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Peter Schiff and Alex Jones Comment on Tanking Markets Worldwide

Saturday, December 5, 2015 14:36
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25 Down Markets

In the following video, Peter says what he has been saying for a few years now, only it appears people might finally be starting to pay attention. He begins the conversation where I used to begin many of my conversations about the future of the U.S economy as far back as far back as 2012. See some of my 3-4 year ols predictions riht here. Of course I’m referring to trade deficits.

Years ago, a $75 Billion dollar trade deficit was front page news. Today, a $500 BILLION trade deficit isn’t even in the paper, much less the front page. THAT is because the “media” isn’t concerned with news. They are concerned with propaganda. Public servants lie with impunity, and in a “normal” world, an informed citizenry would know better. Unfortunately, with plenty of help from the liberal indoctrination centers known as public schools, most wouldn’t know critical thinking if it came up and bit them in the ass. The same can be said for The U.S. Constitution, now that teachers have the “option” to decide if they want to teach The Constitution or not. How disgusting is that? Is it any wonder why earlier this week, when the Chinese Yuan Ascended to World Reserve Status and Left the “U.S. Dollar in Dust,” it went unnoticed? Sadly, few even know what that means. 

As Peter says, lets get something straight: Anything that serves to weaken our U.S. Dollar’s strength on the world market is going to work out very bad for us in the long run, which is exactly what the Yuan will do. I used to talk about it in terms of losing the Reserve Status, and in the video below, Peter chooses to talk about the problem in terms of the trade imbalance, but the result is the same: Mad Max conditions are not out of the question. 


Right now, our trade balances are so lopsided it looks like a cartoon. Well, what does that mean? Taking China for example, It means MILLIONS of employees work for $1-$3 Dollars per day, in awful conditions, only to make products for Americans and then give over 1/2 that money back to the government in taxes, so that China has money to lend the U.S. to keep living beyond our means. 

QUESTION – How long do think is left before the people building the iPhones figure out if they keep all their money, and don’t lend any of it to the irresponsible idiot Americans who are living above their means, then maybe THEY could enjoy the fruits of the their labor? 

ANSWER: NOT LONG! It’s happening now. As I’ve mentioned in, Peter Schiff and “The 4 Harbingers Of Stock Market Doom,” 23 countries have already left the Dollar already. As it stands, there are 31 countries with Chinese Yuan exchange facilities so that those countries can avoid the Dollar all together in international trade. When the system finally implodes, and it will, people can expect to lose up to 70% of their life savings.

Schiff on Jones



Since no one will stand up and demand TRUTH, when economic reports come out, all we hear about are the numbers that are cooked and falsified. If there is really no inflation, ask a mother of 5 (someone who shops for a large family) to be a designated set of items today, and hold the receipt. Then ask her to do the same in 6 months, and tell me with a straight face there’s no inflation. Good luck. We hear nonsense about inflation is 0% and unemployment is at 4.9 in the most robust of robust recoveries… uh… the one with ONE THIRD the nation out of work. No one ever talks about the suicidal trade imbalance. Let’s see what happens:

To oversimplify using Peter’s example: The more and more countries that move away from settling trade in the Dollar (and there are a TON), that means the less need they have to hold U.S. Treasuries. The more countries that sell treasuries, the more supply, less deman, and the prices drop. They become worth far less, and our Dollar CRASHES. What comes next I’ve said no less 75-100 times. Peter has said it close to as many. 

We have somewhere around a $500 BILLION trade deficit with China every year, give or take a bit. What do you suppose happens when we can no longer print money to get out of trouble? How much of the $500 can Americans purchase? DIDLY SQUAT! Who can the Americans go to for more loans to keep our lavish spending style? Uh, there is a reason we are losing the Reserve Status. We’re bankrupt. Would you give loans to a bankrupt person who kept going to Ruth’ Chris for diner with witht the money’s you’ve lent them rather than pay their bills? I didn’t think so. 

So, we can’t give an IOU, can’t borrow money, can’t print our way out, so why don’t we just make whatever products we need ourselves? How about because we only have the capacity to produce about 11% of what we consume. Guess who the new SuperPowers will be? Countries that PRODUCE THINGS that others want… countries like the U.S. with our “service economy” are screwed. Here’s the best part: Since our leaders are utter buffoons, they’ve even allowed what very tiny manufacturing we DO still have to get sold to the Chinese. That means when we’re all broke and starving, we can pay the Chinese to use the factories that used to be ours, but Barak was too busy scouting places for a new windmill. 

Once that inevitable culmination of events hits, and the demand by Americans vastly outweighs what we can buy just to sustain ourselves, THAT is when you will see scarcity like never before, and neighbor going after neighbor for food… to stay alive. Have you ever seen baron grocery store shelves? You might want to start warming up to the idea and prepare NOW! It’s happening! 

Peter goes into so much more with Alex, but I‘ll let you hear for yourself. The last think I’ll say is this, because it is totally in keeping with the article below. Our manufacturing sector is already in a recession, the non-manufacturing is soon to follow. Citigroup gives the U.S. a 65% chance of a MAJOR recession in 2016, and that’s just the beginning. 




As michael Snyder Paints it:

Anyone that tries to tell you that a global financial crisis is not happening is not being honest with you.  Right now, there are 27 major global stock markets that have declined by double digit percentages from their peaks earlier this year.  And this is truly a global phenomenon – we have seen stock market crashes in Asia, Europe, South America, Africa and the Middle East.  But because U.S. stocks are only down less than a thousand points from the peak earlier this year, most Americans seem to think that everything is just fine.

The truth, of course, is that everything is not fine.  We are witnessing a pattern similar to what we saw back in 2008.  Back then, Chinese stocks and other major stock markets started crashing first, and then U.S. stocks followed later.

And it appears that we may have entered the next leg down for markets in the western world this week.  The Dow was down another 252 points on Thursday, and all of the major stock indexes in the U.S. are now negative for the year except for the NASDAQ.  Unless there is a major turnaround in the coming weeks, the six year winning streak for U.S. stocks is likely over.

But when you step back and look at what has been happening globally, a much more ominous picture emerges.  I spent much of the afternoon looking at stock market charts for the largest economies all over the globe.  What I discovered was financial carnage that was much worse than I anticipated.

It turns out that there are 27 major global stock markets that have fallen by more than 10 percent from peaks that were set earlier this year.  If you want to verify this information for yourself, just go to Trading Economics.  As you can see, many of these stock market declines have been quite impressive…

1. China: down more than 30 percent

2. Saudi Arabia: down 26 percent

3. Germany: down about 13 percent

4. United Kingdom: down close to 12 percent

5. Spain: down 15 percent

6. Brazil: down more than 22 percent (13,000 points overall)

7. Malaysia: down 17 percent

8. Turkey: down 16 percent

9. India: down close to 12 percent

10. Chile: down 11 percent

11. Columbia: down about 30 percent

12. Peru: down more than 40 percent

13. Bulgaria: down more than 20 percent

14. Greece: down more than 30 percent

15. Poland: down about 19 percent

16. Malaysia: down 10 percent

17. Egypt: down 32 percent

18. Indonesia: down 18 percent

19. Canada: down 12 percent

20. Ukraine: down 45 percent

21. Morocco: down 13 percent

22. Ghana: down 17 percent

23. Kenya: down 27 percent

24. Australia: down 13 percent

25. Nigeria: down more than 30 percent

26. Taiwan: down 15 percent

27. Thailand: down 20 percent

We have not seen numbers like these since 2008, and trillions of dollars of stock market wealth has been wiped out globally.  So the “nothing is happening” crowd is simply dead wrong.  Stocks are already crashing all over the planet.  Just because the big U.S. stock market crash has not happened quite yet does not mean that a major global financial crisis is not happening.

But do you know what is crashing here in this country?

Junk bonds.

At this point, yields on the riskiest junk bonds have risen to levels that we have not seen since the last financial crisis.  As I have discussed repeatedly, yields on junk bonds spiked dramatically just before the stock market crash of 2008, and now it is happening again…




This is precisely the kind of behavior that we would expect to see if a major U.S. stock market crash was imminent.  Personally, I watch the junk bond market very, very closely because it is such a key leading indicator.  And according to Jeffrey Snider, it appears that “something” is starting to cause junk bonds to sell off at an alarming pace…

There isn’t much as far as confirmation, but it increasingly appears as if “something” just hit the triple hooks (CCC) in the junk bond bubble. At least as far as one view of it, Bank of America ML’s CCC implied yield, there was a huge selloff that brought the yield to a new cycle high (low in price) above even the 2011 crisis peak.

But just like in 2008, a lot of people will not heed the warnings because they don’t have the patience to watch long-term trends play out.

We live in a society where we expect constant instant gratification.  We have instant coffee, video on demand and 48 hour news cycles.  If something does not happen immediately, most of us quickly lose patience.

On my other website, I include a lot more stories about things that are trending in the news.  For example, earlier today I wrote about the horrible shootings in San Bernardino, California and I explained why I believe that Islamic terror is now more of a threat to the American people than ever before.

But on this website I like to take a broader view of things.  For months, I have been warning that conditions were perfect for another major global financial crisis, and since that time events have been unfolding in textbook fashion.

And as you can see from the numbers above, we have already entered a new global financial crisis.  If you tried to tell someone in China, Brazil or Saudi Arabia that a financial crisis was not happening, they would just laugh at you.  We need to start learning that the world doesn’t revolve around the United States.

Of course the U.S. is heading for tremendous difficulties as well.  This is something that I covered yesterday.  All of the fundamental economic numbers are absolutely screaming “recession”, and yet most of the “experts” are still forecasting good things for the coming year.

Those that do not learn from history are doomed to repeat it.  None of the problems that caused the crisis the last time around have been fixed, and most of our “leaders” seem blind to what is happening at this moment even though the exact same patterns that played out in 2008 are playing out once again right in front of our eyes.

If you have been waiting for the next global financial crisis, you can stop, because it is already here.

As we move toward the end of 2015, let us hope for the best, but let us also get prepared for the worst.



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The Last Great Stand




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