Saturday, August 15, 2015

The expanding concentric circles of war

We need to look back at the month of June.

Several powerful persons met the press so that they got reported on the 12th of June 2015.

For example,Dr Jitndra Singh,Minister of State at the Prime Minister's Office was in Imphal and met the press on the 11th.Interestingly,the press briefing was also attended by Mr R N Ravi,GOI interlocutor of Naga talk.

On the same day,Mr Rahul Gandhi,Vice President,Indian National Congress,the main opposition party of India,also me the press in New Delhi.

The main theme of both the press meet was the much-hyped Indian special soldiers' attack on the rebel camps in retaliation to the 4th June rebel ambush in Chandel district,Manipur.Of course,we read the reports of both the press meet on the 12th June newspapers.We must note that Dr Jitendra Singh's press briefing was characterized by his insistence that instances like the Paraolon ambush hindered development.

So,what's on 12th June 2015?

The Shanghai Composite,the bellwether Chinese Stock index crashed more than 30%.It was indeed a surreal sell off in the premiere Chinese stock market.Here,we must note Dr Jitendra Singh's insistence on development angle.Is there any better way of hindering China's development than by making the Shanghai Composite by more than 30%?Dr Jitendra Singh's Imphal press briefing was to serve as a warning to China.

Now,let's go to the 2nd of July,2015.

On this day also,the Shanghai Composite,despite the active intervention by Chinese government agencies,crashed again.It was indeed an abnormal crash.

So,what's on the 2nd of July,2015?

It's definite--I don't like to say this.But I cannot shirk my responsibility away.

The day before,the 1st of July,there was this blogpost of mine.It was the first published study of the constituent within the US society which is rooting  for an administration,more or less,in line with the one provided by the Communist Party of China to the citizens of the People's Republic of China.

So,did I just say that the 2nd of July crash of the Shanghai Composite was in response to the blogpost of mine?Well,this question makes me laugh!I'm just a regular guy,trying to blog about the happenings in my surroundings.It's well nigh impossible for a blopost of mine to elicit such huge response.

So,what did I say then?

Something actually happened in South Carolina which gave out the first hints of the existence of the hard-to-believe constituent within the US.My blogpost simply connected the dots in a published format.So,on the 2nd of July,the US retaliated by rigging the Shanghai Composite Index.My blogpost was nowhere in the picture.

As I was reading the charts of various companies on the NSE,India,I read the news of the crashes of the Shanghai Composite Index,as they were happening.The normal reactions to the crashes were that they were abnormal.I also suspected that there were some others factors besides economics that caused the crashes.I felt in my bone that the US was rigging the Shanghai Composite to reveal the real face of the administration of the Communist Party of China in the realm of the economic affairs of the Chinese society.Actually,the crashed show the inexperience of the Chinese society in matters of the stock exchange.

But I could not find a pattern to justify my gut feelings.Gut feelings are just gut feelings.I cannot write of my gut feeling without some plausible patterns to back it up.

Suddenly,on the 11th of August,the all important pattern materialized when the Chinese central bank devalued the Yuan thrice in three successive days.It started on the 11th of August and continue upto 13th August.13th of August?Although the 13th of August is an important date for us,we must not be fooled into believing that the Yuan devaluation hinted at something by wrapping up the devaluation on it.What it intends to hint at is reserved for two days later--the15th of August 2015.As usual there is the shutdown called by the rebels.Besides this,the ultimatum set by the current agitators expires on this day.

As we are acknowledging the above hints,we must also take note that it was an amazing sight.There is nothing economics in the devaluations.It is more like a declaration of war.Just a day after it,there was these mammoth blasts in Tinjian,killing nearly 100 people and injuring more than 500.

1)The Chinese have taken 'revenge' of the successive rigging of the Shanghai Composite by triggering heavy sell offs in all the stock exchanges of the world.(But,not by 30%!That the Shanghai Composite crashed by as much as 30% is mainly because of the inexperience of Chinese authorities in handling matters of financial markets.I think it's only just a year back that the Shanghai Composite was opened up to the outside investors.Before that it was tightly control by the Chinese government authorities.On the flip side,the American regulators have this huge practical experiences gained in the constant battles to fend off talented people trying the game the financial markets in the US.In short,they have this huge know how to rig a stock exchanges).

2)The Chinese are challenging all the competing nations for a currency war.

So,the Paraolon ambush,a hard -to-believe constituent within the US society, the carnage in the Shanghai Composite Index and an open challenge for a currency war--what to make out of all these?

We are witnessing the expanding concentric circles of war from the epicentre.

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