World Economy Melting Down

 

QUESTION: Mr. Armstrong; You have indeed sparked my curiosity. With both the velocity of money and the trading volume declining since 1998, this seems to be a very dangerous position and your work is really eye opening. I read your Transactional Banking and it seems that this has changed everything for the worse. Your Big Bang seems to have been on target starting with 2015.75 as that was the peak in government and we have seen a further decline in economic growth. With trading volume bottoming in 2014 and your War Cycle turning up also in 2014, the picture is starting to come into focus. Your warning of a Phase Transition building is also starting to make sense for the volume is at the lows not the highs and it appears you are forecasting a big rush out of government debt into private. I think I am beginning to see the future and this looks crazy indeed. Am I on the right track? Continue reading

Peter Temple: Cycles predict 500 yr Ice Age and 90% Dow crash

(TRUNEWS) Futurist and Market Analyst Peter Temple says cycles show that the world is entering a 500 year ‘Little Ice Age’ and that the Dow Jones will crash 90% in value by 2020.

Temple’s statements were made during an exclusive interview with Rick Wiles of TRUNEWS on Monday, while discussing how Alexander Chizhevsky’s Solar, Edward R. Dewey’s Business, Ralph Nelson Elliott’s Market, Nikolai Kondratiev’s Economic, and Raymond H. Wheeler’s Climate cycles can be used to accurately predict future trends.

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Fasten your seatbelts: History’s about to repeat itself

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Over the last decade, I’ve found my opinions coinciding more and more with those of SocGen strategist and “uber-bear” Albert Edwards. Last week he hit the headlines again with a claim that a “gut-wrenching slump” in profits amounts to an almost-certain predictor of recession. While the historic evidence for this is compelling, I’m not so sure this time couldn’t be slightly different — at least in terms of causes and effects. Continue reading

IMF Warns Next Financial Crash Is Only a Matter of Time

With interest rates at a 5,000-year low, are we really surprised that a crash is coming?

The International Monetary Fund (imf) is warning that a financial crisis is practically guaranteed, and it’s just a matter of time before it strikes. The organization’s newly released Global Financial Stability report is sobering reading. The flaws in the global financial system have not been fixed, it says.

It highlights soaring global debt, particularly in emerging markets. The implication is that we could see a repeat of the 1997 currency crisis also known as the “Asian Flu,” which saw massive currency devaluations, contractions in global trade, economic turmoil, and social instability.

But conditions are much more dangerous today than back then. Virtually the whole world is teetering on recession, the West and Russia are back in Cold War mode, the Middle East is engaged in actual war in Syria, and the world is more interconnected than ever—potentially making the transmission of financial diseases much quicker. Continue reading

China currency war fears causing collapse in U.S. stock market

(NaturalNews) Americans and people all over the world are still traumatized from the 2007 and 2008 crash that altered world economies. In many ways, we are still recovering from that crisis and countless people and regions worldwide are still recovering. Think Greece, and Brazil; these countries have never fully recovered. So when the headlines today are sounding the alarm about U.S. stock markets taking a plunge, people everywhere are bracing themselves for the worst possible scenario. Can we really weather another 2008 crash? (Article republished from Collapse.news.) Continue reading

The FDIC’s Plan to Raid Bank Accounts During the Next Crisis

The financial system is predominantly comprised of digital money. Actual physical Dollars bills and coins only amount to $1.36 trillion. This is only a little over 10% of the $10 trillion sitting in bank accounts. And it’s a tiny fraction of the $20 trillion in stocks, $38 trillion in bonds and $58 trillion in credit instruments floating around the system.

Suffice to say, if a significant percentage of people ever actually moved their money into physical cash, it could very quickly become a systemic problem.

Indeed, this is precisely what caused the 2008 meltdown, when nearly 24% of the assets in Money Market funds were liquidated in the course of four weeks. The ensuing liquidity crush nearly imploded the system. Continue reading

The Coming Crash of All Crashes – but in Debt

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Why are governments rushing to eliminate cash? During previous recoveries following the recessionary declines from the peaks in the Economic Confidence Model, the central banks were able to build up their credibility and ammunition so to speak by raising interest rates during the recovery. This time, ever since we began moving toward Transactional Banking with the repeal of Glass Steagall in 1999, banks have looked at profits rather than their role within the economic landscape. They shifted to structuring products and no longer was there any relationship with the client. This reduced capital formation for it has been followed by rising unemployment among the youth and/or their inability to find jobs within their fields of study. The VELOCITY of money peaked with our ECM 1998.55 turning point from which we warned of the pending crash in Russia. Continue reading

Fears grow over Greece exit after ECB says Europe is ‘equipped’ for fallout

Fears of a Greek exit from the EU have grown after the head of the European Central Bank said the currency bloc has “buffers” in place to avoid a chain reaction meltdown were the country to be forced out.

The statements came from the ECB after a series of meetings with big players from the international financial community. Continue reading

2015 Or 1987? Computerized Trading & “A Crash Is Coming” Or Rates Mean “Bull’s Not Over”

 

First 10 minutes of Wall Street Week episode from Friday October 16, 1987 just prior to the market crash on black Monday. Hosted by Louis Rukeyser, guests included Martin Zweig, Marry Farrell, Louis Holland and Allen Sinai. Continue reading

“We are all in a ponzi-world right now, hoping to get bailed-out by the next person”

One of the most important Zero Hedge posts of the last few years was “The “Muddle Through” Has Failed: BCG Says “There May Be Only Painful Ways Out Of The Crisis”” where The Boston Consulting Group (BCG) helped explain how the economic establishment is trying everything to move the system further with ever more cheap money and debt, why this will fail, and the inevitable wealth taxes that will be imposed to refloat the system from the ashes.

One of the authors of the infamous “Back to Mesopotamia” report (if 1984 is the instruction manual for political leaders, then this is the instruction manual for monetary leaders) was BCG senior partner Daniel Stetler, now blogger, and author “Debt In The 21st Century” who sees debt and leverage as the main factors driving wealth and inequality – a fact clearly overlooked by Piketty. Continue reading

Billionaire Tells Americans to Prepare For ‘Financial Ruin’

The United States could soon become a large-scale Spain or Greece, teetering on the edge of financial ruin.

According to Trump, the United States is no longer a rich country. “When you’re not rich, you have to go out and borrow money. We’re borrowing from the Chinese and others. We’re up to $16 trillion in debt.”

He goes on to point out that the downgrade of U.S. debt is inevitable.

“We are going up to $16 trillion [in debt] very soon, and it’s going to be a lot higher than that before he gets finished. When you have [debt] in the $21-$22 trillion, you are talking about a downgrade no matter how you cut it.” Continue reading

U.S. Sanctions Push Putin Toward His Dream of A New Financial System

Although Monday’s sanctions will hurt Russia in the short term, they will also force Putin to step up his efforts to weaken U.S. influence over the global economy, which so far has been “little more than wishful thinking because of the difficult reforms it would require”

A little over a year ago, in early March 2013, the Russian state energy czar Igor Sechin made his American debut at an oil summit in Houston, Texas, reportedly accompanied by armed guards equipped with a K-9 unit. The speech he gave that day at the СERAWeek conference, an annual gathering of energy titans from around the world, was part of a pit stop for Sechin. He was on his way to a more high profile event, the funeral of his old friend Hugo Chavez, the truculently anti-American President of oil-rich Venezuela. But since he was passing through the Western hemisphere anyway, Sechin clearly felt it was worthwhile to court some American investors. “I call for us to work together,” he told the audience that day, according to Russia’s Vedomosti daily, “to drive our business for mutual benefit.” Continue reading

‘Very painful’: World heading for bust ‘unlike any other’, says Jeremy Grantham

Legendary investor Jeremy Grantham says the US Federal Reserve is killing the recovery of the world’s biggest economy and the ”next bust will be unlike any other”.

Mr Grantham – the cofounder and chief investment strategist at the $US112 billion ($123 billion) Boston-based fund manager GMO –said he wouldn’t invest his clients’ money in US stocks for at least the next seven years because of the Fed’s ”misguided policies”.

Mr Grantham has an impeccable track record, having called both the internet bubble and then the US housing bubble. In November he said he believed the US sharemarket could rise another 30 per cent, although he believed it was overvalued, before crashing again.

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Celente – No Way Out As Global Ponzi Scheme Collapse Begins

Today the man who remarkably predicted months ahead of time that the Fed would taper in December, then again in January, and who also predicted the global market plunge that we are now seeing, warned KWN that there is no way out this time for central planners as the global Ponzi scheme has now begun to collapse.  He also discussed the incredible turmoil taking place around the world.  Below is what Gerald Celente, founder of Trends Research and the man considered to be the top trends forecaster in the world, had to say in this remarkable interview.

Eric King:  “Gerald, so far this chaos is unfolding exactly as you said it would with the market turmoil around the world.  Some of the market participants are becoming a bit shocked at what’s unfolding here, but you called it to perfection.  My question to you is, where do we go from here?”

Celente:  “Global markets are headed down, but it may not be in a straight line because you are going to start seeing the Fed, (Washington) D.C., and the Wall Street gang move in to stop the slide in global equities. Continue reading

BIS: The most powerful bank in the world announces the crash

The following is an article published originally in German, translated in the best way Google can offer. Because this is fresh off the German press, don’t expect it to hit American news outlets until another week or so — and likely not on the major national outlets.

When the BIS speaks, markets listen. This is essentially a jaw dropper of an announcement. They realize that all the QE heroin injections are not working and that there is no way to financially turn the American economy around — it’s mathematically impossible. They also know that the US financial leadership knows. The day of reckoning is near and it’s not just the US that will be affected and, although it will suffer the worst, the entire world over is going to go through a change unheard of in its entire history.

(Für die Lesern, dass deutschen sind, klicken Sie bitte auf dem original Link.)

The Bank for International Settlements (BIS) is the current situation on the financial markets as worse than before the Lehman bankruptcy. The warning of the BIS could be the reason why the U.S. Federal Reserve decided to continue indefinitely to print money: Central banks have lost control of the debt-tide and give up.

The decision by the U.S. Federal Reserve to continue indefinitely to print money (here ) might have fallen on “orders from above”.

Apparently, the central banks dawns that it is tight.

Very narrow.

The most powerful bank in the world, the Bank for International Settlements (BIS) has published a few days ago in its quarterly report for the possible end of the flood of money directly addressed – and at the same time described the situation on the debt markets as extremely critical. The “extraordinary measures by central banks” – aka the unrestrained printing – had awakened in the markets the illusion that the massive liquidity pumped into the market could solve the fundamental problems (more on the huge rise in debt – here ). Continue reading