Are you prepared for further turmoil?
The global deflationary wave we have been tracking since last fall is picking up steam. This is the natural and unavoidable aftereffect of a global liquidity bubble brought to you courtesy of the world’s main central banks. What goes up must come down — and that’s especially true for the world’s many poorly-constructed financial bubbles, built out of nothing more than gauzy narratives and inflated with hopium.
What this means is that the traditional summer lull in financial markets has turned August into an unusually active and interesting month. August, it appears, is the new October.
Markets are quite possibly in crash mode right now, although events are unfolding so quickly – currency spikes, equity sell offs, emerging market routs and dislocations, and commodity declines – that it’s hard to tell for sure. However, that’s usually the case right before and during big market declines.
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And as we sleep China prepares a last ditch effort to float its economy with their version of a QE of more than 20 billion dollars. The Feds here are buying up futures after hours in an effort to prop up our markets against further collapse hoping this news in China will help breath life back into the global economy. It will probably help enough to prolong the inevitable but with the economy glutted with commodities as it slows to a snails pace, the market will continue its decline eventually. But the fools among us will go like sheep to slaughter.
ReplyDeleteWell what does China think will happen when they print this amount of money and inject it into their economy? We should all know what will happen by looking what happened here. The economy will look better and their stock market with go up up up. Artificially. And the bubble will get bigger. The truth is staring right at everyone. The global economy is everyone's economy. Every nations debt is so high that there is no way to repay it. Debt forgiveness (global bankruptcy) is what is bound to happen. A gigantic global financial restructuring with a new world currency that can't be devalued by any one nation that will negatively affect emerging markets. At the head of this restructure will be the IMF. The International Monetary Fund- the world bank. Since the economy is tied together so tightly there is no logical way (they will tell us) that the existing monetary systems of sovereign nations can remain intact if these nations expect to continue trading with other nations around the world. This announcement may be made as early as October. When that happens our dollar will lose its status as the worlds reserve currency and trillions of dollars of wealth will leave this country. Talk about redistribution of wealth. Life as we know it will be changed forever.
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