I am writing to you as I have several indicators flashing red. This market crash is almost a replica of 2007-08. The whole global economy is teetering on the brink of collapse as the paper ponzi is looking like a gigantic house of cards. There are several snow flakes that can start the gigantic avalanche.
Where to start?
Lets start with 2008. In 2007 the sky was blue and markets were great, but all the experts and insiders were fleeing behind the scenes as the market was falling apart. It is very important to keep in mind that if you follow mainstream media, they are in place to keep the WallStreeters from loosing too much money. They are there to push bad investments and scare the masses to jump in on top and sell at the bottom. The game is rigged and you need to understand it.
In 2008 it started years before when the markets crashed in 2001 you had the 9/11 event to cover up the collapse of the global economy. Gold started rising and markets needed to be calmed. Many central banks started selling their gold on the open market. This was to keep a full fledged panic from happening. Interest rates were forced down in order to flood the markets with more debt to try to force the economy into growth. Now bankers wanted to get innovative and bankster minions found out that selling loans to people with No Income, No Jobs and No Assets. (NINJA) Loans were born.
The Bankers didn’t stop there. How about creating a derivative called Mortgage Backed Securities or Collateralized Debt Obligations. Where the NINJA loans were put into derivatives and shipped off all over the world where they blew up Norwegian pension funds and whole RM’s investments. These idiots buying these derivatives rated at the highest quality. Never let a bank or an investor sell you anything with a very finite description of Exit strategies, terms and what type of investment it is. The paper avalanche started, but got caught in a forest protecting the monetary system. The forest got severely destroyed, but there were still a couple of treest standing protecting monetary system. Now the Forest is way smaller and the avalanche waiting to happen has quadrupled or increased sixfold over the last years of free money and continuing decreasing interest rates close to zero or below.
The Crash 2007-08:
During the crash in 2007-08 commodities crashed with commodity, transportation, banking and retail stocks. Meanwhile margin calls on mountains of debt invested into an over leveraged stock market, commodity sector and banking sector. Banks had gambled on derivatives and Bear Sterns goes into bankruptcy. Lehman Brothers had only $28B on their books of derivative exposure. This is just a drop in the bucket compared to what bankers have leveraged into the shadow banking system and dark pools around the world. The Wall Street Casino scam is about to fall apart, but who holds the bag is uncertain. Is it pension funds like in 2008, is it central banks around the world?
So looking at the 2008 crash. What did commodities and stocks do?
Here are a couple of charts that will blow your mind when you see the charts compared with today.
As you can see above bank stocks are acting the same way they acted in 2008. Let take a look at the commodity markets and how they are also reacting exactly how they reacted in 2008. Check out these charts.
The leverage is at record highs with the derivatives market being about 6 times bigger than the global GDP with $1.5Q in different derivative bets. This is almost a tenfold increase from 2008 as a small derivatives book of $28B at Lehman Brothers collapsed the world economy. Now the threat is way bigger with Deutche Bank being a whooping $75T exposure to derivatives.
Above is Caterpillar the company that shows if the world economy is building or not. It s about to do what it did in 2008.
Interest rates are being pushed down again. Now they can only become negative for most countries. Check the historical charts from 2001.
Commodities are ultimately king in any crash of a fiat currency system! So understand that water, gold, food, guns, silver and other commodities always have value and not paper!!
The paper bond bubble is about to pop. Look at the global M0, M1, M2, and M3 currency supplies.
The Economic Truth