The Chinese have officially accused us of crashing their stock market as reported in The Washington Times:
Inside China: Official: China stock crash is U.S. economic warfare
By Miles Yu – – Thursday, July 23, 2015
Last month's stock market crash in China was without any doubt an economic war against China covertly waged by the United States, with the direct objective of subverting the ruling Communist Party, according to the most powerful leader of China's massive state-owned corporate enterprises.
And anybody who doesn't believe such a thing is definitely a traitor to the Chinese nation ready to betray the Chinese Communist Party, insisted Lin Zuoming, who made those claims in a July 17 interview with China Aviation News. The interview was subsequently carried by most of China's major news outlets.
Mr. Lin's words should not be taken lightly as they reflect an official Chinese view of the stock market woes. Mr. Lin is a member of the Communist Party's Central Committee and president and CEO of China's largest aerospace and defense conglomerate, the Aviation Industry Corporation of China. AVIC, which makes virtually all of China's military aircraft from the J-series aircraft to Zhi-series attack helicopters, is the equivalent of Boeing, Lockheed Martin and Northrop Grumman all rolled into one….
Mr. Lin sees the stock market's recent gyrations as one of America's counterpunches against China.
"It is evident, without any doubt," Mr. Lin said in the interview, "that we are facing an economic war … [whose objective] is to lure the Chinese masses into doubting the Chinese government … [and] to topple the Chinese Communist Party's ruling position, ultimately leading to the total collapse of China's economy. Therefore, the economic war ignited in the A Share sector of the stock market is directly targeted at our five-starred red flag."…
China's stock market crisis is the third U.S. economic war against an Asian country, in Mr. Lin's account.
"This time, the explicit target is China, directly challenging the ruling status of the Chinese Communist Party. … The forces of shorting China want to use a series of events to cause China's economic downward sliding, social instability, even possibly engineer a color revolution. In today's world, it is hard to separate economic, political and military affairs. This is a holistic war."
Those who challenge the U.S. conspiracy theory are traitors, Mr. Lin wrote, just like the Chinese puppet troops who collaborated with the Japanese invaders during World War II. "This episode reminds me of the Japanese offensives during the war where those leading the charge were all Chinese collaborators working for the Japanese who only marched behind these puppets," he wrote, "The Chinese puppet troops were usually several times more numerous than the Japanese troops."
With such a serious charge of treason in state-run media, who would dare to argue against such a robust comrade?
There are at least twelve points to make from this:
- This is an official government position heavily covered by Chinese media but virtually ignored in the West.
- While we know of no evidence that suggests manipulation by Americans, the Chinese seem convinced that someone was manipulating share prices.
- Never mind that the Chinese market was due for a serious drop regardless after a massive gain earlier in the year.
- The idea of a stock market crash as a weapon matches with Chinese understanding of economic war as outlined in Unrestricted Warfare, a 1999 publication of the Peoples Liberation Army (PLA).
- The potential for a market crash weapon matches what we observed in 2008.
- Our own head of NSA admits that market crashes can be used as weapons.
- Recent testimony in London by top experts suggests financial markets are likely targets in an economic war.
- Technology experts warn that markets can be manipulated, possibly by terrorists.
- Flash crashes prove the risk.
- The Russians hacked the NASDAQ and claim they can crash our market. They have been probing weaknesses.
- China may feel the need to retaliate and Russia will join them. They have already created an alternative to the Western financial system.
- This is clearly an economic war, including massive cyber hacking. Will we recognize it?
BOTTOM LINE: This is a very important statement from a Senior Chinese official that should not be taken lightly. They believe we are in an economic war and are no doubt preparing a response regardless of whether or not we were involved in any way. Remember that a wounded animal can be very dangerous, especially if it is a dragon.