Finanacial Market Warning

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Truth – It is the new hate speech –’during times of universal deceit, telling the truth becomes a revolutionary act” George Orwell

Sept. 1929 “There is no cause to worry. The high tide of prosperity will continue.” Andrew W. Mellon, Secretary of the Treasury

Oct. 21, 1930 President Hoover has summoned Col. Arthur Woods to help place 2,500,000 persons back to work this winter.” Washington Dispatch

Aug. 12, 1931 “Henry Ford has shut down his Detroit automobile factories almost completely. At Least 75,000 men have been thrown out of work” – The Nation

 Financial Market Warning

This is a financial market warning.  I write about Geo Political News as it affects investments.   I am not a licensed investment advisor; therefore, I never advise on specific investments. However, I can and will advise on trends in the market that can affect your investments.  That is why I do Geo Political Analysis.

Today, the world is in deep financial trouble because of debt.   Below, I took Wikipedia nations debt to GDP ratios and sorted them.  Exhibit 1, Sovereign State Debt to GDP Ratios provides some interesting insights.  It screams that Europe, Japan and the U.S. are in trouble.  Historically, Japan has done what the Federal Reserve suggests.

 

 

 

 

 

 

Exhibit 1, Sovereign State Debt to GDP Ratios

 

Insider Financial Signals

Have you ever noticed that the insiders never get deeply hurt during market drops?  I have and wondered why.  It is because they read the signals differently than the common person.  In addition, they listen to the signals when they are sounded.   These signals have just been sent and the big players are leaving the market and getting ready for a major downturn.   They are preparing for the worst. The global power elites ring a bell but it is for the wealthiest and most powerful players only.   What are these bells?

• June 29, 2014 – The Bank of International Settlements (BIS) in their annual report said the markets were “euphoric”.   They mentioned in the past under using similar euphoria speech that the balance sheets have masked “Unsuspected vulnerabilities”.
  • The BIS is a private bank not accountable to any government
  • The BIS sold gold for Germany in WWII to pay for the German fight against the allies.
  • The BIS is the leading institution for central bank gold manipulation today.
  • The BIS is the Central Banks’ bank.
  • Whatever they say about the market should be considered very carefully.
• September 20, 2014 – The G-20 met in Austria and their final report said, “We are mindful of the potential for a buildup of excessive risk in financial markets, particularly in an environment of low interest rates and low asset price volatility.”
  • Since the 2008 crises, it has been the most important forum for directing global economic policies.
  • It is a confederation of 20 different nations.
• September 25, 2014 – The International Center for Monetary and Banking Studies, ICMB, issued its “Geneva Report” on the World Economy that it has been doing since 1999.       They said, “Contrary to widely held beliefs, six years on from the beginning of the financial crisis . . . the global economy is not yet on a deleveraging path.   Indeed the ration of global total debt to GDP has been increasing and breaking new highs.”

• October 11, 2014 – The International Monetary Fund (IMF) issued its warning. The head of the IMF’s policy committee said, “Capital Markets are vulnerable to financial Ebolas that are bound to happen.”

• “Downside risks arise from . . . increased risk-taking amidst low volatility in financial markets and heightened geopolitical tensions.”

• October 11, 2014 – The Federal Reserve at the same IMF meeting made a statement. Stan Fischer, the Vice Chairman of the FED, and the real power there since he came from Israel, said, “The world growth may be weaker than expected, which could delay the FED’s next move toward raising interest rates.”

 

The world’s most powerful financial institution have all warned of excessive leverage, asset bubbles, slow growth and system risk.  The message is clear, the power elite are signaling each other – not you.  They see trouble ahead and get out in advance of the occurrence.

Defensive Action

The elite are leaving.  The time for defensive action is now.  What does that mean?  They see a broad stock market fall and are moving out of the market into hard assets.

• Physical Commodities such as gold and silver
• Art
• Cash
• Land
• Property

When the crash comes, the elite will emerge from the safe havens to snap up valuable companies and assets.  Expect this drop in the market to be a big drop not just a 20% correction.