The Data Shows the REAL Economy is Imploding…Is a Crash Next?

Phoenix Capital Research's picture

The global economy is literally imploding.

Investors believe that China’s economy is chugging along, but the non-fraudulent data says otherwise.

China’s GDP numbers are a total fiction. And Chinese Government officials even ADMIT it! Back in 2007, no less than current First Vice Premiere of China, Li Keqiang, admitted to the US ambassador to China that ALL Chinese data, outside of electricity consumption, railroad cargo, and bank lending is for “reference only.”

As RBS Economics notes, China's rail volumes are collapsing at a rate
not seen since the Asian Financial Crisis. The Chinese economy is literally collapsing faster NOW than it did in 2008.

As far as Europe goes, Mario Draghi just admitted in the EU Parliament that the ECB has only one tool left at its disposal: QE. After that, there is nothing left in the tool box.

And despite announcing QE a few months ago, Europe is lurching towards deflation. Greece’s banks are imploding while the Ukraine is moving rapidly into hyperinflation.

The Euro has taken out critical support and is likely going BELOW parity with the US Dollar.

In the US, as Societe General’s Albert Edwards has recently noted, US corporate profits and sales are rolling over in a BIG way. The US Dollar rally is crushing profits across the board not just in the energy sector.

Stocks are set up for an absolute CRASH. They are pricing in ECONOMIC PERFECTION and the reality is that the global economy is imploding.

 

And the system is just as fragile as it was in 2008.

1.     Corporate debt is back to 2007 PEAK levels.

2.     Stock buybacks are back to 2007 PEAK levels.

3.     Investor bullishness is back to 2007 PEAK levels.

4.     Margin debt (money borrowed to buy stocks) is at 2007 PEAK levels.

5.     The leveraged loan market is flashing major warnings.

6.     Corporate insiders are dumping shares at a pace not seen since the TECH BUBBLE TOP

7.     Numerous investment legends have warned of a coming crash.

8.     Investor complacency is at a record LOW.

9.     The Fed has confirmed QE is ending this week, so the juice is cut off for now.

 

It is very likely that this year will go down as the end of the great Central Bank rig of the last six years. The time to prepare is now, before the big collapse hits.

 

If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.

 

You can pick up a FREE copy at:

 

http://www.phoenixcapitalmarketing.com/roundtwo.html

 

 

Best Regards

 

Graham Summers

 

Phoenix Capital Research

 

 

 

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tlnzz's picture

U.S stocks are close to there, "Icarus", moment.

AAA21's picture

The problem is that stocks have been overvalued and due for a "Crash" for at least 3 years.  Fortunately or unfortunately, overvalued markets can always get more overvalued, and conversely undervalued markets can always get more undervalued.  That is why predictions such as those made by the author of this piece are WORTHLESS.  Yes, the market will eventually Crash, just don't expect this "Broken Clock" Bozo to give you any valuable guidance.  Follow the Trend and forget the Bullsheet of the type being peddled here.

disgruntled housewife's picture

Shemitah occurs in the Fall 2015.

Consuelo's picture

Isn't that a sword - ala, Indiana Jones...?   Perhaps we're all headed for a beheading...?

disgruntled housewife's picture

Also known as shmita- it is a 7 year cycle in which debts are to be repaid. Also refers to the agricultural process of leaving fields to fallow in the seventh year.

silverer's picture

Can we have a total market crash happen and keep our high stock prices, too?  I think we can here in the USA, because we are so AWESOME!

neuronius's picture

I think "exceptional" is the word we're looking for...

FieldingMellish's picture

The crash is ALWAYS just around the next corner.

mt paul's picture

when you're circling the drain

there are no corners ...

commoncourtesy's picture

That corner must be closer than you think. Haha! The Banks Rothscoin must be in really serious trouble....

The Bank of England is thinking about creating their own Britcoin. Enjoy:

http://www.dailymail.co.uk/sciencetech/articling e-2970343/Is-Bank-England-going-create-Bitcoin-Minting-digital-currency-eradicate-high-street-lenders.html

Quinvarius's picture

The difference between hyperinflation and bad inflation is that the stock market goes up in hyperinflation.

TheRideNeverEnds's picture

if by crash you mean panic buying the e-minis and USD then yes, that is what is next.

Ham-bone's picture

Graham,

when will you accept that the stock market, the real estate market, the bond market are all national security issues...the idea that "market" forces will suddenly re-assert themselves is simply not likely.  Economic activity continues to crash globally...just stop expecting for "market prices" to reflect this.  The markets you are thinking of are long gone!

Take a look at the link and lets get real.

http://econimica.blogspot.com/2015/02/fundamentally-flawed-chapter-1-advanced.html

Cheduba's picture

The Fed's QE is ending this week? Could have sworn that was months ago...

LawsofPhysics's picture

Isn't free money (zero interest rate) the same fucking thing?

TrumpXVI's picture

"These are not the markets you are looking for, Graham."

davidalan1's picture

Friggin CRASH already- Jeezus