Whenever I warn of anything using the word “CRASH”, the newspapers immediately report it as a forecast for a crash in the stock market. This demonstrates that there is no consideration that government can also crash and burn — the perfect example of 100% confidence. Yes, if this week simply closes on the Dow below 16280, then we may see that slingshot move I have warned about where in one year we will have a crash and a swing to the upside to new highs. These types of events are the ultimate mind game, but that is how they destroy the majority. As for those who write in, asking which investment will be safe — the answer is NONE.
Some people distort the events of the Great Depression to sell gold, but keep in mind that commodities peaked in 1919 and bottomed WITH stocks in 1932. Real estate peaked in 1927 followed by bonds when the Fed cut rates to try to help Europe. Then, everything reversed and stocks soared in 1929, crashed, and burned into 1932 bottoming with commodities.
There was NO SINGLE INVESTMENT left standing — ABSOLUTELY NOTHING. So while the charlatans will try to sell you newsletters with promises of making you 20,000%, keep in mind this is a period of survival we are entering, not wild speculation. If you do not understand the nature of the beast, the beast will have you for lunch.
What we have to grasp here is that this is a well organized collapse. Each sector will collapse and set in motion the next. If we get this week-end closing below 16280, then we may be heading for a retest of the August low going into October.
This will be the most difficult period ahead to forecast, so pay attention. We are entering a period of chaos that BEGINS with 2015.75; it does not end there with some crash. THIS IS THE BEGINNING, not the END.
Remember, if stocks decline into 2015.75, that should push more and more capital into government bonds completing the BUBBLE. This is by no means a BUBBLE in stocks, commodities, or the dollar. This is a peak in GOVERNMENT. This is not even a Kondratieff Wave based upon commodities. This is the 309.6-year cycle in government and, unfortunately, the other side of 2015.75 is not looking very pretty. This not about just the collapse of Europe, this is the collapse of Western forms of government that will aid the shift in the financial capital of world to China by 2032. These shifts in global economic trends are measured in hundreds of years and, unfortunately, we have a front row seat. It’s Just Time.