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Gerald Celente: Massive Market and Trade Instability Will Necessarily Cause World War III

Thursday, August 13, 2015 8:07
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(Before It's News)

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In the video below, Gerald Celente hammers home what many of us have been TRYING to yell from the highest rooftops for a long time. When are Americans going realize that media around the world reports on the ACTUAL truth of news that is happening, and American media is distorting news to suit a ridiculous liberal agenda, or they ignore the stories all together if they are too difficult to spin into the whirling dervish that most of their “news” has become. What is it going to take for people to realize a global depression of biblical proportions is coming? Even former IMF economist Stephen Jen is suggesting that we could soon see major currencies all over the planet being devalued by up to 50 PERCENT. What part of that does not sink in?

 

WORLD WAR III IS COMING… 

In the video below, Gerald Celente continues to warn people that MAJOR trouble is coming. The wild market fluctuations that have already begun will continue to intensify, China’s recent devaluation of their currency will be one of many factors that necessarily lead to international trade wars, and ultimately those trade wars will result in enough instability and fear to ignite World War III. Any elementary understanding of history will prove this formula to be true. One of many problems in America: The Liberal indoctrination centers we call public schools don’t teach ACTUAL history anymore. They teach POLITICALLY CORRECT history.

www.thelastgreatstand.com

Trade War; The World War III

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The BIG FICTION plaguing the world economic markets: By devaluing currency, more people around the globe will be able to buy the products a country with a devalued currency exports. We could argue the correctness or incorrectness of that ideology all day, but why bother? It’s MOOT. There are two realities people are ignoring that are FAR more important. FIRST, whether that ideology is true or not is IRRELEVANT because countries believe it’s true, and they are acting accordingly. SECOND, people are broke EVERYWHERE! Otherwise would-be consumers are out of work, broke, and trying to survive day not just in America, but around the world. The video’s description says China’s currency devaluation came as no surprise to Gerald Celente of Trends Research Institute. Now that that warning has come true, we ask Mr. Celente about the possibility that China’s actions will start a trade war that may lead to a WORLD WAR, and we talk to him about his movement, OccupyPeace, to remove us from foreign entanglements.

www.thelastgreatstand.com

 

THOSE WHO DO NOT KNOW HISTORY (THE ACTUAL ONE) ARE DOOMED TO REPEAT IT!

Economic Crisis

 

EFT Daily News Reports:

Things continue to line up in textbook fashion for a major financial crisis by the end of 2015

This week, Wall Street has been buzzing about the first “death cross” that we have seen for the Dow since 2011.

When the 50-day moving average moves below the 200-day moving average, that is a very important psychological moment for the market.

And just like during the run up to the stock market crash of 2008, we are starting to witness lots of wild swings up and down.

The Dow was up more than 200 points on Monday, the Dow was down more than 200 points on Tuesday, and it took a nearly 700 point round trip on Wednesday.

This is exactly the type of behavior that we would expect to see during the weeks or months leading up to a crash.

As any good sailor will tell you, when the waters start getting very choppy that is not a good sign.

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Of course what China is doing is certainly not helping matters.

On Wednesday, the Chinese devalued the yuan for a second day in a row, and many believe that a new “currency war” has now begun.

So what does all of this mean?

Does this mean that the time of financial “shaking” has now arrived?

Let’s start with what is happening to the Dow.  When the 50-day moving average crosses over the 200-day moving average, it is a very powerful signal.  For example, as Business Insider has pointed out, if you would have got into stocks when the 50-day moving average moved above the 200-day moving average in December 2011, you would have experienced a gain of 43 percent by now…

The Dow Jones Industrial Average has been on an unrelenting upward trajectory since its October 2011 low.

The signal that convinced many traders that the market was now moving with a bullish bias was when the 50-day moving average of the index price rose above the 200-day moving average a couple of months later at the end of December.

Since then the market rallied 6,200 points to a high of 18,333 before pulling back to last night’s close of 17,404. That’s a gain of around 43% even though the market is 5% off its high.

But now a cross is happening in the other direction.  That is why it is called a “death cross”.  It is quite understandable why a lot of investors are freaking out about the fact that the 50-day moving average has moved below the 200-day moving average for the first time in four years.  Every major stock market in history has been preceded by a death cross.

Of course no indicator is perfect.  Sometimes these death crosses come just before market crashes, and other times nothing much seems to happen.  The following comes from MarketWatch

The 50-day moving average (or “MA”) crossed below a rising 200-day MA on July 7, 2010, when the Dow closed at 10,018.28. The Dow’s closing low for 2010 was actually hit two sessions earlier, at 9,686.48.

But the Dow fell another 5.9% over six weeks after the Aug. 24, 2011 death cross, and tumbled as much as 50% over 14 months after the one appearing on Jan. 3, 2008.

And keep in mind that when the January 2008 death cross appeared, the Dow had lost just 7.8% from its Oct. 9, 2007 peak. That means the bull market was still firmly in place, as the rule of thumb is a bear market is defined by a decline of at least 20% from a significant peak. In addition, the 200-day moving average didn’t turn lower until two weeks after the death cross appeared.

But this is not the only indicator pointing to trouble ahead.  Even while we have many stocks hitting 52-week highs, we also have an extraordinary number hitting 52-week lows.  This is called a “split market”, and this is a very ominous sign.  In fact, according to Peter Boockvar 62 percent of all stocks on the New York Stock Exchange are already trading below their 200-day moving average…

Peter Boockvar, market strategist at Lindsey Group, said he believes the market is in a correction that began a few weeks ago, starting with commodities names getting hit. The small-cap Russell 2000 was also a leader of the declines. “The key is it’s infecting other areas of the market. You have every headwind and every reason to continue this correction,” he said.

“Going into today, 62 percent of the NYSE stocks were trading below the 200-day moving average,” said Boockvar. “More and more companies are dropping out of the bull market.”

At this point, we have already had more than 50 “split days” this year. 

King World News has just released an article which has pointed out this has only happened four times before, and a major stock market crash has followed each occurrence…

The only other times in history we’ve seen more than 50 split days during the past year were March 1968, August 1972, October 2000 and July 2006.

After all four of those, stocks lost more than a third of their value at some point during the next two years.

Are you starting to see?

A stock market crash is coming.

Another thing that has investors concerned is the fact that we have seen a large divergence between high yield credit and stocks.  As Bloomberg has pointed out, when this happens a significant stock market decline follows more than 70 percent of the time…

While not without precedent, instances when anxiety in bonds didn’t seep into equities are rare. More than 70 percent of the time since 1996, as spreads widened as much as they have since April, the S&P 500 has fallen, with the average decline exceeding 10 percent, data compiled by Bloomberg show.

“This is something that sooner or later is going to impact the stock market,” said Russ Koesterich, global chief investment strategist at New York-based BlackRock Inc., which oversees $4.7 trillion. “Credit market conditions have not been benign and easy as where they were last summer.”

On top of everything else, it looks like a global currency war could be erupting.

According to USA Today, this desperate move by China to devalue the yuan may indicate that the Chinese economy is in far worse shape than most had thought…

One, China’s move suggests that its economy is in worst shape than believed. “It highlights the fragility of the global economy,” says Donald Luskin, chief investment officer at TrendMacro. Second, a weaker yuan means a stronger dollar, and a stronger dollar means U.S. products sold in China are more expensive, which means fewer sales of Apple iPhones, hotel rooms offered by Wynn Resorts and computer chips made by Micron Technology.

Lastly, there is a fear that other nations will respond to China by devaluing their own currencies to stay competitive.

“When people start talking about ‘currency wars,’ it’s never a good thing,” says Michael Farr, president of money-management firm Farr, Miller & Washington. “China’s move to devalue its currency could be the first shot across the bow towards a wider currency war.”

As I discussed yesterday, it seems like the phrase “currency war” has been thrown around a lot lately.

But what would that look like, and what would that mean for the global economy?

Well, former IMF economist Stephen Jen is suggesting that we could soon see major currencies all over the planet being devalued by up to 50 percent…

 

FIFTY PERCENT!!!!!!

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  • “Now that that warning has come true, we ask Mr. Celente about the possibility that China’s actions will start a trade war that may lead to a WORLD WAR”

    Just my opinion, but no. Mercantile sorts of wars in past ages have been about pragmatic hegemony and controlling resources, getting richer and fatter, controlling and ripping off people. But there’s a modern flavor war that’s instigated by crazy, evil dictators that also want to control and rip off people, but I think bat-poop, crazy insanity is a required component for WWIII. Just over trade, nobody slightly rational is willing for millions to fry in a nuclear holocaust, unless there’s such a degradation of society that the masses are threatening to destroy the nations, anyway, which could cause some pretty crazy pushback and misdirection by those who want to try to keep their power jobs, as in uniting again around war. Then again, despite what you see on beforeitsnews, you don’t have a mass of “elites” who want to live in some hole in the ground or elites, of the soft life, that have any real courage, or elites that desire to no longer sail in their yachts, because the water is glowing, or wish to no longer be able to go outside and strut at cocktail parties. And big businessmen, who worship profit, have no desire to gut their businesses, kill everybody who buys their, for instance, cars and gasoline!

    Whatever the case, I don’t see WWIII instigated by who exports the most toasters or LCD TVs, rather believe there will have to be pure evil involved that reaches into insanity, like Hitler willing for all Germany to perish, if he doesn’t get his way. These Iranians, glorying in the concept of mass suicide for Allah, aka Satan, who want all of you dead, now there’s something to think about, a WWIII Hitler-esque sort of issue with dangers beyond disputing over who gets the most junk on the shelves at Walmart, but who sells more toasters not something people generally destroy their cities and millions of citizens over, as if not to mention leaving their land unlivable for the fallout. You’ve got to be totally stupid-whacked to see potential in WWIII, or somebody who actually reads a lot of stuff on beforeitsnews. (Though lazy paranoids, trolling in their mother’s basement, aren’t really a threat to anybody.)

  • To a money man money will cause WWIII. To seers Israel will cause WWIII. To loonies on BIN porn fear will cause WWIII. To a politician the other party will cause WWIII. To Russia Americans will cause WWIII and vice versa.

    But they are ALL WRONG!

    Doughnuts will cause WWIII. So you see Gerald give a guy a hammer and everything looks like a nail. Pop yourself out of that box you got yourself into and you will see Mitt Romney is NOT PRESIDENT!

  • End Of The World 2012!!!! (o^o)/

    Eat More GMO :mad:

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