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BigRed

The Market Crash to End All Market Crashes Coming

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M2

 

LET’S CONTINUE DISCUSSING WHAT OBAMA & CRIME INC. DOES NOT WANT US DISCUSSING:

WE’RE IN THE SUMMER OF RECOVERY RIGHT JOE?

 

WHAT HAPPENS WHEN THE DOLLAR IS NO LONGER THE WORLD RESERVE CURRENCY?

EXPECT MASS STARVATION, RIOTS, & KILLING FOR FOOD!

WE ARE WITNESSING THE END OF THE AMERICAN EMPIRE! 

RIGHT IN FRONT OF US; THE MEDIA STILL WON’T REPORT IT!

EVERY OUNCE OF INFORMATION ON WHAT IS HAPPENING…

IS PROVIDED IN THE LINKS AT THE BOTTOM!

Michael Snyder of the Economic Collapse Blog writes:

In order for our current level of debt-fueled prosperity to continue, THE REST OF THE WORLD MUST CONTINUE TO USE OUR DOLLARS TO TRADE WITH ONE ANOTHER AND MUST CONTINUE TO BUY OUR DEBT AT RIDICULOUSLY LOW YIELDS.  Of course the number one foreign nation that we depend on to participate in our system is China.  China accounts for more global trade THAN ANYONE ELSE ON THE PLANET. (including the United States), and MOST OF THAT TRADE WAS DONE IN U.S. DOLLARS… UNTIL NOW…

IF YOU STILL HAVE ANY DOUBTS WHATSOEVER THAT A GLOBAL DEPRESSION IS COMING, READ THIS LINK!

Much of the following is paraphrased from a combination of the Economic Collapse Blog and my own notes.The American Empire, or the American Century, or the PetroCentury, whatever you want to call it, it is coming to an end… AND FAST! American’s really should begin getting used to the fact the world’s major powers are going to be countries like China, Russia, Iran, India, etc. and in MUCH sooner time than you think… Before you know it, the U.S. will be a third world nation, and in a total reversal of roles WE will be the world’s sweatshop making Nike Sneakers and killing each other for food. This is not a theory I have. 

THIS IS A DONE DEAL!

I really like what Paul B. Farrell had to say about this…

Early warnings of a crash are dismissed over and over (“just a temporary correction”). They gradually numb us about the inevitable. Time after time we forget history’s lessons. Until finally a big surprise catches us totally off-guard. Financial historian Niall Ferguson put it this way: Before the crash, our world seems almost stationary, deceptively so, balanced, at a set point. So that when the crash finally hits — as inevitably it will — everyone seems surprised. And our brains keep telling us it’s not time for a crash.

Till then, life just goes along quietly, hypnotizing us, making us vulnerable, till a shocker like Lehman Brothers upsets the balance. Then, says Ferguson, the crash is “accelerating suddenly, like a sports car … like a thief in the night.” It hits. Shocks us wide awake.

DON’T LET THE UPCOMING CRASH TAKE YOU BY SURPRISE.

THE WARNING SIGNS ARE CLEAR.

GET READY WHILE YOU STILL CAN.

A very different world is emerging. It is perhaps too soon to tell whether the US, Russia, China, and the EU will head down toward geopolitical rivalry, but the warning signs are certainly present. The rise of China and the euro and the resulting competition with the American dollar will have geopolitical consequences. In the near future, the US, Russia, China, and Europe are likely to engage in more intense competition over trade and finance. Don’t expect the U.S. or Europe to come out ahead on that! 

In order for our current level of debt-fueled prosperity to continue, THE REST OF THE WORLD MUST CONTINUE TO USE OUR DOLLARS TO TRADE WITH ONE ANOTHER AND MUST CONTINUE TO BUY OUR DEBT AT RIDICULOUSLY LOW YIELDS.  Of course the number one foreign nation that we depend on to participate in our system is China.  China accounts for more global trade THAN ANYONE ELSE ON THE PLANET. (including the United States), and MOST OF THAT TRADE WAS DONE IN U.S. DOLLARS… UNTIL NOW…

CHINA HAS BEEN SHIFTING AWAY FROM THE DOLLAR COMPLETELY!

THAT USED TO KEEP DEMAND FOR OUR DOLLARS VERY HIGH, AND IT ENSURED THAT WE COULD IMPORT MASSIVE AMOUNTS FROM OVERSEAS AT LOW COST AND RUN HUGE DEFICITS REGARDLESS. As a major exporting nation, China ends up with gigantic piles of our dollars.  

China lends many of those dollars back to us at ridiculously low interest rates.  At this point, China owns more of our national debt than any other country does. But, if China was to decide to quit playing our game and started moving away from U.S. dollars and U.S. debt, our economic prosperity could disappear very rapidly.  Demand for the U.S. dollar would fall, and prices would go up. Interest rates on our debt and everything else in our financial system would go up to crippling levels, so it is absolutely critical to our financial future that China continues to play our game.

Unfortunately, there are signs that CHINA IS NOW LOOKING FOR A SMOOTH EXIT FROM THE GAME.  IN NOVEMBERI wrote about how the central bank of China has announced that it is “no longer in China’s favor to accumulate foreign-exchange reserves”.  That means that the pile of U.S. dollars that China is sitting on is not going to get any higher.

In addition, China has signed a whole host of international currency agreements with other nations during the past couple of years which are going to result in less U.S. dollars being used in international trade.  You can read about many of these agreements in THIS ARTICLE.

Last year, we learned that China STARTED TO DUMP U.S. DEBT during the month of December 2013.  Many have imagined that China would try to dump a flood of our debt on to the market all of a sudden once they decided to exit, but that simply does not make sense.  Instead, it makes sense for China to dump a bit of debt at a time so that the market will not panic and so that they can get close to full value for the paper that they are holding

As Bloomberg reported, China dumped NEARLY 50 BILLION DOLLARS of U.S. debt during the month of December…

China, the largest foreign U.S. creditor, reduced holdings of U.S. Treasury debt in December by the most in two years as the Federal Reserve announced plans to slow asset purchases.

The nation pared its position in U.S. government bonds by $47.8 billion, or 3.6 percent, to $1.27 trillion, the largest decline since December 2011, according to U.S. Treasury Department data released yesterday.

The American population’s insistence on staying WILLFULLY ignorant has been a remarkable thing to witness over the last six years since the economic collapse in 2008. It’s tough to find someone who is not aware the Chinese are buying up everything, but ask them why? Or what effect that has on them? If it isn’t going to cut off the cable feed for American Idol that night, whatever it is can wait… or someone else can deal with it. 

IT’S DISGUSTING!

Chinese Flag

To continue reading or watch the video click here;http://right.is/politics/2015/05/the-market-crash-to-end-all-market-crashes-coming-26243.html

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