by Andy Hoffman, Miles Franklin:
Even I am in awe of the cumulative lethargy of a Mainstream Media so dumbed down by propaganda; and so beaten down by the relentless decline in its readership and viewership; it no longer even publishes. To wit, two days after a horrific decline to yet another horrific week – both economically and financial market-wise; amidst the worst economic environment of our lifetimes, and a burgeoning, global financial crisis with “2008” written all over it – I see “nary a peep” from the major news services. Sure, Zero Hedge is flooded with “alternative media” commentaries; but as for actual “news” reporting, absolutely nothing. Nada. Zip. Heck, you’d think it was a lazy, devil-may-care summer weekend of the late 1990s, mid-2000s, or even 1987 or 1929!
That said, the unfortunate reality is that things are that bad. And unfortunately, just getting started; as not only has “September cometh,” but done so following the worst August stock performance in memory. And don’t forget next week’s “Shemitah” biblical prophecy; as whether it’s true or not, it’s difficult to dispute the coincidence of its timing. And by the way, on the rare “seventh seven-year cycle” this year’s Shemitah brings, the prophecy is that the year following the Shemitah (starting September 14th), civilization as a whole will experienced a massive “debt jubilee.” Again, quite coincidentally timed, as said “debt jubilee” is mathematically guaranteed to occur irrespective – be it in the coming year, or shortly thereafter.
Starting, perhaps, in none other than the original cradle of civilization, Greece; which despite said lack of news coverage, never received the so-called “bailout” we’re to believe “saved” it. And following the upcoming “snap elections” on September 20th – incredibly, the collapsing nation’s second in eight months – whatever shards of hope for avoidance of the Eurozone “GrExit” that must inevitably occur may be permanently destroyed. Just look at the stock of the “National Bank of Greece” – ticker NBG – which closed at an all-time low on Friday, if you think otherwise. Not to mention, the 25 or so global stock markets well into bear market territory; the majority of which are “emerging markets” on the verge of equally tragic economic and political meltdowns.
Yes, the very day I published “death of the BRICS,” the Brazilian Real, Indian Rupee, and South African Rand plunged to all-time lows – whilst the Russian Ruble closed barely above its own, dating back nearly a century. And these are the nations Goldman Sachs, barely a decade ago, decreed to be the world’s “growth engines” for the next 50 years! Let alone, “lesser” nations like, the dozens of “emerging markets” whose currencies, too, closed at all-time lows. I mean, we’re talking about the cumulative purchasing power ofbillions of people here – and I haven’t even discussed the biggest “BRIC” of all – China; or as I deemed it last week, the “most dangerous, destabilizing force on Earth.”
Amidst an environment where tens of trillions of dollars’ worth of Chinese municipal and “shadow bank”-financed corporate debts are going sour, history’s largest financial bubble (which is saying a lot) is amidst an historic collapse – which even the governor of China’s Central bank admitted last week. As I wrote in the aforementioned article, the PBOC is burning through hundreds of billions – soon to be trillions – of the ill-begotten currency reserves garnered from two decades of its global destructive currency pegging campaign; which clearly, is “coming home to roost.” And thus, when Barclays Bank espoused this week that it doesn’t think the “massive cost involved in such currency intervention is sustainable,” they could not have made a bigger understatement. To wit, no matter how hard the PBOC pretends to be “managing” the Yuan’s decline, it MUST inevitably take the politically expedient route of all-out de-pegging. Or, as I described it last month – one day before the devaluation process commenced – the “cataclysmic financial big bang to end all big bangs.”
That said, I last week wrote that “only one financial event could be as cataclysmic as a significant Yuan devaluation.” Which, of course, would be the Federal Reserve raising rates – albeit, by a miniscule, immaterial eighth or quarter of a point – in an environment of collapsing equities, commodities, and currencies. I mean, Friday’s NFP job report – you know, the Fed’s admitted “most important data point” – was an unabashed disaster, portraying the “unhealthiest” labor market in the nation’s history; which sadly, is accelerating downward at an alarming pace. And as for the “2% inflation” the Fed claims to be targeting, what part of the CRB Commodity Index touching a 40-year low last week – with far lower levels a near certainty – gives it confidence that the time to reduce monetary accommodation has arrived?
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