While in hospital, watching the world markets crash this week was very interesting. The only financial channel available on hospital TV was CNBC, news was Fox and CNN….ugh. I had to laugh at the talking heads trying to spin the 520 point drop in today’s DOW as opportunities……..
Spinning around the stations to endeavor to find anything………I have had little sleep, but the world economy is crashing, not just the US. The US players could not even revive any numbers, the loss was too profound. The VIX went higher than I have seen it since 2008-09.
China did a huge QE to protect their stock market, and it is crashing like a plane into the hillside, all the laws, the money, regulations, government funding all burned up in this week’s crash. 1000 points vanished in a week…….a trillion US dollars.
As for China, their markets have been crashing since June, and this is August 21……..Making the CEOs buy up, stop selling, giving them funds….too much with nothing behind any of it but ink. Their economy has come to a halt. So has the Euro and the US.
Even farm equipment in the US and overseas, the most essential products of all……sales have dropped 75% over the past two seasons in the US, Euro and China……..
The talking heads blabbed about the recovering housing market, but most of it is in the South……..it isn’t consistent enough to show any growth, just exploitation.
I will write more tomorrow. Just too tired to relate all I observed.
The old games of QE, ETC are out of steam…..No growth to make it work.
Even Apple is in danger territory as I predicted months ago when China ran into trouble. Couldn’t happen to nicer people…..they are tired in with China, just like many former US corporations. They cannot just pick up and leave, they signed on with the Chinese government…..
Its a world crash, a long time being fully revealed, and much is still being hidden. The games of the IMF, ECB and the FED are still covered up…..and once those games start showing up, the quadrillion dollar world economy will contract as it has to in order to ever rebuild. The debt level of quadrillions are so far in excess of what is available in the entire world economy………there isn’t enough wealth in the world to sustain it.
As for the debt level of the ECB, IMF and the FED………at some point, it will start being exposed…………And when it does, total chaos will ensue.
As for the eastern nations, regardless of their falling currencies, their debt to GDP is far lower than the US or the Euro which exceeds 100% of GDP. Once debt exceeds GDP, all funds go to those who are owed money, no money goes into the economy, rebuilding infrastructure, or jobs for the people…….all goes to greedy gut lenders……..Just like the last few years in the USA.
Even Germany, after their work on Greece, have a debt to GDP in excess of 150% of GDP. They have immigration and refugees pouring into their land, it is seen as the last hope for job seeking desperate souls. Over 800,000 are coming in this year alone. Even if they turn some away, others will find illegal and covert ways to get it………Germany’s economy has some incredible strains being put upon it. Selling their good credit to Euro nations to unite and take over Europe has proved an expensive effort……….It will be tough for them. That fat lender leader, Merkel, isn’t competent to override the challenge……..
We have fools in control of much of the west. Russia has an incredible leader who is no fool, but he is out to rebuild Russia, not anyone else. I think some of his behavior is very Soviet reminiscent, and that makes it difficult to figure out what he will do. I don’t think war is in his plans, he is busy rebuilding Russia into a great empire. His people are behind him. They have been members of a great nation, and of small nations. They prefer being part of something great. Putin has tapped into this desire, and has them behind them. He is going to lead Russia for the rest of his life.
China has adopted the worst of the west, along with devious financial ways of their own. Even our Mortgage Backed Securities required people with a pulse…..China is allowing citizens to put up their houses to buy mortgage backed securities…….madness. And, regardless of skyrocketing unemployment due to falling MFG, housing market is going up? Sure, just like here……
The US is obviously in trouble, all our R & D has been outsourced, pirated and sent abroad. Ditto for MFG. Funds for new ideas are now held by a few in Silicon Valley and NYC…….All the free enterprise and opportunities are dead…..if you have a good idea, give it to a greedy gut like Apple, or get nothing, and the idea is stolen by those spoken to in hopes of selling it.
All integrity is gone in the US, inventors have no recourse, greedy guts get it all. All opportunities are dead….and without opportunities that breed new jobs and development, there can be no growth.
Except for the Euro, all labor laws are gone. In the Euro, they are mired in debt…………….
I don’t know about the Chinese leader, but he is no friend of business as usual, perhaps he sees what a house of cards it has become.