Chart Of The Day: NASDAQ 2000 And Shanghai 2015 Resemble Hand-In-Glove

The Chinese authorities are desperately attempting to keep their staock market bubble inflated. The government bought stocks last night, driving it higher by 5% in the last hour of trading. Whenever central bankers and politicians allow the free market to decide, markets go into collapse mode. They can print more fiat to prop things up for awhile, but they are only making the ultimate collapse far worse.

Ludwig von Mises’ words of wisdom still apply today:

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”

Via David Stockman’s Contra Corner


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