A dear friend recently told me, not to title my blogs with â€œIâ€™ve told you soâ€¦â€ It sounded toon authoritarian; instead it is best to say as â€œAs Previously Mentioned in ___ book or video so and so.â€ Since I am fond of creative criticism, here I go: As Previous Mentioned in the Collapse of the Petrodollar Part 1 and Part 2, this week stock market jitters are part of the major shifts in economics in the next few years, which I have already mentioned.Â The current sell out in the stock markets of China and Wall Street are the preamble for what is to come.Â Â So the question is: Is it time for us to stock up on can food, buy a shotgun and lock the doors? No, not yet, although thousands of families do it every day, they even have their own magazines.
So, why this weekâ€™s Black Monday is not the collapse of the Petrodollar or the US Dollar as an international currency?Â Well, there are many steps in getting there. This week is another step.Â A few weeks ago, as recent as two weeks ago, market analysts and pundits on CNBC and CNN were saying that the Chinaâ€™s Market Collapse would not affect the United States, this week they are singing another song, â€œOur market was due to another correction.â€Â The pundits get heard first on CNBC and CNN because they regurgitate the status quoâ€™s agenda. Â Â They always bring a rosy picture, for instance: Money.com published “How China’s Stock Market Crash Affects You,â€ the author Paul J. Lim estimated that Chinese investors would seek the American Stock Market for being a much more stable market, and consequently, strength our stock market. Really? Where are they? Our sky is falling!
Now, this weekâ€™s crash already named Black Monday of 2015, how does it that interact with the collapse of the Petrodollar? Remember that Hitler had to have a reason to invade Poland? He could not just waltz in to Poland.Â Hitler had to create retaliation, so he burned the Reinstag building and accused Polandâ€™s agent.Â Nero burned Rome, because the city needed to be reformed. Â By the way, these are crude examples when it comes to China; however, my main point is, China cannot create a financial reform when there is not fire in their financial markets.Â Â Weather this market collapsed that commenced in China was spontaneous or manipulated by the Chinese government it gives legitimacy for Chinese officials to create a market reform as well as creating a currency backed by gold â€œas previously mentionedâ€ in the videos â€œThe Collapse of the Petrodollar Part 1 and Part 2.â€
Here are a couple of examples in our history:
About 12 days after the Swiss detached their currency from the Euro Dollar, the European Central Bank decided to print one trillion Euros, coincidence or planned?Â Here is another coincidence, recently when China announced that they own 604 tons of gold about a 60% rise in their gold stock reserve; less than a month later their stock market collapses?Â What are the odds that two major announcements would be followed by more than a Trillion Dollars in money printing and global market collapse?
These global market jitters are giving legitimacy for BRICS countries to back their currencies with gold, in this way there are no fluctuations during imports and exports, when countries use a currency backed by gold.Â Iâ€™ve predicted that a currency backed by gold either the Yuan or the BRICS Dollar is going to happen before 2018. Evidently, I do not know the exact date. One thing is for sure, once currencies begin once again to be backed by gold it will be the end of many Keynesian theories on currency parities.
What happens next?
If the American Stock Market does not stabilize by next week, then the next stocks to fall even harder are going to be the stocks of the corporations which are purchasing their own shares, as previously mentioned in the video â€œThe Next Market Collapse (Two Dominoes).â€ Â Also, as mentioned in the same video it will force the government to bail out the banks and to take over corporations because of their managerial neglect.Â Remember, General Electric is not only a private corporation, it is also part of our defense system; and our military cannot function without, GE, Boeing, Northrop, and BEA.Â Also Ford and GM overnight can be converted into airplane makers or reproduce military gear; just like they did during World War II.Â Some corporations cannot seize to exist. These corporations will be bailed out or they will be taken over by a government liaison, also previously mentioned in the video (Two Dominoes).
It is possible that there are currently talks behind closed doors about printing another two trillion Dollars to help certain corporations, as for banks TBTF (too big to fail), they will be more likely to be dismantled or separated from their investment divisions just like they were during the Glass Steagal Act of 1932.
The Big Picture:
Here is a little macro-vision or the big picture: By 1989 the Soviets could not make their government function without the participation of their private sector; what is going on now is the opposite, the private sector cannot function without government intervention. Â It happened in 2008 and it is going to happen again before 2018. The big picture is that both Communism and Capitalism are failures when it comes to economics because they constantly need outside interventions. Â By the way, in human history, we never had true Communism or true Capitalism; furthermore, we never had a system that never collapsed. Â In other words, when it comes to economics, we may still be far away from finding stability.Â I have hopes that we shall, because in â€œour idealized future,â€ Capitan Kirk, Spock and Dr. McCoy never touched money, they just asked the replicator for whatever they needed, they did not need to manufacture a reason to invade Poland or Iraq.