8-30-2015 Economic Times
30
Aug
Gerald Celente Just Warned This Is Not A Correction, It’s The Beginning Of A Total Market Meltdown And Global Collapse
On the heels of continued selling of stocks in China and a monster 600+ point rally in the Dow, the top trends forecaster in the world warned King World News that, despite today’s rally, this is not a market correction, it’s the beginning of a total market meltdown and global collapse.
August 26 – (King World News) – Across the western world, financial fingers are pointing to China as the culprit for both sparking the global equity-market meltdown — and keeping it going….
Continue reading the Gerald Celente piece below…
The first shot across the Dow — when it was trading some 2,000 points above Tuesday’s close — was blamed on the People’s Bank of China for cheapening its currency: “China risks clash with US as 1.9 percent devaluation surprises markets,” Financial Times, 12 August 2015.
U.S. Markets Trending Down Since Late July
Omitted from the headline blame game in FT and other business-news coverage was that US equity markets had been trending down since late July. Yet, as the global stock plunge accelerated over the next few weeks, and with the yuan devaluation story fading from the news, the business media blamed the selloff on China’s economic woes and how its slowing economy was impacting the global economy.
In fact, even Republican presidential front runner Donald Trump weighed in by warning that “China’s taking our jobs; they’re taking our money… they’ll bring us down… we have nobody that has a clue.”
Trump is wrong.
China is merely the canary in the collapsing global-equity mine.
Everything Is Collapsing Because The World Economy Is Imploding
Markets are tanking, currencies are collapsing and commodity prices, now at 16-year lows, are plummeting because the world is sinking deep into recession.
I Predicted A Global Stock Market Crash By Year End On King World News
And, not only do we have a “clue” regarding why markets are tanking, on 6 August, in ourTrends in the News broadcast, before the market meltdown began, I forecast that global equity markets would crash by year’s end on King World News. And some two weeks before China devalued its currency, we predicted that action.
As we have noted, the formula is simple: When the US and Europe buy fewer consumer goods, China manufactures less of them. And the less China manufactures, the fewer raw materials and agriculture goods it imports from resource-rich nations. As resource-rich nations export fewer raw materials, their economies dramatically weaken, their currencies sink lower, inflation rises, unemployment rapidly grows… and out-of-work, cash-poor consumers consume less.
Indeed, it is not China’s economic woes or its currency devaluation that’s bringing down the markets.
As the famous slogan that was a centerpiece strategy in Bill Clinton’s 1992 race for the White House clearly summed up, “It’s the economy, stupid.”
And this time “it’s the global economy, stupid.”
US
‘Good reason’ to see higher US prices: Fischer
U.S. inflation will likely rebound as pressure from the dollar fades, allowing the Federal Reserve to raise interest rates gradually, Fed Vice Chairman Stanley Fischer said on Saturday in a speech careful not to overreact to a possible Chinese slowdown. The influential U.S. central banker was circumspect whether he would prefer to raise rates from near zero at a much-anticipated policy meeting …
Read more: http://www.cnbc.com/id/102956937
Markets are a mess, but don’t blame China: Pro
This week, stock markets put investors on a stomach-churning roller-coaster ride. While uncertainty over China’s economy has been widely cited as a catalyst behind the whipsaw action, one market strategist says the underlying problems in the U.S. are actually much deeper. That, he predicts, will make it difficult to climb back to record highs by the end of this year. “This is not just a China …
Read more: http://www.cnbc.com/id/102952571
CHINA
China growing at ‘reasonable’ pace despite risks: Premier Li
China’s economy is growing at a “reasonable” pace and, despite growing pressure, the government can handle well the risks the country faces, Chinese Premier Li Keqiang said. The premier, in remarks published late Saturday after a special cabinet meeting, said China is continuing to steadily manage its economy. Li said international market instability “has increased the uncertainties around the …
Read more: http://www.cnbc.com/id/102957059
Chinese official defends intervention: ‘We must take action’
Expect the Chinese government not to sit still when its financial markets are falling apart.
If there is “systemic risk to the financial system, we must take action,” China’s Vice Finance Minister Zhu Guangyao told CNN in an exclusive interview Friday. Zhu’s comments came after two weeks of extreme turmoil in the global stock markets, particularly in China. The key Shanghai stock index has plunged more than 40% since June and erased all 2015 gains.
The backdrop is that the Chinese government has been especially active in the financial markets lately. Just two weeks ago, the country surprised the world by allowing the yuan to devalue. It propped up its markets by actually buying stocks a few months earlier. And this week, as its stock market tanked, the People’s Bank of China cut its key rates for the fifth time in just nine months in an effort to keep money flowing in its financial system.
Zhu defended these actions, saying China was not alone in acting to support the financial markets. He cited similar actions by the U.S., U.K. and other countries.
He said the Chinese government had followed the “three T” principles: timely, temporary and targeted action.
“We thought we achieved the target, and timely intervention made panic basically be controlled,” he said. “We really believe in … time, the market will be back to the normal track.”
Zhu was speaking with former Australian Prime Minister Kevin Rudd, who was guest hosting CNN International’s Amanpour show.
BRAZIL
Brazil falls into deep recession
Brazil is going bust.
Its currency is plummeting, unemployment is rising, its stock market is down 20% from a year ago and its president, Dilma Rousseff, has an 8% approval rating — the lowest since 1992 when Brazil’s president was impeached.
EUROPE
BoE: Stance on rates unchanged by China woes
Bank of England Governor Mark Carney said on Saturday that a slowdown in China’s economy could push down further on inflation but it did not change, for now, the central bank’s position on when and how it might increase interest rates. Carney, speaking at an annual U.S. central banking conference in Jackson Hole, Wyoming, reiterated his view that the recovery in Britain’s economy “will likely …
Read more: http://www.cnbc.com/id/102957061
