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Post by avordvet on Aug 23, 2015 15:54:05 GMT -5
This Is Not A ‘Correction’……..It’s The Beginning Of The Global Bubble Unwindby Doug Noland, August 22, 2015 August 17 – Reuters Breakingviews (Edward Chancellor): “Financial markets, like religions, are faith-based networks. The complex structures of assets and liabilities that comprise markets are held together by a set of underlying beliefs. Unlike religions, however, financial dogmas are occasionally shown to be false. We experienced such a moment last week, when the Chinese authorities chose to devalue their currency.” Contemporary global finance is a complex “system” of interwoven (electronic) “faith-based networks.” As the bursting of the global Bubble unfolds, myriad “financial dogmas” will be exposed as bogus. Too many have been little more than chicanery. davidstockmanscontracorner.com/this-is-not-a-correction-its-the-beginning-of-the-global-bubble-unwind/
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Post by Michael Downing on Aug 23, 2015 21:41:16 GMT -5
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Post by Michael Downing on Aug 23, 2015 21:44:53 GMT -5
h/t WRSA straightlinelogic.com/2015/08/23/get-it-right-by-robert-gore/ Get It RightThe deflationary depression upon which the world has embarked has two central themes: debt, and the inability of government and central banks to control multiple variables and consequently, outcomes. Viewed through these prisms, everything that has happened and will happen is readily comprehensible. The received wisdom before last week’s US stock market plunge was that China’s economic and financial problems would remain local. After the plunge, the revised received wisdom is that it’s all China’s fault. Neither analysis is correct. China has entered a debt contraction after one of the greatest, if not the greatest, debt expansions in history. Its problems are exacerbated by its lack of freedom and its command and control government (they’re communists, after all), which stands revealed as unable to dictate economic outcomes. It has its fingers crossed that its inability does not cross over into the political realm, probably a vain hope. The US has entered the same debt contraction phase as China—just a few months later—after a debt expansion that dates back to the 1960’s, when Presidents Johnson and Nixon opted for guns and butter on the installment plan. Nixon cut the last fiscal tether to reality in 1971 when he closed the gold window. The US’s problems will not be solved by the command and control ministrations and manipulations of its government and central bank, any more than China’s have been. Governments and central banks are the problem, not the solution. The market-based solutions of debt contraction, asset repricing, insolvency, bankruptcy, reorganization, economic contraction, reduced consumption, and unemployment are not planks of a platform designed to win next year’s US election or quell Chinese unrest. They will, however, happen regardless of who’s running things in either nation. The one certainty is that the powers that be in both nations will make matters worse. The incompetence of governments and central banks renders absurd the debate about whether the Federal Reserve will abandoned its hinted-at plan to raise the federal funds rate target next month. For SLL’s money, it will not raise the rate in the face of crashing economies and financial markets; we’ll probably see the next iteration of quantitative easing before year’s end. And for SLL’s money, it won’t make a bit of difference what the Fed does. At the first hint that the rate won’t be raised we’ll see one of those one- or two-day wonder rallies that crucify the shorts. In the long run, it will be an almost imperceptible upward squiggle on a stock chart that bears a striking resemblance to that of the last crisis (except this one will have a steeper negative slope and a more precipitous drop). Governments around the world are racing to make things worse as debt unravels. Financial markets, no longer faithful lap poodles, are registering the carnage. Currencies are being competitively devalued in a less-than-zero-sum race to the bottom that will have no winners, but which will impoverish citizens of any nation that imports anything. Repayment by governments and corporations of foreign currency debt becomes increasingly problematic as economies shrink and domestic currencies depreciate. Economic contraction is killing exports for raw materials and finished goods, outweighing the transitory benefits from currency depreciation. Local stock markets have tended to follow local currencies, so it’s turning into a rough year for emerging market investors. Widening credit default swap spreads and rising interest rates indicate that it’s also going to be a rough year for emerging market creditors (see “This Is Not A ‘Correction’……..It’s The Beginning Of The Global Bubble Unwind,” by Doug Noland, SLL, 8/22/15). Emerging market travails should occasion no smugness among more developed nations. The former’s problems are the leading edge to which the latter will catch up. SLL readily confesses to two systemic errors. SLL has always underestimated the desperate lengths governments and central banks will go to sustain the unsustainable. During the last financial crisis, SLL would have taken the other side of bets that: the Fed’s balance sheet would expand by four times; the ECB would do “what ever it takes” to keep the European afloat, including allowing as collateral all sorts of garbage debt; central banks would promote negative interest rates; China would go on its massive debt binge, and Japan’s central bank would monetize everything, including equity ETFs.
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Post by Michael Downing on Aug 23, 2015 21:47:43 GMT -5
ncrenegade.com/editorial/this-2-day-stock-market-crash-was-larger-than-any-1-day-stock-market-crash-in-u-s-history/This 2 Day Stock Market Crash Was Larger Than Any 1 Day Stock Market Crash In U.S. History
Sunrise Globe Earth Planet Space - Public DomainWe witnessed something truly historic happen on Friday. The Dow Jones Industrial Average plummeted 530 points, and that followed a 358 point crash on Thursday. When you add those two days together, the total two day stock market crash that we just witnessed comes to a grand total of 888 points, which is larger than any one day stock market crash in U.S. history. It is also interesting to note that this 888 point crash comes in the 8th month of our calendar. Perhaps that is just a coincidence, and perhaps it is not. It just struck me as being noteworthy. This is the first time that the Dow has dropped by more than 300 points on two consecutive days since November 2008, and we all remember what was happening back then. Overall, this was the worst week for the Dow in four years, and there have only been five other months throughout historywhen the Dow has fallen by more than a thousand points (the most recent being October 2008). Of course we still have six more trading days left in August, so there is plenty of time remaining for even more carnage. By itself, the 530 point plunge on Friday was the ninth worst stock market crash in all of U.S. history. The following list of the top eight comes from Wikipedia… #1 2008-09-29 −777.68 #2 2008-10-15 −733.08 #3 2001-09-17 −684.81 #4 2008-12-01 −679.95 #5 2008-10-09 −678.91 #6 2011-08-08 −634.76 #7 2000-04-14 −617.77 #8 1997-10-27 −554.26 Another very interesting thing to note is that the largest stock market crash in U.S. history took place on the very last day of the Shemitah year of 2008, and now we are less than a month away from the end of this current Shemitah year.
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Post by avordvet on Aug 24, 2015 3:44:28 GMT -5
Just checked Asian markets... not good! Dow futures already down 330 points.
Guess the central bankers couldn't come to an agreement to fight or flee. The great unwinding continues.
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Post by Michael Downing on Aug 24, 2015 11:24:11 GMT -5
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Post by Michael Downing on Aug 24, 2015 11:25:50 GMT -5
guerrillamerica.com/2015/08/markets-bloody-heres-your-community-security-checklist/Markets Bloody – Here’s Your Community Security ChecklistAs if you weren’t already aware, Asian markets are bleeding all over the place today (0100 hrs Eastern). The European markets open at 0300 hrs Eastern, which I’m not staying up for, but the safe bet is on seeing Western markets open down, too. I’m not ready to quote Fred Sanford in saying, “This is the big one, Elizabeth!”, however, this is just another data point in a string of data points, in the beginning of a larger set of data points all eventually pointing down. So if you’re just getting started in the intelligence game, check out an article from last year: The Community Security Checklist We’re going to have massive shortfalls in time and resources, and those are only getting worse during an SHTF event. YOU MUST FOCUS ON BUILDING A CAPABILITY TO PRODUCE EARLY WARNING AND THREAT INTELLIGENCE. Identify your most likely local threats and learn everything you can about them. Spending an hour a day for the entire week searching out information on the web is going to increase your ability to survive, because you will better know what to expect. After reading the post linked above, focus on these two steps:
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Post by Michael Downing on Aug 24, 2015 11:27:33 GMT -5
ncrenegade.com/editorial/summarizing-the-black-monday-carnage-so-far/Summarizing The “Black Monday” Carnage So FarWe warned on Friday, after last week’s China rout, that the market is getting ahead of itself with its expectation of a RRR-cut by China as large as 100 bps. “The risk is that there isn’t one.” We were spot on, because not only was there no RRR cut, but Chinese stocks plunged, with the composite tumbling as much a 9% at one point, the most since 1996 when it dropped 9.4% in a single session. The session, as profile overnight was brutal, with about 2000 stocks trading by the -10% limit down, and other markets not doing any better: CSI 300 -8.8%, ChiNext -8.1%, Shenzhen Composite -7.7%. This was the biggest Chinese rout since 2007. The worst news is that the 3,500 level in the SHCOMP which until recently had been seen as a “hard barrier” for the PBOC, has now been breached, and not only is the Shanghai Composite red for the year after being up 60% a little over 2 months earlier (don’t worry though: just like on Yahoo Finance Twitter everyone took profits at the highs), but nobody knows why the Politburo let stocks tumble and worst of all, how much further will it allow stocks to drop. Elsewhere in Asia, equity markets traded with significant losses on what is being referred to as ‘black Monday’ amid increased growth concerns coupled with commodities falling to fresh 6 year lows and US stocks in correction, sparked a further sell-off in the region . The ASX 200 (-4.1%) declined by the most in 4 years, Nikkei 225 (-4.6%) and Hang Seng (-5.2%) also saw considerable losses with energy dragging the index lower. 10yr JGBs saw relatively muted trade and are up by 3 ticks.
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Post by avordvet on Aug 24, 2015 15:56:38 GMT -5
'Black Monday': £74bn wiped off FTSE 100 as China fears spark global markets crashWall Street crashes after China suffers worst trading day in eight years and Russia's rouble falls to all time low in chaotic trading By Mehreen Khan, 9:25PM BST 24 Aug 2015 • Shanghai composite falls as much as 9pc - reversing yearly gains • More than $5 trillion has been wiped off global stocks since Aug 11 • £74bn wiped off FTSE, which recovers to end the day down 4.5pc • Dow Jones collapses 1000 on opening; closes at 3.5pc • Fed policymaker: rate hike still on course for this year • Wrap: Stock market meltdown wipes billions off global indices www.telegraph.co.uk/finance/markets/11819812/Black-Monday-live-FTSE-100-China-global-markets.html?frame=3417795
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Post by Michael Downing on Aug 26, 2015 20:01:00 GMT -5
ncrenegade.com/editorial/what-if-the-crash-is-as-rigged-as-everything-else/ What If The “Crash” Is As Rigged As Everything Else?Take your pick–here’s three good reasons to engineer a “crash” that benefits the few at the expense of the many. There is an almost touching faith that markets are rigged when they loft higher, but unrigged when they crash. Who’s to say this crash isn’t rigged? A few things about this “crash” (11% decline from all time highs now qualifies as a “crash”) don’t pass the sniff test. Exhibit 1: VIX volatility Index soars to “the world is ending” levels when the S&P 500 drops a relatively modest 11%. The VIX above 50 is historically associated with declines of 20% or more–double the current drop. When the VIX spiked above 50 in 2008, the market ended up down 57%. Now that’s a crash.
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Post by Michael Downing on Aug 26, 2015 20:04:32 GMT -5
ncrenegade.com/editorial/during-every-market-crash-there-are-big-ups-big-downs-and-giant-waves-of-momentum/During Every Market Crash There Are Big Ups, Big Downs And Giant Waves Of MomentumThis is exactly the type of market behavior that we would expect to see during the early stages of a major financial crisis. In every major market downturn throughout history there were big ups, big downs and giant waves of momentum, and this time around will not be any different. As I have explained repeatedly, markets tend to go up when things are calm, and they tend to go down when things get really choppy. During a market meltdown, we fully expect to see days when the stock market absolutely soars. Waves of panic selling are often followed by waves of panic buying. As you will see below, six of the ten best single day gains for the Dow Jones Industrial Average happened during the financial crisis of 2008 and 2009. So don’t be fooled for a moment by a very positive day for stocks like we are seeing on Tuesday. It is all part of the dance. At one point on Tuesday, the Dow was up over 400 points, and many of the talking heads on television were proclaiming that the stock market had “recovered”. This is something that I predicted would happen yesterday… And if stocks go up tomorrow (which they probably should), all of those same “experts” will be proclaiming that the “correction” is over and that everything is now fine. No, everything is not “fine” now. The extreme volatility that we are witnessing just tells us that more trouble is coming. Early on Tuesday the market was “burning up energy” as short-term investors sought to “buy the dip”. But now that wave of panic buying is subsiding and the Dow is only up 240 points as I write this.
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Post by Michael Downing on Aug 26, 2015 20:07:45 GMT -5
ncrenegade.com/editorial/devaluation-stunner-china-has-dumped-100-billion-in-treasurys-in-the-past-two-weeks/Devaluation Stunner: China Has Dumped $100 Billion In Treasuries In The Past Two WeeksOn August 11, China devalued its currency, and in the subsequent 3 days the onshore Yuan, the CNY, tumbled by some 4% against the dollar. Then, as if by magic, the CNY stabilized when China started intervening massively, only this time not through the fixing, but in the actual FX market. This means that while China has previously been dumping reserves as a matter of FX policy, after August 11 it was intervening directly in the FX market, with the intervention said to really pick up after the FOMC Minutes on August 19, the same day the market finally topped out, and has tumbled into a correction since then. The result was the same: massive FX reserve liquidations to defend the currency one way or the other. And yet something curious emerges when comparing the traditionally tight, and inverse, relationship between the S&P and the Treasury long-end: the tumble in stocks has not been anywhere near as profound as the jump in yields. In fact, the 30 Year is wider now than where it was the day China announced the Yuan devaluation. Why is that? We hinted at the answer on two occasions earlier (here and here) and yet the point is so critical, and was missed by virtually all readers, that it deserves to be repeated once again: as part of China’s devaluation and subsequent attempts to contain said devaluation, it has been purging foreign reserves at an epic pace. Said otherwise, China has sold an epic amount of Treasurys in the past two weeks.
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Post by smith1955 on Aug 26, 2015 20:49:59 GMT -5
well 2008 I was hit hard......lost my college fund for my daughter ....I have started pulling out of the market a few weeks ago.... all should ....feeling this one will hit hard
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Post by avordvet on Aug 27, 2015 3:47:50 GMT -5
well 2008 I was hit hard......lost my college fund for my daughter ....I have started pulling out of the market a few weeks ago.... all should ....feeling this one will hit hard Good move, we all took a good financial 'haircut' from the politicians and bankers last time. Still gonna be some payback for that one if it collapses again. Many have already made that transition, just be aware you might want to go quickly into much more tangible and/or usable assets. If it goes full blow currency wars on top of an economic collapse, those dollars are dead and gone before you can use 'em. Also, if you are with one of the mega-banks, bail now and get into a small community bank or better yet a local credit union. Keep building those local networks and contacts.
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Post by avordvet on Aug 27, 2015 4:18:53 GMT -5
Once the economic powerhouse of South America, look at what they have become. You think are borders are being overrun now? wait until the South and Central American countries fully collapse and they join the Mexicans at the border.
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Post by avordvet on Aug 28, 2015 4:25:15 GMT -5
Lies You Will Hear As The Economic Collapse ProgressesSubmitted by Tyler Durden on 08/27/2015 22:15 -0400 Submitted by Brandon Smith via Alt-Market.com, It is undeniable; the final collapse triggers are upon us, triggers alternative economists have been warning about since the initial implosion of 2008. In the years since the derivatives disaster, there has been no end to the absurd and ludicrous propaganda coming out of mainstream financial outlets and as the situation in markets becomes worse, the propaganda will only increase. This might seem counter-intuitive to many. You would think that the more obvious the economic collapse becomes, the more alternative analysts will be vindicated and the more awake and aware the average person will be. Not necessarily... www.zerohedge.com/news/2015-08-27/lies-you-will-hear-economic-collapse-progresses
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Post by avordvet on Aug 30, 2015 14:36:50 GMT -5
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Post by avordvet on Aug 31, 2015 4:44:22 GMT -5
Did the Fed Trigger Another Stock Market Crash on Monday August 31?by John Galt, August 30, 2015 19:00 ET As of this past Friday, August 28th, the Federal Reserve, the Plunger Protection Team (PPT for short), and the financial infomercial media had been screaming “Mission Accomplished” as they helped to goose the Monday and Tuesday disaster into a gain for the week. Unfortunately for the financial media and more of the cheerleaders, futures are down again as this article is being published: johngaltfla.com/wordpress/2015/08/30/did-the-fed-trigger-another-stock-market-crash-on-monday-august-31/
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Post by Michael Downing on Aug 31, 2015 21:50:15 GMT -5
ncrenegade.com/editorial/in-the-month-of-september-2015-we-officially-enter-the-danger-zone/In The Month Of September 2015 We Officially Enter The Danger ZoneIs September 2015 going to be one of the most important months in modern American history? When I issued my first ever “red alert” for the last six months of 2015 back in June, I was particularly concerned with the months of September through December, and not just for economic reasons. All of the intel that I have received is absolutely screaming that big trouble is ahead. So enjoy these last few days of relative peace and quiet. I mean that sincerely. In fact, that is exactly what I have been doing – over the past week I have not posted many articles because I was spending time with family, friends and preparing for the national call to prayer on September 18th and 19th. But now as we enter the chaotic month of September 2015 I have a feeling that there is going to be plenty for me to write about. At this time last month, I declared that we were entering “the pivotal month of August 2015“, and that is exactly what it turned out to be. August was the worst month overall for stocks in three years, and it was the worst month of August for U.S. financial markets in 17 years. Throughout history, there have only been 11 times when the S&P 500 has declined by more than five percent during the month of August. When that has happened, the stock market has almost always fallen in September as well…
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Post by Michael Downing on Sept 3, 2015 13:39:13 GMT -5
ncrenegade.com/editorial/russia-is-going-to-pass-a-law-formally-dumping-the-u-s-dollar/Russia Is Going To Pass A Law Formally Dumping The U.S. Dollar
Russian President Vladimir Putin has introduced legislation that would deal a tremendous blow to the U.S. dollar. If Putin gets his way, and he almost certainly will, the U.S. dollar will be eliminated from trade between nations that belong to the Commonwealth of Independent States. In addition to Russia, that list of countries includes Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan and Uzbekistan. Obviously this would not mean “the death of the dollar”, but it would be a very significant step toward the end of the era of the absolute dominance of the U.S. dollar. Most people don’t realize this, but more U.S. dollars are actually used outside of the United States than are used inside this country. If the rest of the planet decides to stop accumulating dollars, using them to trade with one another, and loaning them back to us at ultra-low interest rates, we are going to be in for a world of hurt. Unfortunately for us, it is only a matter of time until that happens. When I first read the following excerpt from a recent RT article, I was absolutely stunned… Russian President Vladimir Putin has drafted a bill that aims to eliminate the US dollar and the euro from trade between CIS countries. This means the creation of a single financial market between Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and other countries of the former Soviet Union. “This would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets”, said a statement from Kremlin. For a long time, tensions have been building between the United States and Russia over Syria, Ukraine, the price of oil and a whole host of other issues. But I didn’t anticipate that things would get to this level quite yet. It is expected that Putin’s new bill will become law, and this is only one element of a much larger trend that is now developing.
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Post by avordvet on Sept 4, 2015 4:58:36 GMT -5
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Post by avordvet on Sept 5, 2015 5:06:52 GMT -5
Stock Market Crash 2015: The Dow Has Already Plummeted 2200 Points From The PeakBy Michael Snyder, on September 4th, 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. theeconomiccollapseblog.com/archives/stock-market-crash-2015-the-dow-has-already-plummeted-2200-points-from-the-peak
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Post by Michael Downing on Sept 5, 2015 18:48:42 GMT -5
h/t NC Renegade www.zerohedge.com/news/2015-09-05/europes-biggest-bank-dares-ask-fed-preparing-controlled-demolition-stock-marketEurope's Biggest Bank Dares To Ask: Is The Fed Preparing For A "Controlled Demolition"Why did we focus so much attention yesterday on a post in which the IMF confirmed what we had said since last October, namely that the BOJ's days of ravenous debt monetization are coming to a tapering end as soon as 2017 (as willing sellers simply run out of product)? Simple: because in the global fiat regime, asset prices are nothing more than an indication of central bank generosity. Or, as Deutsche Bank puts it: "Ultimately in a fiat money system asset prices reflect “outside” i.e. central bank money and the extent to which it multiplied through the banking system." The problem is that the BOJ and the ECB are the only two remaining central banks in a world in which Reverse QE aka "Quantitative Tightening" in China, and the Fed's tightening in the form of an upcoming rate hike (unless the Fed loses all credibility and reverts its pro-rate hike bias), are now actively involved in reducing global liquidity. It is only a matter of time before the market starts pricing in that the Bank of Japan's open-ended QE has begun its tapering (followed by a QE-ending) countdown, which will lead to devastating risk-asset consequences. The ECB, which is also greatly supply constrained as Ewald Nowotny admitted yesterday, will follow closely. But while we expanded on the Japanese problem to come in detail yesterday, here are some key observations on what is going on in both the US and China as of this moment - the two places which all now admit are the culprit for the recent equity selloff, and which the market has finally realized are actively soaking up global liquidity. Here the problem, as we initially discussed last November in "How The Petrodollar Quietly Died, And Nobody Noticed", is that as a result of the soaring US dollar and collapse in oil prices, Petrodollar recycling has crashed, leading to an outright liquidation of FX reserves, read US Treasurys by emerging market nations. This was reinforced on August 11th when China joined the global liquidation push as a result of its devaluation announcement, a topic which we also covered far ahead of everyone else with our May report "Revealing The Identity Of The Mystery "Belgian" Buyer Of US Treasurys", exposing Chinese dumping of US Treasurys via Belgium. We also hope to have made it quite clear that China's reserve liquidation and that of the EM petro-exporters is really two sides of the same coin: in a world in which the USD is soaring as a result of Fed tightening concerns, other central banks have no choice but to liquidate FX reserve assets: this includes both EMs, and most recently, China. Needless to say, these key trends covered here over the past year have finally become the biggest mainstream topic, and have led to the biggest equity drop in years, including the first correction in the S&P since 2011. Elsewhere, the risk devastation is much more profound, with emerging market equity markets and currencies crashing around the globe at a pace reminiscent of the Asian 1998 crisis, while in China both the housing and credit, not to mention the stock market, bubble have all long burst. Before we continue, we present a brief detour from Deutsche Bank's Dominic Konstam on precisely how it is that in the current fiat system, global central bank liquidity is fungible and until a few months ago, had led to record equity asset prices in most places around the globe. To wit: Let’s start from some basics. Global liquidity can be thought of as the sum of all central banks’ balance sheets (liabilities side) expressed in dollar terms. We then have the case of completely flexible exchange rates versus one of fixed exchange rates. In the event that one central bank, say the Fed, is expanding its balance sheet, they will add to global liquidity directly. If exchange rates are flexible this will also mean the dollar tends to weaken so that the value of other central banks’ liabilities in the global system goes up in dollar terms. Dollar weakness thus might contribute to a higher dollar price for dollar denominated global commodities, as an example. If exchange rates are pegged then to achieve that peg other central banks will need to expand their own balance sheets and take on dollar FX reserves on the asset side. Global liquidity is therefore increased initially by the Fed but, secondly, by further liability expansion, by the other central banks. Depending on the sensitivity of exchange rates to relative balance sheet adjustments, it is not an a priori case that the same balance sheet expansion by the Fed leads to greater or less global liquidity expansion under either exchange rate regime. Hence the mere existence of a massive build up in FX reserves shouldn’t be viewed as a massive expansion of global liquidity per se – although as we shall show later, the empirical observation is that this is a more powerful force for the “impact” of changes in global liquidity on financial assets. That, in broad strokes, explains how and why the Fed's easing, or tightening, terms have such profound implications not only on every asset class, and currency pair, but on global economic output. Liquidity in the broadest sense tends to support growth momentum, particularly when it is in excess of current nominal growth. Positive changes in liquidity should therefore be equity bullish and bond price negative. Central bank liquidity is a large part of broad liquidity and, subject to bank multipliers, the same holds true. Both Fed tightening and China’s FX adjustment imply a tightening of liquidity conditions that, all else equal, implies a loss in output momentum.
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Post by avordvet on Sept 8, 2015 5:00:10 GMT -5
The Elite Have Prepared For The Coming Collapse – Have You?By Michael Snyder, on September 6th, 2015 Why are the global elite buying extremely remote compounds that come with their own private airstrips in the middle of nowhere on the other side of the planet? And why did they start dumping stocks like crazy earlier this year? Do they know something that the rest of us don’t? The things that I am about to share with you are quite alarming. It appears that the global elite have a really good idea of what is coming, and they have already taken substantial steps to prepare for it. Sadly, most of the general population is absolutely clueless about the financial collapse that is about to take place, and thus most of them will be completely blindsided by it. As I discussed the other day, the only way that you make money in the stock market is if you get out in time. The elite understand this very well, and that is why they have been dumping stocks for months. This is something that has even been reported in the mainstream news. For example, this comes from a CNBC article that was published on June 16th… theeconomiccollapseblog.com/archives/the-elite-have-prepared-for-the-coming-collapse-have-you
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Post by Michael Downing on Sept 9, 2015 20:52:32 GMT -5
ncrenegade.com/editorial/this-is-exactly-what-the-early-phases-of-a-market-meltdown-look-like/This Is EXACTLY What The Early Phases Of A Market Meltdown Look LikeThere 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. On Tuesday, the Dow surged several hundred points. There was much celebrating in the mainstream media over this, but what they failed to realize was that this was another big red flag. And we saw this volatility carry over into Wednesday. The Dow was up 171 points early in the day before ending down 239 points. By themselves, those two days don’t mean a whole lot. The key is to look at them in context. And in context, we have already witnessed the most dramatic stock market crash since the last financial crisis. There will be more days when the stock market absolutely plummets and there will be more days when it absolutely soars. No stock market crash in U.S. history has ever gone in just one direction continually. There are always giant waves of momentum that cause panic selling and panic buying. There is one thing that could change that. A major “black swan event” such as a historic natural disaster, an unprecedented terror attack, or the outbreak of war could potentially be enough to chase all of the buyers out of the marketplace. And considering the times that we are moving into, those things should not be ruled out. But minus some type of event like that, we should expect lots of wild swings in both directions.
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Post by Michael Downing on Sept 9, 2015 20:58:39 GMT -5
h/t WRSA www.zerohedge.com/news/2015-09-09/david-stockman-sums-it-all-3-minutesDavid Stockman Sums It All Up In 3 MinutesStockman unleashes truthiness hell on Bloomberg TV: "Federal Reserve [actions] will have disastrous long-term consequences... when you deny price-discovery in the market for so long, it is a massive subsidy to speculation... In an era of peak debt, the only thing zero interest rates achieve is create an enormous incentive for Wall Street to gamble more and more recklessly..."
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Post by Michael Downing on Sept 9, 2015 21:13:03 GMT -5
straightlinelogic.com/2015/09/09/real-money-by-robert-gore/Real MoneyHere’s a definition of money that will be rejected by conventional economists of all persuasions, but will clear up analytical confusion for those outside the dismal science. Money is that which serves as a medium of exchange, a store of value, and a unit of account, has intrinsic value, and which is not a liability of an individual or entity, including that of a government. The immediate objection to this definition is that it does not describe anything that currently functions as a medium of exchange. Something must be wrong with a definition of money that excludes everything that people now think of as money. Perhaps it’s not the definition of money that’s flawed, but present monetary arrangements. Everything that now serves as a medium of exchange, a store of value, and a unit of account has minimal or no intrinsic value and is somebody’s liability. Even the US currency is a note, or debt instrument, of the Federal Reserve. These notes pay no interest and have no maturity date, and they can only be redeemed at the Fed for more notes, but they are liabilities on the Fed’s books. Precious metals, on the other hand, which have served as money, or have been the basis of fully convertible paper currencies, are not liabilities. Behind the curtain of present institutional arrangements, the US government issues IOUs, which are payable in IOUs issued by the central bank, which themselves are only redeemable for more central bank IOUs. The law mandates that these central bank IOUs are “Legal Tender” for settlement of all debts, public and private. While the debt ceiling limits the amount of IOUs the government can issue (although it is invariably raised), there is no limit on the IOUs the Federal Reserve can create. These IOUs are either Federal Reserve Notes or member bank deposits with the Fed (just as a customer deposit with a bank is a bank IOU, a member bank deposit with the Fed is a Fed IOU). So why not just call these government and central bank IOUs what they are: debt? And why not call precious metals money? They are not debt and they also have the intrinsic value embedded in the resources necessary to find, mine, smelt, and refine them, their use in various industrial and consumer goods, and they’re indestructibility, divisibility, portability, measurability, and beauty. If used as a medium of exchange, store of value, and unit of account, they satisfy the conventional definition of money, although they are not currently being used as such.
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Post by avordvet on Sept 14, 2015 3:57:02 GMT -5
"US interest rate rise could WILL trigger global debt crisis"... There, fixed it for them. US interest rate rise could trigger global debt crisisGlobal debt levels are dangerously high and central banks cannot keep the game going indefinitely, warns the high priest of orthodoxy By Ambrose Evans-Pritchard, 8:30AM BST 14 Sep 2015 Debt ratios have reached extreme levels across all major regions of the global economy, leaving the financial system acutely vulnerable to monetary tightening by the US Federal Reserve, the world's top financial watchdog has warned. The Bank for International Settlements said the wild market ructions of recent weeks and capital outflows from China are warning signs that the massive build-up in credit is coming back to haunt, compounded by worries that policymakers may be struggling to control events. www.telegraph.co.uk/finance/economics/11858952/BIS-fears-emerging-market-maelstrom-as-Fed-tightens.html
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Post by Michael Downing on Sept 14, 2015 10:19:30 GMT -5
h/t NC Renegade... Got faith??? theeconomiccollapseblog.com/archives/i-have-no-fear-of-economic-collapseI Have No Fear Of Economic CollapseI am not afraid of an economic collapse. Coming from someone that runs “The Economic Collapse Blog”, I am sure that sounds like a very odd statement. But it is true. I have no fear of economic collapse, even though I am fully convinced that the hardest times that any of us have ever experienced are ahead. I spend countless numbers of hours in front of my computer immersed in deeply disturbing information, and yet I sleep more soundly at night than I ever have before. In fact, my wife and I seek to live in a constant state of “shalom”, which is the Hebrew word for peace. So how is this possible? How can “the economic collapse guy” not be absolutely overwhelmed by fear, depression and paranoia? Unlike so many that write about these things, I believe that preparation for what is ahead goes far beyond the physical. So I am constantly stressing the need for mental, emotional and especially spiritual preparation. Personally, I have absolutely no idea how atheists are going to make it through what is coming. They don’t understand why they are here, they don’t understand why history is unfolding the way that it is, and they have absolutely no hope for the future beyond this life. If you greatly fear death and you can’t stand to lose the possessions that you have accumulated, the years ahead are going to be exceedingly difficult for you. My relationship with the Lord Jesus Christ gives my life meaning and purpose. He took the broken pieces of my life and turned them into a beautiful thing, and He can do the same for you. I also strongly advocate physical preparation for the hard years that are coming. My wife and I work very hard to store up food and supplies. The funny thing is that there are Christians out there that actually accuse me of being “anti-faith” for doing these things. Apparently they believe that we should all just sit around watching television while we wait for God to do everything for us. But that isn’t how it works. In the Bible, we see that exercising faith almost always involves action. Noah, Joseph and others acted in faith based on the warnings that they had received, and they were commended for it.
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Post by avordvet on Sept 28, 2015 4:41:29 GMT -5
2008 has Returned in Spadesby John Galt, September 27, 2015 20:20 ET This time however, the only solution is to let it go, let it burn, and reset the system. Of course, there is always the globalist cashless solution with perpetual slavery to a world bank based system of currency issuance; hmmm, I wonder if that was the plan all along… johngaltfla.com/wordpress/2015/09/27/just-holy-shit-2008-has-returned-in-spades/
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