| Online: | |
| Visits: | |
| Stories: |
| Story Views | |
| Now: | |
| Last Hour: | |
| Last 24 Hours: | |
| Total: | |
Jim Willie, The Fed’s Week of Reckoning, and an Isolated United States
An Exclusive You Have To See: The Last Frontier of Free Press Is Here! No More Censorship, Unlike YouTube and Others!
In the first video, Paul Sandhu interviews Dr. Jim Willie (pre-rate hike) who covers topics like the several important potential triggers to bring about the Death of the US Dollar.
Led by a continued decline in the crude oil price toward the $30 mark with truly enormous fallout, the expiration of the oil hedge contracts in the next couple months with big bank failures and numerous energy firm failures, the onset of Emerging Market debt defaults whose range is between $5 and $11 trillion in volume.
With an event bigger than the Asian Meltdown in 1998, followed by numerous other threats of USD triggers like the fall of the House of Saud which is in progress, the Saudis (and Gulf Emirates) accepting RMB currency for Chinese oil sales which is inevitable, the inauguration of Gold Trade Notes by Russia & China for usage in trade payments which is soon to emerge, all of which have the same ongoing theme: The rapidly increasing isolation of the United States!!!
Dr. Jim Willie and the Coming Crash
FOR MORE NEWS BY VOICE OF REASON CLICK HERE!
CHECK OUT THE NEW GOOGLE+ PAGE!
In the second video, Peter Schiff goes toe to toe with Scott Nations once again over the Fed’s raising of interest rates this week.
Normally, when the Fed raises interest rates, it signals a recovery is beginning, but Peter explains that the Fed’s decision this week was purely a political one (image that under Barack Obama), and will end up jump starting the next big economic crisis.
“Normally,” a .25% rate hike should mean virtually nothing, especially when it might be closer to .10% in reality, as it was explained in the post titled, Peter Schiff: Janet Yellen Strayed From Her Own Plan and Went Nuts!
These are not “normal” times though. The article below by Michael Snyder was written pre-rate hike, and forecasted what is to be expected from the Fed’s monumentally awful decision to put “saving face” over what the data suggests is the best course of action with respect to rates.
Among many horrible numbers reported this week were manufacturing declines in the U.S., which were 3x what they were projected to be in December. Janet Yellen’s confidence defies all available market data (notice that said ALL, not the cherry picked stats delivered by government), and the decision to raise interest rates defies all common sense (a flower that does not grow in Obama’s Big Government garden).
Since the Fed’s decision was announced, the Dow dropped 600 points in 2 days, and I suggest you buckle up for what is bound to be a bumpy ride on Monday!
CHECK OUT THE NEW GOOGLE+ PAGE!
Pre Rate Hike, Michael Snyder Predicted:
Are we about to witness widespread panic in the global financial marketplace? This week is shaping up to be an absolutely critical week for global stocks. Coming into December, more than half of the 93 largest stock market indexes in the world were down more than 10 percent year to date, and last week stocks really started to slide all over the world. Here in the United States, the Dow Jones Industrial Average is down about 600 points over the past week or so, and at this point it is down more than 1000 points from the peak of the market. That brings us to this week, during which the Federal Reserve is expected to raise interest rates for the very first time since the last financial crisis. If that happens, that could potentially be enough to accelerate this “slide” into a full-blown crash.
And just look at what is already happening. Trading for stocks in the Middle East has opened for the week, and we are already witnessing tremendous carnage…
Following Friday’s further free fall in crude oil prices, The Middle East is opening down notably. Abu Dhabi, Saudi, and Kuwait are lower; Israel is weak and UAE and Qatar are tumbling, but Dubai is worst for now. Dubai is down for the 6th day in a row (dropping over 3% – the most in a month) extending the opening losses to 2-year lows. The 11% drop in the last 6 days is the largest since the post-China-devaluation global stock collapse. Leading the losses are financial and property firms.
Things in Asia look very troubling as well. As I write this, the Japanese market has just opened, and the Nikkei is already down 508 points.
In recent days I have been explaining to my readers how everything is lining up in textbook fashion for another major market crash. In particular, the implosion of junk bonds is a major red flag. Late last week, Third Avenue Management shocked Wall Street by freezing withdrawals from a 788 million dollar credit mutual fund. The following comes from Bloomberg…
A day after a prominent Wall Street firm shocked investors by freezing withdrawals from a credit mutual fund, things only got nastier in the junk-bond market. Prices on the high-risk securities sank to levels not seen in six years and, to add to the growing sense of alarm, billionaire investor Carl Icahn said the selloff is only starting.
“The meltdown in High Yield is just beginning,” Icahn, who’s been betting against the high-yield market, wrote on his verified Twitter account Friday.
Icahn’s comments come as junk-bond investors, already stung by the worst losses since 2008, are the most nervous they’ve been in three years after Third Avenue Management took the rare step of freezing withdrawals from a $788 million credit mutual fund.
What Third Avenue Management just did was absolutely huge. Now investors that have money in any similar funds are going to be racing to get it out. We could be on the verge of a run on bond funds that is absolutely unprecedented. This is so obvious that even CNBC’s Jim Cramer is sounding the alarm…
Friday was a day where Cramer’s ears were burning with concern because of the troubles discovered with a high yield bond fund run by Third Avenue Management. It decided to bar investors from getting their money out of its Focused Credit Fund, because it could not meet demands to get cash back to them in an orderly way.
This was significant because when it tries to sell the bonds needed to satisfy these orders for redemptions, it could destroy the high yield bond market because there are no buyers anywhere near the amount that they want to sell.
“I cannot emphasize enough just how disconcerting this move is,” Cramer said.
I know that for the ordinary person on the street, all of this sounds very complicated.
But it basically comes down to this – anyone that has a lot of money invested in these bond funds is in danger of getting totally wiped out.
In a situation like this, it is those that are “first out the door” that come out as the winners. I like how Wolf Richter explained what we are currently facing…
It works like this: When an “open-end” bond fund starts losing money, investors begin to sell it. Fund managers first use all available cash to pay investors. When the cash is gone, they sell the most liquid securities that haven’t lost much money yet, such as Treasuries. When they’re gone, they sell the most liquid corporate paper. As they go down the line, they sell bonds that have already lost a lot of value. By now the smart money is betting against the fund, having figured out what’s happening. They’re shorting the very bonds these folks are trying to sell.
The longer this goes on, the more money investors lose and the more spooked they get. It turns into a run. And people who still have that fund in their retirement account are getting cleaned out.
Bond funds can be treacherous – especially if they hold dubious paper, which is never dubious until it suddenly is. And when they get in trouble, you want to be among the first out the door.
I would anticipate that we will see more junk bond carnage this week – especially if the Fed raises rates.
And as I have discussed previously, a stock crash almost always follows a junk bond crash. If the Fed does raise rates this week and stocks do start falling significantly, one key day to watch will be Friday. JPM’s head quant Marko Kolanovic has warned that “the largest option expiry in many years” will happen on that day…
This important event falls at a peculiar time—less than 48 hours before the largest option expiry in many years. There are $1.1 trillion of S&P 500 options expiring on Friday morning. $670Bn of these are puts, of which $215Bn are struck relatively close below the market level, between 1900 and 2050. Clients are net long these puts and will likely hold onto them through the event and until expiry. At the time of the Fed announcement, these put options will essentially look like a massive stop loss order under the market.
A perfect storm for stocks is brewing, and this week could potentially be one of the most chaotic that we have seen in a very long time.
But of course the Federal Reserve could decide to surprise us all by not raising rates, and that would change things substantially.
So what do you think will happen this week?
Please feel free to share your thoughts by posting a comment below…
An Exclusive You Have To See: The Last Frontier of Free Press Is Here! No More Censorship, Unlike YouTube and Others!
FOR MORE GREAT MATERIAL FROM JIM WILLIE:
Jim Willie: After Banks Fail, Government Seizes IRA’s, 401k’s, and Pensions
Jim Willie, the Crumbling Global Economy, and the Dollar Crisis
Jim Willie: What Do the Oil Black Market, NATO, and ISIS Have in Common?
Jim Willie; One on One -Taking Questions On the Most Pressing Matters of the Day
Jim Willie: The Fed, Yellen, US Dollar, and Negative Interest Are a Joke!
Jim Willie Explains U.S. Nuclear Threats to China & Russia Over Challenging the Dollar
Jim Willie: What Will It Mean If the Yuan Gets Reserve-Currency Status?
Jim Willie and 20 Reasons Why Quitting Prepping After September Was Wrong
Jim Willie: The Mid East Carnage Left by the American Wrecking Ball
Jim Willie: The Fractured Bond Market and the Economic Collapse
FOR MORE GREAT MATERIAL FROM PETER SCHIFF:
Peter Schiff: Janet Yellen Strayed From Her Own Plan and Went Nuts!
Peter Schiff: Higher Spending During Holidays Does Not Fix Screwed Economy
Peter Schiff and “If The Economy Is Fine, Why Are So Many Large Retailers Imploding?”
Peter Schiff: Take a Good Look at the “New” American Dream!
Peter Schiff: Did the Fed’s Luck Run Out On Friday the 13th?
Peter Schiff and “The 4 Harbingers Of Stock Market Doom”
Peter Schiff and Reagan Advisor: Complete Economic Collapse Immediately Ahead
Peter Schiff: Warning! Economic Storm Clouds Ready to Rain
Peter Schiff: Death of the US Dollar Is Imminent; Fed Out of Options
Peter Schiff: 11 Trillion In Global Stock Losses and Awful Jobs Report
Peter Schiff: “The Fed Admits Rates Could Stay at Zero Forever”
Peter Schiff with Mr. “I Have No Fear Of an Economic or Stock Market Collapse”
Peter Schiff Explains Why Financial Bubbles Are Ready to Pop
Peter Schiff: Everybody Is Preparing for Wrong Outcome in US Economy
2 Day Crash That Was Larger Than Any 1 Day Market Crash In U.S. History
Peter Schiff On China’s Currency Devaluation and the Federal Reserve Board
Peter Schiff: Greece Was a Sideshow. Americans Need to Worry About Starving
Peter Schiff: China and Switzerland is Killing U.S. Dollar
FOR MORE NEWS BY VOICE OF REASON CLICK HERE!
CHECK OUT THE NEW GOOGLE+ PAGE!
BE SURE TO GO MY PROFILE’S BELOW AT OTHER SOCIAL MEDIA:
FACEBOOK | TWITTER | PINTEREST | STUMBLE UPON | TUMBLER
THE VOICE OF REASON
- WEBSITE: https://thelastgreatstand.com/
- FACEBOOK: https://www.facebook.com/LastGreatStand
- GOOGLE PLUS: https://plus.google.com/u/0/+LastGreatStand
- TWITTER: https://twitter.com/#!/LastGreatStand
- TEA PARTY COMMUNITY: https://www.teapartycommunity.com/profile-151600/
- PATRIOT ACTION: http://patriotaction.net/members/TheVoiceofReason
- YOUTUBE CHANNEL: https://www.youtube.com/user/LastGreatStand/
- SEEN.IS: https://www.seen.is/members/home
- RIGHT.IS: http://right.is/contributor/pages/351/169/bio.html
No real inflation in sight and we get a rate rise…..Mmmmmm
The agenda is clear……
/conspiracy-theories/2015/12/as-events-spiral-out-of-control-its-time-to-take-a-closer-look-at-agenda-2030-video-2472972.html
Hmmm, if I didn’t know any better I’d say this is all ordered chaos. “Pull it”. Prepare accordingly…
2016 will be the year the earth changes. The first half will be a watershed of human history – unlike any other in that “illustrious” history.
A year that defines the circumstances necessary for the destruction of the Western Alliance, and the triumph of reason and right.
We are strangers in a foreign land. This is not our home. We were made for a much higher purpose than this Western world can give and we will inherit this very same future of which I speak in a renewed earth after the destruction of Babylon and the triumph of sanity and right in human affairs – from the top right down to the lowest level of the human hierarchy. It’s happening now and the process will move unhindered to completion in about the same time that it takes to build a house. The enemy, falling under the weight of its own corruption will feel the wrath of the army god has prepared for this time.