Political Crossfire Forums

don't knock the hustle

The point is more that they are afraid of capital flight, and are seeking ways to preserve their wealth. The result is the emergence of the shadow banking sector and stuff like bitcoin. They are desperate to preserve their wealth and will take great risks to do so. The reasons for this development can be analyzed.

China normally keeps the yuan undervalued in support of it's export sector but has yielded to international pressure and let it appreciate recently. There has been a gain of 2.5% against the dollar so you are correct in saying that. But overall the forces that create this pressure on the market are still fundamental to China's economic situation and the devaluation of our own currency must be taken into account as well.

http://fordhampoliticalreview.org/china ... imbalance/

The bank that had the bank run wasn't a state regulated financial entity, it was among the growing number of services offered by the new "shadow banking" industry. There is a new "dark economy" emerging because people are finding a need to hide their assets.

And as you know, if there is a need a service will arrive to serve it, and then scams will coalesce around that. There are some new global financial realities emerging and people are reacting to local pressures coming from that.