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by Georgi Stankov Posted on January 18, 2016
Georgi Stankov, January 17, 2016
The two cognitive problems of all critical experts on the economy is that they have not reached the intellectual level of developing a holistic view of the world they live in, including the economy and therefore inevitably concentrate on particular factors (and get lost in them) only to come to particular, one-sided conclusions. The otherwise very competent and critical source on economics ZeroHedge, edited by a former Bulgarian trader, is a classical example how the contributors to this website cannot see the forest from the many trees and only deepen the already existing cacophony of economic opinions. The second cognitive problem is the ubiquitous agnosticism to which all these experts are subjected. This prevents them from seeing the driving energetic force behind all economic and social events which they observe with their limited 3D mind in the current End Time of Ascension.
Both aspects have been widely discussed on this website and should be well understood by all my readers in the meantime. On the other hand any economic approach is inevitably overloaded with so many obsolete theoretical ideas and practical knowledge of detailed facts that this alone is a very big hurdle for many enlightened people to enter this field and highlight it with their enlightened spiritual views. The total intellectual failure of the New Age movement to even remotely grasp the Ponzi methods of the Orion economic matrix illustrates this fact and explains why most of these people became an easy prey to all kinds of dark concepts which the ruling cabal and their secret services deliberately disseminated among their ranks in form of dark channeled messages. Their aim of intellectually hijacking this small, half-awakened portion of humanity was fully achieved, although planetary Ascension could not be prevented due to the PAT. It is very easy to enslave humans without a brain and a sovereign independent thinking as this has been proven all the time throughout human history.
All the more intelligent and critical economic thinkers outside the New Age movement who are of any relevance in the current collective discussion of the End Time collapse of the world economy are so entangled in trivial details they barely understand in their agnostic point of view, that they cannot even remotely envision how this whole system will fully crash and disappear in order to be replaced by new enlightened forms of social and economic relations and miss completely the point. Their total inability to envision any form of utopia due to the systemic crashing of their creative imagination by this oppressive Orion reality, to which they have fully succumbed in their hapless agnosticism, prevents them from flying high in their thoughts and transcending this crumbling world in the quest for a better one.
Creation can only come from within, through our thoughts as sentient beings. And this affords in the first place the creation of a true spiritual ethics that is the foundation of any enlightened society. This is the greatest fallacy of the New Age – they failed to establish a valid ethics of enlightened human behaviour in opposition to this predatory capitalistic world and, what is even worse, they do not even see the necessity to develop such ethics. Just read their idiotic, insensitive jabbering on the Internet and you know what I mean by that.
Who is left then with a modicum of understanding of what is currently happening in the economy that still drives this reality and who knows how it will cease to exist? A few readers around this website, together with Brad and myself, who consistently refer to this ultimate fact, no matter how long it would take. Brad has repeatedly pointed out that it is an utter insanity to perceive all the Ponzi schemes of this Orion economic and financial disorder and still to expect to earn money from it. This is pure schizophrenia and so typical for most humans, even the most clever.
Why is the current End Time crisis so different from all previous crises that could be mended by the ruling cabal and their banksters with the help of an exponentially growing variety of fraudulent means? Because all these fraudulent methods have been fully exploited and exhausted in the meantime and have only aggravated the ongoing crisis that began much earlier when the foundation of this deficient Orion economy was laid down at the onset of modern capitalism. I will, however, spare you the historical details at this place.
When you treat a crisis with the same means that have caused this crisis, you only exacerbate its scope and the crash will be total and irreversible at the end. It is the same as when you treat an addict with increasing dosages of heroin until he gets the “final golden shot”.
The acceleration of the death foretold of the western type of neoliberal, predatory capitalism began with the Fall of the Iron curtain when the Biggest Robbery of all Times of Eastern Europe began. Billions and billions of dollars, DM and pounds were transported to West European banks by the new-born, post-communist “oligarchs”, which is another word for a Mafia pate, and their minions. In consequence, the economies of all former communist countries were completely and deliberately destroyed by the western dark cabal in their clandestine plan to install the NWO in the End Time. The recipe was always the same – total impoverishment of the masses and weakening of the national governments, so that the people finally accept in their desperation a world government that was supposed to redeem them from this deplorable state. Of course the contrary was intended by the dark ones.
During the 90s, the amount of money in circulation in the West increased significantly due to this ongoing robbery of Eastern Europe that was in many ways more developed than many western countries. The COMECON, the Eastern version of the EU later, was economically and politically a more integrated union than the EU has ever been, with huge natural resources which the Soviet Union supplied. Notwithstanding this fact, this powerful economic alliance was wrapped up and disappeared from the political and economic scene within several weeks shortly after the Fall of the Iron curtain. Its huge budget was stolen and transferred 100% to western banks. Can you imagine what chaos would occur if all of a sudden the EU is dissolved and all its budget is transferred to Moscow?
I had once a conversation with a Swiss banker who told me that in the early 90s they had to do regularly night shifts to count the huge amounts of cash money which the Eastern oligarchs and their criminal stooges were bringing in big bags to Switzerland over the border without any financial control by the governments at that time as is the case now with all the citizens in the west, who are treated as potential financial fraudsters by the western states. I remember also a big story that was launched in the 90s in the German press, which was much more objective and critical at that time than the current Lies-press, about more than 40 billion DM that all of a sudden appeared unaccounted for in the Deutsche Bank. They came from the Russian mafia gangs that ruled this big country and plundered its economy in the 90s at the time when this drunkard and CIA paid, corrupt former nomenklatura communist Yeltsin destroyed Russia. Some German politicians demanded a state investigation to find out where this money came from and whether it was illegal, which was obvious even to the sparrows on the roofs, but shortly thereafter they were silenced by the dark cabal masterminds and the story vanished from the media.
This massive influx of liquidity in the western financial system triggered the first major equity bubble in modern history. Throughout the 90s the stock indices began to rise in an unprecedented tempo and almost quadrupled their values from the 80s without any equivalent growth of the real economy. The new era of Ponzi bubble economy in the West commenced with full force. At the same time the intensity, scope and depth of the crises which began to occur every few years was hugely amplified as this chart below shows:
It was also the time when I was urged by my HS to start investing in the stock markets as to gain personal experience with this Orion-Ponzi economy after I discovered the Universal Law and outlined the General Theory of Science, which also included the theory of economics. Before that I only studied the economy from a theoretical point of view. But it is one thing to be a scholar in economics and give wise advises as most idiotic American Nobel Prize winners in economics do without any personal responsibility (and when they did it, they failed in a reckless manner as I shall show below), quite a different thing to be personally engaged in the market and risk your own money.
The difference between talking about gains and losses and earning and losing your own money on the stock exchange is the same as between receiving each month a fixed salary as an employee from a university or another institution and be able to burn a 500 DM banknote without feeling anything in your heart. This is what I did before starting to invest in the stock markets, after I had already experienced some huge financial and material losses in the course of my LBP. That is why I and Brad are not only talking economics from a theoretical and gnostic point of view as ascended masters, which itself is as common as a black swan, but also from our personal, bleeding experience with this financial monster of Orion-Ponzi that has trapped and enslaved humanity in the last quarter of a century after the Fall of the Iron curtain in a perfect manner.
The Big Robbery of Eastern Europe and the massive transfer of capital from the former communist countries in the West triggered the first big equity bubble during the Clinton time. As every bubble ends up with a bust and a severe economic crisis, this bubble burst in 1997-1998 with the Asian crisis and the default of Russia as part of the biggest and longest East European Depression 1991 – 1999 (and even later). Both crises were deliberated engineered by the reckless ruling cabal in London and New York. But they did not stay as geographically isolated events. In 1998 the infamous LTCM hedge fund collapsed all of a sudden as a consequence of the Asian and Russian crises.
This bond-trading hedge fund grew from launch to over $100 billion in assets in less than three years. It saw yearly returns of over 40 percent. It was run by finance veterans, PhDs, professors, and two Nobel Prize winners. Everyone on Wall Street wanted a piece of their profits. But by 1998, that firm was primed to expose America’s largest banks to more than $1 trillion in default risks. The demise of the firm, Long-Term Capital Management (LTCM), in 1998 was swift and sudden and was about to cause a complete meltdown of the entire western financial system. In less than one year, LTCM had lost $4.4 billion of its $4.7 billion in capital.
The entire story is recounted in Roger Lowenstein’s book, ‘When Genius Failed‘, with details on the fraudulent strategies and financial theories employed by Long-Term. LTCM was the template for all subsequent fraud schemes in the financial sector. This story involved all the dark players — the Federal Reserve, which finally stepped in and organized the first major bailout with hundreds of billions of dollars and all the usual suspects, the major Orion banks that did not survive the later 2008 crisis: Bear Stearns, Salomon Smith Barney, Bankers Trust, J.P. Morgan, Lehman Brothers, Chase Manhattan, Merrill Lynch, Morgan Stanley, and Goldman Sachs.
As we see, the blueprint for the final irreversible crash of the Orion economy in 2016 was laid down in the early 90s after the Fall of the Iron Curtain and became visible with the first major crises in 1997-1988. During this crisis the stock markets crashed 33% from their highest values. This was the biggest single and prolonged crash, defined as “bear market” in modern history, after the Great Depression. The crash in 1987 was much smaller and short-lived and dwarfs compared to all the crashes that followed the Asian-Russia-East Europe-LTCM crisis.
After that the banksters, in cahoots with the ruling cabal who passed many insidious financial laws allowing the banks to commit any conceivable financial fraud, invented another bubble in order to inflate their capital gains – the tech bubble – while riding on the euphoria wave of mass enrichment in the eve of the third millennium. This new bubble was particularly short-lived. It went bust as early as 2001 before 9/11 and reached its trough value in 2003 with the beginning of the Iraq war.
I remember how the idiotic Germans, who were suddenly infested by collective greed after the unification, invested billions of their savings in the newly created German tech index that skyrocketed within 18 months to more than 1000% only to crash by 96% within a few months when the tech bubble burst. Please observe the mathematical conundrum of all capital gains and losses. You can gain many hundred or thousand percent with regard to your initial investment, but you can only lose 100% of it. This is what the masses fail to grasp with their brain-dead minds and that is why they so eagerly participate in all financial scams the dark cabal give them as a bait.
The German tech index crashed 94% and this “one-euro-equity index” was then, more or less secretly, wrapped up at the end of the tech bubble crisis and disappeared for ever. The Germans lost approximately 300 -400 billion euro in savings and the impoverishment of this nation began to peak, very similarly to the same trend in the USA and Western Europe, however in total discrepancy to the growing power of the German economy.
Now please observe the following trend. The Asian-Russia-LTCM crisis caused a 33% crash of the equity markets, while the next tech-bust crisis led to a 54% downfall in the average of all equity markets worldwide. Here we see the most important theoretical rule of all economic and financial bubbles:
The longer the bubble and the greater the fraud, the deeper the markets crash.
There is no exception to this rule as it is an application of the Universal Law with respect to the conservation of energy in All-That-Is. As the Whole is a closed entity, energy cannot be lost but only transforms from one form into another. The universal definition of all bubbles from this energetic point of view is:
“All bubbles are inflated space due to excessive dilution of energy per unit space.”
This follows from the reciprocal behaviour of space and absolute time /frequency, whereas the latter is proportional to the amount of energy. The bigger the space, the less energy it contains and the easier and profounder it busts. This same correlation is valid for the nature of money which is per definition inflated space such as printed surface of paper banknotes that represents money inflation. Money inflation is space inflation and it inevitably ends up with the contraction of space (economy). The German hyperinflation in the Weimar Republic in the 20s is an ideal example for this phenomenon. I have given you some more examples of hyperinflation and the collapse of national currencies in my previous articles such as the Turkish lira hyperinflation in the 70s and the Yugoslavian dinar hyperinflation in the 80s, which I personally experienced.
In finance and economics, we observe this ubiquitous property of space-time as a bubble bust and crisis. The bigger the inflation of financial assets, the bigger the bust. That is why the dark ruling cabal make you believe that you live in a “deflationary” period since 2008. They merely hide from you the real inflation of all the other money asset bubbles, such as equity indices, bonds, state, corporate and private debt inflation, etc. and keep you asleep in the illusion you were rich. This is how the Canadian zombies are currently kept in a mental coma of greed by their rogue politicians in Ottawa while the real estate bubble has finally burst after the commodities slump devastated this economy and currency (CAD is now at an all-time-low). The only real deflation is the zero or even negative interest rate policies of the central and other banks that rob you of all your savings and capital income as Brad pointed out in his latest publication.
The chart above illustrates in a perfect manner this fundamental property of energy perceived by humans with their limited senses as space-time, in this particular case as economic space-time. Please observe one more time, even if you know it, that there is nothing else in All-That-Is but energy, which we perceive in 3D and 4D as space-time with our limited senses. Furthermore, the dialectical character of space-time as the entirety of our existence consists of only two canonically conjugated constituents – space and absolute time/frequency – and this property is universal and without exception throughout All-That-Is:
When the space of a system increases, its energy decreases and vice versa
If you have understood the essence of energy = space-time, you will know the mechanism of the current final economic crash and why it will be total and irreversible this year.
The underlying fact is that with the burst of each particular bubble, the causes for this bubble were not eliminated by the dark ruling cabal, but were superimposed by the creation of a new bubble, while the old one continued to swell after the burst in a clandestine manner and to contribute to the new bigger bubble.
After the liquidity bubble created by the Big Robbery of Eastern Europe, Russia and Asia burst, the western banksters did not give up their criminal hitmen policy of destroying other national economies, but only heaved it to a higher level. They intensified their reckless hegemonic foreign policy by instigating many new devastating wars against key nations such as Afghanistan, Iraq, seven wars in Yugoslavia, Libya, Syria, Ukraine. All of these countries began to challenge the petro-dollar structure of the Empire of Evil and its Ponzi scheme of perennial financial robbery of the rest of the world in one way or another and were punished for that.
During the Cold War, this kind of war was not possible as they could have easily exploded into a nuclear world war. This danger is no less imminent now, but with the collapse of the Soviet Union the cabal of the Empire of Evil, the reckless neocons, believed that they would have an easy game with the newly emerged, weakened Russia, until they learned it the hard way last year in Ukraine and now in Syria that their calculations were entirely wrong.
I hope you begin to comprehend the major economic and political trends of this third millennium as a continuation of the old Archontic plan to enslave humanity in the End Time since modern capitalism was first introduced in their old dark human citadel of Great Britain, before it moved to the New World where their most effective financial WMD, the Fed, was created by the Orion One world bank as a prerequisite for the NWO.
The tech bubble superimposed on top of the East European-Asian-LTCM bubble, while the causes for this first bubble were not eliminated at all but were only deepened by numerous devastating wars that inflicted great losses on these countries and on the world economy as a whole. I have seen it first hand in Yugoslavia, Bulgaria, Russia and other East European countries which I regularly visited in the 90s and have written about these experiences in my Bulgarian book in 1998 “The Universal Law. A Short Introduction into the General Theory of Science and its Consequences for Society“.
After the tech bubble burst, there were not many lucrative areas left, where the dark western banksters could plot their next bubble. The only market with real value was the real estate market. The instigation of the subprime mortgage bubble was a carefully orchestrated operation of all the Orion banks on Wall Street to create another bubble of global proportions out of a small segment of the US economy as to continue feeding the Orion beast of greed and avarice.
This bubble was supported by the creation of a huge shadowy derivative market that was planned to be the next, even bigger bubble than all previous ones put together as this eventually perspired in the last years when this derivative market of CDO and CDS reached the gargantuan proportion of 900 + trillion dollars and thus more than 20 times bigger than the GDP of the world economy. I have written a lot about this massive derivative bubble that will burst very soon in the course of this year, as it is founded in all previous bubbles and their virtual products and has no real economical basis whatsoever. As this bubble concerns entirely the big banks and their inter-banking fraud, it will burst last and then it will be like a hydrogen bomb explosion that will obliterate the entire Orion monetary system overnight, where the shutdown of all customers banks will be the least evil.
I knew about the subprime mortgage bubble as early as 2004 and if now some Hollywood movie makers and authors want to make you believe that some clever short traders first discovered this fraud in 2006 as to earn for themselves a lot of money in a double-fraud scheme, as the new blockbuster “The Big Short” tells you, then you have understood nothing about the Orion beast. But you should probably watch this movie for historical reasons nonetheless as human memory is very short.
Although the subprime mortgage market was a comparatively limited segment of the world economy, it managed to contaminate the global financial system by selling garbage triple AAA US mortgage packages to all banks around the globe with the active help of the US rating agencies which belong to the preferred WMD of the Orion One World bank. Or as one trader put it at that time: “We sell financial junk to the rest of the world for good money and this is the only export blockbuster in the US annual trade deficit of $ 700 billion.”
When the subprime mortgage bubble went bust in 2008, it took with itself in the abyss the entire investment banking on Wall Street, the pride of the American economy, and all big European banks declared de facto bankruptcy by asking to be bailed out with trillions of euro by ECB and the national governments. Since then nothing has changed. These banks are still in default throughout the last eight years of the Greatest Depression of All Time and only survived due to infinite QE of the central banks which is the next even bigger central bank portfolio bubble with trillions of dollars, euro and yen. Do you get now the perverted logic behind everything you observe these days in the economy?
Bubble over bubble, the superposition of these bubbles creates a powerful standing wave and a huge financial tsunami of inflated empty space that has finally burst with the beginning of this year. With each bubble burst, the crisis gets deeper and deeper. The bursting of the subprime mortgage bubble caused the equity markets to crash more than 70% from their previous highs. Since the first big crisis in 1997-8, with each subsequent crisis the scope of the stock market crash increased in a linear fashion:
1) Asian-Russian-LTCM crisis 1997-8 – 33%
2) Tech bust crisis 2002-2003 – 54%
3) Subprime mortgage crisis 2007-8 – 70 %
4. The final End Time collapse 2016 – >90 %
The final collapse has the potential to crash all equity markets 90% and more and this will happen in the course of this year. This crash will be irreversible and will mark the end of the End Time and the beginning of the New Age. The last time a stock market crashed that much (94%) – the German tech index – it was wrapped up and disappeared for ever. And nobody in the financial markets remembers it anymore. This should serve you as a template for what to expect this year.
The same will happen this year with all equity markets worldwide. The Shanghai composite has already lost more than 44% in only 8 months from 5166 to 2900 points last Friday. But please be careful, percentages are a very treacherous tool of calculation. If this index loses another 1000 points, and given the rapid pace with which this index crashes this year, this could happen very well in the next few weeks, then we will have a total loss of 64%.
That is why the traders have introduced the arbitrary definition of a “bear market” when the losses in the stock markets reach 20% from the highest previous value. It is very difficult for a stock market to lose its first 20% as there are many resistances along this initial downward spiral, because this is how the traders work with their stops, but then the losses precipitate and the percentages in losses rapidly add. That is why it is so significant that the equal-weighted US stock index which is a more reliable prognostic tool than S&P 500 and Dow Jones is already down 23% from its last year’s highs and thus has entered fully the bear market (see chart above). From now on we can expect a free-fall for all major indices worldwide, after both the Chinese and European markets have also entered a bear market. The same holds true for most emerging markets.
The reason for this is that equity markets are highly disequilibrium systems and they do not crash in a linear fashion, but in a non-linear manner, so that the losses evolve to an avalanche of angst when the threshold of unbearable financial pain is reached and the bears begin to growl. Remember the burning of the 500 DM banknote as a litmus test for a trader sentiment during the time of losses and then consider how quickly angst can mutate to a naked panic that suddenly grips all the soulless banksters. This moment in time is difficult to predict, but its coming is inevitable and imminent as I shall discuss in part II of this article.
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All the Ingredients for a Total Collapse of the Orion Economic Order in 2016 – Part II
by Georgi Stankov Posted on January 19, 2016
Georgi Stankov, January 18, 2016
We saw that the bursting of the subprime mortgage bubble in 2006-7 which affected at first only a small segment of the US economy triggered in 2008 the worst financial and economic crisis in modern history of mankind. It is a deplorable fact that even the best critical experts were unable to properly evaluate it. I was for a very long time the only one to clearly show that since the 2008 crisis the US economy is in the Greatest Depression of all time. This also holds true for Canada, GB, all PIGS countries in the EU, with the sole exception of Germany which entered the Greatest Depression last year, mostly due to their vassal mentality to follow the orders from Washington and declare sanctions on Russia for crimes the USA and EU committed in Ukraine.
At present the Greatest Depression has fully unfolded as I will show below and more and more experts begin to see it, although some of them still use imprecise terms such as recession, decline, etc. It is very important to keep in mind that the world economy is in the Greatest Depression of all time as to understand why the current crisis which began last year and is currently unfolding with full force since the beginning of 2016 is irreversible and all-encompassing and will lead to the total collapse and eradication of the old Orion economic order.
As we saw in part I, all crises in the last quarter of a century since the Fall of the Iron curtain were triggered by financial and economic bubbles that did not disappear after they burst and caused an economic crisis and recession but continued to swell under the surfaces and were only camouflaged by a new bigger bubble. This superposition of bubbles increased exponentially the destructive force of each subsequent bubble that burst.
The subprime mortgage crisis almost decimated the entire western banking system in 2008 and it could only be mended temporarily by an infinite QE of all major central banks and by delegating the debt to the tax payers, which led to massive impoverishment of the western populations. All these trends have been extensively discussed on this website in special articles.
Since 2008 the world economy was kept alive by the simultaneous creation of all possible bubbles that increased the overall debt worldwide several times compared to its already very high baseline levels at the onset of the 2008 crisis. Let us now summarize the major bubbles that are active now and have triggered the current final and irreversible collapse of the Orion system for the sake of clarity.
End of August 2015 I discussed in a series of articles the bursting of the four apocalyptic bubbles and in a response to a question from our PAT member Sheryl Groen I explained on September 1st their close causal relationship to the final stage of the ascension scenario. These bubbles have enhanced their destructive power since the publication of these articles and especially after the equity markets crashed twice end of August and end of September last year. The major indices could only be mended for a short period of time by the plunge team of the dark cabal so that the banksters could get their Christmas bonuses one last time. Cynicism has always been an essential part of this fraudulent End Time game.
The biggest and most obvious bubble is the
1. equity bubble.
Although the US and most western economies are in the Greatest Depression of all time since 2008, the stock markets experienced the longest and biggest bull market in their history and reached an all-time high early last summer. Then they began to crash suddenly as expected in August and one more time in September last year but recovered barely in the late fall. The time was not ripe for the final and irreversible crash because we had to do a lot of light work throughout this whole fall until Christmas when we opened the last major portal for more than one and a half billion transliminal souls to enter this uppermost mother planet. Therefore when you read this article on the ultimate collapse of the Orion matrix in 2016 you must be fully aware of all the pre-history leading to this culmination:
Ascension Highlights in 2015 – Annual Overview
The equity bubble was only made possible due to the introduction of the infinite QE policy of the Fed and all other central banks. This created two further major bubbles:
2) The bond bubble
3) The Fed and central banks portfolio bubble
The existence of these two bubbles was recently admitted and confirmed with an astounding sincerity by a Fed central bankster and caused huge waves of surprise and even disgust in the US MSM:
The PAT Triggered an Avalanche of Confessions: Another Transliminal Soul and Walk-In in a Fed Central Bankster Commits to the Truth
The driving force behind all these revelations are the new transliminal souls whom the PAT helped arrive on this planet and this is the game changer in the current End Time scenario of ascension. In order to understand why the current collapse of the markets is irreversible you must consider in the first place the presence of 25% of transliminal souls in this reality, which think and act like us and support us beyond measure to complete the planetary ascension process. This massive energetic army of the source amplifies manifold the destructive power of all the financial and economic bubbles which the dark ruling cabal and their banksters created in the last 25 years as to crash the economy and establish the NWO. While their NWO plan now has fully failed, the financial WMD which they invented and introduced to this goal will obliterate this year the dark cabal and will contribute to the awakening of the masses.
Then we have recently another major bubble which I have defined as
4) The Dollar bubble
The increase in the dollar value is not a sign of its strength, quite the opposite. It is a temporary effect due to the unwinding of the world debt crisis which first hit the emerging markets. As most of the state and other loans are denominated in dollars, their unwinding necessitates the purchase of dollars in the financial markets. As the world economy suffers at the same time from credit and cash crunch, there is not enough dollar liquidity to pay back these loans. This has caused the transient rise of the dollar value.
The dollar is about to be eliminated as a world currency and before it dies, it experiences one final surge just as a dying man often has an erection shortly before exitus. With the slump of the oil price below $30, the petro-dollar has already lost its function. Russia is opening its own oil and gas stock exchange and is already selling its oil and gas to China and other countries in local currencies. Even the Arab countries are selling their oil in other currencies as to cope with the oil glut and sinking prices.
All these new developments happen simultaneously and have one major function – to destroy the Orion economic order and its monetary system which is now essentially embodied by the dollar as a world currency.
The actual situation is many times more dire and explosive than in 2008 when the stock markets crashed by 70%. Now all the central banks have spent their munitions and have amassed a huge debt which they can never repay back. After they created the equity bubble by keeping zero interest rates for almost 8 years and printing money out of thin air, now they have nothing left to help the stock markets and the investors when the crash fully unfolds. This is particularly evident now that the stock markets have already entered bear market and are in full crash mode. Before that the helplessness of the central banks was obvious only to the experts who noted their failure to stimulate the real economy with their infinite QE, which crashed the last faith of all experts in the validity of Keynesianism and all neoliberal theories of monetarism.
In only two weeks this year, the world major indices reached the lows from August 2015 and broke through major support levels. All three major economies in the world, China, Europe and now the USA and Canada have entered bear markets:
The Bears Are Coming
All the Ingredients for a Total Collapse of the Orion Economic Order in 2016 – Part I
The Japanese markets are also on the verge of entering a bear market, although this is a cosmetic distinction as this country is in a chronic recession since the late 80s and is the most indebted economy in the world. In the last years Japan is even more hit than the USA by the Greatest Depression of all time. The “Japanese malaise” of failed central bank policy to stimulate the economy through debt inflation after the issuance of infinite QE has become paradigmatic for the more recent American and EU debt malaise.
The most important fact at this point in time is that all the major indices reached the August lows on Friday without massive sales from the bulls. Which means that we have not yet witnessed the massive panic that crashes the stock indices when it grips the traders. I expect this to happen this week and the today’s Martin Luther King holiday only prolongs and amplifies the crash in the best Hitchcock’s suspense tradition. I am very eager to see what will happen this week before the dark cabal and their banksters will meet in Davos to lick their wounds.
Here is a chart that shows that the indices dropped to August lows without any massive sales, which implicates that this time there are no major resistances in the markets. When the bulls start selling – and they would be insane if they would not sell this week given the carnage of the last two weeks – then we must expect further massive crashes throughout this whole week when the capitulation of the bulls will take place. Just in time for the Davos meeting:
Bubbles are nothing else but debt that cannot be paid back. Unpaid debt leads always to default of
– states (everybody)
We have begun to see all these kinds of default since last year, actually since 2008. Here is a chart that illustrates how the overall US debt has skyrocketed, especially since the Fall of the Iron in 1989, in comparison to GDP which reflects the strength of the real economy, though very inaccurately as more than one-third of the calculated US GDP is actually debt defined as assets and wealth due to false statistics and fraudulent accounting.
For the sake of simplicity we can put all financial and economic bubbles that now destroy the Orion matrix into one big debt bubble. This has now burst and the crash of the stock markets is just one symptom of this debt unwinding. However you must be very careful what you read in the MSM news. The bursting of the debt bubble is described there in a typical Orwellian New Speak as “debt deflation”. This is utter nonsense. There is no such thing as debt deflation. There is only deflation when all the prices go down and the purchasing power of the money increases. This has never really happened in the history of this Orion economy. There is only inflation of prices. The debt bubble has not deflated – it has burst. Period. And has left all the participants and entities in the market in a state of default.
Here are some clear symptoms of the impending default of the global Orion economic order:
Oil in the $20’s (!!)
Copper under $2
Baltic Dry Shipping Index at the lowest ever at 383 and down ~50% in the past year.
Wal-Mart closing 269 stores, 154 in the US.
Business inventories to sales at new cycle highs
U.S. freight volume falls for first time in almost three years
US retail sales fall 0.1% in December
Empire State index weakens to recession lows.
South African rand hits new all-time lows in 2016
Brazil’s Real Falls Sharply Against Dollar
Brazil Unemployment Rate Rises to 9%
Canadian Dollar Hits 13 Year Low Against US Dollar
U.S. Energy Junk Bond Spreads At Record Width
Nigeria’s Currency Plummets On Open Market
Mexico’s Peso Hits New All-Time Low
The bottom line is that the world economy has entered the final stage of its Greatest Depression of all time when all bubbles have burst simultaneously and there is not a single safe haven for the cabal fraudsters to hide.
This is best illustrated by the Baltic Dry Index which has reached its all-time-low below 400 points this last week. This index correlates very well with the level of world trade and reflects the strength and activity of the major economies, such as Europe, North America and Asia (China):
Here is what one report on this index has to say:
“Commerce between Europe and North America has literally come to a halt. For the first time in known history, not one cargo ship is in-transit in the North Atlantic between Europe and North America. All of them (hundreds) are either anchored offshore or in-port. NOTHING is moving.
This has never happened before. It is a horrific economic sign; proof that commerce is literally stopped.”
As you can see on this map, all freight ships are in the ports and there is no traffic in the oceans. What better proof does one need that the world is the last throes of its Greatest Depression of all time and that the collapse of the Orion matrix is imminent?
The next big step in the destruction of the Orion matrix will be the collapse of the real estate market. To this Brad and I will have more to say in the coming posts.
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