The Rosy Illusion of Global Recovery has Now Been Shattered

The Wealth Watchman

Epic Rout

Folks, the panic is spreading, and fast.  This is the moment you and I have prepared for, for years. It’s finally here.  The controllers are no longer able to convince folks of the ‘recovery’ story, with massaged, fluffy jobs numbers, or double-speak about a rosy stock market.  Indeed, all that work of propping up markets with endless buying & propaganda seems to be fracturing good and hard.

Last week kicked off the global equity bloodbath on a colossal scale. Over the weekend, everyone held their breath, wondering just how bad things would be, and whether Beijing would be willing(or even able) to hold the Shenzen stock exchange line, at the 3,500 level.  Sadly, it didn’t take long for them to find out.  Within mere seconds after the market opened, they got their answer(as this image from “China Xinhau News” vividly demonstrates)…

 

Investors were swept away by the selling tsunami, as 3,500 failed…

And then 3,400…

And 3,300…

Then 3,200…

Until at last, as the wave of red crested(for the day, at least), leaving the battered Shanghai Index just above 3,200, at 3,209, for a whopping, one day drop, of 8.5%.

By the end of the trading day in Asia, that carnage had spread to virtually all other major stock indexes had taken major body blows, as everyone rushed to pitch the investments they’d all been uber bullish on, just 8 short weeks ago.

Here is a short list of the casualties in other countries:

Hong Kong(Hang Seng):  down 5.1%

Japan’s Nikkei: down 4.6%

Australia’s ASX/200: down 4.1%

South Korea’s Kospi: down 2.5%

India’s BSA and “Nifty” Indexes, at one point of the day, were both down 3.97 and 3.95% respectively.

In what is now being called “Black Monday”, by day’s end, many hundreds of billions of dollars in “wealth” in stocks(which had spent all of 2015 building up)….were obliterated.  Beijing’s “line in the sand” was instantly washed away…and those vast cash reserves they’d spent propping up their markets had been wasted.

It wasn’t simply the East, or their emerging market currencies, which were battered though, for within hours, it was Europe’s turn to dance with the devil.

Crash Flows West

 

 

Every major market in Europe is taking a pounding, and though those markets haven’t closed yet(at the time of writing this article) barring some miraculous “ramp” from their plunge protection teams, it’s safe to say that Europe was a casualty of “Black Monday’s” action.

Meanwhile, crude oil(of all kinds) is taking another dive.  In fact, North Sea Brent Crude is now down to the lowest levels since March of 2009(yes, the height of the last financial crisis).  West Texas Intermediate is now desperately trying to hold onto $39 a barrel…but will likely fail to hold that weak line as well..

Stop for a moment, and think of what will soon happen to the entire Shale Oil industry here in the United States.  That industry(which was created off cheap credit, and risky debt issuance) needs oil prices at least twice this high to even survive.

It is becoming evident that within several more months of this action(if not sooner) within oil, you will begin to see a daisy chain of bankruptcies, coupled with tens of thousands more workers laid off.  That industry, much like the precious metals mining industry, is rapidly running out of time, and out of options, in order to survive in relatively good health.

Global trade is also collapsing worldwide, as orders plummet, manufacturing plummets, and worldwide indices plummet.

But, everyone, everywhere is looking on with baited breath to see the only unanswered question left about “Black Monday”….

Dow Jones

How bad will the fallout be on Wall Street, within the S&P and the Dow?  

As I sit and watch the Dow futures, it seems that(at 7 pm EST),those futures, which had been trying to rebound after an initial crash…are now back under -600 points, while the S&P futures are down about 3%, and the Nasdaq futures are down roughly 5%!

This could get enormously ugly.

It seems likely that the PPT will allow this spike down to play itself out, and perhaps try to get maximum bang for their back, by stepping in to squeeze many short players later in the day, or later in the week.  However, any half-hearted measures taken won’t be enough, the converging pressures are now too great to stem, without massive new QE injections from central banks around the world(I’m talking multi-trillion QE measures, both here and in Europe).  Even then though, the affect would be negligible and short-lived at this point.

Reality is reasserting itself once more, and all us “crazy, tinfoil” stackers are vindicated on the global market meltdown…the only thing left to be vindicated on is price performance of silver and gold. Don’t worry, that will come, but it will likely come last…

What you’re watching is what happens when years of artificial credit have been systematically pumped into markets, without any regard to what the unwind or consequences of that process will be.

Well, this is the unwind, it will be massive, and it will wipe out what’s left of the fragile “middle class” here in the United States.

Conclusion

Ladies and gentlemen, the spell has been broken. Since August 11th alone(when China devalued the Yuan) stock markets worldwide have given up a mind-boggling $5 trillion dollars!  In just two weeks!  

Nearly everyone now knows what we always knew: the global economic recovery meme was a false one, and that we were simply waiting for central planning hands to lose control of the massive levitations that they’d sustained.  If new global, concerted, massive levitations aren’t undertaken by the bankster class, very soon…then 2015 will be one for the books.

From oil, to stocks, to emerging market currencies, mankind is being flooded by a sea of red. The losses are just beginning.  This is the great unwind of credit, and nearly everything is on the chopping block.

I want to end with a caveat: while it’s possible that gold and silver might escape upward from here, I’m not convinced the enemy is done with them yet.  

The only way these banksters buy time, is by allowing the incessant pressure on the precious metals to continue…a rocketing of silver would tell the world that confidence is totally gone, and that means interest rates must rise.  They cannot allow interest rates to rise, nor can they allow mankind to pour into a tiny market…which no longer has any real stockpiles available to speak of.  If silver explodes, then we’re truly closer to the end of Bretton Woods II than I had guessed.

Though silver could go Iower, short term, I intend on buying a good deal for my 3 week-old daughter, very soon, God willing.  She doesn’t have any silver yet, and I refuse to take chances with her future.  I will do everything in my power to ensure that all my children have generational, sovereign assets for their future, come what may.

Remember throughout all this, that on the other side of this engulfing economic flood(and social upheaval), is a better world.  The trick is simply to get you and your family’s capital to the other side of that global flood, still intact.  Silver is the lifeboat that I choose, in order to cross safely over to the other side…hopefully without getting even a drop of water upon my family’s garments. I hope the same can be said for each of you as well.

(my apologies that today’s update was a bit shorter than usual.  there was more I wanted to say, but the little lady of the house didn’t sleep…and so neither did the rest of us )

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