Since 2013 we explained that there had been another collapse of the world’s markets planned as it had been organised for the 2008 GFC. We have explained how it had been engineered for the 2008 crisis and we had warned of that crisis over end 2006 and 2007. The financial crisis was engineered from 2008 and we then warned of an even more severe crisis engineered from 2013 to take up at the US elections of 2016. Fortunately Clinton did not get elected and Trump won the presidency. Had Clinton won, the collapse would have been triggered at end 2016 and then we would have gone into WWIII and Clinton and these US Globalists would have engineered our loss and the NWO restructuring under Russia and China and the NWO would have been restructured under the UN at the direction of Russia and China. N Korea would have been used as the trigger mechanism.
The war is still to be engineered but we have gained valuable time and we may still be able to restructure and hold on through to the 1260 days of The Witnesses (No. 135) and then through to the Advent of the Messiah (210A) and (210B) and the restructure of the world.
After the delay imposed by Trump’s win, and also by the Brexit, we have been able to restructure somewhat. However, the NWO has now tried to collapse the world financial sector. US stocks plunged in highly volatile trading on Monday, with the Dow industrials falling nearly 1,600 points during the session, its biggest intraday decline in history, as investors grappled with rising bond yields and potentially firming inflation.
Asian shares fell sharply on Tuesday after Wall Street suffered its biggest decline since 2011 as investors' faith in factors underpinning a bull run in markets began to crumble.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 2.8 per cent to a one-month low, which would be its biggest fall in more than a year and a half, a day after it had fallen 1.6 per cent.
Japan's Nikkei dropped 4.6 per cent. Australian shares dropped 3.0 per cent to their lowest level since October while South Korean shares dropped 2.0 per cent. All three broke below their 100-day moving average, a major support.
"Since last autumn, investors had been betting on the goldilocks economy - solid economic expansion, improving corporate earnings and stable inflation. But the tide seems to have changed," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
The benchmark S&P 500 fell 4.1 per cent and the Dow 4.6 per cent, suffering their biggest percentage drops since August 2011 as a long-awaited pullback from record highs deepened.
The S&P 500 ended 7.8 per cent down from its record high on January 26. Before Monday's fall, the index had not seen a pullback of over 5 per cent for more than 400 sessions, which analysts say was the longest such streak in history.
The trigger for the sell-off was a sharp rise in US bond yields following Friday's data that showed US wages increasing at the fastest pace since 2009, raising the alarm about higher inflation and with it potentially higher interest rates.
The 10-year US Treasuries yield rose to as high as 2.885 per cent on Monday, its highest in four years and 47 basis points higher than the 2.411 per cent seen at the end of 2017. It pulled back to 2.709 per cent on a continued rout in equity markets.
The CBOE Volatility index, the closely followed "fear-index" measure of expected near-term stock market volatility jumped 20 points to 30.71, its highest level since August 2015.
"For the last several months, whether it's stocks or commodities, risk-takers had been the winners. And that's what hedge funds, which now manage $US3.2 trillion, have been doing," Mitsubishi UFJ's Fujito said.
"Their leveraged position is now being unwound. And it seems as though there are still some people who haven't run away (from the sell-off) yet. I would expect more instability," he added.
European shares also tumbled, with Germany's Dax hitting a 4-month low.
Yoshinori Shigemi, market strategist at JPMorgan Asset Management, said the spectre of inflation will gradually undermine the attraction of equities even though the markets could rebound in the short-term.
"In the end, the Fed will have to hike rates. And if it doesn't, long-dated bonds will be sold off on worries about inflation. Either way, that is going to slow down the economy. Rising wages also mean corporate profit margins will be squeezed gradually down the road," he said.
Keen to avoid further risk, investors are closing their positions in other assets, including the currency market where a popular strategy has been to sell the US dollar against the euro and other currencies seen as benefiting from higher interest rates in the future.
The euro eased to $US1.2380, not far from last week's low of $US1.2335, a break of which could usher in further correction after its rally to a 3-year high of $US1.2538 by late last month.
Against the yen, which is often used as a safe-haven currency because of Japan's solid current account surplus, the dollar slipped to 109.05 yen, having lost one per cent on Monday.
Bitcoin also tumbled, hitting a 12-week low of $6,600 . That represented a 66 per cent fall from its record high of $19,666, touched on December 17. It last stood at $6,986.
Investors also dumped junk bonds, with the yield of Merrill Lynch US high yield index rising to 6.017 per cent from 5.964 per cent at the end of last week.
Still, it was far below its 2016 peak just above 10 per cent, when low oil prices hurt energy firms.
Oil prices also dropped, with international benchmark Brent futures hitting a one-month low of $US66.90 per barrel on Monday. It last stood at $US67.02.
US crude futures traded at $US63.56 per barrel, down 0.8 per cent in Asia.
The Australian share market's losses have slightly deepened from 30 Billion to about $60 billion.
After the Dow Jones suffered its biggest points drop in a single day (1,175 points), it was almost certain that the local bourse would open sharply lower.
The benchmark ASX 200 index was down 3.1 per cent to 5,839 points (at 1:20pm AEDT), with almost every stock posting losses.
The broader All Ordinaries index dropped by3.1 per cent to 5,938.
This is a continuation of yesterday's steep losses, when the Australian share market plunged by $30 billion.
So far, the local stock market has fallen by about $90 billionin two days, and has fallen by 3.7 per cent since the year began.
All the big four banks are being sold off — Commonwealth Bank (-2.7 per cent), Westpac (-3.2 per cent), NAB (-2.5 per cent) and ANZ (-3 per cent).
The Australian dollar has fallen to 78.75 US cents.
The shake-out on global stock markets is long overdue. However, no one realises what is on the planning books for the coming crisis.
Despite an economy struggling to raise itself off the mat, American investors pushed Wall Street to record levels in 2013 and then doggedly higher, thanks to radical steps by the US Federal Reserve.
Not only did it cut interest rates to zero, to ward off the worst effects of the global financial crisis, it engaged in three long bouts of money printing, pumping more than $US3 trillion into the financial system.
Europe and Japan followed suit while China embarked on a debt spree of unrivalled proportions.
Much of that extra cash, around $US20 trillion, flooded into stock and bond markets, inflating values and distorting returns. The chickens are about to come home to roost.
PHOTO: Central bank debt has risen since the financial crisis hit. (Supplied: Citi Research/Haver)
Along the way, investors threw aside every traditional measure of value.
Until last week, Wall Street was collectively valued at more than 25 times earnings. Normally it is around 15 to 16.
It had gone for an unprecedented 171-day run without a 5 per cent pullback. Normally, there are three a year.
The party had to come to an end at some stage, and it appears that happened last week.
The spectre of rising interest rates has been hovering above Wall Street and global markets for months, even as investors pushed the Dow Jones Industrial Average forever higher.
Federal Reserve chairman Janet Yellen let slip at her final outing last week that, with the American economic recovery gathering pace, rates may rise a little quicker than expected.
On Friday, the good news finally arrived. Not only were US jobs figures better than expected, but wages were growing.
That sent shivers through the market as it finally dawned on punters that the era of emergency interest rates was rapidly coming to an end.
High risk stocks, many of them hugely overvalued, were ripe for a fall.
How will this affect AU?
Unlike Wall Street, which until last week sat about 88 per cent higher than its 2007 peak, the AU market has never managed to even get close to breaching record levels.
As of today, AU still remains about 12 per cent below our 2007 peak.
Unlike Wall Street's lofty valuations, companies listed on the Australian Securities Exchange are trading at about 16 times earnings, not far off long-term averages. Partly that's because Australia never jumped on board the money printing train.
And while AU blissfully chugged through the worst of the global financial meltdown a decade ago, its economy since has run out of puff.
What spare cash Australians did scrape together when the Reserve Bank slashed interest rates to record levels, we plunged into real estate.
But that doesn't mean we won't feel the impact.
As a major trading nation, exporting food and raw materials to the rest of the world, we are hugely exposed to any change in the global economic momentum.
Any major downturn on global markets affect Australia, as we've witnessed in recent days.
Not only that, our superannuation funds over the years have poured almost half the $2.5 trillion they have under management into Australian stocks.
A large chunk of the remainder is invested on global markets, with Wall Street and Europe accounting for most. So that is their greatest weakness because their politicians are idiots and run by the banks and the overseas markets.
Why do market movements matter anyway?
Stock markets tend to grind higher, sometimes for years on end, before suddenly falling in a heap. That's because they are driven by two competing forces: greed and fear. People sink money into something that everyone else follows and then when it becomes overvalued so even blind Freddy sees it then they get out all at once and sink the values.
As soon as a market in almost anything starts rising — from the tulip bubble to stocks and even an arcane and mysterious concept like Bitcoin — we all want a slice of the action, even if we have little or no understanding of it. Then, when values start to decline, everyone decides to get out, pretty much at the same time.
Usually less spending means lower profits and, if it continues, job losses.
That's the reason why central banks from Washington to London and Beijing to Tokyo went overboard with economic stimulus a decade ago during the crisis. In doing so, however, they merely laid the ground for the next crisis which was the plan.
So what is to happen? Is it a healthy and much needed correction or the start of a major crash? They were the questions on everyone's lips this week. No-one knew the answer.
Global stock markets continued to slump but many experts believe the falls were a correction, not a coming crash. After the Australian market lost $85bn in two days, the FTSE 100 in London dropped by 2.64% or 193 points to its lowest level since last April, which is the biggest percentage drop since the day after Brexit, and marks the sixth successive trading day of declines. Although the Australian share market is set to bounce back today, according to futures trading, the uncertainty continues on Wall Street in the US. The Dow Jones average was down 500 points in Tuesday trade, but recovered into positive territory and is back in the red again. The US treasury secretary, Steven Mnuchin, said it was just a correction after exuberant buying in January. Carl Icahn, a US billionaire investor, agreed but told CNN that “one day this thing is just going to implode”. Our financial editor, Nils Pratley, said the correction theory “group-think” is worrying, however. Follow our live blog of the action here.
There was a rebound when the markets sucked more of the people who wanted to believe it was a correction.
While the rebound has a semblance of calm as bargain hunters move in, a pall of fear hangs over the market.
Wall Street's VIX index — or "fear index" — retraced around 20 per cent overnight, but still indicates investors are looking to cut their risk in coming weeks, which would drive equity markets down again.
PHOTO: Volatility, or fear, as measured by the VIX index eased back overnight but remains elevated, (Supplied: Reuters)
The early gains added around $24 billion to the ASX, which shed more than $90 billion in the previous two days.
Overall, global markets have dropped around $US4 trillion in value in the past week and half. That is not the end of it. The collapse continued. The market ran out of steam on Wednesday and collapsed again at the end of the week on Thursday and Friday.
When will financial markets realise that the amazing performance of 2017 was not sustainable? How stupid was it all? The Bubble had to burst and burst it has.
A little more than a month into 2018, the Dow Jones industrial average suffered its largest drop by volume in history on February 5.
Other markets across the world followed suit.
What is even worse, the CBOE VIX index, which tracks market volatility and which was displaying worrisomely low levels, marked its biggest single-day jump of all time (84 per cent).
The drill is: the higher the volatility, the lower the stock market performance. EMBED: The Dow's volatility in February (Trading Economics)
Only one week ago, the financial press was reporting "confidence" and "optimism" at the recent World Economic Forum annual meeting in Davos.
Major geopolitical risks remain — it was said — but overall the world economy will display significantly higher growth rates than in the past, possibly dominated by Asia, in general, and China in particular.
The scary thing is that the Davos participants reached the same conclusion about the world economy in January 2007.
However, I don't think that we are today in the same situation we were at the beginning of 2007.
There are three reasons why.
#1: We've been here before
First of all, market adjustments of the magnitude just suffered are not unseen in financial markets.
Between 1987 and 2018, the Dow Jones suffered declines of 4 per cent or greater 37 times — that is more than once a year.
Even considering the period following the 2007-08 financial crisis, the Dow has declined more than 4 per cent once a year.
The Nasdaq index is even more volatile: between 2002 and 2018, it has fallen 4 per cent or more 176 times, or almost 10 times a year.
And after the financial crisis, the Nasdaq suffered similar such negative returns on 52 occasions. EMBED: Dow Jones Industrial Average (Trading Economics)
#2: No real news
More importantly, we have not had important economic news which would justify an impending market crash.
Panics happen when markets rise irrationally, as happened during the dotcom bubble.
The recent rise in the market has not been irrational.
All market participants, even if marginally informed, should be aware that market performance in 2017 was stellar and in line with corporate earnings and expectations of future growth.
I believe a severe market correction will be associated with either geopolitical events, such as wars or terrorism, or to decisions of economic policy that will not be welcome by financial markets. Neither one has happened.
Besides Donald Trump's tax reform (which should benefit company earnings), the US administration has not made any other big decisions yet.
Media player: "Space" to play, "M" to mute, "left" and "right" to seek.
Finally, the fundamental properties of both the companies that saw a sell-off in their stocks as well as the wider economy, remain solid.
We are returning to positive and significant economic growth rates, fuelled by Asia, but also accompanied by good perspectives in Europe and the United States.
Corporate earnings are excellent, with reports that profitability in the US corporate sector were at their best in the last 17 years.
On average, 78 per cent of all companies had beaten market expectations regarding earnings growth.
The price-earnings ratio, which is a measure of how expensive stocks are (and indicates whether stocks are overvalued), in most markets has only been slightly higher than the historical average — and much lower than it was in 2006.
This reinforces the fact that the fundamentals of most companies are not overinflated.
Does this mean that we should expect a rapid market readjustment and that we will enjoy a happy and bullish stock market in 2018? Not necessarily.
The major risks of the world economy remain: China and its massive private debt levels; geopolitical risks, such as tensions between the US and North Korea; increasing levels of income inequality and the potential for subsequent social unrest; and terrorism as a source of global instability.
Stock markets are not necessarily pricing such risks — so, if and when they materialise, we will have our serious crash.
For now, though, it is too late to buy, but too early to sell. The Dow Jones Industrial Average has plummeted by more than 1,000 points, for the second time this week.
AUD: 77.82 US cents, 55.98 British pence, 63.55 Euro cents, 84.84 Japanese yen, $NZ1.08
US: Dow Jones -4.2pc at 23,860, S&P 500 -3.75pc at 2,581, Nasdaq -3.9pc at 6,777
Europe: FTSE -1.5pc at 7,171, DAX -2.6pc at 12,260, Euro Stoxx 50 -2.7pc at 3,361
Commodities: Brent crude -2.1pc at $US64.16/barrel, spot gold -0.1pc at $US1,317.11/ounce, iron ore +0.2pc at $US77.32/tonne
Once again, rising interest rates are behind the continuing market wipeout — with US 10-year government bond yields lifting as high as 2.88 per cent, its highest level in four years.
Investors are also concerned about the prospect of higher inflation as the US economy strengthens.
With most major share markets around the world busting through record highs, is 2018 shaping up for a big sell-off?
The blue-chip Dow Jones index closed 4.15 per cent lower at 23,860.
In the final hour of trade, the S&P 500's and Nasdaq's losses deepened to 3.75 and 3.9 per cent respectively.
The Dow and S&P are in correction territory, having fallen by more than 10 per cent since January 26, when they hit record highs."
"The dust hasn't settled yet, and I think both buyers and sellers are trying to figure out what this market really wants to do," said Jonathan Corpina, Meridian Equity Partners' senior managing partner.
"I would think that this continues to happen for the next few trading sessions for everything to kind of get flushed out."
Every S&P sector posted losses, with financials (-4.3pc), technology (-4.3pc) and consumer cyclicals (-3.9pc) being the worst performers.
US market volatility jumped by 27 per cent overnight, with CBOE'S volatility index (VIX) rising to 35.17.
The measure for market anxiety has more than doubled since last Friday — prior to the mass sell-off when the VIX index was at the relatively low 14.3
Furthermore, the London, Paris and Frankfurt indexes tumbled overnight, with falls between 1.5 and 2.5 per cent.
During the European session, the Bank of England voted unanimously to keep British interest rates on hold.
But the UK central bank warned rates may need to rise sooner, and by more than it had previously expected, due to an improving global economy.
The Australian market today is weaker across the board.
ReutersFEBRUARY 9, 20188:24AM
US stocks have plunged in another dramatic trading session, confirming a correction for the market that has thrown its nearly nine-year bull run off course.
The bottom of this recent slide remained elusive for investors, who have been whipsawed this week by huge swings that have shaken a market that had only climbed steadily for months.
With Thursday's drops, the benchmark S&P 500 and the Dow industrials confirmed they were in correction territory, both falling more than 10 per cent from January 26 record highs.
The S&P 500 slumped 3.8 per cent on Thursday while the Dow dropped 4.2 per cent as losses accelerated late in the trading day.
The S&P 500 last confirmed a correction in January 2016, when it fell 13.3 per cent amid concerns about a slump in oil prices.
Thursday marked another day of sharp swings, including the S&P 500's biggest drop in more than six years that pulled equities away from record highs.
"The dust hasn't settled yet and I think both buyers and sellers are trying to figure out what this market really wants to do," said Jonathan Corpina, senior managing partner for Meridian Equity Partners.
"I would think that this continues to happen for the next few trading sessions for everything to kind of get flushed out."
The retreat in equities had been long awaited by investors as the market climbed steadily to record highs.
The sharp sell-off in recent days was started by concerns over rising inflation and bond yields, sparked by Friday's January US jobs report, with investors pointing to additional pressure from the unwinding of trades linked to bets on volatility staying low.
Equities for years have looked relatively attractive compared with the low yields offered by bonds but the rise in Treasury yields has diminished the lure of stocks, especially with stock valuations at historically expensive levels.
Earlier on Thursday, the 10-year US Treasury note yield rose as high as 2.884 per cent, nearing Monday's four-year peak of 2.885 per cent, after the Bank of England said interest rates probably needed to rise sooner than previously expected.
The Dow Jones Industrial Average fell 1,032.89 points, or 4.15 per cent, to 23,860.46, the S&P 500 lost 100.66 points, or 3.75 per cent, to 2,581 and the Nasdaq Composite dropped 274.83 points, or 3.9 per cent, to 6,777.16.
All 11 major S&P sectors finished lower, with financials and technology the worst-performing groups. All 30 components of the blue-chip Dow finished negative.
For the year, the S&P 500 is now down 3.5 per cent.
The number of Americans filing for unemployment benefits fell unexpectedly last week, dropping to its lowest in nearly 45 years as the labour market tightened further, bolstering expectations of faster wage growth.
In earnings news, Twitter rose 12.2 per cent after the social media company delivered its first quarterly profit and an unexpected return to revenue growth.
So on Friday Morning the Dow Jones closed 1,000 points down, and set Australian markets up for $35b morning loss. That increased again by the afternoon.
