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.