China Bank Run Protests - Another Potential Tiananmen Square Massacre?

Politics / Financial Crisis 2022 Aug 11, 2022 - 08:20 PM GMT

China's property market is collapsing that an inept CCP is attempting to prop up through DICTATS, as if a few words on a scrap of paper can fix the fundamentals. A crisis that has now spilled over into the banking system which has seen many ordinary chinese fall victim the chinese banking triad as their hard earnings savings supposedly in 'safe' regional banks have VANISHED over night after the CCP members had withdrawn their funds or had their funds ring fenced for protection whilst ordinary Chinese folks seeking to withdraw their funds are met by hired goons in the hundreds to beat them away from the bank doors. This is the reality of Ray Dalio's China! A brutal tyrannical state that he some how see's as forging the new world order!

Many thousands of ordinary Chinese had been duped by the chinese banking crime syndicate into depositing their funds through the scam operation where in the first instance the banks apparently broke chinese banking laws by advertising for customers online enticing deposits through the promise of paying a high interest rate, only to do a crypto stable coin style rug pull when customers sought to make withdrawals, resulting in many tens of bullions vanishing from customer bank accounts hence prompting the protests and subsequent crackdowns.

Whilst the banking fraud may have no direct connection to the CCP. however CCP reaction to the protesting customers of the CCP talks volumes of the rights of ordinary Chinese people. Even to the extent of once more sent in the tanks against BANK CUSTOMERS! If they do this to bank customers trying to recover their life savings from thieving banks then what is the CCP prepared to do towards any political dissent!

To further control the BANK protests, the CCP has started to prevent on mass protestors from leaving their states to get to Hunan by changing their covid status to RED forcing bank customers to go into 14 days of quarantine so as to prevent people from protesting! This is what Orwell's 1984 looks like in modern day China! You protest! You go into quarantine for 14 days! This is what it is to live under a totalitarian state where people have NO RIGHTS! This is why Covid will never go away in China because the CCP has a new permanent means of controlling the movement of people! They can instantly flip a switch to shut down the movement of any number of people all the way to shut down whole cities and even provinces! Ultimate CONTROL! Covid is NOT gong to to go away in China!

China is a state within a state, where power resides within the upper echelons of the Chinese Communist Party whilst the rest of the population are mere slaves with NO rights. Contrary to what most imagine that as their nation puts their own citizens first i.e. the US puts American's first, France the French, Britain the Scots, China only puts it's communist party members first, the rest are treated as sheeple that must be controlled so that the CCP can retain complete power. So everything that China does is through the prism of CCP retaining control over the masses so that the slaves do the bidding of the CCP and thus the growing protests in China in response to savings from their bank accounts being erased over night is likely to prompt an equally severe response as the last time the CCP faced a threat to it's supreme power was back in 1989 that resulted in the Tiananmen Square Massacre.

Could one imagine when there was run on Northern Rock Bank in the UK that Gordon Brown would send in the tanks to meet queuing bank customers, and army of thugs to beat the customers away from the banks doors?

As the 2008 Great financial crisis (GFC) illustrated that once bank runs start the panic fast spreads to the extent that soon the whole financial system finds itself teetering on the brink of collapse which is precisely where the US found itself on the 18th September 2008 that was within a couple of hours away from a total collapse of the US financial system and along with it the US and world economy within 24 hours as the first few minutes of my following video illustrates.

So the authoritarian CCP finds itself on the brink of a financial crisis where so far their authoritarian response has been to send in the troops and order the people to not to panic. Will it work? I doubt it, the only solution as was the case for 2008 was to print a load of money to bailout the bankrupt banks and thus inflate the crisis away where the price paid will be in the loss of purchasing power of peoples earnings and savings As was the case with the GFC. However there is always the risk of making a mistake and thus sending the situation spiraling out of control.

Meanwhile in part China is contributing towards the collapse of many nations starting with Sri Lanka due to saddling developing nations with huge debt mountains all in pursuit of creating white elephants that are of little if no practical use to nations such as ports that China then can step forward and buy leases on for 99 years or more just as they did with Sri Lanka, of course China is just taking advantage of weak and corrupt regimes across South Asia and Africa for it's own benefit much as the West were busy doing in the aftermath of independence to ensure that newly liberated nations would soon become saddled with debt that they cannot repay and thus their former colonial masters coupled with Wall Street and the State Department would once pull the strings behind the scene. Borrowing from Wall street or China is a bit like borrowing from the Mafia, yes there is a chance that one can make good with that money but those chances are very slim.

The bottom line is that China is on the march seeking every advantage to displace the US as the world's Imperial power, even if the power battle between the two giants destroys countless nations in their wake all in the name of maintaining and gaining supremacy as China appears to have succeeded in doing in Sri Lanka. though to enable China to do so on needs corrupt blood sucking vampires drinking the life blood of their nations population which is what the Rajapaksa family are. They sucked the blood out of Sri Lanka, saddled the nation with debt that includes billions of dollars they siphoned off into their offshore bank accounts and assets.

Meanwhile Europe's tin pot dictator continues his war in Ukraine that has slowed to a grind as the West funnels heavy arms to the Ukrainians as they increasingly mobilise a million strong army to counter the Russian invasion that is prompting many western politicians and pundits to convince themselves that Russia is destined to lose the war. I don't get it, don't these fools see the huge stock pile of 5000+ Russian nuclear missiles. So exactly how can Russia lose the war where if their backs are against the wall then the Russians WILL USE NUCLEAR WEAPONS! Russia is NOT going to lose the war in the Ukraine and those who think that they could fail to consider the consequences of Russia losing. So Russia will achieve it's goals of carving up half of Ukraine as I pointed out some 8 years ago, even if it takes a lot longer than anyone imagined it would when they first marched their troops across the border in February, which is a harbinger of what to expect when China decides to take Taiwan, it's not going to be over by Christmas as the Lads brigades thought as they marched off to war in 1914.

The flight of capital from Europe to the United States tells you what the smart money thinks is going to happen in Europe, the longer the war goes on the more likely it is to spill out of Ukraine's borders to result in an ever increasing risk of nuclear war. And similar is true with Taiwan where the Chips Act is just the firing of the starting gun in what will become a mad dash to build the chip fab's safe on US soil before the Chinese invasion of Taiwan happens.

The way I see it, Russia Wins the West / Ukraine lose or Russia loses and so does the West and Ukraine, with similar outcomes for Taiwan.

And then there are the unintended consequences of mass starvation soon to be followed by mass migrations, the flight to safety of US assets has only just begun!

This article is an excerpt from my recent analysis on the state of the stocks bear market and more Qualcom Harbinger, AI Predicts Future Stock Prices 3 Years Ahead, China Bank Runs was first made available to patrons who support my work.So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat.

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By Nadeem Walayat

http://www.marketoracle.co.uk

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

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