by Brad Barber and Georgi Stankov, September 29, 2015
Dear Brad,
what do you think about the crash of Glencore shares in the course of the commodity slump? Could this be a template for a worldwide crash very soon, given the big surge of CDS spreads?
http://www.wsj.com/articles/gl
With love and light
George
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Dear George,
Glencore may be the swan that the implosion gets attributed to, but there are so many others taking place at the same time. Here is a great article from someone I have a lot of respect for in the financial world so I don’t need to rewrite basically the same thing about the Glencore situation.
http://
One of the biggest areas for safety for the printed money has been in biotech companies where people have been trying to generate yield through new ideas of ways to enslave humanity even though most of the companies are vastly unprofitable. Biotechs are down 25% over the last little bit as this bubble bursts rapidly. There is a lot of scared money getting taken out here. This one is big for the multi stage rocket of ascension.
Here’s also UBS triggering the end of the paper gold fraud as supplies run out worldwide. I can just here all the big boys now “What do you mean my gold’s not there?”.
Here’s Saudi Arabia having to raise huge amounts of money as the bills can’t get paid. This is happening to countries all over the globe as we discussed a few weeks ago.
This all points to a huge bank melting down as we speak and it is most likely Deutsche Bank as their huge losses in the Volkswagen scandal trigger their derivatives.
Checking individual charts to each other shows the weakest links. Corporate bonds are crashing first to new lows. Small caps are joining in. The energy markets are imploding and now the bonds are tanking after being salvaged for a few months by the hedging process and getting higher oil prices than market. Germany is a disaster. China looks about to hit its next plunge after the pennant flag breaks down (maybe tonight). Targets 25% lower and will drag the whole world with it.
Real estate has come to a complete halt here in Denver as houses for sale pile up everywhere and we had one of the hottest markets in the US. For lease signs everywhere and hundreds more apartments coming on-line due to malinvestment. Weak tenants all going out of business in the shopping centers and loans are coming due.
The printed money fraud has seized up liquidity everywhere so this Glencore situation will expose what’s really left. There are no buyers in the lower tiers of society and there are trillions in derivative products out there with no actual supply behind the paper.
The best part about Glencore is that it was founded by Marc Rich who was pardoned by Bill Clinton. If people had a true idea of what that man has done to the populations of the world with letting the hounds of hell free…..
Barring a couple bounces here and there, the markets will now go into free fall until they print more money or pull the plug. This is when paper money only becomes valuable if you can eat it.
Your article on collapsing linear time was incredibly well written.
With love and light,
Brad Barber
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Dear Brad,
thank you very much for this very insightful and comprehensive analysis. For the sake of clarity, as I will publish our email exchange, I would like to draw your attention and that of the PAT also on this article which discusses the fallout of the Glencore shares crash for all the equity markets. This company is representative of the huge slump in commodities markets that has hit very hard such commodity-based economies as Australia, Canada, but also China and most South American countries. Just to confirm the misery of all third world economies in the current crisis that will deepen in the next days (watch the video only).
Not only the corporate debt bubble has burst, as you correctly point out, but also the sovereign debt bubble and above all the municipal and state debt bubble in the USA has also burst as this article below excellently summarizes:
Waiting for Collapse: USA Debt Bombs Bursting
http://www.counterpunch.org/2015/09/23/waiting-for-collapse-usa-debt-bombs-bursting/
And the crisis around the repeated raising of the US state debt ceiling in the Senate is yet to come in early October which will lead to the shutdown of all governmental institutions this fall.
And here is another article that further elucidates the gold scum perpetrated by the too-big-to-fail banks for many years. Now it seems that all physical gold has vanished from the western markets and the state authorities have to do something as to save their face. But unfortunately too late and the chief recidivists in this gold fraud are not investigated yet – the central banks, FED,ECB and BoJ. But at the end the truth will come out.
The UBS has always been a financial fraud recidivist since it collapsed in 2008 and had to be saved by the Swiss state and now have to cooperate with the Swiss authorities on this gold scandal. I however do not expect much to come out of this investigation which merely proves that there is no physical gold on the market anymore and that the Comex must be closed, which may very well happen next month.
http://www.zerohedge.com/news/2015-09-28/ubs-about-blow-cover-massive-gold-price-rigging-scandal
Apropos central banks, they are out of the game and have no influence on what is happening on the financial markets anymore as this article below very well shows. This was the last haven for the too-big-to-fail banks since 2008. Now they are exposed to their exponentially rising debt without a safety net and will begin to crash any moment.
http://www.zerohedge.com/news/2015-09-28/has-never-happened
As you pointed out die Deutsche Bank could be the first candidate to crash. It is in big trouble since several years and only recently decided to lay off 25,000 employees which is one-quarter of its working force. This only happens when a bank is already bankrupt. Deutsche bank has to pay big fines for the rigging of the London currency exchange and for this reason had to leave Russia where it worked very profitably. Now the company is hit by the VW car scandal in Germany that has encompassed all German car manufacturers except for BMW – Audi, Mercedes, Porsche, and also Skoda and Seat. As these companies are insured by Deutsche bank this will hit the derivatives of this bank that are one of the biggest in the world – estimated 80 trillion or 20 times bigger than the GDP of Germany. This gives you an idea of what a huge devastating potential has been accumulated in this single bank on top of all other factors that are now all converging to a total global collapse of the Orion financial system.
September was a little bit slow to my taste, but it was the time when this huge potential for destruction was amassed and it will explode now in October, most probably in the first half. To this the latest portal on Sept 27th has contributed a lot. I will refer separately on the latest energies and what has been achieved.
Thank you very much for your contribution to highlight the beginning of the final and greatest financial collapse of all times which has already began this week – for instance NIKKEI index has lost more than 1100 points in the last two days and the Shanghai composite is about to fall below the 3000 points level very soon. The DAX has lost more than 3000 points since the begin of the stock market crash and the FTSE is already below its levels in 2011, which shows that this insignificant darkest island is already in a free fall.
And we have not even touched upon the refugee invasion in Europe that has already destroyed the EU structure, the independence vote in Catalonia and the ongoing unresolved Greek crisis, the default of Ukraine and the total fiasco of the war-mongering policy of the Empire of Evil in the Middle East as documented by Putin’s and Obama’s speeches at the UNGA on Monday. Great times lie ahead!
With love and light
George
