The Chinese stock market is melting down.

While the US federal reserve has piled on $3.5 trillion in new monetary base money since 2008, China has increased the books of its central bank by over $15 trillion.  As in 15 trillion USD, not 15 trillion Yuan. Who else do you think owns the deeds (i.e. lent the money to build) to all of those mega cities, mega shopping malls, mega theme parks which currently sit empty and idle?

It's all going to come home to roost real soon now.  When that lower support line is broken, and it will break, there will be 5 wave down that will end up well below the 2008 low.  While it is not marked on the chart, I show the 2008 lows to be big wave [[A]] down.  Then red C is the end of the a-b-c retracement (AKA [[B]]).  Now we are working on the the final 5 down waves of [[C]].


Do not be surprised if the bottom falls out like it was one of the 3 steel frame buildings the collapsed at the speed of gravity on 9-11 in New York.  Expect it to land into its own foot print in a cloud of pyroclastic dust.  Then expect the con men running this show to sweep away the remains quickly so that a real forensic analysis cannot be done.  After all, the ground must be cleared quickly so that we can re-start the Ponzi.

All I really want to know is how many times are we going to fall for the same gag coming from the same con men?