by Brian Shilhavy
Editor, Health Impact News
The “coming financial apocalypse” is no longer “coming.” It has arrived.
Of course it can be argued that it has been here for quite some time already, but only a few in the alternative media were publishing the truth, as the corporate media and those financial “experts” employed by corporate media properties instead used terms like “recession,” mainly because the manipulated stock markets were still plowing ahead full steam gambling away the future and seemingly keeping things afloat and not understanding, or if understanding certainly not admitting, that the American stock exchanges had become nothing more than huge ponzi schemes.
But that all changed on Friday last week, when key inflation figures released to the public ended up being much higher than the corporate media had been reporting.
I had a feeling that all hell would break loose when the markets opened on Monday morning, and sure enough that is exactly what happened today.
Here are some headlines from the Alternative Media earlier today after the markets opened:
Five U.S. Megabanks Have Lost $300 Billion in Market Cap in One Year; Crypto Is in Meltdown this Morning; and the Fed Will Hike Rates Further on Wednesday
by Pam Martens
Wall Street on Parade
Welcome to Monday morning and market hell.
As of 8:47 a.m. (ET) this morning, Dow futures are down 553 points; Bitcoin futures have lost 17 percent of their value on the news that cryptocurrency lender, Celsius Network, has frozen withdrawals. The 5-year Treasury note has spiked to yield 3.38 percent, a 50-basis point increase in a month, leading to an inverted yield curve against the 10-year Treasury note, which is trading at 9:01 a.m. (ET) this morning at a yield of 3.27 percent. (An inversion signals a rising recession risk.)
All of this comes as the Fed has signaled that it will announce another interest rate hike this Wednesday, following the two-day meeting of its Federal Open Market Committee (FOMC). Stocks are developing a habit of tanking one day after Fed Chair Jerome Powell holds his FOMC Wednesday afternoon press conference, so watch out for stock market activity this Thursday.
The Fed has also announced that on Thursday of next week, June 23, at 4:30 p.m. (after the stock market closes) it will announce the results of its stress tests of the G-SIBs, the Global Systemically Important Banks. It can’t be too comforting to the Fed that the same banks that cratered the global economy in 2008, and required a mind-blowing $29 trillion bailout, have a lot less capital than they had one year ago.
As of last Friday’s closing prices, five U.S. megabanks that constitute the core of the U.S. financial system have $300 billion less common equity market capitalization than they had one year ago on June 10, 2021.
Citigroup, which has fared the worst of the lot in terms of percentage decline, is down 38 percent year-over-year with a market cap plunge of $56.6 billion. JPMorgan Chase’s share price is down 25 percent year-over-year but its market cap loss makes Citigroup look like a piker. JPMorgan Chase has seen its market cap evaporate by $120 billion in one year. That’s because it has a bizarrely large 2.94 billion shares outstanding that have been bleeding. (Full article.)
Stocks Open With 5th Largest ‘Sell Program’ In History; Bonds, Bitcoin, & Bullion All Battered
US cash equity markets opened with no panic-bid, instead being met with a wall of selling after the ugly overnight futures session.
The selling wave was almost unprecedented, with a TICK below -2000 – the fifth largest ‘sell program’ in history…
As Bloomberg notes, sell programs of this size are typically not single events. They tend to happen in clusters and that probably means stocks might be in store for bigger losses.
This puke sent the S&P 500 to the lows of the year and into bear market territory…
Well that escalated quickly. Apart from crude oil, almost all asset classes were clubbed like baby seals today as event risk anxiety (ahead of FOMC) combined with OpEx technicals ($3.4 trillion options expiration) and European ‘fragmentation’ fears and all the usual geo-political, geo-economic factors that are holding back the dip-buyers as the S&P drops into a bear market and US equities broadly test 2022 lows (while TSY yields push multi-year highs).
The S&P closed down 22% from its highs and at its lowest since Jan 2021…
How about the corporate news outlets? What did their top headline stories look like today?
Here are the top headlines listed on Google News as I wrote this article this afternoon:
Los Angeles Times 5 hours ago
Yahoo News 5 hours agoBloomberg 31 minutes ago Opinion
Yes, the top 9 headlines on Google News just after the close of the stock exchanges in NYC today, were all about the Jan. 6 sideshow currently playing in Washington D.C.
The 10th story was about the weather.
So the beginning of the financial apocalypse did not even make the top 10 headlines today in the corporate news media (unless it was a financial media outlet).
The largest indicator that this financial apocalypse could no longer be hidden from the public came last week when JPMorgan Chase CEO Jamie Dimon, the most influential banker in the world, announced that we were facing a financial “hurricane.”
To be sure, he was not warning the public, but his Wall Street buddies and fellow bankers, that it was time to move on to the next phase of The Great Reset.
The entire financial system is on the brink of collapse, along with our fiat currency system and the U.S. dollar, which is all based on debt management and the Keynesian economic philosophy.
Many who understand how corrupt this economic system is, prefer the Austrian theory of economics and strong currencies which are not “fiat” currencies issued by Central Banks whenever they want, backed by nothing other than the reputation of those creating the money, but sound money backed by real assets, such as gold.
Richard Nixon took the United States off of the gold standard in 1971, and many believe we have been accelerating our economic demise since then, while others will go back further to the beginning of the Federal Reserve itself in 1913.
One article that was recently published by Alasdair Macleod, a stockbroker and Member of the London Stock Exchange for over four decades, gives the perspective of the current financial system from the Austrian economic position:
Protection From A Currency Collapse
by Alasdair Macleod
Last week Jamie Dimon of JPMorgan Chase gave the clearest of signals that bank credit is beginning to contract. Russia has consolidated its rouble, which has now become the strongest currency by far. The Fed announced the previous week that its balance sheet is in negative equity. And there’s mounting evidence that we have a nascent crack-up boom.
Russia now appears to be protecting the rouble from these developments in the West, while previously she was only attacking the dollar’s hegemony. China has yet to formulate a defensive currency policy but is likely to back the renminbi with a commodity basket, at least for foreign trade.
If it is taken up more widely by the members if the Shanghai Cooperation organisation and the BRICS, the development of a new commodity-based super-currency in Central Asia could end the dollar’s global hegemony.
These are major developments. And finally, due to widespread interest in the subject, I examine the outlook for residential property values in the event of a collapse of Western fiat currencies.
The mechanics of an apocalypse
Against the grain of the establishment, for years I have been warning that the world faces a fiat currency collapse. The reasoning was and still is because that’s where monetary and economic policies are taking us. The only questions arising are whether the authorities around the world would realise the dangers of their inflationary and socialistic policies and change course (extremely unlikely) and in that absence in what form would the final crisis take.
History tells us that fiat currencies always fail, only to be replaced by Mankind’s sound money — metallic gold, and silver. And now that fiat currencies have seen a rapid debasement followed by soaring commodity and raw material prices, interest rates should be considerably higher. Yet, in the Eurozone and Japan they are still suppressed in negative territory. The reluctance of the ECB and the Bank of Japan to permit them to rise is palpable. Worse still, even with just the threat of a slowdown in the issuance of extra credit by the commercial banks, we suddenly face a sharp downturn in economic and financial activities.
Commercial banks in the Eurozone and Japan are uncomfortably leveraged and unlikely to survive the mixture of higher interest rates, contracting bank credit, and an economic downturn without being bailed out by their respective central banks. But so massive are the central banks’ own bond positions that the losses from rising yields have put them in negative equity. Even the Fed, which is in a far better position than the ECB and BOJ, has admitted unrealised losses on its bond portfolio are $330bn, wiping out its balance sheet equity six times over.
So, without the injection of huge amounts of new capital from their existing shareholders the major central banks are bust, the major commercial banks soon will be, and prices are rising uncontrollably driving interest rates and bond yields higher. And like a hole in the head, all we now need to complete the misery is a contraction in bank credit. On cue, last week we got a warning that this is also on the cards, when Jamie Dimon, boss of JPMorgan Chase, the largest commercial bank in America and the Fed’s principal conduit into the commercial banking network, upgraded his summary of the financial scene from “stormy” only nine days before, to “hurricane”. That was widely reported. Less observed were his remarks about what JPMorgan Chase was going to do about it. Dimon went on to say the bank is preparing itself for “a non-benign environment” and “bad outcomes”.
We can be sure that the Fed will have spoken to Mr Dimon about this. JPMorgan’s chief economist, Bruce Kasman was then urgently tasked with rowing back, saying he only saw a slowdown. No matter. The signal is sent, and the damage is done.
We are unlikely to hear from Dimon on this subject again. But you can bet your bottom dollar that the cohort of international bankers around the world will have taken note, if they hadn’t already, and will be drawing in their lending horns as well.
Read the full article here.
And while Mr. Macleod touches on the issue of what is in store for the Real Estate market, here is a much more thorough analysis that I highly recommend watching (I watched the entire 43 minutes – well worth it):
Will Home Prices Crash As Much As In 2008?
But even though you will get some good perspectives from these financial “experts” who do not tow the party line in the corporate media, they are still “experts” mainly in their field of knowledge, and are making comments and predictions based on the data that they have studied, and when you get paid to do that, you have some good perspectives that others just don’t have the time to research.
What is missing in these analyses, is counting in the “unknown” factors, rather than just assuming that the existing data will continue on a path that got us to where we are today.
What you will NOT hear in any of these analyses, is how different the future will look with as yet unaccounted for catastrophes.
These could include:
- A nuclear strike by a nuclear nation that escalates to a full blown “hot” war.
- Another “pandemic” created, such as a new “monkeypox” “pandemic,” or a resurgence in COVID positive tests that lead back to more lockdowns, such has we have been seeing happen in Shanghai and other parts of China.
- A cyber attack on key infrastructure, such as banking, telecommunications, and energy. (We have actually already been pre-warned about this from the Globalists themselves.)
Any one of these scenarios, or a combination of them, will throw all of these predictions out the window, and make the “prepper” doomsday publishers look more like “mainstream” all of a sudden.
And what about the social impact of hyper-inflation, and impending food shortages? We are already seeing riots break out in many parts of the world regarding inflation and food shortages, and law enforcement throughout the U.S. is preparing for massive demonstrations and riots as soon as the Supreme Court hands down a decision reversing Roe vs. Wade.
But one thing is for certain now, the financial apocalypse is here, and will no longer be referred to in the future tense by most going forward. The only question that will need to be debated in looking at the future, will be “how bad will it get?”
I fear most Americans have no clue about the potential hardships we are all about to face.
A prudent man sees danger and takes refuge, but the simple keep going and suffer for it. (Proverbs 22:3)