July 9, 2015
This is a rather wonky but very educational talk by Stefan Molyneux of Freedomain Radio about economics and the current situation of the Chinese economy, in specific.
China just lost over $3 trillion of stock value. What does this means to you, your house, your money, your future and your chances for true economic and political freedom?
Despite a slowing economy and weak corporate earnings reports, the Chinese stock market more than doubled in value over the past year. Now, the stock market in China is in a freefall.
While the eyes of the world are on Greece and the European Union – it is China’s behemoth economy that is imploding.
The Shanghai Stock Exchange Composite Index has fallen 31.2% since June 12th, 2015. This is what wiped out over $3.2 trillion of the markets total value – and there seems to be no immediate end to the market plunge in sight.
Simon Black, of Sovereign Man says that all the bone-headed actions by the Chinese government and its Central Bank, to “stabilize” their economy have virtually guaranteed to have failed so miserably that their actions have bought the US dollar another 5 years of relative confidence.
Stefan Molyneux, for his part stresses that you cannot sustain an economy based on fiat currency, as all that will result is a proliferation of never-ending bubbles, which inevitably pop.
Molyneux also offers some chilling insights into the recent hack, which caused a major security breach, by releasing the private records of essentially ALL US Government workers and what the impacts of this could be.