Why are the global elite buying extremely remote compounds that come with their own private airstrips in the middle of nowhere on the other side of the planet? And why did they start dumping stocks like crazy earlier this year? Do they know something that the rest of us don’t? The things that I am about to share with you are quite alarming. It appears that the global elite have a really good idea of what is coming, and they have already taken substantial steps to prepare for it. Sadly, most of the general population is absolutely clueless about the financial collapse that is about to take place, and thus most of them will be completely blindsided by it.
As I discussed the other day, the only way that you make money in the stock market is if you get out in time. The elite understand this very well, and that is why they have been dumping stocks for months. This is something that has even been reported in the mainstream news. For example, this comes from a CNBC article that was published on June 16th…
The so-called smart money is pulling back from market risk, with fund managers taking down exposure to stocks, increasing cash holdings and buying protection against a sharp selloff.
About two weeks before that, I discussed the same phenomenon on my website. The article that I published on May 30th was entitled “Why Is The Smart Money Suddenly Getting Out Of Stocks And Real Estate?”
Did the “smart money” know what was about to happen? Since the peak of the market, the Dow has already lost more than 2200 points. All of the gains since the end of the 2013 calendar year have already been completely wiped out.
And of course the truth is that you didn’t really need any inside information to see that it was time to get out. I have been warning my readers for months about what was coming. The signs have been clear as a bell if you were willing to look at them. Just consider the following excerpt from a recent piece by Michael Pento…
Earlier in the year margin debt had risen over $30 billion or 6.5% to $507 billion and was equal to a record 2.87% of U.S. GDP. This surpasses the previous all-time high of 2.78% set in March 2000 – the top of the last largest stock market bubble in history.
And despite the assurance of every mutual fund manager on TV that they have boatloads of cash ready to deploy at these “discounted” levels, in early August cash levels at mutual funds sank to their lowest level in history, 3.2% (see chart below). As a percentage of stock market capitalization, fund cash levels are also nearing the record low set in 2000 when the NASDAQ peaked and subsequently crashed by around 80%.
The financial markets are absolutely primed for a major crash, and when that happens many among the elite will be hightailing it to the middle of nowhere.
Earlier this year, the Mirror published an article all about this entitled “Panicked super rich buying boltholes with private airstrips to escape if poor rise up“. Here is a brief excerpt…
Robert Johnson, president of the Institute of New Economic Thinking, told people at the World Economic Forum in Davos that many hedge fund managers were already planning their escapes.
He said: “I know hedge fund managers all over the world who are buying airstrips and farms in places like New Zealand because they think they need a getaway.”
Keep in mind that these are not just some rumors that Robert Johnson has heard. These are people that he knows personally and that he interacts with regularly.
And Robert Johnson was not alone in this assessment. Here is more from the Mirror…
His comments were backed up by Stewart Wallis, executive director of the New Economics Foundation, who when asked about the comments told CNBC Africa: “Getaway cars, the airstrips in New Zealand and all that sort of thing, so basically a way to get off.
“If they can get off, onto another planet, some of them would.”
For some reason, the global elite seem to have a particular affinity for New Zealand. Perhaps it is because of the great natural beauty of the nation combined with the fact that it is in the middle of nowhere. The following comes from the Daily Mail…
New Zealand, which is about the size of the UK, but has a population of just 4.4 million, offers them all the modern luxuries they have come to expect – but miles from any country which may implode into chaos.
The country is 11,658 miles away from the UK, while its closest neighbour is Fiji – 1,612 miles away, more than double the distance between Lands End and John O’Groats.
Homes at the top end of the market come with tennis courts, swimming pools and media rooms – and some even boast their own personal jetties where a family can moor their boat.
But the icing on the cake for those looking to make a quick escape comes in the form of private helipads or, better, your own airstrip.
For most of us, buying a luxury bolthole with a private airstrip in New Zealand is not a possibility.
But we should all be getting prepared.
I have a contact in the food industry that has told me that her company’s sales have “been through the roof” over the past 10 days as people stock up for what is coming. In fact, she even used the word “panic” to describe what was happening.
And Americans have been buying a record number of guns as well…
Newly released August records show that the FBI posted 1.7 million background checks required of gun purchasers at federally licensed dealers, the highest number recorded in any August since gun checks began in 1998. The numbers follow new monthly highs for June (1.5 million) and July (1.6 million), a period which spans a series of deadly gun attacks — from Charleston to Roanoke — and proposals for additional firearm legislation.
For a very long time, I have been warning my readers to get prepared.
Well, now we are getting so close that panic is starting to set in.
Hopefully you are already well prepared for what is about to happen. If not, you need to kick your prepping into overdrive.
These next few months are going to change everything. Get ready while you still can.
Those that watched their stocks steadily increase in value for years are now seeing all of that “wealth” disappear at a staggering pace. The only way you actually make money in the stock market is if you get out in time, and many Americans are discovering that all or most of their gains have already been wiped out. At this point, the Dow Jones Industrial Average has dipped below where it was at the end of the 2013 calendar year. That means that nearly two years of gains have already been obliterated. On Friday, the Dow was down another 272 points, and it is now down more than 2200 points from the peak of the market back in May. For months, I have been detailing how things were setting up for this kind of financial crash in textbook fashion, and now events are playing out just as I warned. But this is just the beginning – what is coming next is going to shock the world.
We have already seen the 8th largest and 10th largest single day stock market crashes in all of U.S. history happen within the past few weeks. In fact, it was actually the very first time that we have ever seen the Dow fall by more than 500 points on consecutive trading days.
On August 25th, I warned that there would be some huge rebound days where we would see lots of “panic buying”, and on August 26th we witnessed the 3rd largest single day stock market increase in all of U.S. history.
Headlines all over America trumpeted the “fact” that the stock market had “recovered”, but the mainstream media failed to mention that the only two better days for the stock market were right in the middle of the stock market crash of 2008.
In this article, I explained that this is exactly the type of market behavior that we expect to see during a full-blown market meltdown. There are going to be even more violent swings in the market in the weeks ahead, but the general direction will be down.
Friday was definitely another down day. The following is how Zero Hedge summarized the carnage…
- Dow Industrials lowest weekly close since April 2014
- Dow Transports lowest weekly close since May 2014
- S&P 500 lowest weekly close since Oct 2014’s Bullard lows
- Nikkei dumped over 7% this week – worst week since April 2014
- Utilities collapsed 5.1% this week – worst week since March 2009
- Financials lowest weekly close since Oct 2014’s Bullard lows
- Biotechs lowest weekly close since Feb 2015
- Investment Grade Corporate Bond Spreads worst since June 2013
- Treasury Curve (2s30s) flattened 6bps today – biggest drop in 2 weeks.
- JPY strengthened 2.4% on week against the USD – strongest week since August 2013 (up 4.5% in 3 weeks) – major carry unwind!
I wish I could tell you that things are going to get better, but I can’t do that. There are some giant financial bubbles that are starting to unwind, and this process is going to take time to fully unfold.
And this is truly a global phenomenon. Chinese stocks have been crashing horribly, Japanese stocks just had their worst week in over a year, Canada and much of South America are plunging into recession, and Europe is probably in worse shape than everyone else if you look at the fundamentals.
Even though U.S. stocks have already fallen substantially, the truth is that they easily have much farther to fall. Yale economics professor Robert Shiller believes that we could actually soon see the Dow plunge all the way to 11,000…
In what amounts to an ominous message for Wall Street, Robert Shiller, a Yale economics professor and author of Irrational Exuberance, doled out some serious bear talk this morning.
Shiller told CNBC Thursday morning that “this is a dangerous time” for the stock market.
Shiller, who has a reputation for calling market tops, warned that the Dow Jones industrial average, which closed Wednesday at 16,351, could fall as low as 11,000, a potential drop of more than 30% from current levels.
At the moment, the Dow is sitting just above 16,000, which is an exceedingly important psychological level.
If the Dow breaks below 16,000 and stays there for a few days, it is quite likely that full-blown panic will set in.
And once we see the Dow dip below 15,000, people will be going insane.
Another key indicator to watch is the VIX (the CBOE Volatility Index). If you are not familiar with the VIX, here is a pretty good definition from Investopedia…
The ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market’s expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the “investor fear gauge.”
Right now it is sitting at 27.80. If the VIX rises above 40 and stays there, that will be a major red flag.
We have entered “the danger zone“, and events are going to start moving very rapidly now. If you have been listening to the warnings, you are going to understand why things are happening and you are going to know what to do.
Unfortunately, most people are going to have that “deer in the headlights” look because they will not understand what is happening and they will be frozen by fear.
Stay tuned to this website and to End Of The American Dream because things are about to get very weird and I will do my best to explain them as the coming weeks and months play out.
So what do you think the rest of September will bring?
Please feel free to join the discussion by posting a comment below…
After enduring their worst August in 17 years, U.S. stocks are off to their worst start to a September in 13 years. Just yesterday, I declared that we would be entering the “danger zone” this month, and it didn’t take long for the action to begin. Historically, this month is the worst month of the year for stocks, and most of the biggest stock market crashes throughout our history have come in the fall. On Tuesday, the Dow plunged another 469 points, and it is now down more than 10 percent from the peak of the market back in May. That means that we have officially entered “correction” territory. Asian stocks also crashed hard on Tuesday, so did European stocks, and the price of oil plummeted about 8 percent. For a long time, there have been a lot of people out there that have been warning that a financial crisis would happen in the second half of 2015, and they are being proven right. It is actually happening.
Of course there will be plenty of ups and downs still to come. I cannot emphasize enough that we should fully expect waves of panic selling and waves of panic buying. This always happens during any market crash.
For instance, just consider what happened when the tech bubble crashed. The following analysis comes from Graham Summers…
In a six month period, investors moved stocks down 19%, up 8%, then down 27%, then up 21%, then down 22%, then up 34%, then down 17%, then up 16%, then down 28%, then up 16%, and finally down 17%. Only at that point did stocks break their trendline for the bubble (the blue line) and it became obvious that the bubble had burst.
My point with all of this is that even when the bubble was both very specific AND obvious, the collapse was neither quick nor clean. There were several large 20%+ crashes, but overall, it was a roller coaster with jarring rallies that gradually wore its way down.
It was a full-blown market collapse, and yet there were moments when the market absolutely skyrocketed.
The same thing happened in 2008. In fact, the best two days in stock market history were right in the middle of the last financial crisis.
So don’t be fooled by what happens on any one particular day. Huge up days and huge down days are both red flags.
If the market is going to recover any time soon, what we need are nice quiet days without much volatility. Unfortunately, that is not likely to happen any time soon because a tremendous amount of damage has already been done and some massive imbalances have already developed. I like how Richard Smith put it recently…
Serious damage has been done to the financial markets in the past two weeks – very serious. Don’t let anyone tell you otherwise.
No one should be kidding themselves that what’s happened in the past two weeks is just a little late summer blip – building up some energy to rally into the fall and winter. I’m not saying it couldn’t happen but it isn’t the odds play.
Everywhere I look, technical damage has been done – and it’s like nothing we’ve seen since 2008.
Yes, the mainstream media is telling everyone that they shouldn’t panic and that everything will be just fine, but those that study the charts for a living know what is really happening. For months, I have been telling you over and over that things were setting up in textbook fashion for another financial crisis, and other experts have been seeing the exact same things that I have been seeing. For example, just consider what Louise Yamada told CNBC…
Looking at a chart of the S&P 500, Louise Yamada noted that momentum has been declining for four months, which by her work, is a “classic” sell signal.
“This is suggesting to me that we are looking at a bear market,” said Yamada said Tuesday on CNBC’s “Futures Now.” Yamada noted that the last two times the market saw a similar shift in momentum were in January 2008 and June 2000.
Right now, a lot of people are very confused about what to do. Those that told them to buy stocks in the first place are telling them to buy even more stocks. And of course the mainstream media is telling them that everything is going to be just wonderful after this “correction” runs its course. But at the same time a lot of people have a gut feeling that things are about to get really bad.
Personally, I think that what John Hussman shared in his recent newsletter contains a lot of wisdom…
“If you’re taking more equity risk than you can actually tolerate if the market goes south, setting your portfolio right isn’t a market call – it’s just sound financial planning. It’s only fun to be reckless if you also turn out to be lucky. Market conditions are now more hostile than at any time since the 2007 peak. If you want to be speculating, and you can tolerate the outcome, then you’re not taking too much equity risk in the first place. But it’s one or the other. Can you tolerate a 40-55% market loss over the next 18 months or so? If not, take this opportunity to set things right. That’s not the worst-case scenario under present conditions; it’s actually the run-of-the-mill historical expectation.”
I also want to point out that we are now less than two weeks away from the end of the Shemitah year.
If you are still not familiar with the concept of the Shemitah year, please see my previous article entitled “The Shemitah: The Biblical Pattern Which Indicates That A Financial Collapse May Be Coming In 2015“.
Even though the stock market crashed in September 2001 at the end of a Shemitah year, and in September 2008 at the end of another Shemitah year, and it is crashing again in September 2015, somehow there are still people out there that do not think that this is real.
Well, I am here to tell you that this is very real. But if you won’t listen to me, perhaps you will consider the findings of Israeli mathematician Thomas Pound. The following comes from an outstanding piece that was just published by WND…
After a friend told him about the seven-year Sabbatical cycle to the stock market, Pound again set out to see if the theory held up under statistical scrutiny.
Applying the same ANOVA test to the Shemitah cycle, Pound’s research revealed that the sabbatical years were the only group of years in which the market cycle averages consistent significant losses since 1871.
He also found that, in Shemitah years, the difference in loss was greater than that noted in professor Shiller’s decennial cycle.
“Statistically, it appears that the calendar years in which the Sabbatical year ends are worse than the other six years, and that difference is significant based on the data I have,” Pound told Breaking Israel News.
Look, I know that this may not fit with how you currently view the world.
The truth is that a whole bunch of weird stuff is about to happen that may not fit with how you currently view the world.
But if you honestly want to discover the truth, then you have got to go wherever the evidence ultimately leads you.
So what do you think about all of this? Please feel free to join the discussion by posting a comment below…
Is September 2015 going to be one of the most important months in modern American history? When I issued my first ever “red alert” for the last six months of 2015 back in June, I was particularly concerned with the months of September through December, and not just for economic reasons. All of the intel that I have received is absolutely screaming that big trouble is ahead. So enjoy these last few days of relative peace and quiet. I mean that sincerely. In fact, that is exactly what I have been doing – over the past week I have not posted many articles because I was spending time with family, friends and preparing for the national call to prayer on September 18th and 19th. But now as we enter the chaotic month of September 2015 I have a feeling that there is going to be plenty for me to write about.
At this time last month, I declared that we were entering “the pivotal month of August 2015“, and that is exactly what it turned out to be. August was the worst month overall for stocks in three years, and it was the worst month of August for U.S. financial markets in 17 years.
Throughout history, there have only been 11 times when the S&P 500 has declined by more than five percent during the month of August. When that has happened, the stock market has almost always fallen in September as well…
September is the only month in which the S&P 500 fell more frequently than it rose. What’s more, in the 11 times that the S&P 500 fell by more than 5 percent in August, it declined in 80 percent of the subsequent Septembers, and fell an average of nearly 4 percent.
Last week, there was a rally after the initial crash. I warned that this would happen in advance, and we have seen a similar pattern play out during almost every market collapse throughout history. The following comes from John Hussman…
As I noted early this year (see A Better Lesson than “This Time Is Different”), market crashes “have tended to unfold after the market has already lost 10-14% and the recovery from that low fails.” Prior pre-crash bounces have generally been in the 6-7% range, which is what we observed last week, so I certainly don’t see that bounce as having removed any of our concerns. We remain extremely alert to the prospect for much more extended market losses.
So how far could stocks eventually fall?
Hussman is projecting that we could ultimately see the market decline by more than 50 percent…
We fully expect a 40-55% market loss over the completion of the present market cycle. Such a loss would only bring valuations to levels that have been historically run-of-the-mill.
One thing that could accelerate stock market losses this time around is the fact that people have been borrowing lots and lots of money to buy stocks. That works when the stock market just keeps going up, but once the market turns the margin calls can lead to panic selling on a massive scale. The following comes from a recent piece by Wolf Richter in which he describes some of the chaos that we have already been witnessing…
Energy stocks and bonds crashed, even those of some large companies like Chesapeake. Some have reached zero. All kinds of other stocks and bonds have gotten eviscerated over the past few months, even tech darlings like Twitter or biotech giant Biogen. Portfolios with a focus on the wrong momentum stocks took a very serious hit.
And margin calls went out. The Journal:
Some lenders, including Bank of America Corp., are issuing margin calls to clients after the global market drubbing of the past week, forcing investors to choose between either putting up more money or selling some of the securities underlying the loans.
Other banks too sent out margin calls, including U.S. Trust, Morgan Stanley, and Wells Fargo, according to the Journal. With margin calls mucking up the scenario, spooked investors are trying to lower their leverage before they’re forced to, and the boom in securities-based lending appears to be over. And the wealth units of the banks that gorged on these loans are likely to see their profits dented.
If that continues, a much crummier thing happens: margin balances reverse. And the last two times they did after a majestic record-breaking spike, the stock market crashed.
For some more technical reasons why another wave to the downside is coming, see an excellent article entitled “RED ALERT for 2nd CRASH DOWNWAVE…” by Clive P. Maund that you can find right here.
In addition to the chaos in the financial world, we are also witnessing a convergence of events during the month of September that is pretty much unprecedented. I know that I have never seen anything quite like it in my lifetime.
Recently, I put together a list of 33 events that we know will happen next month, and you can find that list right here. Instead of repeating the entire article, I just want to highlight a few items from the list…
September 13 – The last day of the Shemitah year. During the last two Shemitah cycles, we witnessed record-breaking stock market crashes on the very last day of the Shemitah year (Elul 29 on the Biblical calendar). For example, if you go back to September 17th, 2001 (which was Elul 29 on the Biblical calendar), we witnessed the greatest one day stock market crash in all of U.S. history up until that time. The Dow plunged 684 points, and it was a record that held for exactly seven years until the end of the next Shemitah cycle. On September 29th, 2008 (which was also Elul 29 on the Biblical calendar), the Dow plummeted 777 points, which still today remains the greatest one day stock market crash of all time in the United States. Now we are in another Shemitah year. It began in the fall of 2014, and it ends on September 13th, 2015.
September 15 – The 70th session of the UN General Assembly begins on this date. It has been widely reported that France plans to introduce a resolution which will give formal UN Security Council recognition to a Palestinian state shortly after the new session begins. Up until now, the U.S. has always been the one blocking such a resolution, but Barack Obama has already indicated that things may be different this time around. It would be extremely difficult to overstate the significance of this.
September 25 to September 27 – The United Nations launches a brand new “universal agenda” for humanity known as “the 2030 Agenda“.
September 28 – This is the date for the last of the four blood moons that fall on Biblical festival dates during 2014 and 2015. This blood moon will be a “supermoon” and it will be clearly visible from the city of Jerusalem.
If you don’t know what a “supermoon” is, the following is a pretty good summary of what we should expect to see…
On the night of 27 to 28 September, the Moon is closest to us at 2.46am, only an hour before it’s full. As a result, this supermoon will appear 14 percent bigger in the sky than the Moon at its most distant and smallest, and it should be 30 percent brighter. The Moon will certainly look unusually big and brilliant around 2am. But at 2.07am you’ll see a small chunk being nibbled out of its brilliant disc by the Earth’s shadow. Sinking deeper and deeper into the darkness, the Moon is totally eclipsed by 3.11am. It remains completely in the shadow of the Earth until 4.23am, when the full Moon gradually begins to emerge.
There has been lots and lots of speculation about other events that could take place during the month of September, but as of right now I cannot prove that any of them will actually happen.
But that doesn’t mean that I’m not watching.
If it sounds ominous to you when I say that we are “entering the danger zone” during the month of September, that is good, because that is precisely the tone that I am attempting to convey.
When things start completely falling apart in this nation, millions upon millions of Americans will complain that nobody warned them in advance about what was coming.
Well, I am warning you right now.
We witnessed something truly historic happen on Friday. The Dow Jones Industrial Average plummeted 530 points, and that followed a 358 point crash on Thursday. When you add those two days together, the total two day stock market crash that we just witnessed comes to a grand total of 888 points, which is larger than any one day stock market crash in U.S. history. It is also interesting to note that this 888 point crash comes in the 8th month of our calendar. Perhaps that is just a coincidence, and perhaps it is not. It just struck me as being noteworthy. This is the first time that the Dow has dropped by more than 300 points on two consecutive days since November 2008, and we all remember what was happening back then. Overall, this was the worst week for the Dow in four years, and there have only been five other months throughout history when the Dow has fallen by more than a thousand points (the most recent being October 2008). Of course we still have six more trading days left in August, so there is plenty of time remaining for even more carnage.
By itself, the 530 point plunge on Friday was the ninth worst stock market crash in all of U.S. history. The following list of the top eight comes from Wikipedia…
#1 2008-09-29 −777.68
#2 2008-10-15 −733.08
#3 2001-09-17 −684.81
#4 2008-12-01 −679.95
#5 2008-10-09 −678.91
#6 2011-08-08 −634.76
#7 2000-04-14 −617.77
#8 1997-10-27 −554.26
Another very interesting thing to note is that the largest stock market crash in U.S. history took place on the very last day of the Shemitah year of 2008, and now we are less than a month away from the end of this current Shemitah year.
It is funny how these strange “coincidences” keep happening.
The financial carnage that we witnessed on Friday was truly global in scope. On a percentage basis, Chinese stocks crashed even more than U.S. stocks did. Japanese stocks also crashed, so did stock markets all over Europe, and emerging market currencies all over the planet got absolutely destroyed.
The following is how Zero Hedge summarized what went down…
- China’s worst week since July – closes at 5 month lows
- Global Stocks’ worst week since May 2012
- US Stocks’ worst week in 4 years
- VIX’s biggest weekly rise ever
- Crude’s longest losing streak in 29 years
- Gold’s best week since January
- 5Y TSY Yield’s biggest absolute drop in 2 years
Even though I specifically warned that this would happen, and have been explaining why it would happen on my website in excruciating detail for months, the truth is that I didn’t expect stocks to start crashing this quickly or this ferociously.
Normally, August is a fairly slow month in the financial world. As I have discussed previously, most of the really noteworthy stock market crashes throughout history have taken place during the months of September and October. So I thought that things wouldn’t start getting really crazy for another few weeks at least.
Financial markets tend to fall much faster than they go up, and I believe that we are moving into a time of extraordinary volatility. There will be huge down days, and there will also be huge up days. In fact, the three largest single day rallies in Dow history happened right in the middle of the financial crisis of 2008. So don’t let what happens on any one particular day fool you.
An absolutely gigantic global financial bubble is beginning to burst, and stocks could potentially fall a very, very long way. For instance, just consider what MarketWatch columnist Brett Arends has just written…
I don’t mean to be alarmist or to induce panic, but someone needs to tell the public that there is a plausible scenario in which the U.S. stock market now collapses by another 70% until the Dow Jones Industrial Average falls to about 5,000.
It is important to keep in mind that Arends is not a “bear” at all. He is a very level-headed analyst that tries to objectively look at all sides of things.
I sincerely hope that global financial markets will stabilize for at least a couple of weeks. But there is absolutely no guarantee that will happen.
So many of the things that I have been warning about on this website and on End of the American Dream are starting to unfold right in front of our eyes. If I am right, this is just the beginning. I believe that we are moving into a time of unprecedented chaos, and our nation is about to be shaken to the core.
Hopefully you have been preparing for the storm that is coming for quite a while and you will not be surprised by what is about to happen.
Unfortunately, the same cannot be said for the vast majority of Americans. Most of them are totally unprepared for what is coming, and they are going to be completely blindsided by the events that will unfold in the months ahead.
The relative calm of the past few years has lulled millions into a false sense of complacency.
If you are one of those that have dozed off, I have a word of warning for you…
Wake up and get ready.