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Image | And…..It’s Gone!
And…..It’s Gone!
 PREVIEW
by Chris Martenson

The deflation monster was evident across the global markets today, and the possibility of a market crash remains as high as ever.

In the overnight session on Tuesday, everything fell apart.

We can now clearly see the tracks of the deflation monster stomping across the world stage. While a retreat into bonds (safety) has happened, that’s just the normal first reaction to such a terrible financial situation.  However, those bonds will prove to be roach motels as the next stage of this monster will be massive bond defaults of all varieties.

And…..It’s Gone!
 PREVIEW by Chris Martenson

The deflation monster was evident across the global markets today, and the possibility of a market crash remains as high as ever.

In the overnight session on Tuesday, everything fell apart.

We can now clearly see the tracks of the deflation monster stomping across the world stage. While a retreat into bonds (safety) has happened, that’s just the normal first reaction to such a terrible financial situation.  However, those bonds will prove to be roach motels as the next stage of this monster will be massive bond defaults of all varieties.

Image | David Morgan: We Are On The Precipice
David Morgan: We Are On The Precipice
by Chris Martenson

Precious metals guru David Morgan returns to address the great threat to the global financial/monetary system from derivative risk.

He sees the world at an unprecedented moment in history where the interconnected nature of the global economy makes all players vulnerable to the mind-boggling volume of outstanding derivatives, which makes the sum of all world equity + debt look tiny in comparison (if you haven't seen it yet, look at this visual from The Money Project).

 

 

David Morgan: We Are On The Precipice
 by Chris Martenson

Precious metals guru David Morgan returns to address the great threat to the global financial/monetary system from derivative risk.

He sees the world at an unprecedented moment in history where the interconnected nature of the global economy makes all players vulnerable to the mind-boggling volume of outstanding derivatives, which makes the sum of all world equity + debt look tiny in comparison (if you haven't seen it yet, look at this visual from The Money Project).

 

 

Image | The Deflation Monster Has Arrived
The Deflation Monster Has Arrived
by Chris Martenson

As we’ve been warning for quite a while (too long for my taste): the world’s grand experiment with debt has come to an end. And it’s now unraveling.

Just in the two weeks since the start of 2016, the US equity markets are down almost 10%. Their worst start to the year in history. Many other markets across the world are suffering worse.

If you watched stock prices today, you likely had flashbacks to the financial crisis of 2008. At one point the Dow was down over 500 points, the S&P cracked below key support at 1,900, and the price of oil dropped below $30/barrel. Scared investors are wondering:  What the heck is happening? Many are also fearfully asking: Are we re-entering another crisis?

The Deflation Monster Has Arrived
 by Chris Martenson

As we’ve been warning for quite a while (too long for my taste): the world’s grand experiment with debt has come to an end. And it’s now unraveling.

Just in the two weeks since the start of 2016, the US equity markets are down almost 10%. Their worst start to the year in history. Many other markets across the world are suffering worse.

If you watched stock prices today, you likely had flashbacks to the financial crisis of 2008. At one point the Dow was down over 500 points, the S&P cracked below key support at 1,900, and the price of oil dropped below $30/barrel. Scared investors are wondering:  What the heck is happening? Many are also fearfully asking: Are we re-entering another crisis?

Image | Why This Next Crisis Will Be Worse Than 2008
Why This Next Crisis Will Be Worse Than 2008
 PREVIEW
by Chris Martenson

Executive Summary

  • There are too many signs of deflation to deny it's winning the day
  • Why China's weakening will accelerate the global economy's decent
  • Why this next crisis will be worse than 2008
  • What will it look like if things really get out of control (how bad could things get?)
  • The best investments to be making now, before the rout

If you have not yet read The Deflation Monster Has Arrived, available free to all readers, please click here to read it first.

Too Many Warning Signs To Talk About

The deflationary monster is here and there are almost too many warning signs to list, let alone fully describe.

So I’ll just list and link them…you can follow up on the details if you want, it’s the ‘general vibe’ I want to get across.

Here are the signs of a weak economy that we are dealing with:

The pattern here is one of rapidly slowing economic activity and mounting pain starting “from the outside in” as emerging markets and the poor people within the core countries bear the brunt at first. Things always get rolling to the downside starting with the weakest, peripheral elements first.

Copper and oil are providing very clear signs that economic activity is not just slow, but in rapid retreat. Wal-Mart tells us that its shoppers are having trouble. The fresh all-time lows in a variety of currencies, plus massive weakness in others, is telling us that the virtuous portion of the liquidity cycle that the Fed, et al., unleashed on the world has entered the vicious part of the cycle.

The pain will spread to the center with increasing speed. The main question is if the authorities can stop that before the momentum becomes too great to halt? And what will happen if they cannot?

The answer to that is…

Why This Next Crisis Will Be Worse Than 2008
 PREVIEW by Chris Martenson

Executive Summary

  • There are too many signs of deflation to deny it's winning the day
  • Why China's weakening will accelerate the global economy's decent
  • Why this next crisis will be worse than 2008
  • What will it look like if things really get out of control (how bad could things get?)
  • The best investments to be making now, before the rout

If you have not yet read The Deflation Monster Has Arrived, available free to all readers, please click here to read it first.

Too Many Warning Signs To Talk About

The deflationary monster is here and there are almost too many warning signs to list, let alone fully describe.

So I’ll just list and link them…you can follow up on the details if you want, it’s the ‘general vibe’ I want to get across.

Here are the signs of a weak economy that we are dealing with:

The pattern here is one of rapidly slowing economic activity and mounting pain starting “from the outside in” as emerging markets and the poor people within the core countries bear the brunt at first. Things always get rolling to the downside starting with the weakest, peripheral elements first.

Copper and oil are providing very clear signs that economic activity is not just slow, but in rapid retreat. Wal-Mart tells us that its shoppers are having trouble. The fresh all-time lows in a variety of currencies, plus massive weakness in others, is telling us that the virtuous portion of the liquidity cycle that the Fed, et al., unleashed on the world has entered the vicious part of the cycle.

The pain will spread to the center with increasing speed. The main question is if the authorities can stop that before the momentum becomes too great to halt? And what will happen if they cannot?

The answer to that is…

Image | Off The Cuff: A Lot Of Deterioration…
Off The Cuff: A Lot Of Deterioration…
 PREVIEW
by Chris Martenson

In this week's Off The Cuff podcast, Chris and Brian Pretti discuss:

  • A Lot Of Deterioration
    • Why 2016 is off to a very grim start
  • There Will Be Blood
    • The carnage from the drop in oil prices will be horrific
  • Ugly, Ugly Data
    • The economic numbers are shouting sickness worldwide
  • Gold
    • Why 2016 will mark the low
Off The Cuff: A Lot Of Deterioration…
 PREVIEW by Chris Martenson

In this week's Off The Cuff podcast, Chris and Brian Pretti discuss:

  • A Lot Of Deterioration
    • Why 2016 is off to a very grim start
  • There Will Be Blood
    • The carnage from the drop in oil prices will be horrific
  • Ugly, Ugly Data
    • The economic numbers are shouting sickness worldwide
  • Gold
    • Why 2016 will mark the low
Image | Markets Are Correcting Hard
Markets Are Correcting Hard
by Chris Martenson

The long-awaited global financial market correction has arrived. We are seeing collapses in all major markets and across all major categories.

As usual, the pain has started at the edges, in the weaker elements (emerging markets, junk bonds, weak companies, etc.) and is rapidly spreading towards the center.
Markets Are Correcting Hard
 by Chris Martenson

The long-awaited global financial market correction has arrived. We are seeing collapses in all major markets and across all major categories.

As usual, the pain has started at the edges, in the weaker elements (emerging markets, junk bonds, weak companies, etc.) and is rapidly spreading towards the center.
Image | Why A Crash Is Likely
Why A Crash Is Likely
 PREVIEW
by Chris Martenson

Executive Summary

  • Why a crash is likely
  • Why the machines have won, and regular investors should flee these markets
  • Why the coming oil company bankruptcies will trigger a deflationary rout
  • Why we've passed Peak Easy

If you have not yet read Markets Are Correcting Hard, available free to all readers, please click here to read it first.

The Larger Lesson (Why A Crash Is Likely)

Look, the financial markets are broken — the US, in China, and largely everywhere else around the globe. The sad fact is that the regulators have utterly failed to impose any meaningful limits on the rise of the computers and their high frequency hi-jinks.

Now those computers dominate the entire market landscape for better and, eventually, worse.

The reason I say ‘worse’ is because the computers deliver the appearance, but not the reality, of market liquidity.

As long as they detect that everything is operating normally, or at least within their accepted bands or limits, then they indeed provide plenty of liquidity. But when events exceed those limits?

The computers just shut down, revealing the true lack of market depth. The key story of all markets, bonds, commodities, futures and equities, is that each has experienced a vast diminishment of liquidity.

Share volumes are down on the equity exchanges as fewer and fewer participants are willing play a rigged game. That’s not just…

Why A Crash Is Likely
 PREVIEW by Chris Martenson

Executive Summary

  • Why a crash is likely
  • Why the machines have won, and regular investors should flee these markets
  • Why the coming oil company bankruptcies will trigger a deflationary rout
  • Why we've passed Peak Easy

If you have not yet read Markets Are Correcting Hard, available free to all readers, please click here to read it first.

The Larger Lesson (Why A Crash Is Likely)

Look, the financial markets are broken — the US, in China, and largely everywhere else around the globe. The sad fact is that the regulators have utterly failed to impose any meaningful limits on the rise of the computers and their high frequency hi-jinks.

Now those computers dominate the entire market landscape for better and, eventually, worse.

The reason I say ‘worse’ is because the computers deliver the appearance, but not the reality, of market liquidity.

As long as they detect that everything is operating normally, or at least within their accepted bands or limits, then they indeed provide plenty of liquidity. But when events exceed those limits?

The computers just shut down, revealing the true lack of market depth. The key story of all markets, bonds, commodities, futures and equities, is that each has experienced a vast diminishment of liquidity.

Share volumes are down on the equity exchanges as fewer and fewer participants are willing play a rigged game. That’s not just…

Image | The Deflationary Wave Builds
The Deflationary Wave Builds
 PREVIEW
by Chris Martenson

Well, the New Year got off to a rocky start in the world markets.  Why it has taken so long for the equity markets to react to an obvious weakening global economic environment is beyond us.  We write that knowing that it may take even longer still for reality to catch up to the world’s financial markets.

Part of the reason for the delay, of course, is that the world’s central banks have been fighting off reality with a coordinated series of actions designed to prop up financial markets for as long as possible.
The Deflationary Wave Builds
 PREVIEW by Chris Martenson

Well, the New Year got off to a rocky start in the world markets.  Why it has taken so long for the equity markets to react to an obvious weakening global economic environment is beyond us.  We write that knowing that it may take even longer still for reality to catch up to the world’s financial markets.

Part of the reason for the delay, of course, is that the world’s central banks have been fighting off reality with a coordinated series of actions designed to prop up financial markets for as long as possible.
Image | Off The Cuff: An Economy Of Bureaucracy
Off The Cuff: An Economy Of Bureaucracy
 PREVIEW
by Chris Martenson

In this week's Off The Cuff podcast, Chris and Charles Hugh Smith discuss:

  • Why We're Headed For A Systemic Reset
    • Too much bloat
  • An Economy Of Bureaucracy
    • No bureaucracy ever reduced itself by choice
  • Why We Need To Starve The System
    • Opt out with our energy and our dollars
  • Why We'll Need To Do More With Less
    • Much of "business as usual" won't be around for much longer
Off The Cuff: An Economy Of Bureaucracy
 PREVIEW by Chris Martenson

In this week's Off The Cuff podcast, Chris and Charles Hugh Smith discuss:

  • Why We're Headed For A Systemic Reset
    • Too much bloat
  • An Economy Of Bureaucracy
    • No bureaucracy ever reduced itself by choice
  • Why We Need To Starve The System
    • Opt out with our energy and our dollars
  • Why We'll Need To Do More With Less
    • Much of "business as usual" won't be around for much longer
Image | David Collum: The Next Recession Will Be A Barn-Burner
David Collum: The Next Recession Will Be A Barn-Burner
by David Collum

For those who enjoyed his encyclopedic 2015: Year In Review, this week we spend an hour with David Collum to ask: After processing through all of that information, what do you think the future is most likely to bring?

Perhaps it comes as little surprise that he sees the global economy headed back down into recession, one that will be deeper and more damaging than the 2008 crisis.

David Collum: The Next Recession Will Be A Barn-Burner
 by David Collum

For those who enjoyed his encyclopedic 2015: Year In Review, this week we spend an hour with David Collum to ask: After processing through all of that information, what do you think the future is most likely to bring?

Perhaps it comes as little surprise that he sees the global economy headed back down into recession, one that will be deeper and more damaging than the 2008 crisis.

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