So what is happening out “there” ? Complicated that is what is happening “out” there. The first thing that happened is Greece, getting one higher limit credit card after another, can not pay the folks who trusted them and supported them with great risk. Now with their largest credit card the problem or can is kicked down the road 24 months. No one see’s the debt bomb as failing to explode. And this solution is not approved and far from it.
The Iran agreement is not approved and only with tricky Congressional processes may they block having Congress even vote ( legally ) at all on this issue? Confidence in solving these matters is still NOT HIGH.
China has manipulated its currency money fixing its trade in effect and China has manipulated its stock market. China has LOST CONTROL of its centrally controlled economy. Now facing massive DEFLATION in the nation, the commodities China bet upon, have lost half their value, and China has lost trillions on their bets. More has been lost this Month in China Wealth than the market will know for many months.
Investors no longer trust China. They believe they are lied to and there is no raw hard data to make decisions over. The lack of China transparency in GNP, leverage, Market and Currency manipulations, and in failed investments world wide ( trillions lost ) such that a new “normal” for China can merge. If China holds on to its tool kit to manage its economy, the market will continue to overwhelm China.
Property Prices in China are about to shed 50% of their value as additional trillions leave China Wealth Estate. Taken individually its just sad. Taken collectively the crises is not something China can rebound from for years into the future. The cut back of investment both in and outside China will not impact the world. Developing countries will have their boats rocked pretty good. Their currency is plunging and the US Dollar is SOARING in values globally – a fact we forecasted since early in the year.
From Brazil to Africa development nations are going to face strong head winds. New policies are needed. A new model for debt is required. We call the solution SUPER BONDS and are bringing SUPER BOND Theory to Nations. Reset the nations debt clock, and you revitalize economic circulation.
We expect more volatility. ETF’s and 440 Trillion dollars in structured assets have lost untold fortunes this week. Those who bet long across spectrums of commodities currencies and manufactured products got WIPED OUT for those positions. China outlawed short selling inside China. Short selling outside China is the dog of the market inside China is the tail. Global short selling is profit making for right side betting …….all the way down. This is when fantastically wealthy elites become even more fantastically wealthy while others are impoverished.
The Deleveraging and DEFLATION spiral is now a global contagion. I should think the FED may well have to revise turning quantitive easing back on. Sanction nations like North Korea and Russia have no PROFIT IN THE PRESENT. The only way out is to make a deal on Ukraine because the suffering and looses to the Russian People, are simply going to get so much worse, and Russia may go bankrupt. There may be violence as those loosing decide Putin is too costly to keep around. One man loses trillions of dollars of their money to go sun bathing four months of the year on a strip of beach? Thats the most expensive beach property on earth then…..someone in Russia can do the math. It doesn’t add up for President Putin even in a police state. As President Clinton says – its arithmetic Russian leaders – its just arithmetic – when paying Putin a dollar costs you a million out of pocket – you may wish to ask for a recount at some point in time. ITS NOT WORTH IT …..
The world has not been so stressed economically, in trade, in many war skirmishes, and in world security. It takes a small match to light up panic in such times. Panic causes runs on the banks that spread globally – the result is emergency monetary policy – bank holidays – marshal law – military policing – generally further erosion of trade and tourism – as money circulation grinds to a stagnation worse than 2008 and that Crash. What will that match be? No one can say but everyone thinks it is increasingly likely. This crises and DEVALUATIONS in the market are still not SUPER CRASH. If the DOW went to 5500 – 6000 you would have experienced SUPER CRASH. We are still not there yet.
To get ready for what IS coming we recommend:
- You register for CEO SPACE Oct 11th in Lake Las Vegas – see ceospceinternational.com
- You buy and study GAME PLAN from Amazon a best selling book by Kevin Freeman
Doing nothing risks survival itself. Getting information and then acting is wisdom. Obtaining expert help returns security and the capacity to control outcome in SUPER CHANGE market space. CEO SPACE is devoted to serve our growing community all over the world, fostering collaborations inside a cooperative networking community, where there is simply safety in numbers with a common purpose. We invite you to get current on the critical decision information – stay current – and use a larger network to reside in safe harbor from the developing financial storms surround our peers today. Join CEO SPACE OCT 11th for SAFE HARBOR in these Super Change times we live in.
Our Blogs will keep a light on for you as to what IS going on OUT THERE – to the best of our opinions – as there is no new ASIA bottom yet and the crash is still unfolding the world must bottom out this trend before anything stable related to recovery can be assessed and put back on track. In our opinion.
Berny Dohrmann – Chairman CEO SPACE
PS: The USA has had more wealth shift back into its shores in August than anytime since the early 2000’s. The GNP numbers the rest of the year – the Holiday numbers – are going to set the election year pace – as the world appreciates how much core wealth is in flowing to the USA right now and what that means for the USA in the coming five years – an acceleration in USA investing is going to heat up. Its happening now. Click your heals Dorothy and repeat after me – there is no place like home …there really IS no place like home……