China stock market drop 8.6% --bad moon rising

China suffered a biggest one day drop in six years and after Chinese Government intervene to prop up the share market by injecting liquidity and changing the rules of the game. The Government have suffered huge losses because of this intervention. At a seminar recently, one prominent banker told us to watch out for China which was called " the factory of the world " but have lost the title recently as China went up market. The banker told us that China is keeping a 16 months inventory stock as the Government continued to encourage production and the entities are dumping their stock all over the world affecting the global economy. Toyota delayed their plan to manufacture Lexus car in China as their domestic car demand drop sharply and as consumer sentiments turn bad. The gold price also fell from US$1.5K to US$1K per gm as China investors starts to dump their gold as liquidity and life turn tight and tough. Personally, I see a "bad moon" rising in China as the economic numbers are proped up by the Chinese Government and the inventory getting longer and longer , the liquidity getting tighter and tighter , the investors dump their equity stocks and gold and the other regional economies attached to the China's economy also gets affected like Australia and bank loans getting higher and higher while bad debts piled up and becomes a credit risk. Everything is falling apart and it is been hold back by the Government as the water flooded the "dams" and putting pressure on the walls until it give way and swept everything on its way. The sense and intuition is getting jittery and holding cash is like GOD when the full bad moon is on the high. Namaste.