China Watch

[raspberry-blower]

There has now been a major industrial "accident" to boot:

BBC: Casualties at Tianjin explosion

[adam2]

There has now been a major industrial "accident" to boot:

BBC: Casualties at Tianjin explosion

Indeed, probably just an industrial accident, but rather an unfortunate timing and not exactly liable to improve confidence.

[kenneal - lagger]

And a major landslide at a mining town.

[raspberry-blower]

Zero Hedge has some apocalyptic images of the blast site. Almost certain that there are hazardous materials in the surrounding environment of said site.

Meanwhile, back to the PBOC - another day, another devaluation

[adam2]

Different but broadly similar pictures here
http://www.bbc.co.uk/news/world-asia-china-33844086

[PS_RalphW]

China 'allows' pension funds to invest directly in stock market.

http://www.theguardian.com/world/2015/a ... first-time

This fails to prevent further heavy falls in the stock market overnight. down another 8%

[PS_RalphW]

European markets now down 5% on the day., FTSE100 at a 3 year low.

Oil down to new lows since 2009.

Looks like this is gaining momentum.

[raspberry-blower]

Interesting commentary on the unfolding situation vis-à-vis the implosion of the Chinese markets.

Charles Hugh Smith: Why the Bear of 2015 is different to The Bear of 2008

A now and then guide to the differences between 2008 & today

Are there any conditions now that are actually better than those of 2008? Or are conditions now less resilient, more fragile and more dependent on unprecedented central bank interventions?

TAE: Is this Black Monday Crash The Big One? It Doesn't Matter

China’s fall is being exacerbated by the fact that it has two -heavily intertwined- parties who believe in their own omnipotence, the government (Politburo) and the central bank. Both are being found out at the same moment. And both will resist this discovery. As will all central banks in the west, where at least any idea of omnipotence of governments has long been eradicated.

But the entire west has become so addicted to China’s debt, and the illusion of prosperity and economic recovery it has brought, that all prices everywhere must come down, as noted above, until the tens of trillions of dollars in stimulus measures have vanished into the thin air they were fabricated in. Until value becomes real value again, not this virtual zombie Ponzi pricing.

Today may be just a warning sign, and it may take a while longer before the deluge, but it will come. And since China has nothing left to fall back on but even higher private and public debt levels, make that sooner rather than later.

Will the illusion of prosperity ever come back in a post Peak Oil world is an interesting question.

I strongly suspect that the Fed will launch into a full blown edition of QE4 which will, no doubt, be used to inflate asset price bubbles in commodities and stock markets amongst others.

What remains to be seen is if "Investor confidence" in the Central Banks is lost. That would cause contagion on an unprecedented scale and I suspect that may ignite in the form of a bond crisis/currency collapse.

[raspberry-blower]

For all comments that relate directly to Central bank interventionism into the market place, I have started a new thread here

[PS_RalphW]

Chinese markets down another 4% overnight.

I suspect Western markets will stabilise.