Global Class 4 market conditions

Global Class 4 market conditions

The markets mirror many natural conditions and environments.  This past week we have seen the first group of three class 4 hurricanes in the pacific in recorded history occurring at the same time.
Global Class 4 market conditions.

class four market conditionsThere is just so much financial fraud you can inject in the system before the storm washes it away.

Financial Fraud is happening in the world wide markets.

The VIX in the US has hit new highs. Much like 2008. There is a global meltdown. This makes the 2008 crisis look like a light mist compared to the storm on the horizon.

It will be lead by:

  • Crashing commodity prices
  • plunging currency prices
  • Corporations propped up with fake money, there is no recovery for individuals
  • Volatility is real but injected with manipulation
  • This past summer has seen more volatility that we have seen in years.
  • China is not the epicenter of this correction it is more like the canary in the coal mine
  • Yellen is holding the global economies hostage through interest rates.
  • European Central Banks are starving out their own people.
  • Refugees in Europe

The reality is interest rates are so artificially low that the ponzi scheme they have played for 10 years all the money rushing in went to the emerging markets causing collapse.

Bloomberg commodity index crashMarkets like Canada (soon to be in a recession, property bubble in commodity’s regions and currency collapse), Brazil (currency at 37 year lows), Australia (property bubble and dollar about to collapse), they are going to suffer as their currencies continue to loose in the international marketplace  and inflation. Commodities are the only market which expose the financial Con imposed by market manipulation and the Fed’s artificial rates. The Bloomberg commodity index is below the 2008 Financial crash levels with our markets still holding at only a slightly corrected price.

Money forcing rental rates up in London, New York, Vancouver and San Francisco are actually flight money  from the international rich moving(escaping) to safe havens. The worlds weathy are moving into these safe havens to protect their money and the lives. There are more Russian billionaires in London and New York than in Russia.  Property prices in these cities do not reflect a robust economy, the reflect the growing gap from rich to poor and that middle class incomes will displaced from these cities as the prices go higher.

US war has created a Refugee Crisis for Europe.

You have probably seen the presstitutes releasing articles like this:

“Migrant crisis: More troubles in Hungary as Austria, Germany near tipping point”

Libya, Syria, Afghanistan, Iraq and the poorest countries like Yemen are bombed out and refugees are flooding out probably not to return.  The press is calling it migration, the truth is that these people are refugees from a war torn environment that can not support the inhabitants.  Europe should be sending the US a bill for the refugees fleeing from our corporate sponsored war in the middle east and Asia minor.  This will be a tragedy for Europe as we see the poor rushing into countries that can not employ them. These refugees will more than likely never return to their home countries.  Millions will be fleeing.

This could signal the start to the end of what we have known Europe to be.  Get ready for the borders to close, restrictions to travel to occur and an ever increasing unemployment rate as millions from Asia minor, and Africa pour into an unprepared and unorganized EU political base.  Watch as gradually each country will declare that they solely determine the number of refugees allowed in and then Germany have to pay for them.

Real estate and Rent – The Wealthy own multiple properties in multiple countries to keep their international status and not pay taxes.

Rental affordability has steadily worsened in most cities across the US. Median rental rates are now over 30% of renters income. The quantitative easing and suppressed interests rate has made it so that companies like Blackstone and Berkshire Hathaway can own and control countless billions of US rental properties.Huge private equity groups are buying single family homes and apartments across all the top tier housing markets in the US. Even ghetto rental rates have increased.  Warren Buffet also swooped in and bought properties at 10% of market value now to charge the highest rental rates in US history.  30 % of midtown Manhattan is occupied less than three months of the year.  Los Angeles renters now devote 49% of their income on rent. This is the norm?   We have a global deflationary class where their real income is decreasing, real wages are decreasing and their rents are increasing and the fed induced mis-allocation of capital which created a glut in supply which you can see in the Baltic dry index (which has collapsed).  The price to send goods from China (the worlds manufacturer) to Europe and US (the consumers) are at the lowest rates since early 2000’s.  This reflects part of the global slowdown.

The normalization of interest rates that the FED mentions is not enough to balance the risk in the markets and the amount of leverage that plutocrats use for hard assets stolen from the middle class.

Social and Geo political storm is on the rise. The world economy is in a recession and the refugees headed into Europe from the middle east and Africa will create the next biggest unemployment and social storm to hit their markets. A complete market collapse in Europe could occur as the social and financial implications of the Central Banks destabilizes and creates more inequities between the rich and the middle class which is the new poor.

Low interest rates, market manipulation and destruction of the middle class will create the financial storm that will prevail this next few years.

China is not the spark that set this off, but it is a reflection of this class 4 financial storm.

China is not the point of this world correction or the reason the world is going into a recession.  China has acted as the catalyst for world supply and demand this past 12 years being a major supplier of cash to purchaser of US treasuries, and a large part of demand for international commodities consumption.  The Bank of China is interceding in their market place and going by the play book that the US has used many times before. Although jailing journalists for using inflationary speech is a new way to control the market. This is actually not effecting the international market place as much as the devaluing of their currency and the probability that the next steps are going to be devaluing their currency more through some sort of quantitative easing and no longer purchasing US treasuries.  We could even see an increase in Treasury note sales by China which in effect could be reversing the US’s own quantitative easing.  So blaming the Chinese for an international recession is not even close to reality as the US, Europe and other countries have had a full out currency war this past few years and injecting money in to markets through artificially low interest rates so corporations buy their own stock back..

The Fed has lost its way, interests rates used to be valued to the amount of risk, and the present rates do not reflect risk.

 

What is your planB?

 

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