THE STRANGE CASE OF THE DISAPPEARING CHINESE BILLIONAIRES
Over the past few years we've tracked a lot of very strange stories having to do with high finance, from the Bearer Bonds scandals and all the high strangeness surrounding them, to the strange raft of banker suicides and deaths, and now we have the strange case of missing Chinese billionaires, in this article shared by Mr. R.R:
This case appears with the recent difficulties in the Chinese stock markets, which have made mainstream news. Here, however, it would seem there is something deeper afoot, as is suggested by the article:
Dozens of other wealthy executives throughout China have disappeared in the past year, many of them under different circumstances. It is apparent that there is a growing corruption investigation in which many of these executives are implicated. However, only a small number of them have been officially announced as being in government custody. With that being the case, it is likely that some of the executives have fled and are in hiding expecting that they will soon be jailed. It is also possible that the government is sweeping them up in the middle of the night, as secret police in dictatorships have been known to do throughout history.
Also, it is unclear whether these corruption investigations are witch hunts, designed to place blame for the declining economy, or if it is a legitimate effort to keep bankers and executives accountable for their actions. There is no doubt that the government was involved in whatever corruption may have been taking place, but as always they are in charge of the investigation so it is unlikely that any government agents or employees will be implicated.
One is tempted to point out that in any closed political and financial system that functions, ultimately, and at the top, that corruption will always run rampant. The article itself indeed hints at this, and hints that such investigations are the standard fare that one might expect in an authoritarian regime. "Business as usual," in other words.
But I want to suggest a rather different context for viewing these disappearances - at least, the ones not detained by the Chinese authorities for investigation - and that is that they may be of a piece with the mysterious deaths of bankers around the world that were a major occurrence in the couple of years. In that context, we see the high octane speculative possibilities, for as I argued in that context, many of the bankers being "suicided" seemed to have been working in positions that would have given them access to a lot of data, data potentially that would have allowed them to see the state of the world economy, and perhaps, where a lot of the "missing money" might be going. In that light, consider a couple of the missing Chinese billionaires, and the type of data they may have had access to:
Just a few weeks ago, Chang Xiaobing, the CEO of the state-owned telecoms giant China Telecom, resigned and then went missing. There were rumors that Xiaobing was taken by police or government agents in a widening corruption investigation that is touching every corner of the Chinese economy.
Back in November, Yim Fung, chairman and CEO of Guotai Junan International Holdings went missing, sending the company’s stock down 12%. Also in November, Chen Jun and Yan Jianlin, two senior executives of Citic Securities vanished without a trace.
In October, Zhang Yun, the president of the Agricultural Bank of China, also disappeared, however, it was reported that he was detained as a part of a corruption investigation.
Perhaps "corruption investigation" this becomes the code for the possibility that the Chinese government might have been alerted to the possibilities of a global "hidden economy," and how its puppet masters might be operating against the best interests of the Chinese national (financial) security. In other words, this is no "stock in trade Communist corruption investigation," but perhaps something very different, much deeper, and with that much more sinister.
Events and time, and of course, the willingness of the Chinese government itself to share the details of what is going on, will tell if this reading is true or not. But I suspect this "wider context" reading of things might in fact be true for the simple reason that (you'll recall), it was Chinese economist David Li that came up with the Gaussian copula formula that made the expansion of credit default swaps and derivatives possible, as I outlined in Babylon's Banksters. I suspect the Chinese government has become aware of something significant, and that this is no ordinary "corruption investigation."
See you on the flip side...
Help the Community Grow
Please understand a donation is a gift and does not confer membership or license to audiobooks. To become a paid member, visit member registration.