Financial writer and analyst Bix Weir is not surprised by the Federal Reserve’s policies because it is all part of the long term plan. Weir explains, “The goal, since we went off the gold standard in 1971, has been to run the financial system as long and as hard as possible, sucking up all the benefits of fiat money, and there are very few attempts to slow this mess down. The idea is to put as much money as you can . . . until you have printed so much money the system implodes. This was a Nobel Prize winning paper in the 1960’s called “On the Road to the Golden Age.” It basically says if you have this freedom and flexibility with the monetary system, run it as hard as you can until people stop accepting the unbacked fiat money, then crash the system and go back to something safe and sound after it all blows up. . . . What they need is a big enough bubble so when it crashes, it take out all the derivatives, the malfeasance of the banks, the good guys and the bad guys and all the things going on behind the scenes. They need the bubble so big, and that’s what they are doing right now is blowing the bubble so big everybody feels the effect of a crash.”
When is the next crash coming? Weir says it will all unwind before “the end of this year.” Weir contends, “The decision will need to be made this year. The banks will, once again, come to Congress and say we need money for a bailout. That decision will be made by the U.S. people, not by Congress, not by the Fed and not by the banks. It’s going to come to the people, and I believe they will say no to bailouts.” Continue reading »
After taking a its biggest step lower since 2011 in the past month, why has the selling in the S&P500 stalled? Because, well, hope may not be a strategy but now with the Fed’s credibility rapidly evaporating, it is all investors have, or as Gundlach puts it: “The reason the markets aren’t going lower is people are holding and hoping.” Incidentally, there is a reason why hope is not a strategy: in the end, it always fails.
If anybody takes solace from the recent surge in the markets, they just kid themselves.
World demand is through the floor, corporate share buy backs are endemic to shore up the misleading share prices, profits are non existent, the BDI has been dragging along the sea bed for four years, order books are non existent, production based jobs have been continuously replaced by service jobs in restaurants, bars & hotels, even the retail sector has bombed.
How can anybody with a modicum of logic or common sense find these facts encouraging? This is a reality check.“
Since the start of June, global equity markets have lost over $13 trillion. World market capitalization has fallen back below $60 trillion for the first time since February 2014 as it appears the world’s central planners’ print-or-die policy to create wealth (and in some magical thinking – economic growth) has failed – and failed dramatically. To rub more salt in the wounds of monetray policy mumbo-jumbo, despite endless rate cuts and balance sheet expansion around the world, the last 4 months have seen an 18% collapse – the largest since Lehman.…
Update: And there it is: GLENCORE DEBT INSURANCE COSTS SURGE TO RECORD HIGH; 5-YR CREDIT DEFAULT SWAPS RISE 207BASIS POINTS FROM FRIDAY’S CLOSE TO 757 BASIS POINTS
Those who listened to our reco to buy Glencore CDS at 170 bps in March 2014 can take the rest of the year off. As of this moment, GLEN Credit Default Swap were pushing on 600 bps, 4 times wider, and on pace to take out the 2011 liquidity crunch highs. After that, it’s smooth sailing to all time wides and the start of a self-fulfilling prophecy which leads to the Companys’s IG downgrade and the collapse of trillions in derivative notionals as what may be the trading desk of the biggest commodity counterparty quietly goes out of business.
Glencore is in total free-fall across all markets today. Most worrying for systemic risk concerns is the rush into credit protection that has occurred, as counterparties attempt to hedge their exposures. Forthe first time since 2009, Glencore CDS are being quoted with upfront pricing (something that happens as firms become seriously distressed). Based on the latest data, it costs 875bps per year (or 14% upfront) to buy protection against a Glencore default (which implies – given standard recoveries – a 54% chance of default).
You would think that the simultaneous crashing of all of the largest stock markets around the world would be very big news. But so far the mainstream media in the United States is treating it like it isn’t really a big deal. Over the last sixty days, we have witnessed the most significant global stock market decline since the fall of 2008, and yet most people still seem to think that this is just a temporary “bump in the road” and that the bull market will soon resume. Hopefully they are right. When the Dow Jones Industrial Average plummeted 777 points on September 29th, 2008 everyone freaked out and rightly so. But a stock market crash doesn’t have to be limited to a single day. Since the peak of the market earlier this year, the Dow is down almost three times as much as that 777 point crash back in 2008. Over the last sixty days, we have seen the 8th largest single day stock market crash in U.S. history on a point basis and the 10th largest single day stock market crash in U.S. history on a point basis. You would think that this would be enough to wake people up, but most Americans still don’t seem very alarmed. And of course what has happened to U.S. stocks so far is quite mild compared to what has been going on in the rest of the world.
Right now, stock market wealth is being wiped out all over the planet, and none of the largest global economies have been exempt from this. The following is a summary of what we have seen in recent days… Continue reading »
For USD investors, the collapse in German stocks has crushed returns to the lowest in 2 years. DAX’s collapse this week leaves it closing at Black Monday lows, the lowest since Dec 2014. Perhaps most stunning is German stocks down over 20% since Q€ began…
The DAX is down 3,8% today!
The man who made a billion dollars on Black Monday sums up his strategy perfectly in this excellent FOX Business clip with the money-honey, “I’m a hedge fund manager that actually hedges for his clients. This is something of an old fashioned idea in this day of just gambling on the next Fed bailout.” Spitznagel, who is wholly unapologetic in his criticism of The Fed (and any central planner), unleashes eight minutes of awful truthiness on what is going on under the surface of the so-called ‘market’, concluding ominously, “if August was scary for people, they ain’t seen nothin’ yet.” Continue reading »
Normally when the world needs an equity market boost, a broken market suffices to slam VIX and save the world. This time not so much.. and the carnage that this will cause into quad witch is frightening…
The Market Breaks…
But it doesn’t work…
And… Continue reading »
– Bank Of Japan Buying Power Runs Dry: “If They Don’t Increase Now, It’s Going To Be A Shock!” (ZeroHedge, Sep 11, 2015):
Since 2010, The Bank of Japan has ‘openly’ – no conspiracy theory here – been a buyer of Japanese stock ETFs. Their bravado increased as the years passed and Abe pressured them from their independence to ‘show’ that his policies were working to the point that in September 2014, The BoJ bought a record amount of Japanese stock ETFs taking its holdings to over 1.5% of the entire market cap, surpassing Nippon Life as the largest individual holder of Japanese stocks.
Having stepped in a stunning 76% of days to ensure the market closed green, it appears, as Bloomberg reports, time (or money) is running out for Kuroda and the BoJ having spent 78 percent of its allotment as of Sept. 7. “They’ve only got a little bit left in their quota,” notes one trader, “The BOJ had a big role in supporting the market,” he implored, “if they don’t increase purchases now, it’s going to be a shock.” Continue reading »
– We Now Know What Happened At 6:12 AM This Morning (ZeroHedge, Sep 10, 2015):
In summary: what we do know: a nearly 1% move up and down in the S&P due to blatan – and illegal – spoofing manipulation; what we don’t know: the identity of the spoofer.
What is certain: if the culprit is a central bank or one of its trading agents like Citadel, the CFTC will never follow up. If it is some Indian living in his parents’ basement in a London suburb, you can run but you can’t hide.
– This Is EXACTLY What The Early Phases Of A Market Meltdown Look Like (Economic Collapse, Sep 9, 2015):
There is so much confusion out there. On the days when the Dow goes down by several hundred points, lots of people pat me on the back and tell me that I “nailed” my call for the second half of this year. But on the days when the Dow goes up by several hundred points, I get lots of people contacting me and telling me that they are confused because they thought the stock market was supposed to go down. Well, the truth is that if there is going to be a full-blown market meltdown, we would expect for there to be wildly dramatic swings in the market both up and down.
A perfect example of this is what we experienced during the financial crisis of 2008. 9 of the 20 largest single day declines in stock market history happened that year, but 9 of the 20 largest single day increases in stock market history also happened that year. If we are moving into another great financial crisis, there should be massive ups and massive downs, and that is precisely what we are witnessing right now. Continue reading »
– Brazil Cut To Junk By S&P, ETF Falls 5% Post-Mkt (ZeroHedge, Sep 9, 2015):
Brazil, whose economy officially slid into recession in Q2 – a quarter during which Brazilians suffered through the worst inflation-growth outcome (i.e. stagflation) in over a decade – and whose efforts to plug a yawning budget gap are complicated by political infighting and a growing public outcry against embattled President Dilma Rousseff, has been cut to junk by S&P.
Sep 5, 2015
In this special episode of the Keiser Report from New York, Max Keiser and Stacy Herbert discuss the never seen before triple category four hurricanes heading for global financial markets caused by injection of too much hot air from central bankers. In the second half, Max interviews Gerald Celente about Rule 48, volatility and invasions.
Tags: Banking, China, Collapse, Economy, Fed, Federal Reserve, Gerald Celente, Global News, Government, Janet Yellen, Max Keiser, Obama administration, Politics, Ponzi schemes, Stock Market, U.S., Wall Street
So much for exiting the market. According to Goldman’s estimates, China spent CNY600 billion propping up the stock market in the month of August alone. Meanwhile, MNI reports that in the wake of the yuan devaluation, SAFE began “‘urging’ [companies to] actively take measures to limit foreign exchange purchase for advance payment under imports… and postpone forex purchases.
– China Loses All Control, Spends 600 Billion Yuan On Plunge Protection In August, Tightens Capital Controls (ZeroHedge, Sep 8, 2015):
Back on July 20, Caijing reporter Wang Xiaolu suggested that China Securities Finance – the state-owned plunge protection vehicle – may be set to exit the market. That sent futures plunging and ultimately led to Mr. Wang’s arrest late last month. Under duress, Wang would later “admit” that he “shouldn’t have released a report with a major negative impact on the market at such a sensitive time.”
Of course Wang wasn’t the last person to speculate about how long China would be willing to spend billions propping up the market, and indeed it certainly seems as though Beijing tried to scale back the manipulation two weeks ago only to see the SHCOMP crash 8%, a move which promptly triggered a global rout of epic proportions. One additional 8% decline and a dual policy rate cut later, and CSF was back in the market desperately trying to arrest the inexorable slide ahead of Xi Jinping’s lavish military parade on September 3. Continue reading »
– Moscow Stock Exchange Breaks, All Trading Halted For “Glitch” (ZeroHedge, Sep 8, 2015):
Update: *MOSCOW EXCHANGE PREPARING TO RESUME TRADING W/BACKUP EQUIPMENT
It appears the ‘virus’ of broken markets has spread…
- *MOSCOW EXCHANGE SAYS TRADING HALTED IN ALL MKTS
- *MOSCOW EXCHANGE SAYS CHECKING ON REASONS FOR GLITCH
Yet another ‘glitch’ strikes yet another crucial convergence point of technology and business. Will The Russians blame the Chinese? Or The Americans?
As Bloomberg reports, Continue reading »
… on how quickly life can change (when being held in Chinese custody).
– Chinese Hedge Fund Manager Denies She Was Arrested, Was Merely “Meditating” (ZeroHedge, Sep 8, 2015):
Last week, China decided that enough was enough with the stock selling.
Two months of (virtually) uninterrupted plunge protection amounting to some CNY1.5 trillion along with a series of directives and threats had failed to stop the market’s harrowing descent and so, perhaps fearing that its rather aggressive posturing wasn’t being taken seriously, Beijing started arresting people.
As documented exhaustively here, the crackdown on “subversives” led to more than two hundred arrests and forced confessions. There was Xu Gang, the CITIC executive. And CSRC official Liu Shufan. And let’s not forget poor Wang Xiaolu, the Caijing reporter who, clearly under duress, made the following public confession after suggesting in a story that China’s plunge protection team might be considering an exit from the market (which is of course true): “I shouldn’t have released a report with a major negative impact on the market at such a sensitive time. I shouldn’t do that just to catch attention which has caused the country and its investors such a big loss. I regret . . . [it and am] willing to confess my crime.” Continue reading »
Vinyl rip from my personal collection. Best audio on the net.
This 3x LP record set documents the activities of a secret society known as The Illuminati, and their New World Order.
Mr. Fagan describes with documentary evidence how the ILLUMINATI became the instrument of the House of Rothschild to achieve a “One World Government”.
Tags: Adam Weishaupt, Adolf Hitler, Banking, CFR, Council on Foreign Relations, Dictatorship, Economy, Freemasonry, French Revolution, Global News, Goldman Sachs, Government, Illuminati, Jacob Schiff, JPMorgan, Myron Fagan, Napoleon, New World Order, Politics, Rothschild, Russia, Russian Revolution, Society, Stock Market, U.K., U.S.
– IF YOU THINK THAT WAS A CRASH…. (The Burning Platform, Sep 7, 2015):
Last week’s volatility to the downside was entirely predictable, as the first leg down during this ongoing market crash reached the correction stage of 11%. The technical bounce was a given, as the 30 year old HFT MBAs on Wall Street have been trained like rats to BTFD. In their lemming like minds, it has worked for the last six years of this Federal Reserve created “bull market”, so why wouldn’t it work now. Last week was their first lesson in why it doesn’t work during bear markets, and we’ve entered a bear market. John Hussman seems amused at the shallowness of the arguments by Wall Street shills and CNBC cheerleaders about the future of the stock market in his weekly letter. After this modest pullback from all-time highs, the S&P 500 is still overvalued by 92%: Continue reading »
– Stock Market Crash 2015: The Dow Has Already Plummeted 2200 Points From The Peak (Economic Collapse, Sep 4, 2015):
Those that watched their stocks steadily increase in value for years are now seeing all of that “wealth” disappear at a staggering pace. The only way you actually make money in the stock market is if you get out in time, and many Americans are discovering that all or most of their gains have already been wiped out. At this point, the Dow Jones Industrial Average has dipped below where it was at the end of the 2013 calendar year. That means that nearly two years of gains have already been obliterated. On Friday, the Dow was down another 272 points, and it is now down more than 2200 points from the peak of the market back in May. For months, I have been detailing how things were setting up for this kind of financial crash in textbook fashion, and now events are playing out just as I warned. But this is just the beginning – what is coming next is going to shock the world. Continue reading »