When looking over the numbers in how much new US listings are Chinese companies reaching over 55% this year alone, the story of the level of pump and dump going on in the Chinese Financial indexes is pretty staggering and has US officials at the highest levels eyeing their options with great concern.
If you haven’t seen the movie “The China Hustle” which is about how corruption inside the Chinese markets where wall street is a major player, I highly recommend it in order to get a fuller picture of what is truly going on. Its an eye opener for sure!
The other major problem and part of the CHICOM’s strategy is their investments in pension and American retirement funds is currently at 4% and expected to rise which makes any move like this a pretty intense signal to China that the carpet is about to be pulled out from under their feet but not without some risks to those funds should they decide to go that route. Of course such a move as the video articulates does not come without risks, such as risking further damaging relations, US financial markets reputation taking a hit, as well as other geopolitical implications that affects other trading partners.
The real obvious Elephant in the room is that no trade deal is going to be made or is even possible at this point, and that the CHICOM’s are putting all their chips in supporting whoever gets the nomination for the Democrats in 2020. In fact, even if Trump wins in 2020, the CHICOM’s strategy is to wait it out with Democrats thwarting Trumps agenda with the long game which to their credit they are very good at. So with the latter just being stated, the likelihood of a move like this is quite possible if this trade dispute continues, and China continues their theft and espionage, then the move behind the scenes will be the most prominent consideration in getting China to scream “Uncle” or simply watch China self implode due to lack of capital to back their paper Tiger.
Watch the video and add your thoughts on the subject matter.