Sunday, October 18, 2015

Catherine Austin Fitts Update - October 17, 2015


“The opportunity to secure ourselves against defeat lies in our own hands, but the opportunity of defeating the enemy is provided by the enemy himself.”
~ Sun Tzu

By Catherine Austin Fitts

The third quarter of 2015 was a tough one. The geopolitical tensions between the G-7 and BRIC nations threaded through the news as the global economy slowed. The Fed backed down on interest rates – not a good sign. Fears regarding the corruption of our political and financial leaders also continued to grow.

In this week’s Third Quarter Wrap Up, I will take a look at the top stories of the quarter and what’s coming up between now and the end of 2015.

In each Solari Report Wrap Up, we take an in-depth look at an important subject:
  • In our Annual Wrap Up in January, we looked at the growth of global stock markets in Planet Equity.
  • In the First Quarter, we looked at the growth of global debt and the end of the bond bull in Planet Debt.
  • In the Second Quarter, we looked at Infrastructure and its critical role in building the global economy and global cooperation.
In this Wrap Up – in addition to our review of top news stories, financial markets and what’s coming up in Q4 – we will take a look the Chinese equity markets.

China restarted its equity markets in 1990 after a 40-year hiatus. Now, only 25 years later, the Chinese equity markets have a market capitalization of $7 trillion. That is approximately 10% of the value of global equity markets. If you include Hong Kong’s market, it is nearly 15%. Such growth is nothing short of astonishing.

The dramatic rise and fall of prices in the Chinese stock market this year raise important questions about China’s role in the global economy. The Chinese equity markets trade at 1) the intersection of the desire of billions of Asians for a better life with 2) the economic warfare and risks created by the potential unraveling of the current geopolitical order.

For this week’s movie, I will review one of my favorite movies set in China, Crouching Tiger, Hidden Dragon. Directed by Ang Lee, it is one of the world’s most popular martial arts films and it is now available online.

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I hope you’ll join me this Thursday!