While The World Watches Greece, China's Stock Market Is Imploding, Will Greece Set-Off A Worldwide Revolution Against The Banksters?

While the World Watches Greece, China's Stock Market Is Imploding | The Daily Sheeple

It had to happen at some point. Just a few weeks ago the Shenzhen and Shanghai Stock Exchanges were collectively worth roughly $10 trillion. Within a single year, the Shanghai Exchange had surged from just over 2000 points, to well over 5000. It was just a matter of time before one of the world’s most expensive bubbles would burst, and it finally has.

While everyone had their eyes on the unfolding crisis in Greece, both of China’s stock markets plummeted 30% of their previous value in June. By all accounts, the bubble was largely fueled by two forces: Average investors taking on debt to invest in stocks, as well as government manipulations.

What’s worse, is how financial institutions in China are reacting to the healthy dose of realism that their stock market so desperately needed. 

The country’s top stock brokerages decided to collectively buy almost $20 billion in stocks to help stabilize the market, part of which was supplied by the government. You might recognize this as the award winning strategy that was employed by several top financial firms in the US, just after the market crash of 1929. The Great Depression quickly followed. When a bubble of this magnitude bursts, nothing on Heaven or Earth can stop it. (Take a look at how fast this bubble grew.)

China Now Risks "Financial Crisis"; Loses Could Be "In The Trillions" BofA Says | Zero Hedge

Apparently, the powers that be in China — who are quite adept at monitoring “threats” to the Party line and are quick to remove all traces of “objectionable” material from the internet — completely missed the giant margin bubble that was allowed to inflate outside of brokers’ books. A far more realistic explanation of course is that Beijing was well aware of what was going on but let it continue due to the fact that China’s world-beating equity rally was the only thing distracting the country from flatlining economic growth and a bursting real estate bubble.

As Chinese stocks climbed ever higher earlier this year, some commentators began to ask if a stock market collapse would have implications for the broader Chinese economy. In short, just about the last thing the country needs amid slumping global (not to mention domestic) demand is for a crisis of confidence in local equity markets to spill over into the real economy and derail consumer spending just as Beijing attempts to transition the country away from a smokestack model and towards an economic future characterized by services and consumption.

Generally speaking, the consensus was that any fallout from the bursting of the equity bubble would largely be confined to the financial markets. Now, analysts are very quietly starting to suggest that if the sell-off doesn’t end soon, it could metastasize and spread “far beyond the stock market.”

A possible trigger for a financial crisis in China

If the market continues to fall sharply, stock lending related losses could run into Rmb trillions, of which, banks and brokers may have to bear a meaningful share. These potential losses can be especially dangerous to brokers whose capital base is less than Rmb1tr. Even more important, the opaqueness of China’s financial system and the lack of clear definition of risk responsibility mean that contagion risk is high, similar to the subprime crisis. We had always considered the risk of a financial crisis in China as high. What has happened in the stock market has likely increased the risks considerably and also brought forward the timeline by our assessment – the leverage is much higher now and economic growth rate, potentially lower.

WILL GREECE SET-OFF A WORLDWIDE REVOLUTION AGAINST THE BANKSTERS? - The Daily Coin

Yesterday, the Greek people emphatically said “enough is enough” of this ridiculous European Union system, central banking and governments going into massive debt to be paid for by tax slaves and yet-to-be-born tax slaves.

Could it be that the birthplace of  democracy, Western philosophy, Western literature, political science, medicine and mathematics will be the place to set-off a new global revolution?

What happens next will be the question. The EU, ECB and IMF will either have to acquiesce or try to push Greece to the brink via closing off the Greek banking system to liquidity which is currently what they continue to try to do.

Anything could happen.

But, sitting on the sidelines watching with wide-eyed curiosity are Spain, Italy and Portugal who are almost exactly in the same situation as Greece. If Greece can get away with not paying back its debts then they will be the next to try it. You can see how quickly this snowball turns into an avalanche.

Even Austria, a country that is in much better shape economically and fiscally, has already moved forward toward potentially leaving the EU.  Last week, 260,000 Austrians signed a petition calling for the EU exit for the country, and now the Austrian parliament must discuss a referendum on the issue.  I can attest to the disdain to the EU in Austria as I was just there infiltrating the Bilderberg conference and everyone I talked to hated the EU.

And don’t forget the Scottish secessionist movement that only failed by a tiny margin… they are watching these events with great interest.  Even the City of Venice in Italy, which had a referendum with 89% voting in favor of forming an independent state last March has to be watching eagerly.

Secession from the EU:  a beautiful thing!

What we have been saying and predicting for years appears to be coming to a head.  We’ve stated that the younger generation will not see any need or incentive to stay with these archaic, bankrupt, tyrannical systems.  What does a young, unemployed person in Greece get out of it?  The answer was clear in this weekend’s referendum: nothing.  So they’d rather take their chances with the unknown than stick with a system that they know offers them no hope.

Most are waking up to the game.  Even in the US, 70% of people now believe mainstream media is intentionally biased.  In Greece, one of the biggest rallies last week was against the mainstream media! Mainstream media were being shunned on the streets.  We’ve seen that before in the US with people attacking CNN reporters and telling them to get out of their communities.

The only way for Greece to truly prosper would be to reduce the size of government by at least 90%, privatize almost everything, do without a monopoly central bank (private clearinghouses are OK provided they are not regulated), reduce individual and corporate taxes to 0% and allow for the market to decide what it wishes  to use as a currency. Then sell all government assets including gold, to the private market.  With the funds gained from that, pension payments could continue to be made while the entire national pension system is slowly wound down.

If Greece were to do that it would be the richest country in the world within 2-3 years. But, let’s take it a step at a time.  Greek voters have stood up to the banksters. That’s significant.

And we can tell it’s significant because the mainstream media, like EU leaders themselves, are increasingly in denial about what’s taking place.  An AP article, “After vote win, Greece’s Tsipras Looks to Rebuild Talks,” seems to make this clear.

Thus, the answer to the question asked in this article’s headline may be “yes.” It could be that in the cradle of democracy, the Greeks have once more begun to claim their birthright of freedom and independence.

It may not yet be clearly visible, but this vote may well have sounded the first note in a new renaissance of “human action.”