On why Shanghai became the epicenter of the global market carnage

Having seen the nation’s benchmark Shanghai Composite stock index get slammed by 4.21% on Friday (Aug.21), taking its weekly loss to 11.54%, Chinese authorities wheeled out their latest attempt to underpin shaky investor confidence over the weekend, announcing that China’s giant pension fund will be able to increase its allocation in domestic shares to as much as 30%. http://goo.gl/W9YV2s

 Years of bailouts and monetary expansion have created one of the most inflated and artificial economic booms in history, and now it appears that this global economic bubble is deflating. Markets across the board are melting down and the financial crash that supposedly “fringe” analysts have been predicting since 2008, is finally upon us.

In this post we will look at why Shanghai became the epicenter of the global market carnage. Shown here is the chart for Saturn station direct drawn for Shanghai. Notice that Saturn is placed on the Ascendant as the apex of a T-square that has Venus-Jupiter opposite Neptune.  This combination  is all about unrealistic (Neptune) expansion (Jupiter) in money matters (Venus). Saturn is a hard nosed practical planet that acts as a reality check on “inflated bubbles”  but being a slow moving planet it requires a trigger from a fast moving planet. And this arrived in the shape of the Sun  conjoining Venus-Jupiter and squaring Saturn on August 21 triggering the market meltdown.