• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Consider This...

Tyler Durden's picture




 

Today's modest bounce in stocks - considerably removed after-hours - does not provide much hope for those looking to buy the dip with the Dow still down over 1000 points year-to-date. In fact, as we discuss below, troubling news just continues to pour in from all over the world... consider the following...

 

Submitted by Michael Snyder of The Economic Collapse blog,

Overall, the Dow has now fallen more than 1000 points from the peak of the market (16,588.25) back in late December.  This is the first time that we have seen the Dow drop below its 200-day moving average in more than a year, and there are many that believe that this is just the beginning of a major stock market decline.  Meanwhile, things are even worse in other parts of the world.  For example, the Nikkei is now down about 1700 points from its 2013 high.  This is causing havoc all over Asia, and the sharp movement that we have been seeing in the USD/JPY is creating a tremendous amount of anxiety among Forex traders.  For those that are not interested in the technical details, what all of this means is that global financial markets are starting to become extremely unstable.

Unfortunately, there does not appear to be much hope on the horizon for investors.  In fact, troubling news just continues to pour in from all over the planet.  Just consider the following...

-Major currencies all over South America continue to collapse.

 

-Massive central bank intervention has done little to slow down the currency collapse in Turkey.

 

-Investors pulled more than 6 billion dollars out of emerging market equity funds last week alone.

 

-The CBOE Volatility Index (VIX) has risen above 20 for the first time in four months.

 

-Last month, new manufacturing orders in the United States declined at the fastest pace that we have seen since December 1980.

 

-Real disposable income in the United States has just experienced the largest year over year drop that we have seen since 1974.

 

-In January, vehicle sales for Ford were down 7.5 percent and vehicle sales for GM were down 12 percent.  Both companies are blaming bad weather.

 

-A major newspaper in the UK is warning that "growing problems in the Chinese banking system could spill over into a wider financial crisis".

 

-U.S. Treasury Secretary Jack Lew is warning that the federal government could hit the debt ceiling by the end of this month if Congress does not act.

 

-It is being reported that Dell Computer plans to lay off more than 15,000 workers.

 

-The IMF recently said that the the probability that the global economy will fall into a deflation trap "may now be as high as 20%".

 

-The Baltic Dry Index is now down 50 percent from its December highs.

If our economic troubles continue to mount, could we be facing a global "financial avalanche" fairly quickly?

That is what some very prominent analysts believe.

Below, I have posted quotes from five men that are greatly respected in the financial world.  What they have to say is quite chilling...

#1 Doug Casey: "Now is a very good time to start thinking financially because I'm afraid that this year, in 2014, we're going to go back into the financial hurricane. We've been in the eye of the storm since 2009, but now we're going to go back into the trailing edge of the storm, and it's going to be much longer lasting and much worse and much different than what we had in 2008 and 2009."

#2 Bill Fleckenstein: "The [price-to-earnings ratio] is 16, 17 times earnings," Fleckenstein said on Tuesday's episode of "Futures Now." "Why would you pay 16 times for an S&P company? I don't care about where rates are, because rates are artificially suppressed. Why isn't that worth 11 or 12 times? Just by that analysis, you'd be down by a quarter or 30 percent. So there's a huge amount of downside."

#3 Egon von Greyerz of Matterhorn Asset Management: "Nothing goes (down) in a straight line, but the emerging market problems will accelerate and it will spread to the very overbought and the very overvalued stock markets and economies in the West.

So stock markets are now starting a secular bear trend which will last for many years, and we could see falls of massive proportions. At the end of this, the wealth that has been created in the last few decades will be destroyed."

#4 Peter Schiff: "The crisis is imminent," Schiff said.  "I don't think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems."

"We're broke, Schiff added.  "We owe trillions. Look at our budget deficit; look at the debt to GDP ratio, the unfunded liabilities. If we were in the Eurozone, they would kick us out."

#5 Gerald Celente: "This selloff in the emerging markets, with their currencies going down and their interest rates going up, it’s going to be disastrous and there are going to be riots everywhere…

So as the decline in their economies accelerates, you are going to see the civil unrest intensify."

-----

Those that do not believe that we could ever see "civil unrest" on the streets of America should take note of what just happened in Seattle.

After the Seahawks won the Super Bowl, fans celebrated by "lighting fires, damaging historic buildings and ripping down street signs".

If that is how average Americans will behave when something good happens, how will they act when the economy totally collapses and nobody can find work for an extended period of time?

We are rapidly approaching another great financial crisis.  Unfortunately, we didn't learn any of the lessons that we should have learned last time.  It is being projected that the debt of the federal government will more than double during the Obama years, the "too big to fail banks" have collectively gotten 37 percent larger over the past five years, and the big banks have become more financially reckless than ever before.

When the next great financial crisis arrives (and without a doubt it is inevitable), millions more Americans will lose their jobs and millions more Americans will lose their homes.

Now is not the time to be buying lots of expensive new toys, going on expensive vacations or piling up lots of debt.

Now is the time to build up an emergency fund and to do whatever you can to get prepared for the great storm that is coming.

As you can see from the financial headlines, time is rapidly running out.

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Tue, 02/04/2014 - 21:27 | 4402308 The Gooch
The Gooch's picture

It's just a correction.

BTF Detroit.

Tue, 02/04/2014 - 21:32 | 4402326 Newsboy
Newsboy's picture

Gold, physical gold, Quick!

Tue, 02/04/2014 - 21:36 | 4402343 kaiserhoff
kaiserhoff's picture

Abe just did a 180 and China finally admits they have a corruption problem.

I wouldn't look for much help from Asia.

Tue, 02/04/2014 - 21:46 | 4402385 economics9698
economics9698's picture

"For those that are not interested in the technical details, what all of this means is that global financial markets are starting to become extremely unstable."

 

lol, ya think?

Tue, 02/04/2014 - 21:55 | 4402401 TerminalDebt
TerminalDebt's picture

Big Banks using the market to send congress a message, raise the debt ceiling or else Rome will burn

Tue, 02/04/2014 - 22:01 | 4402413 Supernova Born
Supernova Born's picture

The rip on Seattle post Superbowl is unwarranted. Frat boys burned some old bedbug furniture in the middle of a street, a few street signs were bent when revelers climbed them, an old glass roofed gazebo had a pane broken after it was likewise climbed upon.

BFD.

Tue, 02/04/2014 - 22:08 | 4402432 Soul Glow
Soul Glow's picture

Margin calls are coming and the riots in the streets will make what happened in Seattle look like a party.  Nigeria balked at theirs, claiming $20B went missing.  Puerto Rico, Turkey, who is next?  

The margin calls will continue as banks are over leveraged.

Tue, 02/04/2014 - 23:05 | 4402584 DoChenRollingBearing
DoChenRollingBearing's picture

I find myself becoming more bearish, almost every day.  But I am comforted by diversification and with gold.

Having our lil ol bearing import company down in Peru helps me sleep better too.  The only debt they have is to me, and that is going down...!  Before long, we will one of relatively few Latin companies of our type with no debt.

Avoid debt.  Buy Au, Pt, Ag (and maybe some bearings too).  Be happy!

Wed, 02/05/2014 - 01:26 | 4402949 Kirk2NCC1701
Kirk2NCC1701's picture

I like to invest in really small bearing-balls, that can be used as Kinetic energy in certain kind of 'shells'.  :-)

For when the shields are down, the main power offline, the phasers discharged, and you just gotta get that Cling-on war bird that just uncloaked.  ;-)

Metaphorically speaking.

Wed, 02/05/2014 - 02:19 | 4403011 DoChenRollingBearing
DoChenRollingBearing's picture

With all that power you can get from the dilithium crystals and all, might as well fire some decent kinetic energy projectiles, heavy and hard little sumzabitchez made of osmium.  Heavier than tungsten and just about as tough.  Osmium is a tad expensive though, but I imagine that you can replicate it in those little machines you now have...

:)

Wed, 02/05/2014 - 07:08 | 4403189 Occident Mortal
Occident Mortal's picture

Ladies and Gentlemen,

Welcome to the Moral Hazard.

Wed, 02/05/2014 - 07:18 | 4403198 eclectic syncretist
eclectic syncretist's picture

Quick!  Somebody get some aliens together to go and break out Krugman's windows!

Wed, 02/05/2014 - 07:47 | 4403219 GetZeeGold
GetZeeGold's picture

 

 

 

 

Get at least one bitcoin......so the government can still track you.

 

.....you never know.

Wed, 02/05/2014 - 02:30 | 4403029 scrappy
scrappy's picture

I got a bag full for my wrist rocket.

Watchout critters!

Wed, 02/05/2014 - 03:54 | 4403084 kamikun
kamikun's picture

>>Buy Au, Pt, Ag (and maybe some bearings too).

What, no BTC? Did you ever finish the opus post you were promising on Au and BTC? If so, please link.

Wed, 02/05/2014 - 08:41 | 4403279 DanDaley
DanDaley's picture

You forgot to add Plumbum (Pb) to the list.

Tue, 02/04/2014 - 23:55 | 4402755 Solon the Destroyer
Solon the Destroyer's picture

Nigeria... Sorry, that one's on me. Totally forgot to email that guy back. I feel horrible now.

Wed, 02/05/2014 - 00:33 | 4402837 xamax
xamax's picture

I really would feel ashamed on your place, how was this possible you idiot, you sob????

Wed, 02/05/2014 - 03:48 | 4403076 mt paul
mt paul's picture

Hey Nigeria

think i found your 20 bil

please send me 800 $ to cover postage

and I"ll send it your way

 

Wed, 02/05/2014 - 08:27 | 4403251 sterling effort
sterling effort's picture

Thanks for the laugh.

I never tire of finding Nigerian scams in my in box. Some of them are really creative.

Wed, 02/05/2014 - 09:39 | 4403480 V in PA
V in PA's picture

Logged in just to up vote. Laughed out loud.

Wed, 02/05/2014 - 05:58 | 4403167 j0nx
j0nx's picture

Banks don't get margin calls. Banks give margin calls. Banks get bailed out. With your money I might add.

Wed, 02/05/2014 - 06:44 | 4403186 new game
new game's picture

ps. not much of mine, already paid enough over the years. enjoying this all from the sidelines.

all good>ten year going lower, deflation and all ya know,,,and we got yeller to cover the shortfall.

but, seriously, these margin calls will wack the fuck outta markets including gold-patience.

Tue, 02/04/2014 - 22:21 | 4402466 willwork4food
willwork4food's picture

Even Infowars went off like Mike did on Seattle like an idiot. Let them celebrate. So some glass got broken, and some fires were lit. WTF cares? Congratulations to Seattle-they deserve it!

Tue, 02/04/2014 - 22:03 | 4402421 satoshi911
satoshi911's picture

DAMN GOOD  COMMENT

*

What few here probably don't understand is that the right-wing wants to BURN ameriKKKa to the ground to get their reset, in their favor.

Then you have KRUGMAN terrified of that scenario as the pain to little people but right-wing don't care about people, by definition.

Banks and ESTABLISHMENT especially WALL-ST know that FED FIAT to INFINITY is a permanent RAFT in a ocean storm.

If the POLITICIANS fail to keep the FED fire stoked, then its party over for all the pig's on WALL STREET, and make no mistake that ZH/GOLDMAN don't want the party to end.

On the other hand, there is this HIDDEN DARK HAND of the right-wing that wants to see ameriKKKa burn to the ground.

*

It's already a done deal, in REALITY the FED is burning $100's of billions a month, its just that most of it is secret, but there are party's to the party that want it to end, and there are party's that just want to talk shit.

IMHO the EM meltdown don't have much to do with FED-FIAT as it has to do with the DEATH of the GLOBAL ECONOMY, the end of the NWO scam.

*

They want a crisis, they want the IMF-SDR, but the problem is the PTB, has lost thailand, lost ukraine, lost syria, ... lost Japan, ... lost argentina,... they're losing their world dominion, quicker than the US-MIL can steal new country's... It's telling.

What's safe? Me thinks the shittiest house in the world is the USA, the JAP's are homogenous and there will not be a civil-war, but the USA is boiling pot of hate ready to explode and it takes few days and no cargo for the FSA and BOOM.

Tue, 02/04/2014 - 22:23 | 4402469 nightshiftsucks
nightshiftsucks's picture

There's that stupid fuck satoshi again,hey dickhead why don't you show us proof of those spec forces get $6k a month pension without having 20 years.I know you can't because you are a fucking delusional crackpot.Now go take your meds dumbfuck.

Tue, 02/04/2014 - 22:24 | 4402470 Oldwood
Oldwood's picture

The more you post, the less I bother to read. I am your dreaded right winger and I don't want anything burned down and know no one who does. Most of us have invested our entire lives into this fucked up economy and really do not want to see what so many of us fear is coming. You on the other hand, with your constant America hating fucking posts, quite obviously relish the idea of it all burning down with the only greater highlight being striking the match yourself. Please fuck off. Thanks

Tue, 02/04/2014 - 23:39 | 4402694 FredFlintstone
FredFlintstone's picture

I have read hundreds of posts here calling for it all to come tumbling down. The "stackers" hoarding ammo waiting for the "reset". Get real. Don't embarrass yourself by making shit up just cause you are offended by what Satoshi has to say. Are you saying the successful in society would stand in the line of fire to spare the life of a crack addict? Or that a person under the age of 30 is relishing the thought of slaving away as a barista to pay the SS and Medicare for a couple in their 80's? What about the trillions and growing balance sheet of the FED? We are all salivating for that bill to come due.
There is a lot of suppressed hate in America and if you don't see it, maybe it is because you are resting on a large pension or something in lala land.

Wed, 02/05/2014 - 00:40 | 4402862 TheReplacement
TheReplacement's picture

When you say it like that...

Maybe a lot of people are just tired of being used.  That's what has been going on for a long time.  The scary thing is how many people are miseducated to believe that if you say you don't want to play that then you must hate the poor, the pick-a-color, ferners or whatever and so you become an other and we all know how others tend to end up.  There are real life examples.  We have people in this country on the record saying how many have to be liquidated so communism can take over.  We have people signing petitions when told the petition's goal includes ultimately murdering law abiding American citizens.  They are organized, this foe.  The question is now if they can keep things together long enough to have fully entrenched themselves with enough power to pull off the takeover or if it will collapse before they are ready.  The longer it goes the more they can siphon wealth and put us all in debt while using those ill gotten gains to recruit and indoctrinate the FSA.

 

Wed, 02/05/2014 - 07:29 | 4403208 snr-moment
snr-moment's picture

Well the 2.8 billion (it was 2.8 wasn't it?)  rounds of hollow points can just be left to sit and spoil.  Who did you think it was for?

Wed, 02/05/2014 - 00:51 | 4402888 Oldwood
Oldwood's picture

There is no doubt that there are more than plenty hopin and wishin for the big bang here.....but they are NOT particularly conservative in nature. they are largely people frustrated with continuing failure and given that this is supposed to be about investing, there are plenty more want to see their hedge of choice, be it bullets or gold put them on top of the heap. Conservatives, people who work and save, have everything to lose. We are not begging for this to fail, but we do see it on the horizon. No one knows when or how but we know a pile of shit when we see it. And yes, there is lots of hate and those infected with it are anxious to see this thing blow. They would love to be in the streets with torches and guns, not all that different than all the other extremists looking for an outlet. But DO NOT put me or the people I associate with in this group. I have a small business that I have invested my life in. I have no government contracts, no sweet deal of any kind, but if it would make you feel sooo much better to burn it down, if it would make you feel so good to see the flames, then come the fuck on. Satoshi has said nothing but SHIT. He hates everyone and thing, especially if it is American. Sure we got problems but he is a piece of shit in my mind because he has nothing to offer...but shit.

Wed, 02/05/2014 - 01:25 | 4402953 Anusocracy
Anusocracy's picture

I have an intense dislike of anyone who wants or approves of government. They alone are the problem, the real cause of all the evil and stupidity.

They are like animals offering themselves to the lions as meals. Incredible useless idiot fools.

Wed, 02/05/2014 - 02:09 | 4402996 Oldwood
Oldwood's picture

With what we have experienced we would have to be blind and truly stupid to want more of what we have or even a small portion. We live in a world of no escape when it comes to government. They are the predators who seek to live off of our labors and eventually our flesh. The best we can do is resist with the primary goal to avoid dependency as that is the true begining of the end. Our government is corrupt and as such has metastaticized throughout our economy. There is no cure and I think it will only get worse before it gets better.

Wed, 02/05/2014 - 02:49 | 4403043 OldPhart
OldPhart's picture

"We live in a world of no escape when it comes to government. They are the predators who seek to live off of our labors and eventually our flesh. The best we can do is resist with the primary goal to avoid dependency as that is the true begining of the end. Our government is corrupt and as such has metastaticized throughout our economy. There is no cure and I think it will only get worse before it gets better."

Outstanding!  I'm stealing for facebook.

Wed, 02/05/2014 - 04:24 | 4403083 Squid-puppets a...
Squid-puppets a-go-go's picture

i for one want to see it all destroyed. sometimes a little hate seeps in, but thats not the hatred of bigotry, its that of justice denied for soo so long.

 

Wed, 02/05/2014 - 08:25 | 4403245 CH1
CH1's picture

Destruction is not necessary.

If we just walk away from it, it falls apart on its own... and quickly.

Wed, 02/05/2014 - 07:32 | 4403213 snr-moment
snr-moment's picture

And for every one of you, there are 10 of them.  The FSA is just the tip of the iceberg.  What is EVERYONE'S definition of rich?

Wed, 02/05/2014 - 07:53 | 4403223 BandGap
BandGap's picture

Not hate, anger. There is a difference.

Don't embarass yourself by making assumptions about what people may or may not do.

Wed, 02/05/2014 - 08:24 | 4403247 CH1
CH1's picture

Not hate, anger. There is a difference.

Well said.

Tue, 02/04/2014 - 22:36 | 4402501 jcaz
jcaz's picture

Wow- clearly they don't scrimp on the meds in your part of the world......  I bet you're a riot in 4th period History class.....

Tue, 02/04/2014 - 23:06 | 4402593 DoChenRollingBearing
DoChenRollingBearing's picture

IIRC he is in China.  Maybe near where they grow opium?

Wed, 02/05/2014 - 02:20 | 4403017 Vlad Tepid
Vlad Tepid's picture

Smart money says you're right - or just a bad libtard troll.  The tell, Satoshi?  Most Japanese (or Chrysanthemum Club members) don't refer to themselves (or their models) as "Japs."

Wed, 02/05/2014 - 08:04 | 4403229 Zwelgje
Zwelgje's picture

Opium is grown in Afghanistan and is guarded by sweet USA.

Tue, 02/04/2014 - 23:09 | 4402597 lasvegaspersona
lasvegaspersona's picture

The Christian right wants Amerikka to burn?....dude, put both hands in front of your face so you can see your finger nails.if you are married (somehow we doubt this) your wedding ring is on the left hand. Now pay attention in poli sci class ans rewrite your essay.

Tue, 02/04/2014 - 23:20 | 4402626 bigrooster
bigrooster's picture

Man the paid troll douche bags are out in full effect tonight.  I guess Obama passed an exedick order to pay you fucking losers.  Oh yeah we can say FUCK here on ZH because the 1st is still in effect.

Tue, 02/04/2014 - 23:50 | 4402745 pods
pods's picture

Ummm, sort of in effect.

His name was Francis Sawyer.

pods

Wed, 02/05/2014 - 00:21 | 4402819 Spastica Rex
Spastica Rex's picture

Weird thread.

Wed, 02/05/2014 - 08:24 | 4403221 GetZeeGold
GetZeeGold's picture

 

 

The Obamacare trolls really don't know what to do with themselves at this point.

 

I for one am kinda embarrassed for them.

Wed, 02/05/2014 - 00:22 | 4402822 Spastica Rex
Spastica Rex's picture

Dup

First in months.

Is ZH overloaded, or something?

Wed, 02/05/2014 - 02:14 | 4403004 Rukeysers Ghost
Rukeysers Ghost's picture

Is ZH overloaded, or something?

 

No, but a few ZH posters seem to be loaded on Thunderbird and Bankers Club Vodka tonight.

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