Babylon's Bankers

CHINESE STOCKS AND A COMPUTER “ERROR”?

Recently I have been blogging not so much about changes in the financial markets, gold manipulations, and so on, but on deeper underlying geopolitical and economic transformations in the world. Yesterday I expanded upon this theme by suggesting that there appears to be an overall trend toward and away from information-based or information backed systems of clearing, suggested by the dramatic shifts in gold prices and demands over the last several months. To put it succinctly, I have proposed that Asian moves toward gold reflect less a lack of confidence in western financial institutions and systems, and more an acknowledgement that the BRICSA nations lag behind the West in electronic financial clearing and intelligence gathering capability, and that the move to more analogue and less digital bases of transaction were, perhaps, a reflection of this circumstance.

In that context, Ms. P.H., a regular reader here, sent along the following intriguing article:

Chinese stocks swing wildly after computer error

I am going to suggest some more high octane speculation here.

It has long been known that the various great powers, China among them, have been developing their cyber warfare capabilities. More recently I have blogged about Russia's moves to secure its communications, and to expand and compete directly with the USA on cyber and robotic warfare capabilities, in addition to their move to buy that outmoded analogue technology, the the typewriter. Russia has long experience in cyber warfare, particularly in being on the receiving end of it. The infamous "Farewell" spy case of a deeply entrenched French mole within the KGB being a case in point... all of which dovetailed into the Reagan administration's successful implantation of corrupted computer software into the Soviet infrastructure, with the result that a "malfunction" occurred on a Soviet gas pipeline which exploded with such force that it was visible to spy satellites in space.

All of these things - the Asian move to physical gold, the suggestions that their central banks are demanding the return of their gold, the faintly perceptible emerging outlines of a bifurcated world of international financial clearing, one centered in the information-tech-based West and its allies, the other centered in the old-fashioned gold-transfers that it appears the BRICSA nations are moving towards - all of these things, I suggest, might be viewed as context for this story of a computer error generating market swings in Chinese stock markets beyond the normal. I suggest that this may have been a gentle reminder to the Asian markets from their western competitors, a gentle reminder that information-processing and electronic transactions are "hackable," and that markets can be wildly manipulated at the press of a button, so to speak.

In short, there might be much more to this story than meets the eye, and that that Chinese have, for understandable reasons, suppressed what might be a much bigger story.  If so, we can expect "computerized retaliations" of similar kind and measure, in addition to a renewed and redoubled effort to develop their own independent institutions and mechanisms of clearing. The cyber-market wars may already be on...

... See you on the flip side.

21 thoughts on “CHINESE STOCKS AND A COMPUTER “ERROR”?”

  1. Scary we are a click or two away from destitution. I guess wo order be “thankful” that we are allowed to continue living like serfs. I wish I was a teaparty-er. I could just gripe every day about Obama & then when ANY republican is elected president can go about my daily business singing “happy days are here again” and go back into hibernation.

  2. Robert Barricklow

    Maybe these faction “meet” and divide up “territories”(geographucal/cosmos/technologies/
    currency/markets/ect.
    Perhaps a breach occurred, and the deck is being reshuffled? Or, a joker has surfaced?

  3. http://cleantechnica.com/2012/08/28/china-largest-solar-power-plant/
    http://www.pvmate.com/index.php/china-everbright-bank-signs-strategic-cooperativeagreement-with-gcl-group/
    http://news.yahoo.com/germany-merkel-vows-avoid-trade-war-china-174124107.html
    http://www.renewableenergyworld.com/rea/blog/post/2013/05/us-eu-working-with-china-over-solar-pv-trade-disputes
    “The financial war that has been raging intensively at least since 2001 may be finally ending. This week a three pronged effort to convince the Luciferian banking cabal to surrender is being carried out. In one prong, the Chinese government has announced it will start the mass installation of wind and solar power devices on rooftops world-wide in order to free humanity from the cabal controlled energy grid.”
    “Last week a Chinese delegation met with a representative of the White Dragon Society in Tokyo. At the meeting an informal agreement was reached in which the Chinese side promised to provide manufacturing facilities and financing for new energy technology. To start with a revolutionary roof-top wind turbine and solar panel combination will be distributed with no initial down-payment necessary to householders and enterprises world-wide. These householders will then pay the installers the equivalent of their current energy bill for 5 years after which they will become energy independent. This is a concrete and realistic way to give the atomic and fossil fuel based energy cartels time to find a new line of business.”

  4. Robert Barricklow

    Just picked up this headline from Natural News
    Insider Traders Begin Dumping Monsanto Stocks
    As Reality of GMOs Sinks In Across Wall Street.

  5. Chinese stock markets aren’t exactly free of corruption and really deep double dealing–so there could be other reasons for the glitch, or for it being made to happen.

    Then didn’t the NASDAQ have to shut down for 3 hours on Thursday?

    1. NASDAQ shutdown on Thur 22nd:

      The shutdown was the third major trading disruption in a week, following a glitch linked to the trading arm of Goldman Sachs on Tuesday and a computer error that caused securities in the Shanghai stock exchange to swing wildly on Friday.

      Tit for tat?

      Also from last week, re the Shanghi swing:

      The latest bag of bones to tumble out of the JPMorgan closet is the inquiry by US regulators into its decision to employ the son of the former Chinese banking regulator, now head of the giant investment firm China Everbright. The hiring of so-called “princeling” children of China’s elite by Wall Street and European banks has been going on for years as firms seek influence and contacts in the country. Goldman Sachs, for example, hired the grandson of the former Chinese president Jiang Zemin.

      A branch of Everbright, caused the Shanghai glitch:

      Erroneous trading by Everbright Securities on Aug. 16 caused a 5.96% spike in the benchmark Shanghai Composite Index in about three minutes.

      CNN said:
      State regulators have banned China Everbright Securities from trading stocks on its own account after identifying the broker as the source of a dramatic surge in the Shanghai Composite last week.

      Analysts were puzzled by unusual market activity around mid-day on Friday, when the benchmark Shanghai Composite jumped 6% in just a few minutes. When no obvious explanation for the sudden move was found, many observers speculated that a fat finger trade had been executed.

      1. Frankie Calcutta

        Looks like glitches halted trading on the Eurex as well as the Tel Aviv stock exchange in t he last 24 hours. I don’t buy the “fat fingers’ excuse for the Tel Aviv glitch for a second. I guess this really is a new arena for warfare… and cut throat trading. Not to mention the stability of trading platforms are now in question for moms and pops across the globe.

        1. Eurex and Tel Aviv too? Now that is interesting.

          WSJ’s China Blog reports:

          August 26, 2013, 3:51 PM

          Chinese Internet Hit by Attack Over Weekend

          Part of the Chinese Internet went down early Sunday morning in what the government is calling the largest denial-of-service attack it has ever faced.

          The attack began at 2 a.m. Sunday morning and was followed by a more intense attack at 4 a.m., according to the China Internet Network Information Center, which apologized to affected users in its statement and said it is working to improve its “service capabilities.”

          Hmm

          Tit for tat, I say it again…

          1. Frankie Calcutta

            The Israeli company that triggered the sell off in a mistyped trade in the Tel Aviv stock exchange is Israel’s largest holding company, the Israel Corporation, and one of its core holdings is, get this, specialty chemicals. Probably a stretch but one would have to entertain the idea that someone is sending a message to the real perpetrators of Syria’s chemical weapon attack.

            Eurex is a German/Swiss creation and is the world leading derivative exchange, among other things, and also has products such as weather futures as well as European equities and energy products.

            Overall, what I think got the tiff going was when Goldman Sachs was hacked on August 20 and faulty stock option orders were sent out. GS is claiming it is a tech error and put four senior tech specialists on leave. I’d be curious to know what companies were on the orders? A third tier prank on the second tier Syrian chemical attack provocateurs? Or just Chinese retaliation?

            For the record, the Chinese stock error came first, then Goldman Sachs, then NASDAQ, then Tel Aiv, then Eurex.

  6. Casino Stock Exchange watch the little back ball in the roulette wheel. The Chinese like the other BRICAS nations well have to come up with a solution to save themselves from these psychopathic gamblers what do these monsters care how they kill They get off on that it’s their reason for existing.

  7. Frankie Calcutta

    Maybe BRICSA will fire off one more salvo and bring back open outcry commodity trading to compete with the anglosphere’s soulless and completely rigged electronic trading.

    1. Frankie Calcutta

      btw Dr. Farrell, I watched your latest members vidchat last night and like all your vidchats, it was amazing. My head is swimming in all the new information introduced to me… and just when you think you have heard it all! It was a doozy to say the least. I’ve gotten in the habit of keeping a notebook in front of me while I’m watching. We are going to have to start calling your website the Giza Death Star Online University for the education you are providing, only it is several orders of magnitude cheaper than any other university and free of the the ruling elite’s dogma as well.

  8. Robert Barricklow

    Looks like one player has showed a few aces.
    Are the others holding?
    Or hoping to draw into one soon?

    1. The ace is like an alien space craft…on one hand it is the lowest card in the deck and then… on the 13th stabs you in the back..

      Intelligence though ….i was gonna says win…a detestable word (xcuse moi french)….understands.

      1. Robert Barricklow

        Only by disconnecting from corporatism and its dehumanizing, delocalizing, depersonalization, in devaluing biases, can we hope to re-build a peoples/earth-scaled society.

        1. The majority talk a good game, but then head off to Wall mart, and throw another brick in the wall.
          Point out the hypocrisy to them and the mason jar jar blinks crowd excommunicates you….or worse engineer a Salem witch hunt, that is if you have any cash to sieze.

          I think people are going to be surprised about ole Han Solo and his side kick chews tobacca in the upcoming Disney taken over flick.

  9. My bengal cat brought home a pigeon, I saved him, for a few days, and the poor thing died, but the odd thing is as a last defining moment, he pointed his peak toward the sun and froze in that position. I fed it earlier, and it was cooing, blinking, and i thought it was going to get better.
    Yesterday Cyber, my Bengal threw up a baby squire ll, a mommy grey squirel was frantic looking for its baby, this morning….there are no easy answers in this world of problems with predators….those are true stories.

    1. Frankie Calcutta

      Jedi,

      Unless we are ready to live on grass and leaves, the cruel design of our world dictates that in order for us to live something has to die. We didn’t make the rules. I suspect someone or thing with a great penchant for mischief did. And if you can make it through your entire Earthly existence without killing anything, I bet you get invited up to the next universe/game level. But you can almost guarantee there will always be a shortage of leaves and grass to go around in order to make one’s spiritual quest more arduous. Fortunately, maybe the Mischief Makers (or their rivals) have also given us the mushroom to teach us the way– but are you ready to survive solely on decomposing plant matter as the mushroom does? Maybe one day McDonald’s will roll it just such a burger made of decaying forest material giving us the chance to keep our karmic fingerprints clean. Or, maybe it is time DARPA did the right thing and merged our DNA with this highly evolved fungus. The alchemo-fungal man.

      btw, I always thought cats an unusual, unique, and disturbing creature in that they sometimes kill for fun and not hunger… just like humans.

      1. The thing is, I am no where man.. the people are following a pretender.

        Thanks for the reply , your comments are quite informative and humorous. a good combo.
        You should look at the mushrooms effects on matter, in regards too its division….although your comment says you are aware of it as am i..

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