Sunday, February 21, 2016
By Paul Martin

Feb. 21,2016

The developing Epocalypse will become the super-volcano of economic history, and this week revealed cracks in the surface that give hints of the eruption to come.

It was a week of crumbling throughout global stock markets that has challenged records. Thursday, Hong Kong stocks suffered their worst start of a Chinese New Year since 1994 in a day of monkey business for the year of the monkey. Traders fled falling stocks and took cover in safe-haven investments, bringing the Hang Seng index down 742 points (3.9%).

Concern is that China’s banking problems could break out into financial upheaval eight times more devastating than the economic crisis the US experienced in the Great Recession. Some are estimating Chinese bank failures are likely and could result in a further 30% drop in the value of the yuan against the US dollar.

Japanese stocks went into free fall for an entire week, cratering more than 900 points in one day, then falling another 760 shortly thereafter. What a testimony to the disastrous and immediate failure of negative interest rates, which kicked Japan’s market into a full-blown panic.

Nevertheless, central banks in their groupthink manner still believe negative rates will seal the globe’s economic cracks and stop the volcano from exploding, though I am certain they will make things far worse because the very concept is evil, stripping money away from people for giving banks the privilege of holding and investing their money.

Major bank stocks continued to crash into the caldera with Deutsche Bank’s breakaway looming larger because negative interest rates in Germany are creating fissures in already weak banks. If Deutsche Bank fails entirely, it will take many other banks out with it in a domino effect. We’re right back to too-big to fail, but this time the risks and likelihood are global in development.

Civilization seems to have no concept of the peril it has created for itself, but this past week gives us a glimpse of the forces that are brewing beneath the surface. Many people may think I make these statements for effect, but I believe that, in the end, they will not appear as overstatements at all. They will simply look factually correct wind up on the other side of these events in a completely different world.

Investors run for cover in safe havens

The Rest…HERE

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