The
warnings are getting louder. Is anybody listening? For months, I
have been documenting on my website how the global financial system is
absolutely primed for a crisis, and now some of the most important financial
institutions in the entire world are warning about the exact same thing.
For example, this week I was stunned to see that the Telegraph had published an
article with the following ominous headline: $3
trillion corporate credit crunch looms as debtors face day of reckoning, says
IMF.
And actually what we are heading for would more accurately be described as a credit freeze or a credit panic, but a credit crunch will definitely work for
now. The IMF is warning that the dangerous over-leveraging that we have been
witnessing threatens to unleash a wave of
defaults all across
the globe
(Read More....)
Warren
Buffett once referred to derivatives as financial weapons of mass
destruction, and it was inevitable that they would begin to
wreak havoc on our financial system at some point. While things may seem
somewhat calm on Wall Street at the moment, the truth is that a great deal of
trouble is bubbling just under the surface. As you will see below, something
happened in mid-September that required an unprecedented 405 billion dollar
surge of Treasury collateral into the repo market. I know that sounds very
complicated, so I will try to break it down more simply for you. It
appears that some very large institutions have started to get into a
significant amount of trouble because of all the reckless betting that they
have been doing. This is something that I have warned would happen over and over again. In fact, I have
written about it so much that my regular readers are probably sick of hearing
about it. But this is what is going to cause the meltdown of our
financial system. (Read More....)
What
would you do if the power grid went down and never came back up? One of
these days, and it could be a lot sooner than most people think, we will all
wake up in a country without electricity. And considering how utterly
dependent we have become on technology, that is a very frightening scenario to
consider. How would Americans react if nothing worked? Just imagine
a world where everything electronic is dead. I am talking about lights,
cell phones, computers, televisions, ATMs, heating and cooling systems, credit
card readers, gas pumps, cash registers, refrigerators, hospital equipment
etc. When the power goes out for a few hours, that can be a major
inconvenience, but what if it went out all over the nation and it didnt come back on for months
or even years? This is one of the greatest potential threats that the
United States is facing, and yet very few people are even talking about it. (Read More....)
The worst stock market crashes in
U.S. history have come during the month of October. There is just
something about this time of the year that seems to be conducive to financial
panic. For example, on October 28th, 1929 the biggest stock market crash
in U.S. history up until that time helped usher in the Great Depression of the
1930s. And the largest percentage crash in the history of the Dow Jones
Industrial Average by a very wide margin happened on October 19th, 1987.
Overall, 9 of the 16 largest single day percentage crashes that we have ever
seen happened during
the month of October. Of course that does not mean that something
will happen this October, but after what we just witnessed in September
we should all be on alert. (Read More....)
The
federal government uses very carefully manipulated numbers to cover up the
crushing economic depression that is going on in this nation. For the
month of September, the federal government told us that 142,000 jobs were added
to the economy. If that was actually true, that would barely be enough to
keep up with population growth. Sadly, the truth is that the real numbers
were actually far worse than that. The unadjusted numbers show that the
U.S. economy actually lost 248,000 jobs in September and the government
added more than a million Americans to the not in the labor force category. When I
first saw that number I truly believed that it was inaccurate. But you
can find the raw figures right here. According to the Obama
administration, there are currently 7.9 million Americans that are officially unemployed and another 94.7 million
working age Americans that are not in the labor force. That gives us a
grand total of 102.6 million working age Americans that do not have a job right
now. (Read More....)
Did you know that 11 trillion
dollars in global stock market wealth was wiped out during the third quarter of
2015? When I was emailed this figure by a friend, I was stunned for a
moment. I knew that things were bad, but were they really this
bad? When I first received this information, I had just finished a
taping for a television show in which I had boldly declared that 5 trillion
dollars of stock market wealth had been wiped out around the world.
Unfortunately, the final number has turned out to be much larger than
that. Over the past three months, the stock markets of all major global
economies have been crashing simultaneously, and
11 trillion dollars of paper wealth has now completely vanished. The following
comes from Fortune
(Read More....)
A lot of people out there expected
something to happen in September that did not ultimately happen. There
were all kinds of wild theories floating around, and many of them had no basis
in reality whatsoever. But without a doubt, some very important things
did happen in September. As I warned about ahead of time, we are witnessing the most significant
global financial meltdown since the end of 2008. All of the largest stock
markets in the world are crashing simultaneously, and so far
the amount of wealth that has been wiped out worldwide is in excess of 5
trillion dollars. In addition to stocks, junk bonds are also
crashing, and Bank of America says that it is a slow
moving trainwreck that seems to be accelerating. Thanks to the
commodity price crash, many of the largest commodity traders on the planet are
now imploding. I wrote about the death spiral that has gripped Glencore yesterday. On Tuesday, the stock price of the largest
commodity trader in Asia, the Noble Group, plummeted like a rock and commodity trading
giant Trafigura appears to be in worse
shape than either Glencore or the Noble Group. The total collapse of
any of them could easily be a bigger event than the implosion of Lehman
Brothers in 2008. So I honestly do not understand the nothing is happening crowd. It takes
ignorance on an almost unbelievable level to try to claim that nothing is happening in the financial world
right now. (Read More....)