China Stock Market = Ticking Time Bomb?

no money is generated by stock markets, it's just money changing it's owner.

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vio wrote:

no money is generated by stock markets, it's just money changing it's owner.

it's not about money being generated or changing hands

it's about the changing value of money and of goods and services traded on the market

This has been abundantly clear from the get-go. The Chinese government has Potemkin-villaged their economy for about as long as they could; now, in spite of the usual gub'mint BS stats, real-world market forces, no matter how manipulated and mutilated, have finally come to bear.

Go to any Wal-Mart, and look at the plethora of "cheap" Chinese-manufactured goods there, then ask yourself if they've always been that expensive. The answer is no, they've not. Prices of Chinese goods are rising to the point that they may no longer be competitive with other sources, including the US. That's BAD NEWS for the PRC, because if they cease to be the source of cheap goods, then their labor market is gonna implode, right when many Chinese have become used to the idea of a middle-class standard of living.

The ripples from the resulting explosion will encircle the globe. ='[.]'=

Isn't pretty much every stock market a ticking time bomb nowadays? When the only way to invest money with some sort of decent return is in stocks, the stock market will become bloated by default... everything else pays near zero interest so you have to invest in stocks or you're better off hiding your money under your pillow.

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Xavderion wrote:

Isn't pretty much every stock market a ticking time bomb nowadays? When the only way to invest money with some sort of decent return is in stocks, the stock market will become bloated by default... everything else pays near zero interest so you have to invest in stocks or you're better off hiding your money under your pillow.

There're always commodities. Highly value-concentrated commodities like Gold and Silver bullion hold their value well, relative to inflation, even if those markets are also grotesquely and transparently manipulated, as well. =^[.]^=

Saudi Arabia might be kill, there are also reports of an armed Shia uprising coming soon...

http://imgur.com/eJ3XOIQ

The only thing that's kept the House of Sa'ud (and their brand of Islam) in power is the (fast-fading) Petrodollar. Once the dominance of the US dollar in the petroleum markets is broken (by Iran, Russia, China, Venezuela...), there won't be much to keep the Gold-plated plumbing users in their accustomed position.

If the US wants to extricate itself from petro-politics in the Middle East, it might want to reconsider the XL Pipeline. Abundant oil from a friendly, stable source would be a boon when the sand hits the fan. ='[.]'=