Economic Destabilization

Financial Meltdown and the Rigging of the Shanghai Stock Market?

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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. 1

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?

The evolution of the SSE over that one year period has nothing to do with spontaneous market forces or real economy benchmarks. It has all the appearances of a carefully engineered speculative onslaught, an upward push and a downward pull.

The possibility of market rigging was investigated by the Chinese authorities in July 2015 following the June 21 meltdown of the Shanghai Stock Exchange (see graph above):

The regulator said [Report July 3] that it would be looking into whether parties were mis-selling financial products.  ….

The China Securities Regulatory Commission (CSRC) said it would base its investigation on reports of abnormal market movements from the stock market and futures exchanges.

…. Some reports have accused overseas investors of driving prices down by short-selling stocks on Chinese bourses, meaning they were betting on stocks falling.

…  Any criminal cases will be transferred to the police, the regulator said.

The China Financial Futures Exchange (CFFEX) has suspended 19 accounts from short-selling for a month, reports Reuters news agency, citing unnamed sources. (BBC, August 25, 2015, emphasis added)

The media consensus (as well as statements emanating from the Chinese authorities) was that Chinese financial actors rather than foreign banks could have been behind the process of stock market rigging: “Overseas investors have limited access to Chinese markets”. Market manipulation did not emanate from foreign sources, according to the Global Times.

This assessment, however, does not take into consideration that Goldman Sachs, JP Morgan Chase, HSBC et al are major financial actors within China, operating in Shanghai through Chinese financial proxies in partner joint ventures.

Moreover, these Western financial institutions are known to have played an overriding role in manipulating stock markets as well foreign exchange markets:

Regulators fined six major banks a total of $4.3 billion for failing to stop traders from trying to manipulate the foreign exchange market, following a yearlong global investigation.

HSBC Holdings Plc, Royal Bank of Scotland Group Plc, JPMorgan Chase & Co, Citigroup Inc, UBS AG and Bank of America Corp all faced penalties resulting from the inquiry, which has put the largely unregulated $5-trillion-a-day market on a tighter leash, accelerated the push to automate trading and ensnared the Bank of England.

Dealers used code names to identify clients without naming them and swapped information in online chatrooms with pseudonyms such as “the players”, “the 3 musketeers” and “1 team, 1 dream.” Those who were not involved were belittled, and traders used obscene language to congratulate themselves on quick profits made from their scams, authorities said. (Reuters, November 11, 2014).

Goldman Sachs among other major financial institutions operates out of Shanghai since 2004 under a joint venture arrangement with the Beijing Gao Hua Securities Company.

Goldman is known to use so-called “high frequency trading programs” in stock market transactions:

“Markets can be rigged with computers using high-frequency trading programs (HFT), which now compose 70% of market trading; and Goldman Sachs is the undisputed leader in this new gaming technique. (See Ellen Brown,  Stock Market Collapse: More Goldman Market Rigging, Global Research, May 8, 2010)

Another factor which has facilitated speculative operations on the Shanghai Stock Exchange has been the integration of the Hong Kong and Shanghai stock markets in 2014 under the so-called “Stock Connect” link.  The procedure enables foreigners to buy Chinese A shares listed on the Shanghai exchange out of Hong Kong, with “limited restrictions”, namely full access to China’s equity market.

Financial Warfare

These engineered upward and downward swings of the Shanghai Composite Index ultimately result in the confiscation of  billions of dollars of money wealth including Chinese State funds provided by the People’s Bank of China to prop up the Shanghai Stock Market. Where does the money go. Who are the recipients of this multi-billion dollar trade?

In response to the August meltdown, the People’s Bank of China “offered 150 billion yuan ($23.43 billion) worth of seven-day reverse repurchase agreements, a form of short-term loans to commercial lenders.”. This money was wasted. It did not result in reversing the meltdown of the Shanghai stock exchange.

Geopolitics

Geopolitical considerations are also relevant. While the Pentagon and NATO coordinate military operations against sovereign countries, Wall Street carries out concurrent destabilizing actions on financial markets including the rigging of the oil, gold and foreign exchange markets directed against Russia and China.

Is the “possible” rigging of the Shanghai Stock Exchange part of a broader package of US actions against China which consists in weakening China’s economy and financial system?

Does China’s financial collapse serve broader US foreign policy interests which include routine threats directed against China, not to mention US military deployments in the South China Sea?

Are we dealing with “financial warfare” directed against a competing World economic power?

It is worth noting that speculative procedures (rigging) have also been used in the oil and foreign exchange markets against the Russian Federation. Combined with the sanctions regime, the objective was to push down the price of crude oil (as well as the value of the Russian rouble),  with a view to weakening the Russian economy.

“Obama’s ‘Pivot to Asia’ directed against China is reinforced through concurrent destabilizing actions on the Shanghai stock exchange. The ultimate intent is to undermine –through non-military means– the national economy of the People’s Republic of China.” (Michel Chossudovsky, US-NATO Military Deployments, Economic Warfare, Goldman Sachs and the Next Financial Meltdown, Global Research, August 8, 2015

Note 

1. The latter is one among several instruments used by speculators. There is no buy sell transaction of shares of company listed on the stock exchange: a bet is placed on an upward or downward movement of the DJIA. It’s an index fund:  ask and put options.

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My Crusade Against Psychiatry

August 26, 2015

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(left. Katherine Jaconello of Toronto, with her mother on Mother’s Day, 2013)
 
Some people suffer a grievous injustice 
from the State. The injury inspires a lifelong mission to correct the injustice. Katherine Jaconello describes her crusade against the mental health establishment. 
 
 
 
by Katherine Jaconello
(henrymakow.com)
In 2000, my mother was hospitalized, and then involuntarily committed — all because she had a dream of suicide while drugged!!
My mother had no history of psychiatric care. She was the main caregiver of my sick and elderly father. Her family doctor gave her a sleeping pill when she had pneumonia and she had side effects – a palpitating heart.
At the local hospital emergency, she was diagnosed with anxiety. She had NO SUICIDAL IDEATION.  Not until doctors dosed her with the anaesthetic, chloral hydrate – contraindicated in elderly people with gastric problems like my Mom had.
She was held for five days until she finally had a dream of killing herself. Then the Dufferin County Mental Health jumped into action. While she was delirious, they did a 15-page mental health assessment, committed her to a mental asylum while she was in the hospital. That left my ill father without any help at home, plus he was in shock.
After I raised hell, they let her go home as long as she attended the Dufferin County Mental Health office in two days. There, a doctor repeatedly pointed an index finger in her face and demanded to know if she wanted to kill herself.
She was finally told to be at Homewood Psychiatric Hospital by 9 pm or the Ontario Provincial Police would come and seize her in front of her neighbours.
ASSAULT BY STATE PSYCHIATRY
What followed was a tragic series of events that fractured our family for some years, maybe forever, but I did succeed in springing her from that mental hospital.
My mother entered a hospital with a simple side effect of a sleeping pill and was drugged with hypnotics for five days to induce a dream. This is called “Incubation.” Since that dream was of suicide, they had grounds to involuntarily commit her. Exactly how is removing her human rights and committing her to lock-up with drug addicts and 24 hour light part of a “journey to wellness”?
The mind-boggling fact is that this occult secret society has recruited the whole of society into its fold. They have united the entire population into the fixed idea that psychiatry has a solution.
We have $50 million invested in “mental health” in 2005 in Ontario alone; 10 ministries, 440 children’s mental health agencies, 330 community agencies, 150 addiction agencies and 50 problem gambling centres, involved in delivering “mental health” services”.
They have succeeded in getting 33% of our population in Canada hooked on antidepressant drugs that cause homicide and suicide.
TODAY
Today, my mother is 94. She lives independently in a retirement home near me. She takes no medication. She walks every day and cheers a lot of people up. I will not allow her to ever see a medical doctor alone.
After her ordeal, she could not sleep for one minute at night because she had been drugged. It was terrible. She had the delirium tremens and would be hovering over me when I woke up in the morning. I took care of her and my dad.
In that time, the family doctor sent a registered letter expelling both my parents from her practice because I was interfering with her “care”. The doctor never once called us. The College of Physicians and the Health Review Board both said the doctors were right. The complaints I made trailed on for 13 years.
I am trying to wake people up to the fact that such a debacle could happen to them. When that happened, I was told by everyone that my mother was finished. She was 79. I did not accept that. I encouraged her along for about 9 months. She finally called me one day just before her 80th birthday and told me she was well again.
Psychiatry is a fraud. Medicine is an industrial complex that cares nothing about the Hippocratic Oath. “Mental illness”, suicide and the need for psychiatric services is being cooked up for obscene profit. It is criminal use of public money.

– See more at: http://savethemales.ca/#sthash.XKbQNGdc.dpuf

left. Katherine Jaconello of Toronto, with her mother on Mother’s Day, 2013)
 
Some people suffer a grievous injustice 
from the State. The injury inspires a lifelong mission to correct the injustice. Katherine Jaconello describes her crusade against the mental health establishment. 
 
 
 
by Katherine Jaconello
(henrymakow.com)
In 2000, my mother was hospitalized, and then involuntarily committed — all because she had a dream of suicide while drugged!!
My mother had no history of psychiatric care. She was the main caregiver of my sick and elderly father. Her family doctor gave her a sleeping pill when she had pneumonia and she had side effects – a palpitating heart.
At the local hospital emergency, she was diagnosed with anxiety. She had NO SUICIDAL IDEATION.  Not until doctors dosed her with the anaesthetic, chloral hydrate – contraindicated in elderly people with gastric problems like my Mom had.
She was held for five days until she finally had a dream of killing herself. Then the Dufferin County Mental Health jumped into action. While she was delirious, they did a 15-page mental health assessment, committed her to a mental asylum while she was in the hospital. That left my ill father without any help at home, plus he was in shock.
After I raised hell, they let her go home as long as she attended the Dufferin County Mental Health office in two days. There, a doctor repeatedly pointed an index finger in her face and demanded to know if she wanted to kill herself.
She was finally told to be at Homewood Psychiatric Hospital by 9 pm or the Ontario Provincial Police would come and seize her in front of her neighbours.
ASSAULT BY STATE PSYCHIATRY
What followed was a tragic series of events that fractured our family for some years, maybe forever, but I did succeed in springing her from that mental hospital.
My mother entered a hospital with a simple side effect of a sleeping pill and was drugged with hypnotics for five days to induce a dream. This is called “Incubation.” Since that dream was of suicide, they had grounds to involuntarily commit her. Exactly how is removing her human rights and committing her to lock-up with drug addicts and 24 hour light part of a “journey to wellness”?
The mind-boggling fact is that this occult secret society has recruited the whole of society into its fold. They have united the entire population into the fixed idea that psychiatry has a solution.
We have $50 million invested in “mental health” in 2005 in Ontario alone; 10 ministries, 440 children’s mental health agencies, 330 community agencies, 150 addiction agencies and 50 problem gambling centres, involved in delivering “mental health” services”.
They have succeeded in getting 33% of our population in Canada hooked on antidepressant drugs that cause homicide and suicide.
TODAY
Today, my mother is 94. She lives independently in a retirement home near me. She takes no medication. She walks every day and cheers a lot of people up. I will not allow her to ever see a medical doctor alone.
After her ordeal, she could not sleep for one minute at night because she had been drugged. It was terrible. She had the delirium tremens and would be hovering over me when I woke up in the morning. I took care of her and my dad.
In that time, the family doctor sent a registered letter expelling both my parents from her practice because I was interfering with her “care”. The doctor never once called us. The College of Physicians and the Health Review Board both said the doctors were right. The complaints I made trailed on for 13 years.
I am trying to wake people up to the fact that such a debacle could happen to them. When that happened, I was told by everyone that my mother was finished. She was 79. I did not accept that. I encouraged her along for about 9 months. She finally called me one day just before her 80th birthday and told me she was well again.
Psychiatry is a fraud. Medicine is an industrial complex that cares nothing about the Hippocratic Oath. “Mental illness”, suicide and the need for psychiatric services is being cooked up for obscene profit. It is criminal use of public money.

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Attempts to Falsify the History of World War II Undermine the Foundations of the Modern World Order. Lavrov

 

Russian Foreign Minister Sergey Lavrov, © Anton Novoderezhkin/TASS

World fate cannot be determined by one country, Russian Foreign Minister stressed

Attempts to falsify the history of the Second World War offend peoples and undermine the foundations of modern world order, Russian Foreign Minister Sergey Lavrov wrote in an article titled “Lessons of History and New Milestones” published on Sunday in Russia’s Rossiyskaya Gazeta daily and China’s Renmin Ribao daily.

“The current year goes by under the mark of celebrating the 70th anniversary of ending the Second World War.

For Russia and China, this jubilee bears special significance,” Lavrov wrote. “Our countries were allies in fight against Nazism and Japanese militarism, they took the main blow of aggressors, bore the biggest losses,” he continued. “Our peoples managed to withstand that dreadful fight and win thanks to outstanding courage, self-sacrifice and mobilization of all forces,” he said.

“Tens of thousands of Soviet soldiers gave their lives for the freedom and independence of China. We are glad that Beijing carefully cherish the memory of our compatriots,” the foreign minister stressed. One of the best examples of cooperation in the military-memorial sphere is “the first joint search expedition that took place this year in the Heilongjiang province in which the remains of Soviet soldiers were found,” Lavrov said.

“Today, we face undisguised attempts to falsify the history of war, to equal the victims and the executioners,” he noted. “All of this not only offends our peoples, but also undermines the foundations of the modern world order enshrined in the UN Charter,” he explained.

“That is why it is very important that our countries are united in their striving to continue decisively defending the historical truth, to defend the results of the Victory,” Lavrov wrote. In this context, the foreign minister noted, “it is hard to overestimate the importance of Chinese President Xi Jinping’s participation in the anniversary celebrations in Moscow, of the fact that a unit of China’s armed forces was part of the parade on Red Square,” he concluded.

Lessons of Second World War

The lessons of the Second World War are evidence that it is necessary to approach collectively the resolution of international problems, Lavrov continued.

“The spirit of alliance and in general the lessons of Second World War confirm that there is no alternative to collective work in the interests of looking for efficient answers to large-scale threats that the international community is facing, underscore the value of equal mutually respectful partnership which is in fact the only way to prevent new conflict,” Lavrov noted.

The foreign minister stressed that “in today’s uneasy international situation, which is characterized by high level of turbulence and accumulating crises, we should not forget the lessons of the past to avoid irreparable mistakes in the future.” “The fate of the world cannot be determined by one country or a narrow group of countries,” he said.

“Bombardments of Yugoslavia, occupation of Iraq, chaos in Libya, fratricidal war in Ukraine clearly demonstrate what tragic consequences can departure from elementary truth entail – the striving to capture and retain global dominance at any cost, impose one’s opinion, will and values on other countries,” Lavrov concluded.

Russian-Chinese relations at their highest

Relations between Russia and China “are at the highest over their history and continue to develop consistently,” Lavrov stressed.

“Their basis is in feeling of sincere friendship and sympathy between our peoples, deep mutual respect and trust, consideration of key interests of each other, interest in prosperity of our countries,” Lavrov wrote. “In fact, we are talking about inter-state relations of new type, a kind of cooperation model in the 21st century,” he continued.

Lavrov stressed that cooperation between Moscow and Beijing on the international arena has become an important of maintaining international and regional stability.

“Russia and China adhere to equal or close approaches on key modern problems, consistently stand for forming a new polycentric world order with reliance on international law, respect to self-identity of different peoples, their right to choose independently the way of development,” the foreign minister said. “We are resolute opponents of imposing one’s will on sovereign countries, including by military means, of unilateral sanctions pressure, and in general of employing the practice of ‘double standards’,” Lavrov noted.

http://www.globalresearch.ca/attempts-to-falsify-the-history-of-world-war-ii-undermine-the-foundations-of-the-modern-world-order-lavrov/5471571

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