The Beginning Of The End
The Beginning Of The End By Michael T. Snyder - Kindle Version

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Mass Carnage: Stocks, Bonds, Gold, Silver, Europe And Japan All Get Pummeled

Car AccidentCan you smell that?  It is the smell of panic in the air.  As I have noted before, when financial markets catch up to economic reality they tend to do so very rapidly.  Normally we don't see virtually all asset classes get slammed at the same time, but the bucket of cold water that Federal Reserve Chairman Ben Bernanke threw on global financial markets on Wednesday has set off an epic temper tantrum.  On Thursday, U.S. stocks, European stocks, Asian stocks, gold, silver and government bonds all over the planet all got absolutely shredded.  This is not normal market activity.  Unfortunately, there is nothing "normal" about our financial markets anymore.  Over the past several years they have been grossly twisted and distorted by the Federal Reserve and by the other major central banks around the globe.  Did the central bankers really believe that there wouldn't be a great price to pay for messing with the markets?  The behavior that we have been watching this week is the kind of behavior that one would expect at the beginning of a financial panic.  Dick Bove, the vice president of equity research at Rafferty Capital Markets, told CNBC that what we are witnessing right now "is not normal. It is not normal for all markets to move in the same direction at the same point in time due to the same development."  The overriding emotion in the financial world right now is fear.  And fear can cause investors to do some crazy things.  So will global financial markets continue to drop, or will things stabilize for now?  That is a very good question.  But even if there is a respite for a while, it will only be temporary.  More carnage is coming at some point.

What we have witnessed this week very much has the feeling of a turning point.  The euphoria that drove the Dow well over the 15,000 mark is now gone, and investors all over the planet are going into crisis mode.  The following is a summary of the damage that was done on Thursday...

-U.S. stocks had their worst day of the year by a good margin.  The Dow fell 354 points, and that was the biggest one day drop that we have seen since November 2011.  Overall, the Dow has lost more than 550 points over the past two days.

-Thursday was the eighth trading day in a row that we have seen a triple digit move in the Dow either up or down.  That is the longest such streak since October 2011.

-The yield on 10 year U.S. Treasuries went as high as 2.47% before settling back to 2.42%.  That was a level that we have not seen since August 2011, and the 10 year yield is now a full point above the all-time low of 1.4% that we saw back in July 2012.

- The yield on 30 year U.S. Treasuries hit 3.53 percent on Thursday.  That was the first time it had been that high since September 2011.

-The CBOE Volatility Index jumped 28 percent on Thursday.  It hit 20.49, and this was the first time in 2013 that it has risen above 20.  When volatility rises, that means that the markets are getting stressed.

-European stocks got slammed too.  The Bloomberg Europe 500 index fell more than 3 percent on Thursday.  It was the worst day for European stocks in 20 months.

-In London, the FTSE fell about 3 percent.  In Germany, the DAX fell 3.3 percent.  In France, the CAC-40 fell 3.7 percent.

-Things continue to get even worse in Japan.  The Nikkei has fallen close to 17 percent over the past month.

-Brazilian stocks have fallen by about 15 percent over the past month.

-On Thursday the price of gold got absolutely hammered.  Gold was down nearly $100 an ounce.  As I am writing this, it is trading at $1273.60.

-Silver got slammed even more than gold did.  It fell more than 8 percent.  At the moment it is trading at $19.57.  That is ridiculously low.  I have a feeling that anyone that gets into silver now is going to be extremely happy in the long-term if they are able to handle the wild fluctuations in the short-term.

-Manufacturing activity in China is contracting at a rate that we haven't seen since the middle of the last recession.

-For the week ending June 15th, initial claims for unemployment benefits in the United States rose by about 18,000 from the previous week to 354,000.  This is a number that investors are going to be watching closely in the months ahead.

Needless to say, Thursday was the type of day that investors don't see too often.  The following is what one stock trader told CNBC...

"It's freaking, crazy now," said one stock trader during the 3 p.m. ET hour as the Dow sunk more than 350 points. "Even defensive sectors are getting smoked. The super broad-based sell off between commodities, bonds, equities - I wouldn't say it's panic, but we've seen aggressive selling on the lows."

Unfortunately, this may just be the beginning.

In fact, Mark J. Grant has suggested that we may see even more panic in the short-term...

Yesterday was the first day of the reversal. There will be more days to come.

What you are seeing, in the first instance, is leverage coming off the table. With short term interest rates right off of Kelvin's absolute Zero there was been massive leverage utilized in both the bond and equity markets. While it cannot be quantified I can tell you, dealing with so many institutional investors, that the amount of leverage on the books is giant and is now going to get covered. It will not be pretty and it will be a rush through the exit doors as the fire alarm has been pulled by the Fed and the alarms are ringing. There is also an additional problem here.

The Street is not what it was. There is not enough liquidity in the major Wall Street banks, any longer, to deal with the amount of securities that will be thrown at them and I expect the down cycle to get exacerbated by this very real issue. Bernanke is no longer at the gate and the Barbarians are going to be out in force.

If we see global interest rates start to shift in a major way, that is going to be huge.

Why?

Well, it is because there are literally hundreds of trillions of dollars worth of interest rate derivatives contracts sitting out there...

The interest rate derivatives market is the largest derivatives market in the world. The Bank for International Settlements estimates that the notional amount outstanding in June 2009 were US$437 trillion for OTC interest rate contracts, and US$342 trillion for OTC interest rate swaps. According to the International Swaps and Derivatives Association, 80% of the world's top 500 companies as of April 2003 used interest rate derivatives to control their cashflows. This compares with 75% for foreign exchange options, 25% for commodity options and 10% for stock options.

If interest rates begin to swing wildly, that could burst the derivatives bubble that I keep talking about.

And when that house of cards starts falling, we are going to see panic that is going to absolutely dwarf anything that we have seen this week.

So keep watching interest rates, and keep listening for any mention of a problem with "derivatives" in the mainstream media.

When the next great financial crash comes, global credit markets are going to freeze up just like they did in 2008.  That will cause economic activity to grind to a standstill and a period of deflation will be upon us.  Yes, the way that the Federal Reserve and the federal government respond to such a crisis will ultimately cause tremendous inflation, but as I have written about before, deflation will come first.

It would be wise to build up your emergency fund while you still can.  When the next great financial crisis fully erupts a lot of people are going to lose their jobs and for a while it will seem like hardly anyone has any extra money.  If you have stashed some cash away, you will be in better shape than most people.

Crushed Car By UCFFool

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  • Ayn Rand

    Hooray! It just may be finally crashing! The suspense may be over!

    • markthetruth

      Be Careful for what you wish for.

      the end…

      • Ayn Rand

        True. I don’t exactly 100% look forward to it, but I feel that we must end the vicious cycle and create better societies than that which is currently trying to run our lives. I don’t want to pass big brother government to my children.

      • markthetruth

        Why is it 90 degrees in Alaska now .

        the end…

    • Syrin

      That’s not a good thing. When roaming gangs of occucrappers strung out of meth and starving to death arrive at one of your loved one’s home, things will not end well. I’m sure you are WAY more prepared for what’s coming than most, but it you knew the apocalypse was coming, I don’t think you’d celebrate its arrival.

      • Dee R

        ooooooooooooh im scared!!!!!!!!!!

      • krinks

        Here in the ‘burgh we have guns in our homes and know how to hunt. It will end well for us. You drones that live in areas of high gun control will have problems but not the rest of us.

      • Gay Veteran

        “occucrappers”
        wth???

    • Yo mama

      Kooooooook. You maniacs are scary

  • MichaelfromTheEconomicCollapse

    In my novel I tried to paint a picture of what this upcoming financial panic may look like, but I am not sure that people are really getting that.

    My new novel is not really supposed to be a novel like Stephen King would write. It is more of a “modern day parable”. I have purposely written it at a lower reading level so that even those that have been “dumbed down” by our horrible public school system will be able to understand it.

    And it kind of exists in a category between reality and fiction. I call it “fact-tion”. My hope is that people will find the story entertaining, but throughout the book I am also constantly bombarding people with nuggets of truth.

    My hope that this will be a tool that will be used to help wake people up. But to a certain extent the success of that project is going to depend on my readers. If my readers don’t support the book and don’t leave good reviews on Amazon, then it won’t be seen by that many people.

    If you value my work and want to help me warn people about what is coming, I hope that you will take a few moments to let others know that they should check out what I am doing…

    http://www.amazon.com/gp/product/1484871308/ref=as_li_ss_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=1484871308&linkCode=as2&tag=theeconomiccollapse-20

    And if there are any of my readers out there that really want to read my new book but simply cannot afford the $3.99 for the Kindle version, just send me an email and I will send you a free copy of the book.

    Yes, I will send you a free copy if you are flat broke.

    I want everyone to read the book, and I am also hoping that my readers will support a project that I poured more than six months of my life into.

    Michael

    • Ayn Rand

      Good luck Michael. Do you think the house of cards may finally be coming down? Do you want to give us a possible time frame?

      • MichaelfromTheEconomicCollapse

        In the book I have described what I think things are going to look like over the next few years.

        I think by 2015, things are going to look much, much different in this country.

        Michael

        • Ayn Rand

          I will try and buy the book. 2015 huh? Year I graduate…

          • markthetruth

            The world could end before that, for all we know.

            the end…

          • Dee R

            great you might be able to get a job at Mcdonalds if you try hard enough.

          • Ayn Rand

            Nah, I work odd jobs around the neighborhood. At 5 dollars an hour I make more than the fool working at McDonalds for more satisfying work.

        • Rodster

          I certainly wouldn’t put a date on anything as TPTB are well aware of the endgame and want to keep the inevitable as far into the future as they possibly can.

          With that said we are seeing events picking up steam. As Gerald Celente likes to say as things go further into the crapper they will takes us to WAR.

          • markthetruth

            The other counties are going to be pulling there money out of the country.

            the end…

          • Syrin

            Rodster, as dumb as this will sound, I think that would likely be one of the BETTER outcomes as the aggression would be directed elsewhere. Otherwise that same level of aggression will be randomly spread domestically.

        • Syrin

          Michael, what do you think the motives behind the collapse are? It CAN’T be money and power, imo, because they already HAVE that. Plus, when society collapses, what’s the point of having money in a post apocalyptic waste land? I mean if you are going to be beyond wealthy, don’t you want NICE SAFE places to go spend it? The world will be ruthless, violent, danger, desperate, and those who caused the collapse and/or benefited the most from it will likely be targeted for termkination. So in other words, the motivation for this is illogical to me. What am I missing?

          • Rodster

            The motives are simple: A New World Order and Global Governance, i.e. “Agenda 21″.

            A one world govt run by the UN and the banksters handling the economy.

          • Syrin

            That doesn’t address any point I made.

          • Rodster

            Read up on Agenda 21. TPTB are systematically tearing down this system to replace it with a new global govt. Michael has written many articles on Agenda 21.

            Or if you happen to know a Jehovah’s Witness, they believe that God is allowing this all to play out which will bring about a Great Tribulation followed by Armageddon.

            And if I still haven’t addressed your point then I give up. :)

          • MeMadMax

            The agenda 21 and NWO crap is put on by the folks in the UN on the politician side. On the powerful banker/corp side, they will go with whomever will be most profitable for their business, but dump them in a heartbeat when they are not. This goes for ANY form of government, from anarchist to communist. So don’t try to mix the two together, they are not the same. It’s kindof like having a adult brother and sister sharing the same bedroom, they hate each other but will setup rules to try to keep the peace but there will always be fights.

          • David Hammond

            Syrin – it’s all about a consolidation of power. Most of these men who run governments and who move a lot of money around are sociopaths…it explains why they feel no remorse for lying to the public and hurting the masses. They are not capable in feeling remorse. There is an old verse that comes out of the Book of Revelation that comes to mind where it states that man will not be able to buy nor sell without the mark….this leads me to believe that the financial collapse is inevitable spiritually speaking…it leads me to believe that they are looking for a consolidation of power, to form a new world order, which was so famously spoken of by George H.W. Bush.

          • Gerald Bradley

            Jews run the NWO it’s the JWO

          • MichaelfromTheEconomicCollapse

            Sometimes the elite believe in tearing down the existing structures of society so that they can build new ones in their places.

            And the elite are not as “in control” as we all think they are sometimes. So sometimes things don’t go according to their plans.

            Michael

          • Dee R

            elite = old hunched over hooked nose ashkanazi men

          • markthetruth

            Confusions Says:

            “If there were an honorable way to get rich, I’d do it, even if it meant being a stooge standing around with a whip. But there isn’t an honorable way, so I just do what I like.”

            the end…

          • Gene Baugh BBA

            Right you are. The intension is to avert collapse. The whole banking system would be history by now were it not for the bailouts.
            People would only have the change in their pocket.
            You might want to consider stashing some currency along with your gold and silver just in case the banking system fails.

          • MeMadMax

            Rich people don’t necessarily mean Smart people. In fact, alot of them in our country are just part of family dynasties that are handed down. Resulting in the spoiled rich kid syndrome lol.

          • Mondobeyondo

            It’s all about control, IMHO. Power and money are simply means to an end. Once you gain control (preferably ultimate control) over a nation or planet, everything else is yours as well.

          • GSOB

            Syrin,

            I hope you don’t mind me suggesting this, but perhaps you’ll appreciate it later.

            There is a spiritual realm in which there has been declared a victory for one and defeat for the other. All of humanity is divided by it, and the abyss keeps it that way.

            What’s missing is still working itself out as time progresses and it will come to our understanding.

          • Hammerstrike

            They don´t think like you and while they are more objective than your average low-info voter, they are ultimately driven by emotion, not reason.

            They sought to gain as much power and money and they would rather have too much of these than not enough and loose control.

            For these reasons they could hardly avoid to suck the host´s blood far faster than it could be replaced.
            What does it matter to a wealthy adult in 1963 or 1983 if there is such a collapse in 2013 or 2023? Collapse doesn´t seem that possible too.

    • Jaguar34

      Bought the book michael and loved it. Can not wait for the next one! I will say you got the point across really well.

      • MichaelfromTheEconomicCollapse

        Thank you so much for saying that Jaguar. Would you be willing to post a short review on Amazon? It only takes a few moments to do, but a few positive reviews makes a world of difference in encouraging people to pick it up.

        Michael

        • Ctlady

          I’m heading over to Amazon right now to buy your book Michael. I read your columns every day. If your book is half as good (and I know it will be) I’ll recommend it in a Facebook post. Thanks for all you do.

          • MichaelfromTheEconomicCollapse

            Thank you. :) It is a different kind of writing than I normally do, so be prepared for that.

            Hopefully people can see what I am trying to do with this book.

            Michael

        • Jaguar34

          I did :)

          • MichaelfromTheEconomicCollapse

            Thank you so much. Those of you that have taken the time to do that have blessed me tremendously.

            Michael

    • MeMadMax

      I’m flat broke, but I won’t take a free book. You worked for it, you earned it. I too will work for it by gathering up a couple of bags of soda cans and taking them to the recyclers so that I can buy your book =D

      • MichaelfromTheEconomicCollapse

        That made me smile. But honestly – if you are that flat broke please email me and I will send you a free Kindle version of the book.

        Michael

    • Joe Palladino

      Michael, I just bought your book on Amazon kindle after reading your above comments and I’m enjoying it very much. I love your style of writing and visit your blog everyday. You actually communicate with your readers and engage them, not many authors do that. Over the years I’ve also been able to tell that you’re just an overall good person and I’m very grateful to have you as an online sourcefriend. Thank you for your work, kindness and devotion to your readers.

      • MichaelfromTheEconomicCollapse

        Joe:

        I am also very thankful for all of the new friends and contacts I have made since I have started this site. I know that I write about a lot of dark things sometimes, but the truth is that there are a lot of good people out there too.

        And thank you for letting me know that you are enjoying the book. That is definitely encouraging to hear. I was hoping that people would enjoy it.

        Michael

        • Michael Andrew Cafener

          From your comments you seem friendly, reasonable and dedicated. So I will buy your book and see what you have to say.

          • MichaelfromTheEconomicCollapse

            I try to be friendly. :)

            Michael

    • Mondobeyondo

      Hi Michael,

      I’ve made it through 1/3 of the book so far and I really enjoy it! Wish I could read the whole book at one sitting, but something called “life” keeps interrupting me (applying online for work, trying to keep cool when it’s 110 degrees outside and there’s no A/C in the house, etc.. stuff like that.) Most of my free time is in the mornings, when it’s reasonably cool(er). so that’s when I do my reading. Hopefully this weekend I’ll have had the whole book read!

      Mondo

      • MichaelfromTheEconomicCollapse

        Let me know what you think Mondo. And we will definitely keep praying for you to be able to find a good job. :)

        Michael

  • Louise in MO

    Well, Michael, you have been predicting this for quite awhile and it’s coming just as you said. Thanks for the heads up.

    • MichaelfromTheEconomicCollapse

      Well, we don’t know if this is it quite yet. It may just be early rumblings. We shall see.

      Michael

      • Yo mama

        Jeez dude, it’s just a ten percent correction. It’s all the talking heads have been predicting since march. It’ll be back on track in a month. I’m glad you are getting some traffic though, I bet it’s been dead this year, what with all the good news out there. Oh yea, nice prediction on silver btw. You really have been calling em lately.uh I think I’ll wait

  • Syrin

    I can see ALL of those falling except for the gold and silver. See, the Federal Reserve actions have been built into the price of gold and silver for quite some time now, and people buy gold and silver as a long term investment to protect them from what the Fed has done and is doing. Yet AGAIN, we learn that JP Morgan ILLEGALLY dumped an As$ ton of paper gold on the market driving prices down. In fact, the CME hiked their margins up 25% almost immediately as if they knew in advance this was coming. UNREAL. Long term, I agree with Ron Paul when he recently said gold will be going “infinity”

    • Rodster

      Everything will be going to infinity when society and the economy begin to teeter towards a collapse.

    • Gene Baugh BBA

      All asset classes falling against the dollar.
      Even gold.
      This is the essence of deflation.
      It is a deflationary collapse.
      Right now everyone is selling everything to meet margin calls.
      I have not seen this since fall 2007.

      • Syrin

        Are you saying the dollar is gaining strength compared to gold? Did ALL assets have mass margin calls all at once?

        • Gene Baugh BBA

          All investors who had bought with borrowed money did.
          And yes $1900+ to buy an ounce over a year ago vs. 1200+ today.
          The dollar has appreciated against gold.
          Silver? $50 over a year ago vs. $19 today.
          Oil? $150 over a year ago vs. 90+ today.

  • Rodster

    Michael, is that your car? :)

    Wow, I can’t fathom companies bankrolling risk in derivatives in order to make payroll or use it just to operate.

    • MichaelfromTheEconomicCollapse

      LOL – not my car but I just love that photo. :)

      Michael

  • VegasBob

    Another point that is rarely mentioned is that the Fed’s portfolio of bonds has experienced a substantial decline in value with the backup in interest rates over the past 7 weeks.

    Of course, the Fed, being a quasi-governmental agency, is not subject to normal accounting rules. If it were forced to recognize the decline in bond values, the losses on its portfolio would probably have already rendered the Fed insolvent.

    Fancy that – bankrupt governments, insolvent banks, and a bankrupt Fed. Why would any sane person believe that stocks and bonds are worth their stated prices?

    • Gene Baugh BBA

      The institution that creates the money insolvent? Think about it.

      • VegasBob

        Bernanke doesn’t have any real money. He is just a counterfeiter with a printing press.

        “Quantitative easing” means printing the money to cover the hot checks written by the Federal Govt, Fannie Mae and Freddie Mac. We ought to face the fact that government bonds are never actually going to be repaid, unless it’s via the printing press.

        The US economy is basically a gigantic Ponzi scheme.

        • Gene Baugh BBA

          It is real money alright sitting right there on the banks balance sheet going nowhere. The counterfeiting comes from our enemies at home and abroad.

          • Gene Baugh BBA

            “Quantitative easing” means the Fed buying bonds from the banks and replacing them with reserves held at the Fed. It is an asset swap. The inflation comes when banks lend off the new reserves in a fractional banking system like ours. But the banks are not lending and people are not borrowing hence no inflation, just more reserves in the banking system. The money supply has been contracting and is still contracting. This spells deflation.

  • Gene Baugh BBA

    I want to talk about what nobody is talking about.

    The market top of May 22nd coincided with price reaching the upper line of its trendchannel from the November lows.

    this also coincided with another event.

    If you draw a trendline connecting the 2000 top and the 2007 top and continue it till May 22nd guess what you get?

    The market hit right on that trendline as well. And needless to say it waas repulsed by it.

    Could the market now have turned and be headed to the bottom again?

    If so it would complete a gigantic A B C D E expanding triangle.

    To see this pattern on a smaller scale look at a chart of the early 1970s through 1974. you can place a “You are Here” sign right at the top in 1973.

    If you connect a trendline from the 2002 low and the 2009 low and continue it say, a year and a half into the future the market would hit this trendline around DOW 4000.

    Everyone is blaming Ben when he said virtually what he has ben saying for months now. But when he said it before the market was not at those trendlines.

    • GSOB

      Hey Gene Baugh,

      Hope you don’t mind me asking, but what’s the BBA for.

      • Gene Baugh BBA

        Bachelors of Business Administration (in Finance)
        Does not come with a crystal ball.

  • Syrin

    Oh, and by the way, remember Michael’s article from just a few days ago warning us about what happens when the debt margin surpasses 2.25% of GDP ? Yeah, THAT !

    • MichaelfromTheEconomicCollapse

      Good point. :)

      Michael

  • Hummingbird

    Silver at 19.50 and gold at $1288.44? How much does it cost to own a dredge, license to mine land, pay workers, maintain equipment and process the raw gold to make a finished product? Sorry central bank, there is no way a 1oz maple leaf is valued $19.50.

    • Gene Baugh BBA

      When gold was at $285 companies were bragging about $185 cost to mine.

  • Sarah Greenfeld

    paper gold and stocks are evil, the government should be doing something
    to protect us against inflation and deflation..but as long as we have
    capitalists in government they will forget about us and work for the
    corporations.I hope whatever collapse is coming will put a nail into capitalism

    • Hummingbird

      a select few corporations merging with government eg Monsanto is not free market capitalism.
      Capitalism is where I could sell things, you could sell things and everyone could sell things in a free market.

      • Gene Baugh BBA

        Capitalism is where the individual can own the means of production (or buy a share of stock) it beats every other economic system hands down.

        • GSOB

          Amen

        • Sarah Greenfeld

          Yes, that is the case at the start, but it does not take long to go bad once the bad people take over.

          • Joel Peeters

            Sarah, this is the case for any kind of system. What you say is an evidence. If bad people take over any kind of system, that same system will become bad by implication…

            Capitalism, Socialism, Communism, and other -ism, are all good on paper… and for a while when applied as long as you have capable and right people to manage it. But once bad people enter the game, corruption enters the system and spoil it bit by bit.

            Certain system rot early on, others like Capitalism or European Socialism, take longer to rot and crumble, but in the end, the result is quite the same – bad people makes the system bad.

        • orsobubu

          HA! Exactly the opposite is true. In capitalism the buorgeoise owns the means of production, in communism workers will own them. If you read Imperialism, by Lenin, you learn this: when the public can buy stocks, it is MUCH MORE simple for bourgeioise to OWN corporations, because a relative small quote – in the diluted number of market – can give them the control. Together with monopolism, capital exporting, financialization, fight for market quotas, war for the influence sphere and state capitalism, it forms the heart of an imperialistic democracy. Study Lenin before all, please, like Kissinger did. And Kissinger is the US guard of your beloved, perfect economic system.

          • Gene Baugh BBA

            Even you can go out and buy a lawnmower and go into the lawn mowing business. That is capitalism. You own the lawnmower.

          • Hammerstrike

            But WS & WH owns you.

          • Shmeggle Marxist

            you suck the communist dildo

      • Sarah Greenfeld

        It is free market capitalism. A free market allows for monopolies and subversion of governments.

        • Syrin

          Hm….. That’s actually a good point.

        • Shmeggle Marxist

          ok, so you are a commie. why don’t you live in mother russia?

    • GSOB

      “I hope whatever collapse is coming will put a nail into capitalism”

      Go take a bath you hippie

      • Bacchus

        Hippie…HAHAHAHAHAHA

        Well at least they have good dank…

    • MeMadMax

      You don’t even know what capitalism is because capitalism hasn’t been around since 1913…

  • Hummingbird

    A Ghana news report states that large scale miners claim that it costs $1,000 to produce an ounce of gold excluding processing costs, fuel, customs, dealer fees and mark-ups.

    Small scale miners have at least $1,200 in expenses in mining one ounce of gold.

    If gold drops below 1,100 an ounce something is really fishy.

    • MeMadMax

      It’s dropping because the investors are trying to de-leverage themselves. Converting gold into cash is perfect. Especially in china, those guys are leveraged to the gills right now.

    • Gene Baugh BBA

      The market can take the price of a commodity below production cost.

  • GSOB

    I’m afraid to keep watching but I must because it’s my duty to watch and stay informed. I am responsible to protect my wife and kids against
    evil that comes to my door or in our presence anywhere.

    God help me.

    The derivatives market needs a primer to blow it out and bring it down. Our leaders know that.
    They don’t want it to collapse just as much as we don’t. Therefore they start weaning us off the fix slowly, by announcing a time frame.

    We can only hope and pray for their success because, regardless….. we are in a precarious situation as a nation.

    At 51, living in Aurora CO, I understand and agree even more so with JOB 4:8

    “According to what I have seen, those who plow iniquity And those who sow trouble harvest it.”

    • Tim

      I love the book of Job.

  • Richard

    “So will global financial markets continue to drop, or will things stabilize for now? That is a very good question. ”
    Still in the business of asking questions and then immediately congratulating ourselves on asking such good questions and then promptly answering them, are we?
    Hey, you didn’t tell us whether your answer was a “good answer” or not.

    • Gabbie

      EXCUSE ME…I’D LIKE TO ASK A FEW IMPORTANT QUESTIONS. 1. WHAT TIME DOES DANCING WITH THE STARS AND AMERICAN IDOL COME ON? 2. DO YOU THINK WE’LL ALL GET OUT BARACKACLAUS GOODIES ON TIME THIS MONTH?

  • Lennie Pike

    But what about the timing of the Fed’s move? They could just as easily have kicked the can down the road many more times.

    The move coincides with the Sheeple worldwide waking due to the scandals especially NSA, and with the upcoming attack on Syria/Iran and Russia.

    The ptb are not going to allow the freedom loving people of the world (99.999999…………% of us) enough time to rise up and destroy their long existing plan of a one world totalitarian police state now that it is so close to being implemented.

    It’s all over but the shouting….etc.

    • Lennie Pike

      Without a monetary system that funcions, to contonue on with the life that they have grown accustomed to, most will literally sell their souls to buy and sell.

  • Jimbo

    QE and Debt explained through the bottom of a glass. A good way to avoid a hangover is to have a drink as soon as you wake up. It gets rid of the headache instantly and postpones the pain till later. You can keep doing this for quite a while but each time you will have to drink a bit more to kill the pain. You won’t function as well but you will be happy and pain free for as long as you can keep it up. You may reach a point where even thinking about stopping drinking depresses you and terrifies those around you. You decide to carry on until you are healthy enough to stop? Meanwhile, your engine room (internal organs that drive you) will be slowly dying. One day you will wake up, there will be no more whiskey in the bottle. You will walk out into the streets, broke, desperate and begging for money to buy something to eat to keep you alive. No one will give you money though because they know exactly what you will spend it on and they will remember how you treated them when you were drunk.

    • Das

      That’s why I stock pile wiskey. I never want to run out

  • Jimbo

    Stock market explained for regular people. Regular working guy sweats for 20 years and saves 20 bucks a week. He puts the money in the bank. He gets an interest rate that keeps his money in line with inflation but the interest rate has dropped recently so he decides to try something to increase his retirement fund. He hears stories about how the economy is recovering, unemployment is falling and that stock market thingy is climbing. He puts his money into the markets just as all of the big players are getting out. In a week he has lost 5% of his retirement fund and decides to sell to cut his losses. Meanwhile the billionaire who sold him the shares in the first place and bought them back a week later for a 5% discount, now has the regular guys 20 years of sweat in his offshore bank account.

    • Hammerstrike

      More like a 1000 regular guys.

  • Rufus T Firefly

    Great buying opportunities for those of us who are winners in the great game of life. The rest of you losers can cash your SNAP cards, watch DWTS and read about the Kardashians

    • Jimbo

      If I was a big winner in the game of life, I would be out right now partying and doing it with Kardashians and I would not know or care what a SNAP card was. Being one of lifes average people, I will just have a beer and blog instead. Strange that in spite of your endless wealth, you choose to do the same as me.

  • JailBanksters

    Fear always trumps Greed, always.
    There’s blood in water, can you see it, can you smell it, can you taste it.

  • John oft Drumonandon

    That reminds me, must sow next crop of foods this weekend. ;)

  • g

    Do not be afraid of whats coming because after that we will all live a much simpler and humbler life here in America.

    Proverbs 29:20 When the righteous thrive, the people rejoice; when the wicked rule, the people groan.

    • Paul

      I hope you are right. My fear though is that God has lifted his protection from the US. Take a look at Psalm 9:15-17
      15 The nations have fallen into the pit they have dug;
      their feet are caught in the net they have hidden.
      16 The Lord is known by his acts of justice;
      the wicked are ensnared by the work of their hands.
      17 The wicked go down to the realm of the dead, all the nations that forget God.

      We are definitely a nation that has forgotten God as a whole. I am afraid that America will be brought into the NWO and that we will live in a police state which we actually already are. From the IRS to the NSA nothing we do or say is private.

      • g

        Yes I hear you Paul, but you must be bold and confident because you have faith in the triumphant victory of good over evil. Be wise, prepare, and keep the faith.

        Psalms 91:7 A thousand may fall at your side, ten thousand at your right hand, but it will not come near you

        So I am not afraid.

  • jokyjo

    What a mess. Time to buy more silver while the price is low.

  • Bacchus

    2014 will be the beginning of the end….

    Obumacare kicking off will put any hiring at a standstill, markets will implode further, chaos will reign. Maybe another MAJOR terror attack to ‘get everyone in line and wave the flag’….

    It won’t be pretty, folks….

  • Dave Webb

    Everything is based on the consumption of consumer goods. But what happens when the consumer no longer is able to purchase goods?
    The bubble is bursting in China? The false economic system is coming down! So the price of retail goods must go up in order to support China.
    But the ability of the consumer is going down. This is the real time bomb going off in markets world wide. The bomb is much worse in countries like England.
    Any country based on socialism will take a big hit!
    China is sitting on huge amounts of IOUs from countries all over the world. We appear to head the list of IOUs and that my friends is going to be the eye opener.
    When the Chinese come to collect their IOUs the entire system will collapse. But they knew this before they issued the IOUs.
    We citizens of this country have forgotten the basics. One of those basics is to consider our own economic future first before giving charity to others. It is being dependent on ourselves rather than third world countries to produce our own consumer goods.
    Our entire Income Tax system of supporting the government went down the toilet when we allowed cheap labor from other countries that do not pay into the system.
    Our currency is a joke. It became a joke when we allowed China and others to under bid us in world markets by having a totally unrealistic low level of exchange with our own. Now it will come back to haunt us.
    I cannot imagine our leaders not knowing all this if it is apparent to one of average intelligence.

    Perhaps we should be looking at these people a lot harder and recalling them from office when they are doing things contrary to our best interests.

  • Robert Govan

    Make sure all gold lovers check out the fofoa blog. And second look up the word “freegold” on wikipedia they have a accurate post. You must have this free intelligence imo

  • DB200

    Today I spoke a collegue who confessed that he owns his house i.e. he has no mortgage. This guy is in his 40s and, boy, is he relaxed ….

    • Shmeggle Marxist

      unless his town doubles his taxes, lololol

      • TtT Engine

        Oh yeah, my sewer, not included in my rip-off muni taxes, just doubled. Thieving pirates. Muni taxes in many cases are practically a mortgage payment. Scammed again by big, obese government.

        • Yo mama

          Birmingham? Those dudes got hosed down there. Nice voting dumb asssses

  • Shmeggle Marxist

    banana republics have big bananas

  • Rich Lamb

    Give me a break

  • GSOB

    Did you see the movie called The Road ?

    It’s about surviving cannibalism in a post collapse era.

    I watched only half.

    I could not keep my mind engaged or entertained due to the overwhelmingly realization that there is nothing new under the sun.

    • El Pollo de Oro

      No, I haven’t seen “The Road,” but every once in a while, I’ll talk to someone who thinks I’m unduly pessimistic and says something along the lines of, “You must watch a lot of Mad Max movies.” And my response is usually, “No, I’m just a student of history, and history repeats itself. I’d love to be proven wrong, but the more I look at the facts, the more obvious it becomes that what lies ahead will make the 1930s depression look like a picnic by comparison.”

  • Hammerstrike

    Sounds like natural selection on an epic scale.

    Individuals who are prepared, armed, objective, intelligent and ruthless survives while the conspiracies-dunt-happen crowds turn on each other or dies eating poisoned berries or roadkills after fleeing the cities.

  • Hammerstrike

    Just increase QE infinity by 2 or 3, crash is averted in North America, instead the European Union or Japan suffers in the next 12-8 moths before facing a full-scale collapse when multiplied QE kicks in.

    Of course, SHTF then but in that case, the European Union or Japan can take the blame.

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