2016 Begins With Financial Chaos

The first week of 2016 has not even seen its final day, and yet history has already been made.  On Monday, January 4th, Chinese stock market indices plummeted as much as 7% before so-called "circuit-breakers" kicked in and halted all trading for the first time in history.
Other stock market indices followed suit, and of course China itself took the blame for it all in much of mainstream media.

What many outlets leave out, however, involves why China had such a terrible day to begin with.
Remember, this is nothing new - China has been in the midst of financial turmoil for at least six months now.  The country was making headlines back in July and August when stock markets tanked.

None of the problems causing that volatility were solved - rather, massive amounts of liquidity (newly created currency) were pumped into the market in order to prop it up and prevent panic.  This, it turns out, never works.

Now back to what caused China to have a historically bad day.  What was it?  In a word: The Fed.  Just look at what WND news reported on back in August:

On Aug. 25, China’s Xinhua news agency reported from Shanghai that a researcher with China’s central bank denied China’s devaluation of the yuan was responsible for the global stock market rout in August. He claimed instead that the global downturn was caused by wide expectation of a Federal Reserve decision to raise rates in September.
 
Keep in mind, that was just the potential decision to raise rates.  Now that the real thing has happened, it ought to come as no surprise whatsoever that in terms of financial markets, China had its worst day in all of history on January 4th.

The above cited article also floats the idea of the interest-rate rise being a "controlled demolition" of the financial markets.  There can be little doubt as to this being the case.  Just as in 1929, when then Fed-Chairman Roy Young raised interest rates and pricked the bubble of "the roaring twenties", creating the catalyst for the Great Depression and World War II, Janet Yellen has, in December 2015, pricked the most massive financial bubble of epic debt creation that the world has ever been engulfed by.  

After all the thousands of hours I have spent researching our global financial and economic system, I can say only one thing for certain: the ship must go down.  Anyone looking at the same information must come to the same conclusion.  I have held this firm conviction for years now, yet learned to keep quiet due to the hysterical criticism it tends to invite.  Yet now, events have begun to transpire that many people, including myself and far more prominent bloggers, saw coming from light years away.

The times ahead will not be easy.  Yet those who have the emotional capacity to integrate the honest reality of what's happening around them will profit tremendously.  More on that next time...