Market Crash

With more financing in place, the world’s tallest skyscraper is moving forward. Saud Arabia's Kingdom Tower in Jeddah is only the latest phase in an enormous boom that began setting new records in 2014, raising another 'skyscraper alert' as the completion of record-setting skyscrapers has long seemed to indicate the beginning of economic crises.

Between these two banking systems alone, you’ve got the makings of a global financial crisis at least on par with 2008. 

This is what happens when the Fed’s academic-based nonsense collides with economic realities: perversions of capital that lead to massive bubbles and eventually even more massive crises.

The situation is clear: the 2008 Crisis was the warm up. The next Crisis will be THE REAL Crisis. The Crisis in which Central Banking itself will fail.

In the last month, the ECB, US Fed and BoJ have all implemented new policies. ALL of their stock markets FELL afterwards. 

What happens the next time global GDP takes a nosedive when Central Banks have already used up all of their ammunition?

Take note, these charts signal that the bull markets of the last six years are ending. The markets are primed for another Crash, just as they were in 2000 and 2007.

We have reached the apogee of history’s greatest credit inflation. Now we’re hurtling into a prolonged worldwide deflation. You can already see this deflation in the plunge of oil, iron ore, copper and other commodity prices. We are in uncharted waters after nearly 20 years of madcap money printing by the Fed and other central banks. The world’s central banks are finally out of dry powder. They no longer have the means to inflate the global credit and financial bubble. That’s why today’s FOMC meeting is the most crucial inflection point since 1929.

We’ve already gotten a taste of what happens when asset classes finally “adjust” to underlying “demand” with the commodity markets: having operated based on Central Bank money printing for five years, they then wiped out ALL of those gains in six months.

Wall Street’s proclivity to create serial equity bubbles off the back of cheap credit has once again set up the middle class for disaster. The warning signs of this next correction have now clearly manifested, but are being skillfully obfuscated and trivialized by financial institutions. Nevertheless, here are ten salient warning signs that astute investors should heed as we roll into 2016.

Despite the low interest rate regime, there are a number of similarities between now and the period running up to the 2008 crisis……

The $100 trillion global bond bubble has begun bursting.

Many people are cheering now that yesterday Marine Le Pen and her Front National (FN) party didn’t get to take over government in any regions in the France regional elections. They should think again. FN did get a lot more votes than the last time around, and, though she will be a little disappointed after last weekend’s results, it’s exactly as Le Pen herself said: “Nothing can stop us”.

- Watch video - “Monetary insanity” of ECB and Fed is “frightening”
- “Absolutely nothing has been learned” since financial crisis
- “Financial hypocrisy on a grand scale”
- Ireland was vassal of Bank of England and now ECB
- Ireland needs to get “financial and monetary independence”
- Huge demand for gold and yet prices manipulated lower
- Real unemployment is U.S. probably 15-20%
- Dollar may rally in short term but vulnerable in long term
- Russia, China may monetise gold as geopolitical weapon
- Gold and silver are “hedges for you in local currency terms”