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Economic Destabilization, Financial Meltdown and the Rigging of the Shanghai Stock Market?



The dramatic collapse of the Shanghai stock exchange has been presented to public opinion as the result of a spontaneous “market mechanism”, triggered by weaknesses in China’s economy.

The Western media consensus in chorus (WSJ, Bloomberg, Financial Times) portend that Chinese stocks tumbled due to “uncertainty” in response to recent data “suggesting a downturn in the world’s second-largest economy”.  

This interpretation is erroneous. It distorts the workings of stock markets which are the object of routine speculative operations. An engineered decline in the Dow Jones, for instance, can be precipitated in various ways: e.g. short selling, betting on the decline of the Dow Jones Industrial Average in the options market, etc.


Amply documented, financial markets are rigged by the megabanks. Powerful financial institutions including JP Morgan Chase, HSBC, Goldman Sachs, Citigroup, et al and their affiliated hedge funds have the ability of “pushing up” the stock market and then “pulling it down”. They make windfall gains on the upturn as well as on the downturn. This procedure also applies to the oil, metals and commodity markets.

It’s financial fraud or what former high-level Wall Street insider and former Assistant HUD Secretary Catherine Austin Fitts calls “pump and dump,” defined as “artificially inflating the price of a stock or other security through promotion, in order to sell at the inflated price,” then profit more on the downside by short-selling. “This practice is illegal under securities law, yet it is particularly common,”  (See Stephen Lendman, Manipulation: How Financial Markets Really Work, Global Research, March 20, 2009

The Shanghai Stock Exchange Collapse

The Shanghai SSE Composite Index  progressed over the last year from approximately 2209 on August 27, 2014 to more than 5166 on June 21st, 2015 (circa 140% increase); then from July 21st it collapsed by more than 30 percent in a matter of two weeks to 3507 (July 8).

A further collapse occurred starting on August 19, in the week immediately following the Tianjin explosions (August 12, 2015) culminating on Black Monday August 24th (with a dramatic 7.63 percent decline in one day).

Did the Tianjin Explosion contribute to exacerbating “uncertainty” with regard to the Chinese equity market?





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