China's Stock Freefall Terrifies World
Many historians and economists saw this coming even before China's stock market got off the ground. Why? Because China never got around to handling the underlying penchant of its leaders to stay away from fraud and crime. It's been going on for centuries and only seems to get put in check when some ruler comes along but those days are over.
The Cultural Revolution was supposed to usher in a new world of ethical conduct and expansion but instead established a contraction from looking at the fundamental cultural beliefs and morals that China has been fighting since who knows when. As China then migrated into more capitalism they became overwhelmed by the surge in expansion and capital suddenly showering their populace. They put the surplus to good use regarding upgrading the infrastructure of their transportation, medical, industrial, municipal areas. Wondrous new towns and cities sprang up it seemed overnight with the latest in technological goodies. People from all over the world wanted in on China. Reports of people becoming billionaires overnight filled the news reports and money was bursting the Chinese banks at the seams. It all looked like China was going to become the economic power of the planet, but old habits are hard to break and soon, within the past several years, those habits have proven to be their undoing.
Their stocks are dropping like rocks. Fraud and crime are rampant within the country and shareholders are left holding the bag. Numerous reports of suspect CEOs having disappeared mysteriously are causing havoc within both commerce and government and the hierarchy has had to take drastic steps ranging from increased investigations to literally stopping the trading of stocks.
This volatile situation is upending markets and investors and corporations all over the planet. Their closed door policy is causing mistrust to investors, consumers, and citizens. The entire Chinese reach from Hong Kong to Taiwan are all in jeopardy.
Waiting in the wings are the analysts and speculators and economists of the world. They're waiting to see if China will meltdown to the point of the country becoming the biggest firesale in human history. China has tons of assets bu their most valuable assets are hands off. To their detriment, they won't let foreigners invest or take part in certain trade, acquisitions, business, thus limiting their reach and expansion. It's a matter of pride and protection that is inhibiting China and if they don't bend a little, things look very bad.
They'll have to liquidate some assets and put down restrictions and other disciplines that would cause all sorts of havoc and chaos.
America will be the most affected country outside of China from China's meltdown. Reason being is so much is imported, China owns billions and billions of American debt, and the amount of administrative skill to handle such an event means the best of the best will be at it night and day trying to not only save America, but China and the world too.
It's going to be one roller coaster ride that the world has yet to experience and a turning point in human history.