Learn Easy Way To Lose $2.1 Trillion In Just Six Days! & More #Insights

$2.1 Trillion Erased From U.S. Stocks In Six Days

The enormous losses reflect the deep fears gripping markets about how the world economy will fare amid a deepening economic slowdown in China.

The Dow, S&P 500 and Nasdaq have all tumbled into correction territory, their first such 10% decline from a recent high since 2011.

The S&P 500 -- the best barometer for the biggest U.S. companies -- has lost trillions of market value in the six-day selloff through Tuesday, according to S&P Dow Jones Indices.

To put those losses into perspective, that's roughly equal to the combined market value of these corporate titans put together:

 Apple (AAPL, Tech30), Google(GOOGL, Tech30), Berkshire Hathaway (BRKA), ExxonMobil (XOM), Facebook (FB, Tech30), Walmart(WMT) and 21st Century Fox (FOXA).

South Africa's economy contracts, risk of recession grows

PRETORIA (Reuters) - South Africa's economy shrank for the first time in more than a year during the second quarter of 2015, raising the risk that labour disputes and slowing Chinese demand for commodities could push it towards recession.

The economic strain will inhibit the central bank from raising rates further to protect a weak currency and target inflation, while also torpedoing government efforts to keep deficits in check and protect its credit ratings.

EU’s Migrant Crisis

A record 107,500 migrants crossed the EU borders last month to outstrip the previous monthly record in June of 70,000. During the first seven months there were nearly 340,000 migrants, up from 123,500 last year,

Warring Migrant Tribes, Grenade Attacks…What Is Going On In Sweden?

if you bring intolerant people into your country this is what can happen

Immigrants in Germany swell to record high 11 

million

 Information and Communication Technologies is radically changing the world

Not only how we deal with the world and make sense of it, or interact with each other, but also how we look at ourselves and understand our own nature, existence, and responsibilities. 

This is the IT version of my book The Great Field (available in Kindle books).

Real Household Net Worth:

 Look Out Below?

In my last post I pointed out that over the last half century, every time the year-over-year change in Real Household Net Worth went negative (real household wealth decreased), a recession had either started, or was about to.  (One bare exception: a tiny decline in Q4 2011, which looks rather like turbulence following The Big Whatever.) Throughout, click for source. - 

The problem: we don’t see this quarterly number until three+ months after the end of a quarter, when the Fed releases its Z.1 report for the the preceding quarter. The Q2 2015 report is due September 18.

But right now we might be able to roughly predict what we’re going to see four+ months from now, in the report on our current quarter, Q3, which ends September 30. We’re a bit over a month from the end the quarter, and we have some numbers to hand.

The U.S. equity markets are down roughly 7% year-over-year

Learning Success: 

APPLY Tips From The Best

Sir Richard Branson, Virgin Group – Anyone who owns more than 400 companies and is worth billions of dollars is clearly doing many things right. I admire Richard Branson’s tenacity, and I admire his personal brand

Bond Bubble Game To Collapse

Bond Bubble Will Explode Violently

"There is also a lack of liquidity in bond markets because central banks have removed all the supply. Investors don't want to buy new debt with negligible yields, but also don't want to sell if central banks are providing a perpetual bid. Therefore, there is no trading outside of institutions front running the central banks’ purchases—again, as long as there is no inflation". - Excerpt

Central banks are incapable of saving economies or creating growth. The only thing a central bank can do is create inflation. These market manipulators set forth on a journey seven years ago to save the world by engaging in massive monetary manipulation, euphemistically called Quantitative Easing (QE), and a Zero interest rate policy known as (ZIRP).

As I could have told them before they started, all this easy money will fail to create viable growth. The economy, held back by massive debt levels, initially clocked in at 0.2% for the first quarter. This number is set to be revised down to negative territory due to a huge increase in the trade deficit during March. And the second half isn't setting up to be much better either.

Wackee Leaks 

Top Secret Central Bank Video

HOW to Create Neoclassical Money Supply?

But the Fed was successful in re-inflating the housing and equity bubbles and also creating another new massive bubble in the bond market. Read More.

INVESTORS' INSIGHTS  - "Today's Edge" 

Yesterday a skeptical reader didn't think that a conspiracy existed. Not all conspiracies are deliberate. Some occur by either accident or sheer stupidity. This one was sheer stupidity.

How do we know? First, except for real estate there has been little capital formation in the real economy creating  high value jobs to replace those shipped to China. Two, who in there right minds would set up such a mathematical financial trap where asset values are devastated mathematically with the slightest move in rates.Three, no real new innovation outside of social media for pre-teens - and fourthly, major raw material resource shortages, including fossil fuels are on the near-term  horizon. 

Lastly, there are national  real estate and financial bubbles around the world that are analogous to Japan in the 80's and 2007. Go figure? 

In short, this is now a key component in the much larger geopolitical game and that sets the stage for global conflict when the raw material shortages articulate themselves fully.

So much for neoclassical economics!

International Offices
May 21, 2015 

Beware Liquidity Drying Up Global Bond Markets

Liquidity Mirage Causes Volatility

 in government bonds

At the moment, volatility in the government bond market continues to be a huge theme in the market and one that investors need to consider and address.  Whatever the initial causes of the adjustment in relative and absolute yield curves and there are plenty of potential culprits – Federal Reserve rate expectations, European Central Bank quantitative easing, inflation forecasts etc. – the subsequent severe volatility has been without doubt exacerbated by the lack of liquidity.

What is particularly worrying is that this lack of liquidity is occurring in global government bond markets, which are deemed to be the most-liquid fixed-income sectors.  To highlight this issue, Bloomberg reported that on ICAP's BrokerTec platform's (an electronic trading system for FI markets) April volumes fell 14 per cent from a year ago and were the lowest in six years. Read More.

INVESTORS' INSIGHTS  - "Today's Edge" 

Sooner or later the bond market will run out of bigger fools as inflation is much higher than reported by governments while investors are losing principal with negative real returns. In essence we are seeing a global debasement of all currencies under present policies.

When the bonds crash they will bring down the markets too. Time has come to unload those highflyers that have no earning because they can drop like a stone from dollars to pennies, all in the blink of young girl's eyes.

International Offices
May 19, 2015 

Market #ALERT - TOP SIX US BANKS HAVE 28:1 DERIVATIVE LEVERAGE ** DOWNGRADE WATCHLIST***

***MARKET ALERT***

The Six Too Big To Fail Banks In The U.S. Have 278 TRILLION Dollars Of Exposure To Derivatives

The very same people that caused the last economic crisis have created a 278 TRILLION dollar derivatives time bomb that could go off at any moment.  When this absolutely colossal bubble does implode, we are going to be faced with the worst economic crash in the history of the United States.

Just A 2% Swing In Asset Values Could Wipe Out All Bank Equity

During the last financial crisis, our politicians promised us that they would make sure that “too big to fail” would never be a problem again.  Instead, as you will see below, those banks have actually gotten far larger since then.  So now we really can’t afford for them to fail. Read More.

THE CREDIT DOWNGRADE WARNING WATCH LIST

USUAL SUSPECTS