have all the ingredients for an economic depression.

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Last 24 hours of the market have highlighted how many risks there are to the global economy. As central banks of developed nations work out how to wean desperate economies off of massive money printing programs, the growth of the last 7 to 8 years looks like they have been built upon sand.

China is trying to move away from the over bloated industrials to a more consumer based economy – the transition is proving to be difficult. The restrictions on big investors selling off has been moved beyond January 8th and over the last 24 hours China pumped $20billion to shore up its stock exchange and even that couldn’t stop their markets ending up in the red.

This shows that China still can’t allow free market dynamics to over rule their own interests which spooks the hell out of investors.

Dead cat bounces kept most of Europe in positive territory, but the Dow Jones closed with the tiniest bounce ever.

What does all of this mean? It means the massive money printing programs only stalled the inevitable corrections to the bubbles that money has created. Add in the impacts of climate change and we have all the ingredients for an economic depression.

The current economic structure is built for the benefit of corporations, not the people and forced trade deals like TPPA and TISA are attempting to replace democratic institutions to ensure their hegemonic structure of power can not be challenged.

We need an alternative to free market capitalism and we need it now – Green Socialism needs to start providing those alternatives or fascism will.

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14 Comments

  1. Chooky says:

    +100 good post…”Green Socialism needs to start providing those alternatives or fascism will.”

  2. All proceeding according to plan IMO. The mistake we’ve made on the left is to assume that this wasn’t deliberate. War, chaos, stagnation, decline. Great recipe for the emergence of a ‘saviour’.

    It will be the Malthusian fascist oligarchy, kindly extending a mailed fist in a green glove to those who want it to stop. Their price will be your silence while they finish what they started: eugenics. Specifically, GMO crops and food aid in the third world. Remember that spermicidal corn Epicyte/Syngenta made in the early 2000s? The carcinogenic wonder products like Golden Rice? And let’s forget not that the Golden Rice project is affiliated with the UNDP, who could not have failed to notice the dissenting views.

    That’s why the so called ‘Doomsday’ seed vault sits off the coast of Norway at the Svalbard complex. The Gates Foundation, Monsanto, Syngenta, Du Pont, and of course the Rockefeller Foundation will own the supply of untainted food.

  3. Afewknowthetruth says:

    Many a true word.

    However: ‘We need an alternative to free market capitalism and we need it now.’

    I beg to differ. We needed an alternative system decades ago, before we got driven into the present, terminal predicament.

    However, the whole point about TINA (There Is No Alternative) -promoted since Maggie Thatcher’s time- was (is) to prevent any more-sane systems from even being discussed, let alone implemented.

    The banks and corporations will have their way, via bought-and-paid-for politicians and opportunists, and in doing so will completely destroy our so-called civilization, and ruin the habitability of the Earth. It’s only a matter of time.

    Keep an eye on Japan; Japan is likely to ‘implode’ before China. It peaked around 1990 and has been on the slippery slope ever since. And it’s got a blown-up nuclear reactor that no one knows what to do with.

  4. Sam Sam says:

    If you have seen the movie the big short with the single largest trade in Wall Street history – when they bet against the U.S housing market.

    This time around we are betting against the FED reserve

  5. Draco T Bastard says:

    As central banks of developed nations work out how to wean desperate economies off of massive money printing programs, the growth of the last 7 to 8 years looks like they have been built upon sand.

    LOL

    That’s funny. Not a single developed nation will be looking to getting economies off of massive money printing programs. Sure, they may be looking to stop the Central Banks from printing money but they’ll also be looking to increase the amount of money that the private banks create via pushing the lower and middle classes into further debt (that, BTW, is what student loans are for). The latter means that our entire economy is built upon sand.

  6. Gosman says:

    Green Socialism is merely a series of underdeveloped locally based ideas that have never beģen implemented on a large scale in a modern developed country let alone across multiple ones. How about you lot start developing and proving the ideas first before expecting the rest of us to adopt unproven largely theoretical policies.

  7. Sam says:

    So we have to implement our ideas on a large scale across multiple countries to prove them BEFORE we can implement them on a large scale across multiple countries?

    Great thinking, Gosman.

  8. Sam Sam says:

    Hey. How about you prove your own ideas, be causes, you know, your pretty crazy about them

  9. linda says:

    new Zealand perspective its our massive house hold debt thats going to sink this economy.
    this article by Bernard Hickey shows how reckless the banks have been and stupid and greedy our fellow citizens have been.
    http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11545650
    to borrow 5 and up 7 times your income is stupidity to the max ,the people who payed for this recklessness are savers the youth people trying get there own homes and renters. when the music stops the debtors will blame everyone but themselves we must make sure the poor who have nothing to do with this mess don’t get the blame
    the big short and the inside job should be compulsory viewing

  10. Sam Sam says:

    Meh. This is just 300 years of financials satin finally coming to roost

  11. Afewknowthetruth says:

    Since this was published the ‘Titanic’ global financial-economic system has sunk a little lower in the water:

    Dow down 2000 points from May 2015 peak,

    Aussie down 900 points from 2015 peak.

    Shanghai down 2000 points from 2015 peak.

    WTI and Brent oil around $33, (down $80 from fairly recent norm) with some grades as low as $20 a barrel……tar sands and frackers head for bankruptcy.

    Baltic Dry Index ( a proxy for global trade) hit a new all-time low.

    House prices have fallen in several bubble markets and consents are down in Aussie.

    So yes, it’s all on for 2016 to be a fairly catastrophic year, akin to 2007-2009 but with no recovery at the end of it all because the central banks have run out of ammunition and we’re well past peak oil).

    And there’s increasing climate chaos to cap it all.

  12. WTI and Brent oil around $33, (down $80 from fairly recent norm) with some grades as low as $20 a barrel……tar sands and frackers head for bankruptcy.

    Saudi strategy at work there – fracking needs an oil price of c.$50 per barrel to be profitable, and conventional oil from Russia and Iran isn’t far off from the same. It’s basically a game of chemotherapy voodoo chicken to see who can take the pain the longest.