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BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On Two Consecutive Days

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New York City Empire State Building - Public DomainOn Monday, the Dow Jones Industrial Average plummeted 588 points. It was the 8th worst single day stock market crash in U.S. history, and it was the first time that the Dow has ever fallen by more than 500 points on two consecutive days. But the amazing thing is that the Dow actually performed better than almost every other major global stock market on Monday.  In the U.S., the S&P 500 and the Nasdaq both did worse than the Dow. In Europe, almost every major index performed significantly worse than the Dow.  Over in Asia, Japanese stocks were down 895 points, and Chinese stocks experienced the biggest decline of all (a whopping 8.46 percent). On June 25th, I was not kidding around when I issued a “red alert” for the last six months of 2015. I had never issued a formal alert for any other period of time, and I specifically stated that “a major financial collapse is imminent“. But you know what? As the weeks and months roll along, things will eventually be even worse than what any of the experts (including myself) have been projecting. The global financial system is now unraveling, and you better pack a lunch because this is going to be one very long horror show.

Our world has not seen a day quite like Monday in a very, very long time. Let’s start our discussion where the carnage began…

Asian Markets

For weeks, the Chinese government has been taking unprecedented steps to try to stop Chinese stocks from crashing, but nothing has worked. As most Americans slept on Sunday night, the markets in China absolutely imploded

As Europe and North America slept on Sunday night, Chinese markets went through the floor — the Shanghai Composite index of stocks fell by 8.49%, the biggest single-day collapse since 2007.

It wasn’t alone. Hong Kong’s Hang Seng fell 5.17%, and Japan’s Nikkei fell 4.61%. Stocks in Taiwan, the Philippines, Singapore, and Thailand also tumbled.

Things would have been even worse in China if trading had not been stopped in most stocks. Trading was suspended for an astounding 2,200 stocks once they hit their 10 percent decline limits.

Overall, the Shanghai Composite Index is now down close to 40 percent from the peak of the market, and the truth is that Chinese stocks are still massively overvalued when compared to the rest of the world.

That means that they could very easily fall a lot farther.

European Markets

The selling momentum in Asia carried over into Europe once the European markets opened. On a percentage basis, all of the major indexes on the continent declined even more than the Dow did

In Europe, the bloodbath from Friday continued unabated. The German Dax plunged 4.7%, the French CAC 40 5.4%, UK’s FTSE 100 dropped 4.7%. Euro Stoxx 600, which covers the largest European companies, was down 5.3%.

But wait… Europe is where the omnipotent ECB and other central banks have imposed negative deposit rates. The ECB is engaged in a massive ‘whatever it takes” QE program to inflate stock markets. But it’s not working. Omnipotence stops functioning once people stop believing in it.

U.S. Markets

Even before U.S. markets opened on Monday morning, the New York Stock Exchange was already warning that trading would be halted if things got too far out hand, and it almost happened

The thousands of companies listed by the New York Stock Exchange and Nasdaq Stock Market will pause for 15 minutes if the Standard & Poor’s 500 Index plunges 7 percent before 3:25 p.m. New York time. The benchmark got close earlier, falling as much as 5.3 percent.

There were other circuit breakers in place for later in the day if too much panic selling ensued, but fortunately none of those were triggered either. Here is more from Bloomberg

Another circuit breaker kicks in if the S&P 500 extends its losses to 13 percent before 3:25 p.m. If the plunge reaches 20 percent at any point during today’s session, the entire stock market will shut for the rest of the day.

When the U.S. markets did open, the Dow plunged 1,089 points during the opening minutes of trading. If the Dow would have stayed at that level, it would have been the worst single day stock market crash in U.S. history by a wide margin.

Instead, by the end of the day it only turned out to be the 8th worst day ever.

And in case you are wondering, yes, investors are losing a staggering amount of money. According to MarketWatch, the total amount of money lost is now starting to approach 2 trillion dollars

As of March 31, households and nonprofits held $24.1 trillion in stocks. That’s both directly, and through mutual funds, pension funds and the like. That also includes the holdings of U.S.-based hedge funds, though you’d have to think that most hedge funds are held by households.

Using the Dow Jones Total Stock Market index DWCF, -4.21% through midmorning trade, that number had dropped to $22.32 trillion.

In other words, a cool $1.8 trillion has been lost between now and the first quarter — and overwhelmingly, those losses occurred in the last few days.

Unfortunately, U.S. stock prices are still nowhere near where they should be. If they were to actually reflect economic reality, they would have to fall a lot, lot lower.

For example, there is usually a very strong correlation between commodity prices and the S&P 500, but in recent times we have seen a very large divergence take place. Just check out the chart in this article. At this point the S&P 500 would have to fall another 30 to 40 percent or commodities would have to rise 30 or 40 percent in order to close the gap. I think that the following bit of commentary sums up where we are quite nicely

“Markets are afraid of further economic weakness in China, further pain in global commodity markets and uncertain about Fed and PBoC policy — what they will do and what the impact will be,” Societe Generale’s Kit Juckes wrote on Monday. “The divergence between global commodity prices and equities is not a new theme but the danger now is that they begin to re-correlate – as they did when the dotcom bubble burst in 2000 and what had previously been an emerging market crisis became a US recession.”

And commodities were absolutely hammered once again on Monday.

For instance, the price of U.S. oil actually fell below 38 dollars a barrel at one point.

What we are watching unfold is incredible.

Of course the mainstream media is bringing on lots of clueless experts that are talking about what a wonderful “buying opportunity” this is. Even though those of us that saw this coming have been giving a detailed play by play account of the unfolding crisis for months, the talking heads on television still seem as oblivious as ever.

What is happening right now just doesn’t seem to make any sense to the “experts” that most people listen to. I love this headline from an article that Business Insider posted on Monday: “None of the theories for the Black Monday market crash add up“. Yes, if you are willingly blind to the long-term economic and financial trends which are destroying us, I guess these market crashes wouldn’t make sense.

And if stocks go up tomorrow (which they probably should), all of those same “experts” will be proclaiming that the “correction” is over and that everything is now fine.

But don’t be fooled by that. Just because stocks go up on any particular day does not mean that everything is fine. We are in the midst of a financial meltdown that is truly global in scope. This is going to take time to fully play out, and there will be good days and there will be bad days.  The three largest single day increases for the Dow were right in the middle of the financial crisis of 2008. So one very good day for stocks is not going to change the long-term analysis one bit.

It isn’t complicated. Those that follow my writing regularly know that I have repeatedly explained how things were setting up in textbook fashion for another global financial crisis, and now one is unfolding right in front of our eyes.

At this point, everyone should be able to very clearly see what is happening, and yet most are still blind.

Why is that?

  • Evan Wise

    And we haven’t even reached the end of the Shemitah cycle yet.. the next 4-6 weeks could be catastrophic

    • stephen

      And what if nothing happens?

      Will people change their belief on the shemitah? Perhaps people will actually read the scriptures and see that the shemitah was ONLY given to Israel and those who lived in the Promised Land.


  • fggd

    The Shemitah is coming true.

    Do people not get it? There is a economic crash every 7 years.

    1980: Recession
    1987: Stock market crash
    1994: Bond market crash
    2001: 9/11, dot com, recession
    2008: Housing crash
    2015: Starting to happen

    The central banks will be the death of us. Get ready and embrace yourself for the economic collapse.

    The elitists have engineered and orchastrated the economic collapse
    on purpose in attempt to implement a new world order and reduce the world population. Agenda 21 and the Georgia Guidestones are in play here.

    Wake up and smell the coffee.

    • grumpyhillbilly

      Do you really think the elite are that clever , and the masses have no free will? Personally I blame it on eighty some years of tenured nitwits training even bigger nitwits.

      • ProclaimingGodsTruth

        They are more than very clever. They are demonically driven and that my friend is extremely bad for mankind.

        • jhowell882

          grumpy wants to disbelieve that but they are very clever if you haven’t watched their take over of the american goverment

          • fwalker15

            Who are “they”???

          • greyprepper


          • fwalker15

            That is very good 🙂 see I did learn something new today that is a good on for sureee 🙂

          • John Byde

            And our own greed. We are to blame too.

        • yellowpoppy

          Absolutely right

      • yellowpoppy

        Yes, they are that clever.

      • Алексей К.

        You greatly overestimate the will of crowd. Crowd is the clay the elite uses to shape up thier way while giving the crown an illusion of free will. Slaves must enjoy slavery. That is the gist of the New World Order.

    • Razorback

      Was there a Shemitah before 1980 or did it just appear at that time? Was there a recession every 7 years leading up to 1980?

      • 1972-73 was the Oil crash

        • fwalker15

          Oil crashed higher in 73? ROFL

          • Apparently you did not do your home work. There was an Oil crash in 1972-73… or let me rephrase this, an Oil Crisis if you prefer it like that

          • fwalker15

            Maybe you don’t know the oil spike which means sharp rise began in 73 at $3/bbl thru 1974 at $12/bbl. Maybe they missed that lesson in your homeschooling curriculum.

          • You don’t know what you talk about. Make your home work and check History (not just the US, but other countries as well)

          • fwalker15

            You may want to look in any search engine you’d like and learn the facts rather than make such a fool of yourself.

          • W.F. CALL

            interesting day today. lol

          • fwalker15

            Told you would finish 1/3 off the lows 🙂

          • W.F. CALL

            you made a good call on timing this morning too. good job you old pro.

          • fwalker15

            Even the pros are rookies I’ve discounted more of this game than they’re capable of learning 🙂

          • W.F. CALL

            lol. Don’t let your modesty be a snare.

          • fwalker15

            Actually feels great to be somewhat bullish again now.. Not exactly a bull but bull by proxy shorting the 10 yr as they now unwind and go risk on back into stocks “they” were masterful for sure unloading those bonds that China dumped on them jmho 🙂

          • W.F. CALL

            I am extremely low knowledge on Bonds. All info I have gathered are to stay away unless very short term US treasury stuff. However, I was under impression US 10yr interest rates should begin to climb in the near future. Is that what you mean?

          • fwalker15

            Yes TMV goes 3x the inverse of the 10 yr if they decline 1% then tmv appreciates 3%. At this point the yields about 2.1% so if you buy one bond or “loan” “them” 1,000 then you get back 1,021 annually about 60 cents per day that risk / reward scenario sure doesn’t seem rational IMHO not to mention they’re like historic low rates to historic largest debtor that’s much larger bubble than equities IMHO.

          • W.F. CALL

            ok. I didn’t post it, but I used SPXU after I went to cash that day a few weeks back. Also, we made a good decision to sell calves early. Live and Feeder cattle are taking a dive.

          • W.F. CALL

            Walker, I need to spend some time with the Buzzard wife. Hope yours is doing fine. Give me some repetitive up votes at the other place if you are there. Otherwise I will check here from time to time.

          • fwalker15

            Hey I’m pretty sure its drace gets me bumped off there 🙂

          • W.F. CALL

            not again? I don’t think he would. prob have a mod after you. do you post from laptop or smartphone?

          • W.F. CALL

            he seems to be pretty grumpy now.

            You did emphasize here you are short term bullish? right?

          • interesting that you write to yourself 🙂 W.F. Call –> fwalker15. Like it.

          • fwalker15

            You’re an amazing detective does NASA have your resume on file you’re remarkably brilliant. Im actually every other commentor on the entire internet just you and I and you figured it out amazing!!!!

          • So be it fwalker15… 🙂

          • W.F. CALL

            No Joel. Walker is a friend.

          • fwalker15

            U see that UVXY those clowns trashed it under 30 as low as 25 it only traded at 72+ today ROFL

          • W.F. CALL

            did you buy UVXY today? You killed it it you did.

          • Well ask him to be more kind with people it would be nice. After all I don’t remember being disrespectful to him in my first comment… Oil Crisis is quite well known in my part of the world…

          • greyprepper

            I think you had it right the first time. Don’t feed the trolls.

          • W.F. CALL

            Walker is not a troll.

          • greyprepper

            Of course he isn’t. He’s a “Wall Street genius” that can’t spell. (rolls eyes)

          • Yep you are right… usually I’m the one saying “don’t feed the troll” lol… thanks to remember me that 😉

          • W.F. CALL

            Walker is an old Wall Street genius and numbers guy. He’s a good guy that is a financial resource. I would pick his brain if he is here.

            For you Joel. Be careful and provide leeway because Rabbi Cahn said things could or could not happen. G-d can do what he wants. I realize this does look very coincidental (I don’t believe in coincidences) So, be gentle on Walker too.

          • But I did not say something would happen, i just said that the “seven” year cycle (seven in bracket) was a well known cycle in the Economic world.

            Be reassured, I don’t buy blindly into the Shemita year anyway, and as you said Jonathan Cahn definitely said we should not put God in a box…

          • W.F. CALL

            Agreed. There are numerous cycles. I am sure Walker used/uses in analysis.

          • Gay Veteran

            why don’t you prove that over the past 70 years?

          • Why don’t you do it yourself?

          • greyprepper

            You picked up on that too?

          • fwalker15

            Pile in that clown car

          • fwalker15

            I sure am bullish 🙂 I would pick at selective tech and energy

          • fwalker15

            Futures only up 296 whodathunkit 🙂

          • W.F. CALL

            are you on over there?

          • fwalker15

            Banned:) I can change names and puters and maybe go back but that’s twice so I can take a hint plus they’re stealing my comments for their stories 🙂

          • W.F. CALL

            that’s convenient.

          • fwalker15

            I used to go to the AOL’s and yahoos to mess with the bulls but I think they’re gone.

          • W.F. CALL

            see you later amigo. shoot me an email and I check it later if I have a chance or tomorrow same. Take care.

          • fwalker15

            Ok adios amigo 🙂

          • Well, I lived in Continental Europe for 40 years, was born there, and my fact is true life not theory. Days without cars because there was no gas at the pump, economy in trouble, the end of full work (following the post-war reconstruction) and the beginning of a major slow down for many years… so don’t give me the “a fool of yourself”

            Maybe in the US it was not like that because in those days the US where clearly the Economic powerhouse of the World and had the ability to pump their own gas, but not so for Europeans highly dependent on Oil importation (still the case this being said).

            It was certainly not the same extreme crisis as the one we have gone trough in 2008, or the one we are going trough now, but for the period it was quite a shock…

          • Voldemort

            (points wand at fwalker15)
            AVADA KEDAVRA!

          • Jodie Lynn Gaeta

            Yes, public schools do a much better job of teaching history. That’s why one teenage girl at my job didn’t know what a swastika is, and another didn’t know who Dwight D Eisenhower was, nor Harry Truman, nor Benito Mussolini. Yet another kid didn’t know which was older; Judaism or Christianity, and when asked “well, which religion did Jesus practice?” offered only a blank look. So if you want to insult someone and tell him he’s ignorant, maybe you should refer to his overly expensive education courtesy of the taxpayer.

          • victor

            It made me laugh, but truth is, it’s sad, because these kids our are future.

          • AzDi

            Because of the liberal takeover of education. Now the liberals are “deleting” history.

          • Matt Rustebakke

            Do YOU know what “religion” Jesus practiced, or what modern churchanity teaches? The religon and term “judaism” did not even exist until several hundred years after Christ.

          • Jodie Lynn Gaeta

            I know very well what I’m talking about, thank you, but my comments are stuck in pending limbo.

          • Priszilla

            Yes an oil crisis. Same as in 2007/2008. Rising oil prices forcing commodity prices up so that loans and mortgages could not be paid (2007). Resulting in a crash and then banking holding on to their money. Businesses not getting loans. Governments scrambling to give them money.

        • fwalker15

          Stocks finished 87 higher as well those must be voodoo style crashes

        • Gay Veteran

          and 1966? 1959? 1952?

      • paula

        Shemith has been around since 562 BC.

    • GSOB

      “Do people not get it? ”
      Hah Lol

      • fwalker15

        The only thing they get is some good laughs from that foolishness

    • fwalker15

      You sure don’t have any clue what you’re even posting regarding the economic cycles nor the capital markets.

      • Well, on the economic cycle, and as far as the clue goes, he is pretty correct. The “seven” year cycle has been known in the Economic Circles for a long time, it is just part of many different cycles known… Michael has already spoken about that in two or three articles here.

        For the rest – Agenda 21 and other things – it is part of Conspiracy Theories. Some are certainly true other just BS, go figure which is which…

        • fwalker15

          In the real world the average duration of economic cycles has been 69 months or just under six years. Those are the actual facts the rest is complete nonsense.

        • stephen

          Deut 15:1-5 speaks specifically of a ‘release of debts’ and not stock market crashes.

          BTW there is no prophesy stating that the shemitah would be applied to any other nation other than Israel.

          Just saying

          • Ok, but I do not speak about that in my comment you know 🙂

    • watchmannonthewall

      Though there does appear to be a correlation, at least in the last two 7 year periods, with a financial
      reset, it does not appear to match with what the Scripture instructs us concerning a debt reset.

      Deut. 31:10-11, “Then Moses commanded them, saying, ‘At the end of every seven years, at
      mine), when all Israel comes to appear before the LORD your God at the place which He shall choose, you shall read this Torah in front of all Israel
      in their hearing.'” We read the Torah last Feast of Booths as those we worshipped with claimed it was the 7th year.

      Aren’t most orthodox Jews on a Tishri to Elul calendar? Isn’t that why there is so much discussion about the 29th of Elul being the date for the reset during the last two seven year periods and the current expected reset? It is being taught it is the last day of the current 7th year. But is it? God’s Word doesn’t say this.

      Scripture, God, states that Aviv, the month of Passover, is to be the first month of the religious year calendar (Ex. 12:1-2). If we follow God’s
      instructions in Exodus, the time of the remission of debt lines up with the Feast of Booths in the above Deuteronomy passage and would be occurring at the end of the year, i.e., at the time of the last
      Biblical festival of the year, the Feast of Booths, where the Torah would be read as the culmination of the previous seven year festival period.

      Going by what is currently being taught, Elul 29 is in a different calendar year, the end of it, and the Feast of Booths is at the BEGINNING of the year, rather than the end, as Scripture states, above.

      Not only that, but a debt reset is only for a servant of the LORD, your brother in the faith. It does not
      apply to a foreigner. (Deut. 15:1-3) We are instructed not to add to or take away from God’s commands.

      I can’t dispute the facts of the date of the crashes, but I can judge that what is currently being taught
      doesn’t line up with Scripture. (Deut. 13:1-?)

      Perhaps God is simply judging a system of unjust weights and measures, a violation of His commandments, which is controlled by a small group of people that is putting many into slavery, even as James prophesied. (James 5:1-6)

      Perhaps He is calling those overseeing this corrupt system to repentance and giving them this opportunity by letting them see the destruction they inflict on the peoples of the world before bringing down the curtain on their prideful arrogance. (Revelation 18-19)


      • Israeli Woman

        If you look more closely at scripture you will see that there are two “new years”- one in tishrei and the other in aviv (there are actually three, but the third one concerns trees and I won’t go into it here).

        Each version was being practiced at the time of the giving of torah, and each version refers to another aspect of life.

        The shemittah cycle always was and will be determined by the month of tishrei and not the month of aviv.

        And can everybody stop saying “the shmitta is coming!!!” as if it is synonymous with the apocalypse please??

        The shemitta has existed for the last 3,000 years- to be observed every seven years- and the shemitta year is ending now- it is not “coming”!

        Shemitta does not equal apocalypse. It does seem to correspond with serious market falls.

        • watchmannonthewall

          I want to thank you for confirming my point. The point made above is that there is the Bible (TaNaK) way of doing things, which is by the instructions stated by God and there is the man way of doing things which is by the traditions of man.
          Both Isaiah and Yeshua (Jesus) identified this set of conflicting choices we are called upon to choose between. God’s Word says we are to live by His instructions and His Word says the remission of debts is to occur at the end of the year during the Feast of Booths (Tabernacles), which means NOT at the end of Elul. The Stone TaNaK reads the same as my NASB by stating it is at the END of the year, AT the Feast of Succoth.
          Man comes along and says “We have a better idea. We will ‘teach’ the remission of debts occurs at the end of the civil calendar, NOT at the Feast of Booths like God said in His Word. We will mix God’s instructions with our calendar which begins in Tishri, instead of using His calendar, which He said begins in Aviv, for His instructions.”
          We do understand the remisssion of debts is a religious instruction, one given by God, and is not a civil instuction given by man! The deeper spiritual truth of the remission of debts during the last Feast is that it is a practical way of remembering that at the end of this age, God will forgive all debts of sin for those who have approached Him properly, but there is still life that extends beyond it into the new heaven and new earth, hence, the 5 months following the release.
          Whether we practice Christmas and Easter or Passover and Tabernacles, our decision comes down to one thing and one thing only: are we going to obey what God said? Or are we going to do things the way man has traditionally taught?
          Are we going to practice Truth, or tradition?

      • stephen

        “Not only that, but a debt reset is only for a servant of the LORD, your brother in the faith. It does not apply to a foreigner. (Deut. 15:1-3)”

        Actually Deut 15:3 states “… Of a foreigner you may require it”

        In this verse a Hebrew/Israelite may or may not require it. The Father leaves that up to the individual. Also remember its a release of debts – and that has nothing to do with the stock market. If you look at the government and consumer debt levels from 1930 to present, there has not been one wiping away of all debts; in reality we see an increase every year. Even when we had dips (crashes) in the stock market there is always an increase of debts in govt and consumer debts. So those that push the shemitah on the U.S. are not following what the bible actually teaches. IOW they are being fooled by those who say the shemitah will cause an economic collapse this Sept 2015.

        Anyway I find it lacking that so many claim the shemitah is the reason for the woes of America. Yet none of these teachers or followers can give a prophesy in scripture saying that the shemitah would be imposed on any other nation but Israel.

        Much ado about nothing IMHO.

        With that said, the U.S. and all countries are sinning and each will have to give an account for their actions. But as for the shemitah leaving a deadly wake of destruction and hunger and famine, its just not in scripture. Consider the following…

        Leviticus 25:20-22
        20 ‘And if you say, “What shall we eat in the seventh year, since we shall not sow nor gather in our produce?”21 Then I will command My blessing on you in the sixth year, and it will bring forth produce enough for three years. 22 And you shall sow in the eighth year, and eat old produce until the ninth year; until its produce comes in, you shall eat of the old harvest.

        There you have it.

        Now till the Messiah returns me and my family will observe the Sabbath and feasts. We will watch, wait, examine ourselves to see if we are in the faith, die to self and be a witness to the Most High, Creator of the heavens and earth.


        • watchmannonthewall

          An excellent point. It MAY apply to a foreigner, if the debt holder decides to extend such to the person. Remission of the debt is not required from the debt holder for a foreigner, as it is with a brother/fellow citizen.
          Isn’t it the same with our salvation? Don’t all the Feasts/Sabbaths and the required practices related to them reveal an eternal truth of our relationship to the Creator?
          Remission of the sin debt is extended to all but you have to actually become part of the commonwealth of Israel to obtain the gift (Eph. 2:11-19). Refusal to enter into the commonwealth of Israel as a fellowcitizen and saint allows the debt holder, God, to hold one accountable to pay the sin debt, and Scripture records that God will indeed do this!. May we all consider the gravity of this truth!

    • afchief

      Futures are up of 250 this morning. Watch barging hunters jump in.

    • chilller

      So which is it? The Shemitah or an engineered and orchestrated collapse? Or are you saying every shemitah is an engineered and orchestrated collapse?

      • SupG

        The Elite are exploiting the Shemitah – they know it’s in play the masses do not…

    • Richard O. Mann

      Has this pattern been repeating only since Israel became a nation again in 1948, or was it happening before that? Just wondering if some one had already looked at that and has the information. I remember 1973 being a very bad year due to oil prices and embargo by the OPEC folks. Was a bit too young to remember anything in the 60’s and 50’s.

    • Gay Veteran

      and how about every 7 year period before 1980?

    • stephen

      the scripture that talks about the shemitah is not about stock markets or economic collapses. The ‘crashes’ you talk about are from the stock market and not about debt which the shemitah is about. Consider the truth of scripture…

      “At the end of every seven years you shall grant a RELEASE OF DEBTS. 2 And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the Lord’s release. 3 Of a foreigner you may require it; but you shall give up your claim to what is owed by your brother, 4 except when there may be no poor among you; for the Lord will greatly bless you in the land which the Lord your God is giving you to possess as an inheritance…”
      Deuteronomy 15:1-4

      Notice their is no mention of stock markets (money that is invested in companies). There is no mention of the ‘deadly wake of the shemitah’ or that it was a burden on the people IN the land of ISRAEL.

      Now Cahn claims that
      the shemitahs only recently been applied to the U.S. but offers no scripture to back up the lack of
      shemitahs from 1789 to 2001. God and His word states “that My word goes forth
      and accomplishes what it was set forth to do” ref. Amos 3:7. Interesting is
      that we see the shemitah was only applied to Israel and no other country. There are no prophesies
      about a person making a covenant with God in a land far, far away and how the
      shemitah will be enforced upon that nation. For whatever reason is that is
      known only to Rabbi Cahn, the shemitahs started in 2001 and again was seen in
      2008. If what Cahn is teaching is true then we should be able to see a drop in
      debt levels during those two years; remember scripture says it’s a TOTAL wiping
      away of all debt.

      The problem is when you check the government and consumer debt levels there has NEVER been a wiping away of any debts during the so called shemitah years. Why does Cahn use the stock market that centers on invested money rather than government and consumer debt (debt is what the scripture says is to be wiped away)?

      What about the foreigners?

      Any time we look at scripture we need to look at the context of the passage. We don’t want to misapply God’s word to a place, time or people in which it was not intended. Let’s look at the passage often quoted by ‘Rabbi’ Cahn, Deuteronomy 15:1-4…

      “At the end of every seven years you shall grant a release of debts. 2 And this is the form of the
      release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the Lord’s release. 3 Of a foreigner you may require it; but you shall give up your claim to what is owed by your brother, 4 except when there may be no poor among you; for the Lord will greatly bless you in the land which the Lord your God is giving you to possess as an inheritance—“

      Here we see that the releasing of debts is not mandatory in regards to foreigners. Notice the part that says ‘you may require it’. So when it comes to foreigners, you may require it or you may not. This context disproves Cahn and his followers when it comes to applying the shemitah to foreigners (release of debts and not stock market investments). In the United States there are about 5-7 million
      Jews and a total population of 318.9 million (2014 figures). If we say there are 6 million Jews in the U.S. they only make up about .018 percent of the population. So if we apply what the scripture says about the shemitah to foreigners, there is the option for Jews to release foreigner’s debts or not. We also do not see any command from God stating that foreigners must release debts of other foreigners. This is huge and it’s something that ‘Rabbi’ Cahn does not write in his books or tell his
      followers. If you’re going to pull scripture out of context and ignore key elements as Cahn has done with Deuteronomy 15:1-5, then how can we trust his

      Simply we cannot.

      With that said, I do believe everyone needs to repent but scripture says only a remnant will make it; it also states that there will be a great falling away. What better way to make people fall away than for Cahn’s claim that Sept 2015 will be an economic collapse will occur and all money will be useless.

      Question: If money is going to be useless, then why is Cahn still asking for donations for money?

      When Sept 2015 comes and goes without THE economic collapse, then perhaps people will wake up. Even then many will not test what Cahn and others are teaching because of their itching ears.

      Just saying.

  • JohnnyReb

    I remember in 2009, watching in dismay as Hussein Obama instituted “Quantitative Easing”.
    Instead of allowing the diseased parts of the economy to die off – which should have been done in a Free Market Capitalist economy – he buried them in a pile of worthless paper like a dog buries its crap. Those diseased elements have festered for over six years, and we are only beginning to see the results.
    You have the Leftist/Marxist/socialist Democrat Party to thank for what has been happening to the market, and for what is still about to happen.
    We tried to warn them.

    • fwalker15

      You realize quantitative easing is monetary policy by the federal reserve? You realize gov implements fiscal policy? You realize quantitative easing or open market operations have existed since the beginning of the frb without the QE title media has spoon fed you? Homeschooled economic notions sure are good for laughs though ty.:)

    • James

      obama did not institue qe, bernake did.
      The pure capatilism that you suggest is dangerous and unworkable.
      After all it is not like governments coin money, provide roads, worker education, fire protection, police protection, copyright, etc that businesses depend on and that the free market could not do.

  • K

    So it begins. Why can people not see? Because they refuse to. One of my own sisters is one of them. I begged her to get out of the market a month ago. Even today, she still see nothing out of the usual. The idea, that however far it falls, it will regain it all. The time most seem to quote is 2 years. Not this time. But most just will not hear it. There has now been a couple generations. of reality is whatever they want it to be. Or so they think.

  • Alwaystomorrow

    The Economic Collapse Blog Has Issued A RED ALERT For The Last Six Months Of 2015.

    Published 6/25/2015.

    130 days until 12/31/2015.

    Lets do a count down every day until the end of 2015 and see just what happens;


    By Michael S, on July 31st, 2015.

    “And I kind of appreciate the countdown. It reminds people of my warning, and perhaps it will give some readers a renewed sense of urgency.”


      Wakie Wakie….its already happenig

    • Guest

      Wake wakie hands off snakie.

    • Scott

      Let me guess, you’re now waiting for the really really really really really big one to stop the countdown, since another 500 plus drop in the Dow isn’t enough for you.

      • CASTIEL

        he only going to stop the countdown when a global thermonuclear war hit our planet …or…..when the moon crash into earth….until that everything is normal….

    • Coffeedrinker

      The Dow is extremely inflated as a bubble ready to pop. Falling 500 points in two consecutive days is not significant because of prior artificial ballooning of the stock market to its peak high.

      If it fell 4000 points in two days (2000 points each day) then we would not have a false alarm.

      Relax. We are not at collapse state yet.

    • AlwaysAnA**

      The Economic Collapse Blog Has Issued A RED ALERT For The Last Six Months Of 2015

      Published 6/25/2015

      130 Days until I’m proved to be an a**hole.

      Let me be a troll every day until the end of 2015, then not apologize to Michael when it totally unravels, and just say he was lucky, or some other bs.

      • Alwaystomorrow

        By Michael S, on July 31st, 2015.

        “And I kind of appreciate the countdown. It reminds people of my warning, and perhaps it will give some readers a renewed sense of urgency.”

        • Guest

          And another thought provoking post from the cut & paste clown.

          • Alwaystomorrow

            Copy and paste, not cut and paste.

  • DW

    Still a lot more falling left to do…

  • CharlesH

    Michael – I’ve been a avid follower of your blog for a very long time. I read The Harbinger and am about to wrap up The Mystery of the Shemitah both by Rabbi Jonathan Cahn. The past 3 trading days have only strengthened my resolve and belief that we’re entering hugely cataclysmic times and I’m speaking of the entire world, not just the U.S.A. I’ve been preparing the best I can but I need to step up the pace a bit I fear. God bless you Michael and all your hard work.


    Did you ever get the feeling today that there were forces buying to prevent a real crash ?? Maybe the Fed , maybe foreign interests, just a hunch.

    • CharlesH

      I definitely had that feeling – to me it was obvious.

    • Guest

      Of course there were.

    • jaxon64

      Absolutely—there was some serious buying back of own stocks with whatever liquidity some of those Corporations had left and all of the “Wall Street Pundits” were desperately telling everyone–“relax, don’t sell, go have some ice cream”
      As if the average joe hasn’t figured out yet that ALL of those talking heads and “economic experts” are working for one bank, brokerage house or the other–OF COURSE they are going to tell everyone to leave their money in the free fall and even “now is an excellent time to make a fortune on this irrational dip/correction”
      Half of these crooks should be strung up–it is not their life savings from 30 to 50 years of true labour that is being lost !!

      • Jerry C

        Crooks is exactly who they are.

    • Douglas M. Green

      Look up the Plunge Protection Team on wikipedia.

    • Mr. Jameson

      Yes yes yes yes yes!!! -1000+ and all of a sudden, up she goes?? After thursday, friday, then asia and euro markets go poop?? I call bull$#it one more time.

  • Maddog

    The LSM is reporting that the stock market selloff is a good thing because it will reduce the cost of gas. The media is why I believe America will NOT survive the global collapse and will at the very least become a turd world nation. Nothing they report is truth and they lie by omission more often than not. The country has already experienced a takeover by hostile forces and domestic enemies.

    • jaxon64

      Yes–they ( and I mean CNN, CSNBC, Fox, Fox business-all in unison with the same BS) get on there and repeatedly say” this is a minor correction”, “this is all a temporary reaction to China”, ” this is surprising with a solid recovery, dwindling unemployment, rising house purchases, solid corporate profits and reasonable 2% economic growth”….what a frickin load of crud–
      I want just one, JUST ONE!! honest economist to get on there and talk about how it has all been an illusory bubble! Talk about global trade stagnant, manufacturing virtually at a standstill, 37% of working age americans not working ( labor force participation still under 63%) the Baltic dry index, the French and Italians at 25%+ unemployment—why don’t they talk about how the FED has spent 9 TRILLION dollars in QE and national debt which the citizens kids, grandkids and great grandkids are supposed to slavishly labor to pay back! Talk about how the FED has artificially kept interest at 0% and destroyed boomers and current workers hopes of living partly on interest after a lifetime of savings and frugality–talk about how municipalities, cities, counties and states have billuions and billions of promised pensions and retirements to cover–and yet they already can’t pay their current budgets!
      Nope–it is just, chillax everyone–ain’t no thang–just leave your lifetime earnings in our accounts, stocks and banks and we’ll take care of everything—
      Rant over, and sorry but I’m not proofreading this so please ignore the inevitable typos etc

      • fwalker15

        Meanwhile the capital markets have absorbed the long awaited and more widely anticipated correction in history and key indicies will now likely move 7.5-15% higher while you cry it must be rigged. Thanks for the laughs though.

      • Zip

        I hear them all the time on both CNBC and Fox Business. I will grant you that they are out numbered by at least 5:1, but if you watch, they will bring on your doomsday economist or market analyst. Those networks have to hedge their bets incase it all goes south, like now, so they can say that they had people on predicting it all.

  • Itanimullikcuf

    Wait for Black Tuesday, Wednesday and so on.

  • watchmanonthetower

    “One thing’s for sure, we’re all gonna be a lot thinner.”
    ~Han Solo
    “Star Wars: A New Hope” (1977, G.Lucas – 20th CF)

    (I assumed you already had a bad feeling about this…)

  • SunnyFlaSnotress

    That 1000+ point drop was wicked! 🙂

  • watchmanonthetower

    Guess we’re getting up early tomorrow morning; don’t wanna miss the ride!

  • grumpyhillbilly

    I read earlier a consultant of former British PM Gordon Brown was advising Brits to buy enough bottle water and canned goods for a month so as to hide in your home for the coming tumult. My first thought was preppers are so ahead of the curve.

    • watchmanonthetower

      A wise type of ‘stocking up’ when the other stocks go down…way down…

    • Exploding Raisin Strawberries

      B-but no more boom and bust..!

  • Tobias

    Finally ordinary Americans will realize what an economic collapse is all about. Those who may try to challenge the Sovereign will miserably perish, while the greedy may simply opt to put an end to their miserable existence before accepting that they lose everything.

  • Douglas M. Green

    I like the way Michael keeps pointing out that we will have up days too because it is true and has to be emphasized to those who would otherwise be influenced by the lamestream media. It is truly SICKENING to see their surprise and shock and wonder how this could be when any 5th grader could have foretold it if they were decent at math. TIMING is the only uncertainty, even now.

    • victor

      reminds me of shock and awe they termed, in the Iraq war.

  • greanfinisher .

    All of these recent moves on the Dow indicate that we’re now entering the second phase of this ongoing Depression, and what’s coming ahead won’t be pretty.

  • givemethegasoline

    theres an old jewish saying that says shemitah me once shame on you, shemitah me, you cant get shemitahed again


      your are so full of Shemitah

      • victor

        good one, enjoyed the laugh.

  • Daddyotis

    Just snickered at AlwaysTomorrow’s usual boring cut-n-paste post. The economic collapse is upon us and he’s still prattling on with his clueless mockery and hipster arrogance. Reminds me of a lone holdout 1st class passenger sipping a brandy on the deck of the Titanic before it went beneath the waves: “But it’s UNSINKABLE!”

    Wonder what clever joke or mockery AlwaysTomorrow will come up with when he stands in front of the Almighty trying to convince him that he’s too much of a cool hipster to be cast into the lake of fire

    • JohnnyReb

      Those who mock the watchmen are always among the first to go.

      • G21

        He should change his name to “CantSeeTheForestForTheTrees”.

  • Midwest Values

    Great opportunity to buy a luxury car in 5 months.

    • Liberty First

      And lots of other stuff as well. But best not to splurge, regardless. I think I would stay with a regular car and put the remainder into gold and/or silver.

    • Douglas M. Green

      And get carjacked in 6 months! Lol

  • Nemnor

    Michael, you stated – ”…As the weeks and months roll along, things will eventually be even worse than what any of the experts (including myself) have been projecting…”.

    Well… the “experts” are not (yet) aware (it seems) that producing (and distributing) for profits, is now a decadent (out dated) mode of production.

    What the “experts” SEEM to not be aware of is, the main root cause of the major socioeconomic issues facing the USA and the World. Eventually, things will get much worse than the “experts” project, because it SEEMS like they are not aware that the decadent world-wide Capitalist economic system is into a relentless and on-going crisis from since late-60s/early-70s, and that this (general) crisis (a crisis mainly due to a state of general over-production) will continue right on to the very “end-of-days” (eventually) – towards total environmental and socioeconomic collapse/chaos, and/or World war.

    The “experts” SEEM to not be aware that the real and ONLY solution begins with dismantling Capitalism, and building a new sustainable system that is NOT based on producing and distributing for profits (i.e. that “profits” can now only be a secondary end-purpose, if at all).

    • The “experts” in mainstream are mere actors. They are there for distraction, they are not worth our precious time.

      They will now say words like New World Order, One world government etc

  • Orac4Prez

    My brother noticed that in Australia where the Chinese have bought up businesses many have failed or done poorly. They have thrived because they have had an easy access to a market and often had the technology to do that given to them. When they try to start new businesses or have taken over a new one they don’t seem to be able to do the research and marketting etc to get it up and keep it running.

  • Itanimullikcuf

    The Mainstream Media are just like a legendary Titanic Orchestra. Playing nice music till the very end.


    I hope this economic system and this rotten society finally explodes all to pieces….and massive war begins….where the strongs of heart survive and the weaks disappear so we can begin a new world…its just a question of time its inevitable….to the ones who are going to criticise me… tell me with all this corruption, this evil so incorporated in our society where money is the only thing that counts there s another choice????? I guess not…We didnt learn nothing from the previous crisis…..The only thing in the head of this persons its $$$$ and nothing more..Lets print some money lets get rich and rich until everything falls apart..Lets see if we dont see them falling from scrycrapers..:)…Well I m prepared for the worse…i have a farm and plenty of ammunition….I can be totally independent of outside world.

  • cal

    The central bank primed this doomed market. JFK warned us about secret groups that are out to destroy this country. He tried to bypass the FED in June 1963 by creating a substitute currency (US Treasury Notes) the amount printed based on the value of silver in US vaults. It cost him his life and the country hasn’t been the same since.

    • gjkenney .

      Well said, and I give Kennedy his due, but Dec. 23, 1913 marks the date when the country stopped being the same and became a debtor nation. It was the first stone in the pathway leading to today. How many more stones will be laid down is uncertain but where it began is clear.

  • ProclaimingGodsTruth

    Michael- you are 100% correct. The Black horse of Rev 6 could unload his judgment payload next month … or not. Everything is in the Lord’s timing. But it’s wise to be prepared; most importantly in heart, mind, spirit and soul. Are people right with Christ?
    Thanks for being a faithful watchman!!

    • GSOB

      Ecclesiastes 12:7
      Philippians 1:21
      1 Corinthians 15:36

      • Nemnor

        GSOB, I have read the Bible texts you listed, and i can see how all this matter with being born again and focusing on Christ, would tend to prevent you from taking “revolutionary” actions that might dismantle the decadent Capitalist economic system.

        However, Capitalism has a lot more decaying/declining to do, before sufficient people come to accept the need to dismantle Capitalism (should any survive the destruction Capitalism will definitely bring upon the World).

        • GSOB

          …..” focusing on Christ, would tend to prevent you from taking “revolutionary” actions…..”

          1 Peter 4:18

          What you are suggesting isn’t ‘right’.

  • Harbinger

    “Money has never made man happy, nor will it, there is nothing in its nature to produce happiness. The more of it one has, the more one wants.” (Benjamin Franklin). Simply put greed has dictated what is happening with the market. Greed is not a financial problem, but a moral problem. Many have been warned, yet they still will not believe what is coming. Just like a forest fire, you see the smoke but it’s a long ways off and you figure your safe. It’s not until you feel the heat from the fire that you actually decided to change direction and run: however, by then it’s already too late….

    • ProclaimingGodsTruth

      You are very correct. But there is also a very dark side to all this. And that darkness is coming to take its toll on the sinful state of mankind.

    • Nemnor

      And, “greed” ( “reasonably” so, or in “excess”) is the basic “ingredient” that moves the Capitalists to do as they do (in a “free market” system or not).

      Hence, the main root of the major socioeconomic issues facing the USA and the World is with the very Capitalist system itself. And, the solution begins with dismantling Capitalism.

      Those who argue that the problem is really with MAN and not with Capitalism. Then I posit that, IF we change the system we can surely change the MAN – as the man can NOT exist and grow in isolation to his environment. (right?)

      • GSOB

        You still don’t understand…
        Proverbs 22:27
        Jeremiah 13:23
        Psalm 130:3
        …………1 Peter 4:11

        • Nemnor

          Reading from the King James Version of the Bible…

          Proverbs 22:27, Psalm 130:3 and 1 Peter 4:11, are Bible statements (comments or questions) with no real relevance to the points in my post. They are all nonsequiturs when compared to my post.

          Now, Jeremiah 13:23 is comparing “apples and oranges”, since human nature is complex and is indeed changeable (teachable), and definitely NOT fixed like the “spots on a leopard”. Jeremiah 13:23 is actually an “inept” statement, that shows the (unknown) Author has little or not understanding and insight into Human Nature (definitely NOT a statement made by one with sufficient knowledge and understanding).

        • Gay Veteran


      • Harbinger

        What does it take to change the character of a man? First being able to admit the need for change and more importantly, time. The problem is we are out of time.

        • Nemnor

          Probably we do not have time.

          But, while (and if) we continue to survive, as Capitalism continues on it’s relentless decline towards total collapse/chaos, it is likely that more and more people become aware that Capitalism itself is at the very root of the major issues facing the Human Race.

      • barry oldwater

        Capitlism is the driving force of a better life, it spurs all aspects of your life upon improvements, effeciency and needs. No socialist nation where all businesses are part of the state can compare. Demming taught this to the Japanese and they rebuilt and became a power house. All socialism/communism does is barely provide a good, a service or a paycheck and definitely not a way of life that any sane person wants to live under.

    • barry oldwater

      I’m happy that I have it to build things and it is those tangible items that make life better, thanks to money, companies can build the plants to produce what I want.

  • Jorma

    I was under the impression that the stock market behavior is a diversion. The real problem is in the credit market and lack of liquidity. When the credit market collapses, everything will collapse with it, like food on store shelves. The NYSE can collapse, millions lose everything, but the economy can continue to operate. Get rid of credit and it’s all over.

    • GoldenGirl

      That’s my understanding, too. From the analysts I read, the bond market is the real bubble. This collapse in the equity market was needed to cause money to run to safety (bonds), creating that bubble, which in turn will cause the real collapse in the economy. It looks as if that is actually happening. I guess we will just have to wait and see how it plays out. We are in uncharted territory.

  • Itanimullikcuf

    Well folks, the SHTF storm is now. Sell unwanted goods, clothes (or save them for Barter when dollar will be used as a toilet paper)

    • barry oldwater

      Wrong, if you have set payments a month on something the dollar even if devalued will still be able to make that payment, do not rush out to get it out of your safes, maybe banks, but it will still be usefull.

  • GetReal4U2

    the ENTIRE world economy is on the brink of a collapse…ALL stock markets are in major trouble…it’s not a coincidence…in order for a one world “currency” the “powers” that rule must let this collapse happen…in September the Pope and the UN will bring forth the “peace” plan for Israel…trying to divide Jerusalem…in addition the UN 2030 agenda plan is ushering in the one world government and religious system…get ready…”someone” is about to step on the stage with “all” the answers…and the world will unite behind him…he will lead Israel into a false “peace” plan…the fall Jewish feast approach quickly…the “age of grace” is about over…get ready…September aproaches quickly…

    • GSOB

      Christ reigns.
      2 Corinthians 3:17

      • Nemnor

        Where? ( lol )

        Seriously, where in the World, does it appear to you that “Christ (as described in the bible) reigns”?

  • So, what’s in your safe?

  • Rufus T Firefly

    What a great buying opportunity! I can’t wait for the market to open tomorrow so I can buy! Buy!! Buy!!!

  • Jethro Gibbs

    lets see the start of the markets this morning @ – 1000 pts
    then it reverses back to -200 pts can you say plunge protection manipulation , we are being fed what they want us to see , the real
    numbers are probably alot more scary

  • David Waddle

    With Japan’s market already in meltdown it looks to be another fun night!

    • Nemnor

      Japan is actually already doomed. Japan Capitalism entered into a definite “slow grind” decline since the 90s, with NO possibility of a long-term recovery by economic means alone.

      However, continuous decline is really the general case with the decadent world-wide Capitalist economic system. The real solution begins with dismantling Capitalism.

  • Agree.

  • The Force Awakens….

    • GSOB

      Revelation 11:15

      • Gay Veteran

        Polly want a cracker?

  • phillyfanatic

    Put the blame on the Quisling POTUS in the WH with his domestic and international agenda made to punish America as he wants to see it. Well, here is his vision. A 3rd world nation with capitalism in the toilet. This horrid man makes Hoover look like a saint.

    • Nemnor

      The USA might become a “third world” nation (eventually), because US Capitalism (and world-wide Capitalism) is now decadent and is NATURALLY declining into the “toilet” (eventually), all by itself – with NO help from anyone.

      • barry oldwater

        Oh really, no help from anyone? Major companies having to enroll employees into health care, pay for environmental impact studies before building, pay for insurance in case someone gets injured, the list goes on and on, no help, I don’think so, apperently you don’t know what unfettered capitalism truly looks like.

        • Gay Veteran

          no environmental impact studies in China. go there, and breathe DEEP

  • Billy Bob

    Everything is awesome!

    • Pandadude12345

      Everything is cool when you’re part of the team!
      Lego movie reference.

  • aldownunder

    All good still here in OZ Jarryd Hayne still kickin ar$e in the NFL all ords up 40 points at the moment happy days ahead (just ask the MSM)

    • aldownunder

      Up 100 now all will be fine
      Joe says so

  • Preacher62

    When a kingdom collapses, those who belong to that Kingdom inevitably collapse along with it. “Seek ye first the Kingdom of God and HIS righteousness and whatever you need will be given to you.” Come out of this earthly collapsing kingdom and into God’s kingdom that will never collapse. He who is not for me is against me, he who is not gathering with me scatters abroad. Definitely time to decide whether you are in or out. There is no such thing as being part of both kingdoms, they are mutually exclusive. God Bless

  • fwalker15

    Does anyone here even know how many companies are in the Dow Jones composite index?

    • GoldenGirl

      65, I believe.

      • fwalker15

        You are correct 🙂

  • right

    No-one really cares-not affecting that many people poo poo old boring news on and on and on about the “collapse.” Get right with God and you will not experience a collapse. The waking up is waking up to the fact that there is a loving creator of the universe and you’re not it. Nothing, not one Earthly thing will save you. Not one. Only realizing that God is all and that He will and can save you is all there is. All these articles are wood, hay, and stubble. Temporary entertainment, something to talk about as we await eternity. Bye Bye into the fire, poof goes the smoke. Like our lives, a vapor, a mist. That’s it folks. We are a vapor here now and gone tomorrow. We will vanish like a fog burned up by the sun. All you tough guys out there ready to fight, survive, get some of that silver? Good luck. I’ll be watching from above through the crystal clear, streets of pure gold. Ya’ll be fighting down there for that gold now ya hear. HA ha ha ha ha ha ha ha ha ha ha ha ha!!!

  • Matt M

    It seems to me a “Black Swan event” could be brewing. With this massive drop in commodity prices and stocks, it seems there could be a Lehman Brothers out there, that are incurring heavy losses as we speak. that will sort of jump out of the dark at us.

    • fwalker15

      You’re obviously very new to capital markets 🙂

      • Matt M

        Tell me more.

  • Clay99

    We’ve been throwing paper money at the 2007-2008 recession for he last seven years. All it did was blow the economy up like a balloon that eventually has to pop. The market will crash again, but this time there will be no pumping it up with cash. The only thing that will keep us from total collapse is the new technologies. There are currently some excellent technologies being implemented that will continue to make our lives easier and the cost of doing business less. But to implement these technologies and watch them grow will take time, just like the internet took time. These technologies will help us grow economically by leaps and bounds much like we did with the growth of the internet in the 90’s and 2000’s.

    • Nemnor

      Clay99, there will be NO more long-term (leaps and bounds) growth in this decadent and decaying world-wide Capitalist economic system.

      The Capitalist system is qualitatively more decayed than during the 90s, and we are now in the age of “jobless recovery”, and with the “recoveries” either being FAKED or lasting for just a few years.

      Now, while new technologies might be “good” for businesses (because new technologies eventually tends to lower the overall cost of production), in the immediate and medium term, much of the same new technologies often put a lot of people out of a job – while the real economy is not growing fast enough (or rather while the real economy is even declining and not able) to re-absorb the displaced Workers.

      • G21

        So Nemmie, I guess that means you’d better get rid of your computer/device which was produced by a capitalist company in a capitalist system.
        And while you’re at it, you can take all your capitalistic appliances to the dump. Oh, and your cars too. And all your clothes.
        Then you’d better quit your job – because receiving money from a capitalist company is evil.
        And since you despise capitalism, you’d better go ahead and move to a hut out in the woods – but don’t sell your house, because you might accidentally make a little evil capital profit, right? You’d better just give it away.
        I guess you’ll have to survive off nuts and pine cones too, since America’s farmers are part of the capitalist system.

        After all, you wouldn’t want to be a hypocrite, would you?

        • JohnnyReb

          G21, lol. Odds are ol’ Nemmie is a global warming alarmist too, but wouldn’t dream of getting rid of his capitalist-produced pollution-mobile!

          • G21

            JohnnyReb, ever notice how leftists are perpetual victims? They ruined the best economic system in the world, then turn around and blame the system for their own lack of initiative.

  • aldownunder

    Thank goodness for the nice government men
    Stocks up every where,oil bouncing back,theyv’e got everything under control again

  • In the news today: The Dow fell to 300 and exerts say it’s ONLY a correction and a great opportunity to buy.
    Come on boys don’t say NO get them check books and go go go, were gonna have a whole lotta fun.

  • Daystrom2012

    Every generation has said that this is the prophetic time in history that will witness the second coming and every generation has said that no it isn’t. Obviously the ones who have said no it isn’t have up to this point in history been correct.There is coming a day in history when that time will be fulfilled. Just as the multitude of prophecies concerning the first coming of Jesus were fulfilled to the letter so will the second coming prophecies be fulfilled to the letter. We have always had earthquakes,famines,pestilences, and so on (Matthew 24) that have taken place before, not to mention the other numerous prophecies that space does not permit me to go into detail about, the only difference is this generation has something that no other generation (or time frame) has not had, a restored nation of Israel (May 14th 1948).
    Jesus said that the prophetic events that would precede His return would be like a woman in travail, or having birth pangs. When a woman is a few weeks pregnant and she gets a kick she goes huh,what? But the closer she gets to the day of delivery the more frequent and intense those pains become. As a watcher of world events for the last 20 or so years I can say that 20 years ago I could loosely tie something to a prophetic event every few months or so. Now it has gotten to the point that so much is going on on a daily sometimes hourly basis that I cannot keep up with it.
    Either Jesus was a liar or a lunatic or He was who He said He was. And if the latter is true, as I believe that it is, then everything that is happening now and soon to happen (including a future worldwide economic collapse where it will take a days wages to feed one person- Revelation 6) is exactly what the scriptures said would happen before either the blessed hope for the believer or the great and terrible day of the Lord (Joel 2:31) for the unbeliever. It has to happen sometime. Only human arrogance or ignorance would blind someone to the fact that these are not days of business as usual.


    thank you Michael. God bless you and your kind heartedness.

  • CLG

    What if the fundamentals of a country is sound (e.g. Philippines)? Fund managers here keep saying that as long as fundamentals are good, these will just be temporarily affecting our local stock market.

  • Michael Lever

    It’s only fair, surely? Not everyone makes money when stocks go up. Many investors only make money when stock prices go down. We need the market to fall from time to time otherwise the roller-coaster would grind to a halt.

  • Priszilla

    When you put bamboo in a green house it will grow vigorously at first, then the glass will break and the cold outside air will kill the orchids.

  • Barry Goldwater

    Michael you asked why it is that so many are blind ? They are blinded by the patent answers as well as the belief that in America we’re just ” too big to fail ” . Strange how these financial yappers are globalists when it comes to trade and jobs but isolationist when it comes to consequences, it’s always someone else who’s going to pay the piper .
    If the market trends up tomorrow the Kool – Aid will be dispensed on all major networks and a majority of Americans will believe it.

  • Priszilla

    Interesting to see the 50cent guys even here at work trashing any comment section.
    Michael, you should fix your website. My phone crashes every time I visit here.

  • DB200

    “And if stocks go up tomorrow (which they probably should), ….”
    This is called a dead-cat-bounce. It is NOT a buy opportunity but a sell opportunity.

  • kh55

    Michael, I listened to your interview with Lyn Leaz and you wondered why pastors aren’t warning their people to be prepared for all that’s coming. I heard a pastor online say he was told by some pastors that wanted him to speak at their churches just to stay away from Biblical prophecy, when the pastor asked why? He said they was afraid if he told the people what’s coming, they’ll stop giving. So that could be a major factor. I’m not a pastor but I tell everybody to be prepared for we are in for bumpy times ahead. Thank you for an informative site.

  • Heinrich van Rooi

    Black Tuesday today? China already down 8%

  • Alexander Shekhtman

    The real price of stocks is way lower than Michael says. I believe the Dow needs to fall by 10,000 points to reflects the real price of stocks. Lots of stocks are overvalued by at least 200%. I think Facebook is overvalue by at least 300%, which means it must fall by 67%.

  • Matt

    Too bad the situation is worse than even you think. How is that? Check out a little history:

    1. Big financial crash in 1907, then WWI in 1914.
    2. Big financial crash in 1929, then WWII in 1939.

    This suggests the danger zone for WWIII goes from 2015 to 2018.

    Just a coincidence? No. There is actually a real reason for this. Societies progress into the future more or less like a forest does – with the future heavily influenced by the past. During the good times problems are slowly and silently growing. They eventually get so bad (after a long time) that there is a big shock of some kind. The shock indicates that time is running out for something even bigger. In the case of forests, that would be a fire that wipes out everything. In the case of societies, that would be some kind of war like a world war or civil war.

    Both 9/11 and the 2008 financial crash were warnings: Time is running out.

    • GSOB

      Jonah 2:5, 6


      Habakkuk 3:5-7

      Time is for baptism in the Spirit.

    • Stephen

      Deut 15:1-5 only talks about the ‘release of debts’ to the people IN the land of Israel.

      It has never been prophesied that it would be applied to any other nation besides Israel. If Deut 15:1-5 is specific to the ‘release of debts’ then why are you looking at the stock market, which is the investing of money into a company for a possible profit if the company does well?

      Look at the govt and consumer debt levels – there has been an increase in both since 1930. Proof showing the shemitah and its release of debts only applies to Israel and thats IF they are obedient to the commandment.

      Even during the worst ‘crashes’ of the stock market the debt levels have increased like clockwork. That means all this shemitah talk applying to the U.S. is bogus.

      Time to wake up and follow what scripture actually says.



    The Plunge Team was working Overdrive on this one.

    • chris

      All hands to the pumps! The longer they put it off the worse it’ll be……………….

  • chris

    I wonder if the US Government now regrets trying the old tactic of sanctions and getting Saudi Arabia to oversupply oil in order to collapse Russia through low oil prices. Look at the damage it’s caused. Unless of course this is what they want or were prepared to endure, which seems insane.

  • Horiboyable .

    Remember folks you can not live a life style you have not earned

  • itscoming

    Today will be a “dead cat bounce day” and I believe the markets will rise a few percentage points. This will give the big boys time to mop up some more profit while the media and talking heads tell everyone that things are really looking better. China is still collapsing so it is not better.

  • Puter

    “But the amazing thing is that the Dow actually performed better than almost every other major global stock market on Monday.”

    Actually the rebound from the 1000+ point fall was mainly due to the possibly illegal tweet from Apple’s CEO Tim Cook to CNBC’s Cramer stating that Apple is currently doing very well (at least until now), especially in China.

    The moment that news was tweeted, Apple (one of the 5 or 6 stocks that drives the market) rebounded erasing a large portion of its 84 Billion loss for the day. The other stocks also took the cue and rebounded somewhat.

    Illegality drives the current economy – not performance as TPTB want you to believe.

  • chilller

    I was listening to a talk radio show at the time the dow went south over a thousand points which got the show host going. But what was more startling was how fast it bounced back up to only 500 points down…less than 10 seconds…which really flabbergasted the host! This tells me the gubermint stepped in and instantly bought it back up. They are the only ones with enough money and lack of brains to catch the falling knife.

    • fwalker15

      They’re not catching a falling knife. Short sellers sell high then buy low. After they borrowed stock and sold it higher the money is credited to their account at some point they had to buy back the stock (in this case lower) and profit the difference. When the selling pressure dried up – call it capitulation if you want there was a race to buy to close and actualize gains. Looks like many rookies were duped into piling in late and may become fuel for a vicious relief rally short squeeze they may get burned very badly here and believe it or not that may actually be bearish or bad for markets because those forced buyers that sell first are the underpinnings that keep markets climbing if they’re all burned and only buyers waiting to sell are left then look of below. That’s more likely after sept 30 after the mutual funds and “pros” post their 3rd qtr reports then look to exit and preserve their Xmas bonuses. Watch and learn.

      • GoldenGirl

        Thank you for keeping your explanations unemotional and informative. It’s kind of surprising to me that so many people who read an economics blog don’t take the time to understand how markets work and watch the trends. I am still in the learning process ~ or I should say “unlearning” process, so there is much I have yet to learn, but even I see a lot of market myths perpetuated here. Watch and learn, indeed!

  • The Most Interesting Man

    Only a matter of time before the Republicans start blaming the Democrats for the losses. I’d like to blame it on the greed of Wall Street.

    • G21

      Too late; I already blamed the Democrat Party.

      • The Most Interesting Man


  • WK

    Sure the market will go back up today, but this thing has become absolutely irrational any more with stampede mentality ruling the roost. I had pulled my capital out 3 weeks ago and will not go back in ever with this irrationality. It is truly now a casino in every sense of the word, and that is not what an investment option should represent. I have learned my lesson and so should most of you if you have positions left in there. This market could go down 1000-1500 or so just as easily it could seesaw up. Yes it is capitulation and I would rather have that then think I am going to outsmart a bunch of computers. When I see this, it makes me think the whole bull market was indeed artificial and ready to collapse once interest rate uncertainty came back into the picture.

    The concept of IRA and 401K is good but these markets are just so driven by psychology any more it makes it impossible to predict or forecast anything from an investment side.

    • Nemnor

      WK, you are correct to think – “the whole bull market was indeed ARTIFICIAL“.

      The “bull market” was/is NEVER a reflection of the REAL economy, but many people (“investors”) choose to ignore the reality of a (generally) continuously declining economic system. (Probably because they do not want to accept that it is Capitalism itself that is decadent and decaying?)

      • GSOB

        No. It is SIN. That is why we all die…. because of sin.

        • Nemnor

          GSOB, if it is the will of God (or The Universe?) that both of us live long enough. You will one day get to know that much of your posts are meaningless and without relevance to the main issue facing the World.

          The main issue facing the World is – (Imperialist) Capitalism itself – which is a system based on (excess) greed, and the exploitation of man by man and country by country.

      • G21


        • Nemnor

          Actually, Obama has done more or less the same as IF it was still Bush in the WH. But Obama or Bush was NEVER the real issue. Decadent Capitalism itself, was and is the real issue.

          Decayed and decaying Capitalism is NO longer able to generate long-term recovery by economic means alone. This means the future under Capitalism (“free market” or not) is total socioeconomic collapse/chaos and/or world war.

          • G21

            But you DID vote for Obama –
            – right?

          • Nemnor

            G21, NO. Though I did like some of the things Obama promised, there were/are things I did not like.

            I avoid “labeling” myself (as I am an “Independent Thinker”). I KNOW that Capitalism is decadent and I KNOW that the change I want is one that would (eventually) bring/allow TRUE abundance for the “rational” individual.

            I can NOT say that I KNOW (or do not know) that genuine “communism” will indeed bring TRUE abundance (and you MUST build genuine “socialism” FIRST, before you dream about genuine “communism”), but that is the promise of what is supposed to be genuine “Communism”. And that is, IF we actually get to build such a system in the (distant) future (which would require a much more enlightened Human Being).

  • J.C

    Yep, as expected the global markets is recovering on Tuesday despite China still on a nosedive. The question Michael asks why is most people blind to see? I think perhaps its in every human-being that everyone clings on the hope that the good will overcome the bad, and as for shares, many expect a rebound, and because the share price is at a low, its a good buy now. However, what I don’t get is, markets crashes all the time, corrections are normal, what makes the upcoming ‘big crash’ any different? Is it going to result in WW3? Or perhaps a better question, will the planet recover like before? If so, how long?

    • Nemnor

      J.C, please allow me. My (below) answer to your question can be taken as the (near) absolute “truth” – as NO one with TRUE knowledge and understanding of the history of Capitalism (“free market” or not), can honestly deny what I am about to state.

      The world-wide Capitalist economic system is decadent for some time now (mainly due to reaching a stage of general over-production), and is now NO longer able to generate long-term recovery by economic means alone.

      The future of the World under Capitalism (in ANY form, “free market” or not), is massive world-wide poverty and massive world-wide destruction – through (world) wars, environmental collapse and economic collapse. Just like a “rotten apple” can NEVER change back to acceptable edible form, Capitalism (“free market” or not) will eventually sink (“rot”) into total collapse/chaos and/or world war.

      Believe it or not, but the real underlying force that brought about WW-I and WW-II, was Imperialist Capitalism. Germany felt “compeled” to “trigger” WW-I and WW-II because the then relatively more advanced German Industry (and German “national Capital”) needed more markets and resource to expand (and the alternative to not taking other peoples’ resources and not expanding your markets is that German Industry (and German “national Capital”) will surely die).

      Today, as US (and world-wide) Capitalism continue on a (general) relentless decline, Imperialist Capitalist USA, is feeling the SAME “compulsion” to create, fund and/or cause/provoke wars and unrests all over the globe (which, they hope, would directly and indirectly turn out to the benefit of the USA).

  • yellowpoppy

    Because most of them don’t have a brain, Michael.

  • cal

    Something to think about…the love of money (greed) is the root of all evil and Napoleon warned not to wake up China because it will devour the whole world. Former FED chief Bernanke said the central bank just 16 years old at the time was responsible for the Great Depression. Will they take responsibility for the next Great Depression by priming the stock market pump with QE when economic activity has been in the tank for years. In the old days stock market activity was linked to economic activity, that link has been permanently broken by the central bank. JFK warned us about secret societies bent on destroying America. He was correct and the FED is leading the charge to financial Armageddon. For evil to prosper good men do nothing, that is the most appropriate statement to make in these last days of the United States. I give Kennedy credit he saw the future and correctly predicted the outcome. In a speech he was to have given in Dallas he mentioned Americans feared more an army of Washington bureaucrats then an invading foreign army. The current supreme court, EPA fiasco with the Colorado River, Iran and the greed mongers at the central to name a few prove his point. Too bad his warnings went unheeded in the general population but they were noted by these secret societies and it cost him his life.

  • pissedlizard كافر ‏

    Where is the countdown guy?

  • nekksys

    “There is none so blind as he who will not see.” That pretty much sums up the US market position.

  • 2Gary2

    This is so true-google this and read the WSJ article. I have only been saying this like forever.

    Michael comments? must make conservatives more nuts to see this in the conservative WSJ.

    Wall Street Journal Warns Republicans Are Greatest Threat To America’s Economy

    Excerpt: “There are several failed economic policies Republicans embrace
    besides just giving outrageously generous and unfunded tax cuts to the
    richest one percent, but oil subsidies, spending cuts, financial
    deregulation, poverty wages and allowing corporations to hide their
    trillions of dollars in profits are secondary in the extent of harm to
    the economy and Americans to the absurd trickle down scam. However, over
    the past six years Republicans have employed a novel means of wreaking
    economic havoc on the nation that typically has had nothing whatsoever
    to do with spending, debt and deficit, or growing the economy, and this
    year they are using religion to slow down job creation and thwart
    economic growth”.

    • G21

      I think you’re mistaking “Republicans” for “Conservatives”.
      The modern Republican Party is very liberal, not conservative. So if you’re blaming “Republicans” for something, you’re really blaming “liberalism”.
      Want to solve this country’s economic woes? Embrace Conservatism.
      But be warned – it’ll take a long time to undo the mess the liberal/leftist/socialist/Marxist/communist/atheist/abortionist/Big Nanny Government-loving/tax loving/freedom hating/traitorous Democrat Party has made.

      • Nemnor

        G21, you are not in tune with reality. The real issue is NOT the Republicans or the Democrats. The real issue is Capitalism itself (“free market” or not) that is decadent for some time now (mainly due to reaching a stage of general over-production), and is now NO longer able to generate long-term recovery by economic means alone.

        There is NO going back to what you imagine to be “free market” Capitalism. What you see now IS indeed Capitalism – which had naturally and inevitably decayed into it’s now decadent stage, from what ever previous form Capitalism had (“free market” or not). The ONLY direction for decadent Capitalism is (eventually) total collapse/chaos and/or world wars (and world war is a form of total collapse).

        • G21

          No, it’s you who are out of touch with reality, because Reality says that there must be some form of economy. Socialism/Marxism has failed – MISERABLY – whenever, wherever it’s been tried.
          And not only has it failed as an economic system, it fails in that it steals freedom from people. As a communist, you probably claim to champion the Worker, yes? But individual freedom CANNOT thrive under central planning, period.

          Once more I say to you, Capitalism was working just fine until the socialist/Marxist/central-planning Liberals hijacked it in the early 20th century, and it’s been trending downward ever since. That’s undeniable; there are statistics galore which prove it.

          Tell me this, “comrade” – if capitalism has failed, and socialism has failed, what sort of economy should be instituted?
          Don’t tell me, let me guess – a New World Order with a single global centrally-planned economy (with government-dictated wages, government-dictated prices and government-dictated rights) and a single World Government —-

          • Nemnor

            I have answered you post above – but my answer is awaiting moderation.

            Later i will answer your question – “… if capitalism has failed, … ,.. what sort of economy should be instituted?…”

        • True Grit

          Kind of like the Soviet Union did a while back?

  • JailBanksters

    Taking the Federal Reserves Punchbowl away is
    like taking candy away from a baby. Bankers and Babies will kick and scream until you return the one that makes them feel good.

    So, Janet, still on track to raise rates by a fairies Phart ?

  • DJohn1

    It is really the biggest opportunity in years for people that have their money liquid right now.
    The Dow goes down a thousand points and immediately starts a recovery? That means if someone rides the surf of this change they will make a lot of money on the recovery.
    The trick of all this is to know the right moment to buy, buy, buy.
    IF the recovery occurs . . . some people will make an incredible amount of money in that recovery.
    And that is what it is really all about for investors. Or should I say people that can see the future.
    Even so the governing body over these stock exchanges might have many questions of someone profiting from the mess.

  • algol2000

    But the government can simply buy all the stocks with printed money. Why not?

  • Ben

    And the markets are on a rebound today. Sorry doom and gloomers

    • JohnnyReb

      Hooray, now the stock markets are only down over 2000 pts.

    • whattimeisit

      They were until the last hour of trading.

    • Itanimullikcuf

      205 (1.3%) down and it stopped on 15 666 mark.

  • Piglet

    “The mainstream media is bringing on lots of clueless experts
    that are talking about what a wonderful “buying opportunity” this is.”

    Of course. If someone who knows how bad it is wants to sell and get out while he can, he’ll need a sucker willing to take advantage of this “buying opportunity.”

  • Vess

    LOL. So, the Dow fell by 5.3% in a single day. Big deal. How many times has it done so in the past?

  • Keepitsimple

    “On Monday, the Dow Jones Industrial Average plummeted 588 points. It was the 8th worst single day stock market crash in U.S. history, and it was the first time that the Dow has ever fallen by more than 500 points on two consecutive days.”
    That’s a bit misleading. Not so percentage wise.

  • Tim

    Great post ^^^^. Socialism will work, but it requires intelligence, cooperation and hard work. The circles around my family hold these true. There is definately a system that will work that can sustain community, sustain the environment, keep everyone fed, active and prosperous. The wealthy will lose out obviously. Democracy will only occur when a delegate, say for every 1000 people in a community, gets an equal say with every other delegate to shape legislation. Banks gone. Trade is direct. Currency will be fixed. Technology and science promoted at every opportunity, to the benefit of man.

    The system will be difficult to develop and requires the greatest minds from all areas to script. The transition will be the messy part.

  • poodooloo

    I’ve been thinking this same thing for awhile, but I really truly think Bernie Sanders’ bills would do legitimate good to thwart this somewhat.

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