By Mortz C. Ortigoza
According to renowned stock exchange expert’s BlackRock the fall of the Chinese
stock market is inevitable despite Chinese President Xi Jinping government
rallying the market through central bank’s rate cuts, tweaking margin-trading
rules, slowing the pace of initial public offerings, and taking up share prices.
Argentinian U.S made A-4B Skyhawk jets incredible low level attack on the British HMS Broadsword and Coventry |
But this would be short lived.
"The tide is going to go out, and
there’s going to be a lot of people without their swimming trunks on,"
strategist Ewen Cameron Watt of BlackRock told Bloomberg Television, borrowing
from Warren Buffett's observation about investors caught swimming naked when
markets get shaky.
Some of the factors, economists see, on
the plunge of the Chinese economy are anchored to its U.S $28 trillion of
public and private debt and its unprecedented $363 billion of margin debt
that's supporting those shares.
Demand of steel among Chinese
manufacturers and building makers are collapsing because many investors shifted
their shops to labour cheap Vietnam and Cambodia.
The decline from the ballyhooed double
digit growth in the past decades to a single digit and declining, 7%, of
China’s Gross Domestic Product undermined the fate of the Chinese workers.
With a slowing economy feared to be
gobbled by an explosion of a stock bubble, are the Chinese bracing for the
worst?
In case economic hardship caught with the
Sinos, would the Chinese Communist Party (CCP) starts a shooting war in the
South China Sea (SCS) versus the United States, Japan, Australia, and some
members of the South East Asean Nations to divert the attention of its people
who would rise up and probably replaced the apparatchiks at the CCP?
Nánshā or the Spratly Islands spark
a patriotic cord to the Chinese whenever foreign powers claim ownership to them.
This scenario had happened with the
military Junta in Argentina in April 2, 1981 when it was losing a popular
support from the masses who protested in the streets the government because of
the country’s devastating economic stagnation and patent human rights
violations of the military brass.
The Junta under Lieutenant General Leopoldo
Galtieri ordered the invasion of the nearby long claimed islands Falkland,
South Georgia, and the South Sandwich to divert the attention of the people.
Argentina Air Force U.S made A-4 jets attacking British position in the Falkland War in 1981. |
The Falkland Islands or Malvinas sparked a
nationalistic fervour among the Argentineans whenever it became a topic as it
was last vestige of European colonialism in their country.
Before the invasion, the Junta calculated
the British government, that faced economic and political challenges during
that time, would not dare to sail for weeks for an 8,000 miles journey (China
to Scarborough Shoal is less than 621 miles) and liberate a God forsaken Island
that has no economic value to the Crown.
The diminutive courageous Gurkha soldiers fought with the British military in the Falkland War. The Gurkha, who came from the dirt poor villages of Nepal, have been serving the Crown for centuries. Aside from their powerful British armaments, these diminutive fellows are armed with their lethal knife's kukri. |
(That war in Falklands is a valuable
material for military experts in the World to learn in case war erupted between
the U.S, Australian, Japan, Philippines and Vietnam versus the Chinese at the
disputed South China Sea – MCO)
The Argentineans rose up against the Junta
and replaced it with a democratic elected government. Lieutenant General
Galtieri was thrown into jail for three years for military incompetence.
Would the Chinese emulate the
Argentineans incase Li Jinping launched a military adventure in the Spratly,
1000 kilometres from Mainland China with her second hand Ukraine made aircraft
carrier versus the 11 aircraft carriers of the U.S and those armaments from her
allies?
Would it results to Chinese, just like the
Argentineans, to rise up against the CCP and replace it with a democratic
government, in case the poorly equipped Chinese Navy would be beaten black and
blue and humiliated at the SCS?
Not to mention President Li being thrown
to jail or executed by the succeeding government.
Walang komento:
Mag-post ng isang Komento