Central banks have tried to buoy up their stock markets
- That’s why all the concern over Greece defaulting
- Chinese stock market has dropped over 30 percent
- People are spending money again like they did before the crash
- Keep the Ponzi scheme going a little while longer
For the last seven years, central banks have tried to buoy up their stock markets. This has worked for a long time, much longer than it should have and now a bubble is at a point of bursting.
That’s why all the concern over Greece defaulting. If one country defaults and their markets are recalibrated along with their currencies, then more will soon follow. It’s like someone watching their neighbor walk away from all their debt and declare bankruptcy and start over when they are in the same position and thinking, “Why shouldn’t I do that too?” One country after another will be unable to pay back the mountain of debt they kept recurring by accepting multiple bailouts from central banks.
Meanwhile, the Chinese stock market has dropped over 30 percent in the last several months. This is different than the U.S. stock market falling because more than 80 percent of the investors in the Chinese markets are small investors, mom and pop type investors. In order to keep their faith in the market, the Chinese government tells them that everything is okay and the economy in China is still strong. They’re doing this at the same time they are forcing the large stock brokerages to buy up as much Chinese company stock as they can. This is the way the Chinese government will support the Chinese stock market. This is not a request by the government to large brokerage houses who could afford to use their own money to buy stocks, but the government is also offering billions of dollars to brokerages in order to buoy up the Chinese economy. Does this sound like a familiar tactic? This is never a request when it comes from the Chinese government. It is “You will do this or you may disappear.” Any company that wants to continue to be in favor with the government will comply and this will keep the Chinese markets going for awhile longer.
When the news in the U.S. reports things like China’s markets dropping severely this is also the party line of the financial news; everything here in America is fine, the economy is growing, real estate’s coming back, and car sales are at record highs. People are spending money again like they did before the crash and do not see anything wrong with that.
Meanwhile, the government offers near zero percent interest money to the banks to go out and buy up shares of stocks in order to keep the Ponzi scheme going a little while longer. But when people are spending like they did before the crash, once again, this is an important indicator that a crash is imminent. When the markets do decide to drop 200 to 300 points a day the news will tell you the markets are just reacting to the markets in other countries markets. That the U.S. markets are just “realigning” relative to declines elsewhere and are not in trouble. No, they are in trouble.
QUESTION: What should readers take away from this message today?
ANSWER: That you should think about getting all your money out of the markets, out of banks, and any type of security or investment that’s on paper.
QUESTION: Why is this information timely?
ANSWER: This information is timely because you see people acting just like they did before the last crash and that should be a red flag.
QUESTION: How can readers best apply this information to their lives right now?
ANSWER: Did we say, get your money out of the markets and any paper based investment?
COMMENTARY: There is a big difference between how the governments of China and the U.S. react to declining markets. In the case of the U.S., the government is afraid that the powerful bankers will retaliate and threaten to bankrupt the nation. In China, the government is afraid that the people will retaliate by rioting and cause nationwide chaos. No matter what you are afraid of and who will come after you, that doesn’t change the scenario. There will be more countries like Greece collapsing under the pressure of years of their governments borrowing money to prop up their economies and markets. In one country, the people will riot against the government for telling them everything was okay. In the other country, people will riot when they find out that the bankers took off with all their money.