By By Holly L. Walters Aug 23, 2015 in Business In 1997, Asia was practically crippled by an enormous financial crisis. This problem has risen from the grave, and it could get much worse than the current economic conditions in Greece. All of these countries have good reason to be concerned about Beijing’s This stands in stark contrast to the positive turn of events that helped investors make a killing during the past decade. In fact, between 2005 and earlier this year, yuan’s value versus the U.S. dollar had risen by Many people were apparently lulled into a false sense of security due to their belief that the Chinese government would never allow the yuan to drop so low that it could seriously damage the country’s economy. Additionally, most Asian nations have a large stockpile of foreign exchange reserves, and this should make it possible for them to weather most financial storms. However, the main lesson of the 1997 crisis highlights that no area is fully protected from the fluctuations of the market, and there are numerous events that can trigger a financial chain reaction. China is experiencing issues with more than just the value of their money. Unfortunately, their overall economy has been declining for months, and this is terrible news for all Asian countries that sell exports to China. To make matters even worse, the global market crash clock is now sitting at just one minute to midnight. This has been caused by The Chinese government has taken several steps in an attempt to hold back the impending financial crisis. For example, state-backed buyers helped bring the stock market back inline on August 19, but not before it bounced all over the board first. In just 48 hours, the Shenzhen and Shanghai markets dropped by an astronomical These types of metaphorical roller coaster rides have understandably shaken investor and consumer confidence. Interestingly, financial experts have pointed out that the steps the Chinese government has taken to try to stabilize the market have actually led to a higher level of dysfunction. With this in mind, it is difficult to forecast how and when the crisis will be halted. Another recent change that China made was to increase the nation’s gold reserves by GoldIRA Guide also reported on the action stating that making this big of a commitment to stocking up on gold enabled China to surpass Russia, and their To put this amount of gold into perspective, an ounce of gold is currently worth approximately 7,205 yuan ($1,128 USD), and this price is steadily increasing. Meanwhile, the conversion rate for cash shows 1 yuan as being valued at only .15 USD, and this number keeps dropping. Gold has its up and downs just like any other type of currency, but it always ends up bouncing back eventually. Although the big gold investment announcement is a strong signal that the nation’s leaders have been trying to prevent a major financial crisis, the actual amount that the Chinese government has stockpiled was surprising to experts who were predicting a jump as high as 3,000 metric tons. Either way, it is clear that Chinese officials have been trying to build a stronger financial base for years. However, it is hard to know at the current time whether or not this will be enough to prevent further erosion of their economy. Beijing’s Central Bank stepped in on August 18 to provide a huge temporary influx of money into the market. As a result of all of the government’s attempts to stabilize the economy, individuals and businesses that are involved in China’s stock market can expect to see the stock market continue to rapidly rise and fall. This is understandably nerve-wracking for China’s residents, and all of Asia should be paying close attention. After all, the government only has so much control over financial matters, and it is possible that things could get much worse in the near future. Nations outside of Asia also have a good reason to pay close attention to the market fluctuations in China. Industry analysts believe that the devaluation of the yuan could stop or minimize U.S. federal rate hikes. American stores and real estate companies may also have a more Chinese investors are also notorious for putting a lot of money into the U.S. stock market and for purchasing prime real estate in some of America’s most popular cities. Now that the Chinese stock market and yuan value have become so volatile, these investors are less likely to keep putting their money into the U.S. economy. With so many financial issues happening throughout Asia and in Greece, financial experts believe it may only be a matter of time before the situation gets worse. Peter Schiff, the CEO of Euro Pacific Capital, is one of them. He told Newsmax TV that the U.S. dollar is It is impossible to know if or when this will really happen, but this might not be the best time to invest in any high risk ventures. Nations such as Indonesia and Malaysia are really hurting right now, but China’s financial woes are poised to create an even larger negative ripple effect throughout the entire Asian region.All of these countries have good reason to be concerned about Beijing’s recent devaluing of the yuan . Nearby nations have seen the value of their currency plummet, and the Chinese stock market has been erratic for several days, reports CNN Money.This stands in stark contrast to the positive turn of events that helped investors make a killing during the past decade. In fact, between 2005 and earlier this year, yuan’s value versus the U.S. dollar had risen by 33 percent Many people were apparently lulled into a false sense of security due to their belief that the Chinese government would never allow the yuan to drop so low that it could seriously damage the country’s economy. Additionally, most Asian nations have a large stockpile of foreign exchange reserves, and this should make it possible for them to weather most financial storms.However, the main lesson of the 1997 crisis highlights that no area is fully protected from the fluctuations of the market, and there are numerous events that can trigger a financial chain reaction.China is experiencing issues with more than just the value of their money. Unfortunately, their overall economy has been declining for months, and this is terrible news for all Asian countries that sell exports to China.To make matters even worse, the global market crash clock is now sitting at just one minute to midnight. This has been caused by eight main factors , according to the Telegraph UK, including China’s slowdown, declining resource sector prices, the Global Commodity collapse, credit market issues, an overvalued U.S. market, huge interest rate increases, the U.K.’s bull market and the central banks spiraling out of control.The Chinese government has taken several steps in an attempt to hold back the impending financial crisis. For example, state-backed buyers helped bring the stock market back inline on August 19, but not before it bounced all over the board first. In just 48 hours, the Shenzhen and Shanghai markets dropped by an astronomical 8 percent and then rebounded all the way to a positive 1 percent increase.These types of metaphorical roller coaster rides have understandably shaken investor and consumer confidence. Interestingly, financial experts have pointed out that the steps the Chinese government has taken to try to stabilize the market have actually led to a higher level of dysfunction. With this in mind, it is difficult to forecast how and when the crisis will be halted.Another recent change that China made was to increase the nation’s gold reserves by 60 percent , says CNBC. This is something that the government appears to have been working on for six years, but they did not announce the massive surge in gold reserves until last month.GoldIRA Guide also reported on the action stating that making this big of a commitment to stocking up on gold enabled China to surpass Russia, and their 1,658 metric tons of the golden currency now place the country as fifth in the world for gold reserves.To put this amount of gold into perspective, an ounce of gold is currently worth approximately 7,205 yuan ($1,128 USD), and this price is steadily increasing. Meanwhile, the conversion rate for cash shows 1 yuan as being valued at only .15 USD, and this number keeps dropping. Gold has its up and downs just like any other type of currency, but it always ends up bouncing back eventually.Although the big gold investment announcement is a strong signal that the nation’s leaders have been trying to prevent a major financial crisis, the actual amount that the Chinese government has stockpiled was surprising to experts who were predicting a jump as high as 3,000 metric tons.Either way, it is clear that Chinese officials have been trying to build a stronger financial base for years. However, it is hard to know at the current time whether or not this will be enough to prevent further erosion of their economy.Beijing’s Central Bank stepped in on August 18 to provide a huge temporary influx of money into the market. 120 billion yuan was made available for commercial lenders, but the money came in the form of seven day loans. This type of move has been made in the past, but it is not a common occurrence. Therefore, it is very clear that the government is concerned about the potential for a massive financial collapse.As a result of all of the government’s attempts to stabilize the economy, individuals and businesses that are involved in China’s stock market can expect to see the stock market continue to rapidly rise and fall.This is understandably nerve-wracking for China’s residents, and all of Asia should be paying close attention. After all, the government only has so much control over financial matters, and it is possible that things could get much worse in the near future.Nations outside of Asia also have a good reason to pay close attention to the market fluctuations in China. Industry analysts believe that the devaluation of the yuan could stop or minimize U.S. federal rate hikes.American stores and real estate companies may also have a more difficult economic road ahead of them , reports Market Watch, and it has been predicted that high-end luxury items that are imported into the U.S. from China will soon become more expensive, which will reduce spending and hurt the U.S. economy.Chinese investors are also notorious for putting a lot of money into the U.S. stock market and for purchasing prime real estate in some of America’s most popular cities. Now that the Chinese stock market and yuan value have become so volatile, these investors are less likely to keep putting their money into the U.S. economy.With so many financial issues happening throughout Asia and in Greece, financial experts believe it may only be a matter of time before the situation gets worse. Peter Schiff, the CEO of Euro Pacific Capital, is one of them. He told Newsmax TV that the U.S. dollar is about to burst as well, which could be devastating for America, China and many other nations worldwide.It is impossible to know if or when this will really happen, but this might not be the best time to invest in any high risk ventures. More about Chinese yuan, Chinese stock market, foreign exchange reserves, Beiging's Central Bank, global market crash clock More news from Chinese yuan Chinese stock market foreign exchange res... Beiging s Central Ba... global market crash ...