Thursday, March 17, 2005

THE LOOMING CHINESE FINANCIAL CRISIS

While the whole world is focused on oil price, behind a major financial crisis is becoming more transparent that can bring depression in Asia if not the whole world.

On March 15th, Zhang Enzhao, chairman of China Construction Bank (CCB) -- one of China's "Big Four" financial institutions -- resigned, citing personal reasons.

According to sources close to Chinese Financial Authorities, Zhang was actually removed from his position and is under house arrest while a major corruption investigation goes on. What really happened in CCB is typical in Asia especially China.

The Banking in China is completely controlled under the gun of the Government. That is the source of solid corruption and the Chinese Financial system can plunge as soon as Chinese currency is made flexible and floats in the open market.

This is why Bush has pushed so hard for China to "un-peg" its currency from the U.S. Dollar. This is why our deficits are so high... For all the lefties out there: Don't blame Bush. Blame your friends, the Red Chinese...