For the last ten days, Stock Exchange is falling like a stone. DJIA has dropped 4000 points and had a breather only during weekends, despite enormous amounts of fresh fiat paper emitted by the FED. Is the history repeating?
If you are following NYSE, then you must have seen this graph:
It is dropping again… Bring in the corporate media! CNN, MSNBC, Bloomberg, Forbes… They will all “explain” how this fall is just a reaction to the Coronavirus outbreak, which has hardest hit on the World’s factory — China. A Black Swan! Despite the fact that World Health Organization (WHO) has called on investors to stop panicking and focus on facts. Their (spin)doctors are claiming that the fall which has already wiped $5 trillion off stocks, doesn’t have anything to do with so called FED’s repo loans, that are injecting over $100 billion every night since September 2019 — just to support the largest financial bubble in human history with global derivatives estimated at $1.2 quadrillion (20 times the global GDP!) But seeing the cliff at the graph above, even the most naive among the sheeple, would have to search for a second opinion. Where?
A History Lesson
I think it was Winston Churchill who said: “The farther back you can look, the farther forward you are likely to see” meaning “If you want to see deeper into the future you have to look deeper into the past.” If you are wondering what will happen, you will probably find the best answer in history.
Instability is inherit to capitalist system, with crises that on average come in cycles of every 4-7 years. If the period is longer, the crash gets bigger and more catastrophic. You can see a full explanation in an excellent lecture of the economy professor Richad Wolff, titled “How Capitalism Works”. The last big crisis was in 2008, which means we are long overdue, at least 5 years, for the next one. Do we have a historic precedent for a 12 years period with a crash? The one from 1990 to 1999? No, the closest one would be 1919–1929 ending with the catastrophic crash — that lead to the great depression:
The bull market lasted for 10 years then. Now we have 12…
There is another interesting comparison with the pre-Great Depression period – let’s look at the Presidents performance then and now:
Looking at this graph we can see that Calvin Coolidge had a constant rise, much like Obama. Herbert Hoover had a constant fall, which is not consistent with Donald Trump, right? Yes, Trump has inherited Obama’s inertia, and Hoover didn’t have J. Powell at the head of FED. One big drop could bring Trump in the position of Herbert Hoover, and open up the way for the next FDR. Either that or… Hold that thought for a moment.
Don’t get me wrong, I’m not saying that Coronavirus is not dangerous for your #health. I’m saying it is MUCH LESS dangerous than hysteric hype propagated through corporate media. It has a bit over 3% death rate, and many of the infected people have already recovered. It is dangerous for the people with weakened immune system and for children in whom the immune system has not yet been developed enough. But it is not necessary deadly, as can be seen with people recovered without any vaccine. Let’s remember that SARS (2002-2004) killed around 4500 people all over the World, and it had 10% death rate. In that period, 44 persons died from SARS in whole Canada. Every year on average 41 person dies in the traffic accidents — in Toronto only!
So, all the Coronavirus fuss was primarily primarily intended for the severing of the routes Chinese goods flows into Europe and United States. It is aimed as a full economic impact on China. Unfortunately, the rest of the World is so much depending on China already, that it is not possible to hit Chinese economy without the consequences for the rest of that same World. You can find out more on this topic in an excellent text titled Why the Coming Economic Collapse Will NOT be Caused by Coronavirus by Matthew Ehret, Editor-in-Chief of the Canadian Patriot Review. You really should be very worried for your financial health.
And now, let’s go back to that thought we have on hold…
Back to the Great Depression
While all those amazing similarities in the graphs above does not neccessarilly means the events will unravel in the same manner, we cannot ignore almost identical “handwriting” seen through these graphs. The “handwriting” indicates a disastrous turn, like in 1929. That we cannot escape. The Coronavirus scam is just another way how plutocracy is trying to evade responsibility. The question is — what will be after the crash. In 1929, feeling the hot breath of revolution, plutocracy reluctantly handed over the reins to Franklin Delano Roosevelt:
“The money changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit.”
– Franklin Delano Roosevelt, first Inaugural Address 1933
So, we may hope for the incarnation of another FDR, or we can expect revolution. Unfortunately, only then it will be known how deadly is the real virus in the system — FED!
BTW, have you check lately relation of Bitcoin and Gold?
March 2nd, 2020. 15:00 CET
Xe.com: BTC to Gold Ounce
1 BTC = 5.50361 oz
Xe.com: BTC to Gold Ounce
1 BTC = 5.50361 oz
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