johnthebear

China: June CPI is Down, but PPI is Up

“Pakistan investors stormed out of the Karachi Stock Exchange, smashed windows and cursed regulators after the benchmark index fell for a 15th day, the worst losing streak in at least 18 years.”

With several million troops guarding and spying on the folks, you can see why they haven't firebomb the China stock exchange offices yet!

I remember a young man who stood in the Great Square facing a line of tanks headed his way on worldwide TV. The problem in 1989 was very high inflation and the threat was very real that there would be a revolution against the communist government. Now they have a market economy, but have never faced a recession as serious as Japan faced in 1990 or our 1929 market collapse.

With the Shanghai exchange down over 55% and the likely to drop by another 50% from this level, you can be sure the government is worried. It is amazing to me the disconnect of the world markets ignoring the SSEC index and pushing up the price of FXI under these circumstances for the same stocks. Do they read any thing but the NY Times and mainstream media TV? Bloomberg provides the information needed for informed citizens, but little of that is filtered through the TV networks.