Well, it happened again.
China’s stock market plunged, sending more than half a trillion dollars to money heaven.
What a surprise, it turns out that a massive credit bubble is actually unsustainable and will eventually burst. Shocker.
And just like what happened last year when Chinese stocks tanked, the government is stepping in to centrally plan the stock market recovery.
Last year we saw some of the most extraordinary tactics; China’s government jailed short-sellers (i.e. people who bet on stocks declining), and they even encouraged their citizens to BORROW money against their homes to buy stocks.
But no centrally planned bailout is complete without the cherry on top– capital controls.
Capital controls are like a bear trap for your savings. They’re what governments impose when they want to hold your money hostage.
In Europe, for example, governments have propped up failing banking systems by imposing withdrawal restrictions, preventing people from taking out too much of their own money.
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