# ECONMATTERS claims Six Days Until Bond Market Crash Begins



## LastOutlaw

http://www.econmatters.com/2015/03/six-days-until-bond-market-crash-begins.html

Six Days Until Bond Market Crash Begins
By EconMatters

Run for the Exits
Early on Tuesday morning, realizing this was going to be a robust selloff in equities, the 'smart money', i.e., the big banks, investments banks, hedge funds and the like, ran to the old staple of buying bonds hand over fist with little regard for the yield they are getting paid for stepping in front of the freight train of rate rises coming down the tracks.

FOMC Meeting & Press Conference

Just six days away from the most important FOMC meeting in the last seven years, and another 300k employment report in the rear view mirror, this looks like an excellent place to hide for nervous investors who have far more money than they have grains of common sense. Newsflash for these investors, yes markets are over-valued, and you need to get out of Apple, and about 100 other high flying overpriced momentum stocks, but you can`t hide out in bonds this time. That party is over, and next Wednesday`s FOMC meeting is going to make this point abundantly clear.

Read More >> The Bond Market Has Reached Tulip Bubble Proportions

Cash is King

There is no place to hide except cash. You should have thought about that before you gorged yourself on ZIRP to the point where you have pushed stocks and bonds to unsupportable price levels, and you keep begging for the Fed to stall just another six months, so you can continue to buy more stocks and bonds. Well you have done an excellent job hoodwinking the Fed to wait until June, you should thank your lucky stars you have done such a good job manipulating the Federal Reserve; but just like the boy crying wolf, this strategy loses its effectiveness over time.

Red More >> Cushing and Gulf Coast Storage Filling Up Fast

Throwing another temper tantrum right before another important FOMC meeting hoping that Janet Yellen will be alarmed by these Pre-FOMC Selloffs to put off another six months the inevitable rate hike, this blackmail strategy has run its course. The Fed is forced to finally start the Rate Hiking Cycle after 7 plus years of Recession era Fed policies by an overheating labor market.

Denial is a Powerful Drug

You knew this day was going to come, but most of you are still in denial. What the heck were you buying 10-year bonds with a 1.6% yield five months before a rate hike?? You only have yourself to blame for the 65 basis point backup in yields on that disaster of an "Investment". But really what were you thinking here?? That is the problem when the Fed has incentivized such poor investment decisions and poor allocation of capital to useful, growth oriented projects over the past 7 plus years of ZIRP that these 'investors' don`t think at all, they have become behaviorally trained ZIRP Crack Addicts!

But the Dollar is Strong, our Currency is holding too much of a store of its value

They can cry over the strong dollar, have a couple of 300 point Dow Selloffs, scare monger over Europe or Emerging Market currencies, but the fact is that the due date has come on your stupidity. You bought all this crap, and now you have to sell it! Well too freaking bad, boo hoo, you shouldn`t have bought so many worthless stocks and bonds at unsustainable levels in the first place. Well the Fed cannot save you from your stupidity forever, and that day of reckoning has finally come, rates are going to rise in the United States of America!

Read More >> The Fed Waited Too Long: Here Comes Inflation

D-DAY for Bondholders

Six more days and counting until all those hiding out in Bonds will start to realize that the Fed Funds Rate is going to be higher than their precious yield play of the worthless paper that they are holding onto for dear life. Like a junkie in a state of denial with their crack pipe and there's no more ZIRP to save them from their poor investment decisions. You play with fire long enough, and eventually you get burned!

I have no sympathy for anybody who buys bonds at these levels, this isn`t sound investing, this is just pure stupidity. The last six weeks we are witnessing just the first stages of this stupidity play out in the bond market. This backup in yields is just getting started here in the United States, the storm is really going to get dark once 10-year yields break above the 2.38% resistance level. The stops alone are going to move yields to 2.7% on the 10-Year. Then the fun is just getting started for all those stuck on the wrong side of this trade. In two years the Fed Funds Rate itself will be 3%, where do they think that leaves 10-Year Yields?
Read More >> The Swiss 10-Year Bond Illustrates Central Banks` Flawed Monetary Policy

So Many Stuck little Sheep Bond Holders

The positioning for this inevitability is as poor as I have seen in any market. The carnage in the bond market is just going to be gruesome, the denial is so strong, the lack of historical perspective of what normal bond yields look like, and what a normalized economy represents where savers actually get paid to save money in a CD or checking account. The fact that the Fed has so de-sensitized investors to what a normalized rate economy and healthy functioning financial system looks like is probably one of the biggest drawbacks of ZIRP Methodology.

The Federal Reserve, and now the European Union have set the stage for the biggest collapse in bond markets that will make the sub-prime financial crisis look like a cakewalk. This is what is really going on in markets, investors who bought too many expensive stocks trying to get out before the FOMC Meeting next Wednesday. But you aren`t going to be able to hide out in Bonds this time, better find another alternative because the clock is ticking on that trade as we speak!


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## LastOutlaw

Here is another from a different source from the 3rd of June

http://theeconomiccollapseblog.com/...to-panic-as-a-global-bond-market-crash-begins

Investors Start To Panic As A Global Bond Market Crash Begins
By Michael Snyder, on June 3rd, 2015

Panic Keyboard - Public DomainIs the financial collapse that so many are expecting in the second half of 2015 already starting? Many have believed that we would see bonds crash before the stock market crashes, and that is precisely what is happening right now. Since mid-April, the yield on 10 year German bonds has shot up from 0.05 percent to 0.89 percent. But much of that jump has come this week. Just a couple of days ago, the yield on 10 year German bonds was sitting at just 0.54 percent. And it isn't just Germany - bond yields are going crazy all over Europe. So far, it is being estimated that global investors have lost more than half a trillion dollars, and there is much more room for these bonds to fall. In the end, the overall losses could be well into the trillions even before the stock market collapses.

I know that for most average Americans, talk about "bond yields" is rather boring. But it is important to understand these things, because we could very well be looking at the beginning of the next great financial crisis. The following is an excerpt from an article by Wolf Richter in which he details the unprecedented carnage that we have witnessed over the past few days&#8230;

On Tuesday, ahead of the ECB's policy announcement today, German Bunds sagged, and the 10-year yield soared from 0.54% to 0.72%, drawing a squiggly diagonal line across the chart. In just one day, yield increased by one-third!

Makes you wonder to which well-connected hedge funds the ECB had once again leaked its policy statement and the all-important speech by ECB President Mario Draghi that the rest of us got see today.

And today, the German 10-year yield jump to 0.89%, the highest since October last year. From the low in mid-April of 0.05% to today's 0.89% in just seven weeks! Bond prices, in turn, have plunged! This is the definition of a "rout."

Other euro sovereign bonds have gone through a similar rout, with the Spanish 10-year yield soaring from 1.05% in March to 2.07% today, and the Italian 10-year yields jumping from a low in March of 1.03% to 2.17% now.

What this means is that the central banks are losing control.

In particular, the European Central Bank has been trying very hard to force yields down, and now the exact opposite is happening.

This is very bad news for a global financial system that is absolutely teeming with red ink. Since the last financial crisis, our planet has been on the greatest debt binge of all time. If we are moving into a time of higher interest rates, that is going to cause enormous problems. Unfortunately, CNBC says that is precisely where things are headed&#8230;

The wild breakout in German yields is rocking global debt markets, and giving investors an early glimpse of the uneasy future for bonds in a world of higher interest rates.

The shakeout also carries a message for corporate bond investors, who have snapped up a record level of new issuance this year, and are now seeing negative total returns in the secondary market for the first time this year.

So why is this happening?

Why are bond yields going crazy?

According to the Wall Street Journal, financial regulators in Europe are blaming the ECB's quantitative easing program&#8230;

A recent surge in government bond market volatility can be blamed on the quantitative easing program of the European Central Bank, according to one of Europe's top financial regulators.

EIOPA, the body responsible for regulating insurers and pension funds in the European Union, has warned that the ECB's decision to buy billions of euros' worth of sovereign bonds, to kick-start the region's economy, has caused markets to become choppier.

And actually this is what should be happening. When central banks start creating money out of thin air and pumping it into the markets, investors should rationally demand a higher return on their money. This didn't really happen when the Federal Reserve tried quantitative easing, so the Europeans thought that they might as well try to get away with it too. Unfortunately for them, investors are starting to catch up with the scam.

So what happens next?

Well, European bond yields are probably going to keep heading higher over the coming weeks and months. This will especially be true if the Greek crisis continues to escalate. And unfortunately for Europe, that appears to be exactly what is happening&#8230;

Greece will not make a June 5 repayment to the International Monetary Fund if there is no prospect of an aid-for-reforms deal with its international creditors soon, the spokesman for the ruling Syriza party's lawmakers said on Wednesday.

The payment of 300 million euros ($335 million) is the first of four this month totaling 1.6 billion euros from a country that depends on foreign aid to stay afloat.

Greece owes a total of about 320 billion euros, of which about 65 percent to euro zone governments and the IMF, and about 8.7 percent to the European Central Bank.

On Tuesday, Greece's creditors drafted the broad outlines of an agreement to put to the leftist government in Athens in a bid to conclude four months of negotiations and release aid before the country runs out of money.

"If there is no prospect of a deal by Friday or Monday, I don't know by when exactly, we will not pay," Nikos Filis told Mega TV.

In fact, there are reports that both the ECB and the Greek government are talking about Greece going to a "parallel domestic currency"&#8230;

Biagio Bossone and Marco Cattaneo write that according to several recent media reports, both the Greek government and the ECB are taking into consideration the possibility (for Greece) to issue a parallel domestic currency to pay for government expenditures, including civil servant salaries, pensions, etc. This could happen in the coming weeks as Greece faces a severe shortage of euros. A new domestic currency would help make payments to public employees and pensioners while freeing up the euros needed to pay out creditors.

If Greece defaults and starts using another currency, the value of the euro is going to absolutely plummet and bond yields all over the continent are going to start heading into the stratosphere.

That is why it is so important to keep an eye on what is going on in Greece.

But no matter what happens in Greece, it appears that we are moving into a time when there will be higher interest rates around the world. And since 505 trillion dollars in derivatives are directly tied to interest rate levels, that could lead to a financial unraveling unlike anything that we have ever seen before in the history of our planet.

As I have warned about so many times before, 2008 was just the warm up act.

The main event is still coming, and it is going to be extraordinarily painful.


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## TheLazyL

Someone needs to get their act together and find a different Fortune Teller. 

This is about the 3rd time this year the financial market was to collapse and all have been wrong.


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## LastOutlaw

Hey... I just post the possible flags... it's up to you to decide whether it will fly.
I will say there is a major readjustment coming at some point. Propped up can only run so long before truth shines through. I have been keeping an eye on the markets and studying so as to get some understanding on how the system is supposed to run and how it is actually running these days of QE.
I have heard from those in the business to keep an eye open for the bond market to begin to crash as it is a sign that the s will htf shortly thereafter.

I will say though that tptb will keep this huge ponzi scheme running as long as they possibly can, any way they can.


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## hiwall

Don't we live in interesting times!


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## Gians

*Crystal Balls*

Pin pointing to a specific day would be a trick indeed, but then again, if someone does it often enough, odds are one day it'll be correct, or at least nearly correct. I try to go by the "Never invest what you can't afford to lose." adage.


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## *Andi

Wait I'm going to the beach for the weekend ...

What will be ..will be ...


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## bkt

Our global economic system has been collapsing for years. It has been a slow process rather than a quick one, but that's not to say currency or market collapse couldn't happen quickly in the future. Prognosticators telling us "such-and-such will collapse in six days" or whatever are usually selling something.


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## LastOutlaw

The article is saying that the bond market will crumble that particular day because the bond market is trying to correct from the propped up fake state it is in today on that particular date because the FED has it's quarterly meeting that day that they set their policy.

From what I gather the FED claims to have quit the Quantitative Easing many months ago. However they supposedly have not done so and make purchases of bonds through Belgium and other countries in order to continue holding the system up. At some point they MUST raise interest rates. They CAN NOT do this however because the minute they do the stock market takes a huge dive. 

It will be interesting to see what their policy will be after this upcoming meeting. If the bond market continues to fail they will HAVE to purchase more of their own bonds with printed dollars in order to keep it running. If they do it openly they will be re-enacting QE. They will have to admit that there is a problem.
The more they print and buy the more the value of the dollar drops.

At some point their efforts to hold things up will no longer work.
The market wants to correct to real values. 
At some point it will and they won't be able to stop it.
The failing of the bond market is a sign that the stock market will follow suit after.


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## bkt

LastOutlaw said:


> From what I gather the FED claims to have quit the Quantitative Easing many months ago. However they supposedly have not done so and make purchases of bonds through Belgium and other countries in order to continue holding the system up. At some point they MUST raise interest rates. They CAN NOT do this however because the minute they do the stock market takes a huge dive.


^^ THIS ^^

Consider, too, the further decline of the petro dollar and you get a bit concerned about not just the markets falling; the currency value would also fall.



LastOutlaw said:


> It will be interesting to see what their policy will be after this upcoming meeting. If the bond market continues to fail they will HAVE to purchase more of their own bonds with printed dollars in order to keep it running. If they do it openly they will be re-enacting QE. They will have to admit that there is a problem.
> The more they print and buy the more the value of the dollar drops.


Correct. The fact that the Fed is controlling rates is a big signal there are problems; the market should set the interest rates. ZIRP was a move of desperation. So was QE. So is monetizing our debt. So is propping up the bond market, etc., etc.



LastOutlaw said:


> At some point their efforts to hold things up will no longer work.
> The market wants to correct to real values.
> At some point it will and they won't be able to stop it.


Party at my house that day. I'll have beer, hots, burgers. Bring a dish to pass.


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## LastOutlaw

bkt said:


> Party at my house that day. I'll have beer, hots, burgers. Bring a dish to pass.


That day will be no day to party. That day will be the beginning of the end. Things will progress much faster and a person should take it as a flag to hurry their preparedness. At that point time will be running out.

The crash of the markets and the dollar will be the worst tragedy that this world has ever seen. Hundreds of times worse than the 2008 crash.
It will leave millions ruined and broke as people's retirement, savings and value disappears almost overnight.

Starvation will be rampant across the world including the good ole USA.
I don't know about you but I do not want to see my neighbors and friends starve to death.


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## bkt

Time will have run out; there won't be any prepping at that point.

People who pay attention only to the artificially-inflated market values and make no effort to find out why they're so high and what they can do to mitigate a sharp drop really don't get much sympathy from me. Nor do I fret too much over people who care more about Caitlyn Jenner and the Kardashians than they do current political and economic events. While I don't want to see anyone screwed, the fact is that's pretty much inevitable at this point.

My efforts over the last several years ensures none of my friends will be in harm's way and my neighbors will also be in pretty good shape.

And I believe it will be a fantastic day to party. You can't begin to fix a problem like this until it can no longer be hidden. Hopefully, it will mean the end of the Fed (wishful thinking, I know).


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## LastOutlaw

bkt said:


> Time will have run out; there won't be any prepping at that point.
> 
> People who pay attention only to the artificially-inflated market values and make no effort to find out why they're so high and what they can do to mitigate a sharp drop really don't get much sympathy from me. Nor do I fret too much over people who care more about Caitlyn Jenner and the Kardashians than they do current political and economic events. While I don't want to see anyone screwed, the fact is that's pretty much inevitable at this point.
> 
> My efforts over the last several years ensures none of my friends will be in harm's way and my neighbors will also be in pretty good shape.
> 
> And I believe it will be a fantastic day to party. You can't begin to fix a problem like this until it can no longer be hidden. Hopefully, it will mean the end of the Fed (wishful thinking, I know).


Wow! you must have a huge amount of food stored if you are going to feed and protect all of your friends and neighbors.


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## bkt

LastOutlaw said:


> Wow! you must have a huge amount of food stored if you are going to feed and protect all of your friends and neighbors.


No, of course not. I've spent several years educating and working with them and now almost all of them are preppers in their own right and have their own supplies. I'd much rather have as many people as possible prepped than be surrounded by panicked, angry, hungry people.


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## LastOutlaw

bkt said:


> No, of course not. I've spent several years educating and working with them and now almost all of them are preppers in their own right and have their own supplies. I'd much rather have as many people as possible prepped than be surrounded by panicked, angry, hungry people.


How did you get through to those who thought you were a nut case?


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## bkt

LastOutlaw said:


> How did you get through to those who thought you were a nut case?


In the case of my wife, after quite some effort of getting her to accept my prepping quirks, I finally told her this: "I won't let you prevent me from doing the things I believe are necessary for the safety of the family." She agreed to that with no fuss. After several years, she has seen the benefits to prepping and is on-board with it.

In the case of friends, none really objected. I never approached it from the perspective of mitigating a cataclysmic event. Instead, I pointed out how hunting, fishing, and growing a garden results in better food than you can get from the store and it costs less, too. We talked about the many ways a personal SHTF situation can and eventually will hit most of us: loss of a job, unexpected major expense, sickness/death of a loved one, etc. When you are needed to help someone or work on a problem, you don't want to be in a position of having to work full days and live paycheck to paycheck and buy your meals on a daily basis. None of them had a hard time understanding this.

Later, we got into talking about economic history, the differences between the Austrian school and Keynesians, the tremendous loss of buying power of the dollar and maintaining a store of wealth outside dollars, U.S. history contrasted with where we are today, firearms and self defense, communications, establishing and stocking bug-out locations, remaining aware of political and economic goings-on, etc.

In the case of co-workers and neighbors, sometimes they get it and run with it and sometimes they politely ignore me. None have called me nuts but who knows what they think.  I seem to have about a 50% success rate in the acquaintance realm.

Unfortunately, I do have some family out of town who are very much of the mind that the government can do no wrong and that they don't need any sort of prepping. I've tried to quietly and rationally talk with them, but to no avail. About all I can do is set aside some extra supplies for those few people but that's about it.


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## LastOutlaw

Do you live in a farming community or city or suburbs?
Ive run across those who either don't want to think about bad times or think it can't happen here.
The problem with neighbors is once you show your hand you possibly become vulnerable or a future target when they realize you were right and they were wrong.


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## bkt

LastOutlaw said:


> Do you live in a farming community or city or suburbs?


I'm outside of Rochester, NY - in the burbs but certainly not rural. There is a lot of farming around the city and I have friends who live way south of Rochester in the middle of nowhere. I didn't expect people here to be so open to the idea of self-reliance but I'm happy to be mistaken.



LastOutlaw said:


> Ive run across those who either don't want to think about bad times or think it can't happen here.


Sure, so have I. I make an effort with them one time. If they won't bite then I back off and don't talk of prepping again.



LastOutlaw said:


> The problem with neighbors is once you show your hand you possibly become vulnerable or a future target when they realize you were right and they were wrong.


Oh, I don't show my hand until they've got their own store of goodies.  I may talk about having this and that in conversation but I don't invite people into my home to show them where I store everything.


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## biobacon

Ha, you see the trick is to be so poor already that you don't notice when every one else looses so much money. Worked out great for me in 2008 and since I have a house and kids now, Im even poorer. Yep, thats PREEPER POWWWWER. 


Note, that was a joke. LOL


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## *Andi

bkt said:


> Time will have run out; there won't be any prepping at that point.


Yes, no and maybe ...

On the homestead we always have things to put by ... one way or another.

Just saying.


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## Marcus

LastOutlaw said:


> I have no sympathy for anybody who buys bonds at these levels, this isn`t sound investing, this is just pure stupidity.


I agree with this part of the article 100%.

*Anyone* who still holds bonds, _other than bonds maturing within 6 months,_ is going to take a haircut. To quote one of my favorite philosophers, "Stupid is as stupid does." Actually, the haircuts have already begun as rising yields mean falling prices for lower interest rate bonds since yields are normalized to today's rates.

*But what about the timing?*

Do I think that the Fed will raise rates this month? *No.* After an economic contraction in the first quarter, the Fed will wait until the Fall before raising rates. The markets are already prepositioned for this and the Fed is unlikely to surprise the market *with the first rate increase in many years.* The Fed isn't stupid and they realize the market is jittery over expected rate increases. Additionally, the Fed will want some resolution to the Greece issue *before* they increase rates. *The Fed will not act to make markets more volatile* especially going into the Summer doldrums.

"If Greece defaults and starts using another currency, the value of the euro is going to absolutely plummet and bond yields all over the continent are going to start heading into the stratosphere."

I don't agree. If Greece defaults, *their bonds denominated in euros* are going to plummet in value. This will be a drag on their new currency as well. *But overall, the soundness of the euro will actually go up.* Will banks holding this debt be hurt? Of course. Will some of these banks go out of business? I don't know, but banks go out of business all the time. Will the value of the euro go down relative to other currencies? In the short term, yes. But that will also make their exports cheaper and vacations in the EU cheaper. Since the EU is economically stronger without Greece, it will adjust over time.

Think of Greece as that relative who just can't get their shit together. They're always borrowing money, and they just can't seem to do well in any job. When you finally cut them off, does it hurt you financially? No. There may be some emotional pain, but it passes and you get on with your life. So it will be with the EU. Greece represents 1.3% of the total GDP of the EU and their standard of living is between Portugal and Estonia. Greece had the *worst* growth in GDP within the EU for 2005-2014 and the *highest overall unemployment* in the EU the last two years.

Will Greece defaulting affect the US stock market? Yes, we'll see a few down days. Will it cause the long awaited correction? I don't think so since only those holding Greek bonds will be directly affected. A default will likely raise borrowing costs for other EU countries already in trouble, but do you own any of these bonds? Do you know anyone who does? Do you not think that those who did got out while they could? So the ones holding these bonds *choose to do so.* That means they can afford the losses.

After the Fed finally does raise interest rates, we'll see a flood of money from Europe chasing these higher interest rate bonds which will bring down the yields.


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## bkt

*Andi said:


> Yes, no and maybe ...
> 
> On the homestead we always have things to put by ... one way or another.
> 
> Just saying.


Yes, you're right. I was referring to people just starting out.


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## Viking

bkt said:


> Our global economic system has been collapsing for years. It has been a slow process rather than a quick one, but that's not to say currency or market collapse couldn't happen quickly in the future. Prognosticators telling us "such-and-such will collapse in six days" or whatever are usually selling something.


It truly is a slow train wreck, the locomotive is over the cliff and most of the cars are still on the track, but with all the manipulation of markets going on plus the constantly increasing debt to GDP ratio, something has to give. I have the feeling that, as Jim Rickards has said, it will be the snowflake that starts the avalanche, some simple small happening that comes about that no one would give a second thought about which will put the economy in a breathtaking free fall. I'd certainly rather be prepared for whatever may come than to be caught with my proverbial pants down. Prepping at any level is certainly better than thinking with a normalcy bias that things have been bad or worse in the past, but we've gotten through it and things will be better, that just might not work so well the next time. Prep like it's going to happen tomorrow, but live like it will never happen.


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## BillS

The Fed isn't going to raise rates. They have to continue to PROMISE to raise rates as a way to convince suckers to continue to hold bonds and dollars.

It isn't just the Fed's rate announcement that's coming up. We still have the Greek default appearing imminent. I don't know if derivatives on Greek debt have already started to blow up because they did default already.

We still have Russia and China flexing their muscles and Obama continuing to provoke them. I think we're going to have World War III. Possibly very soon. 

What's happening with Jade Helm? We're seeing the biggest military drills on US soil since World War II. In some cases they're the biggest in American history. Are they training to fight a new war in Europe? Or is it totally a preparation for martial law? Why else would they be practicing dissident extractions and blending in with the local American population? A mix of white, black, and hispanic soldiers would be recognised around the world as being Americans.

The big questions obviously are when and why. Is ISIS going to nuke a US city? Is the dollar going to crash? Will it be triggered by an economic collapse? Will police shootings of black criminals trigger rioting in big cities around the country? 

The fourth consecutive blood moon on a Jewish feast day will happen in September. I wonder if something big in the history of Israel and/or the Israelites will happen then. 

I hate to say it but I see so much that could be about to happen that I don't see how we get out of 2015 without a collapse. 

Regardless of what happens and when, I want to continue to stay prepped. Keep as much cash out of the banking system as possible. Avoid big unnecessary purchases.


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## Magus

Man, I've been watching this high roller poker game since I got here, 
here is the ONE TRUE way to tell it's here:

Bankers and millionaires are shooting themselves in the face, en mass, on a daily basis!
Drinking bleach, cramming their Lamborghinis into walls at 200 MPH and basically filling bucket lists in most perverse fashion.
Seen any of that? neither have I. I call Bull Sh1t.


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## hiwall

Who knows what will happen. I do think something big and bad will happen in the fairly near future though. Let's say within a year or two at the outside.


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## BillS

Magus said:


> Man, I've been watching this high roller poker game since I got here,
> here is the ONE TRUE way to tell it's here:
> 
> Bankers and millionaires are shooting themselves in the face, en mass, on a daily basis!
> Drinking bleach, cramming their Lamborghinis into walls at 200 MPH and basically filling bucket lists in most perverse fashion.
> Seen any of that? neither have I. I call Bull Sh1t.


It's all over the alternative news but the bankers aren't committing suicide. People who know too much are being murdered.

http://www.americanthinker.com/blog/*2015/01*/who_is_killing_the_great_bankers_of_europe.html

*Following the deaths of 36 bankers last year*, 2015 has got off to an inauspicious start with the reported suicide of Chris Van Eeghen - the 4th ABN Amro banker suicide in the last few years. As Quotenet reports, the death of Van Eghen - the head of ABN's corporate finance and capital markets -"startled" friends and colleagues as the 42-year-old "had a great reputation" at work, came from an "illustrious family," and enjoyed national fame briefly as the boyfriend of a famous actress/model. As one colleague noted, "he was always cheerful, good mood, and apparently he had everything your heart desired. He never sat in the pit, never was down, so I was extremely surprised. I can not understand."

http://www.inquisitr.com/2130611/in...suicide-after-wolf-of-wall-street-type-party/

Reportedly, in wake of the "London Whale" trading scandal, a dozen or so financial professionals around the world committed suicide in 2014. It's unknown if the banker deaths are related to federal investigations and indictments.

*However, mental health professionals are puzzled over the terminal methods used; most of the suicides involved leaping from tall buildings. Moreover, many bankers did not leave behind notes to loved ones.*


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## TheLazyL

Well today is the 6th day and guess what? Financial market has not crashed. Another false "Sky is Falling" alarm.

Maybe with the new math they are teaching it's actually 7 days? Or perhaps the wrong month? 

Or NSA hacked the wrong countries mainframe...or...:ignore:


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## Marcus

One of the things most people don't consider is the relative sizes of the global bond market and the size of Greek debt. $100 Trillion versus $320 Billion. So this *huge risk* to the world banking system amounts to .32% of the total bond market.

Furthermore as I pointed out earlier, the holders of this debt *chose* to hold that debt. There are secondary markets where these bonds can be sold if a holder wishes to avoid the risks associated with these bonds. An investor will not hold an investment that will potentially ruin him financially. The point I'm making that most people don't understand is that the Greek bond holders can afford the losses. Whether it's a 50% loss or a 100% loss, *they can afford the hit.* Otherwise, they would choose not to take the risk since they'd go bankrupt.

A Greek default will unsettle the markets for a period of time. But it's not like a bunch of other countries haven't defaulted in the past. Those countries already under stress due to their debt load will be hit the hardest. These countries don't produce enough goods and services today or are considered to have political risks associated with their debt. *None* of these countries are any kind of economic powerhouse which is part of their problem.

But a Greek default will not take down the global bond market since there isn't enough leverage on such a tiny percentage of the total market. But, but, but what about all those financial derivatives? Won't some of those be affected? Yes, but it's still a tiny percentage of the total market. Do you own any of these Greek financial derivatives? Or do you know anyone who does? No. It gets back to what I said earlier about the holders of these derivatives being able to absorb the losses. Otherwise they wouldn't invest in them.


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## LastOutlaw

TheLazyL said:


> Well today is the 6th day and guess what? Financial market has not crashed. Another false "Sky is Falling" alarm.
> 
> Maybe with the new math they are teaching it's actually 7 days? Or perhaps the wrong month?
> 
> Or NSA hacked the wrong countries mainframe...or...:ignore:


LazyL, keep in mind that the powers who have this system propped up will continue to do whatever they think they need in order to keep the ponzi scheme running so they can continue to suck money out for themselves. You will probably see lots of dates come and go but the situation will continue to deteriorate until at some point they can't control it.

More and more flags that I have been watching for continue to happen and the system continues to get more and more hokey.

I keep watching to see if possibly I'm wrong and things are fixable or will get better but these flags keep popping up and telling me I am right to continue to prepare.

This cake walk goes on and on but the chairs are disappearing quickly.

Marcus, I think a good bit of the concern about Greece is other countries following suit and leaving the Euro as well. This could cause the crash of the Euro.


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## hiwall

Marcus, I have little doubt that what you said above is correct. There is an added factor and that is the 'scare factor' which might make a greek exit cause more of an impact than it really should. In and of itself Greece is not a big deal but I suppose it might be just another straw added to the camel's back or another pebble added to an already very shaky stack.


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## Magus

BillS said:


> It's all over the alternative news but the bankers aren't committing suicide. People who know too much are being murdered.
> 
> http://www.americanthinker.com/blog/*2015/01*/who_is_killing_the_great_bankers_of_europe.html
> 
> *Following the deaths of 36 bankers last year*, 2015 has got off to an inauspicious start with the reported suicide of Chris Van Eeghen - the 4th ABN Amro banker suicide in the last few years. As Quotenet reports, the death of Van Eghen - the head of ABN's corporate finance and capital markets -"startled" friends and colleagues as the 42-year-old "had a great reputation" at work, came from an "illustrious family," and enjoyed national fame briefly as the boyfriend of a famous actress/model. As one colleague noted, "he was always cheerful, good mood, and apparently he had everything your heart desired. He never sat in the pit, never was down, so I was extremely surprised. I can not understand."
> 
> http://www.inquisitr.com/2130611/in...suicide-after-wolf-of-wall-street-type-party/
> 
> Reportedly, in wake of the "London Whale" trading scandal, a dozen or so financial professionals around the world committed suicide in 2014. It's unknown if the banker deaths are related to federal investigations and indictments.
> 
> *However, mental health professionals are puzzled over the terminal methods used; most of the suicides involved leaping from tall buildings. Moreover, many bankers did not leave behind notes to loved ones.*


Oh yes. I've followed those too. not overly concerned, it could just as easily be over the Greeks. besides, anyone who puts all their eggs in one basket is dumb.I'd put more into dried foods and ammo myself.screw bonds.


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## Marcus

LastOutlaw said:


> Marcus, I think a good bit of the concern about Greece is other countries following suit and leaving the Euro as well. This could cause the crash of the Euro.


The other side of that is Greece leaving could propel Denmark, Sweden, or the UK to join the monetary union after the weak sisters leave. As I mentioned before, the loss of Greece is no large matter. Their economy is only about 6% the size of Germany's economy.

For all intents and purposes, Germany is the Euro. Since they're a founding member, I don't think they'd leave. The same reasoning goes for Italy and France.

I really only see Spain, Cyprus, and Portugal as other possible candidates to leave. Cyrus has already paid the price so I doubt they'll leave especially since their economy is so dependent on European tourism.

The Baltic States look west as a foil to Russian aggression and dominance. I doubt they'd leave due to political considerations. The rest of Eastern Europe hasn't adopted the Euro yet with the exceptions of Slovakia and Slovenia.

Political considerations along with economic considerations drive the countries of the Balkans and Eastern Europe. They felt the Russian boot for 40+ years and are therefore unlikely to want to return to Russian dominance.

I just don't see a stampede for the door if Greece exits the Euro or the EU. There's still a 2 year waiting period (max, it depends on negotiations) if and when Greece announces they're leaving. If the Greek government is stupid enough to announce they're leaving, *all economic assistance* would immediately stop. So they would default very quickly and then have to suffer through 2 years of no help before they could leave. Do you think the Greek government would survive more than a few weeks?


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## hiwall

> all economic assistance would immediately stop.


With the exception of possible assistance from Russia. Or who knows maybe even China might have a use for Greece so they could have a presence in Europe.


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## Magus

All this time I notice not one shed tear for all the microbiologists who've died under 
"strange circumstances" THAT is unsung news. How about all the generals who
"suddenly retired"? maybe all the old school newscasters just "going away" lately?
A symptom only indicates a problem, not the whole of the malady.


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## Marcus

hiwall said:


> With the exception of possible assistance from Russia. Or who knows maybe even China might have a use for Greece so they could have a presence in Europe.


Possibly. Both are in the top 5 of trading partners for importing stuff to Greece. The issue is Greek imports are ~160% of their exports.

China is already expanding one Greek port and has intentions to create a New Maritime Silk Road that includes bypassing the Suez Canal by using a railroad through Israel.

http://www.worldpoliticsreview.com/...uts-china-s-mediterranean-plans-back-on-track

Somehow I don't think the Greek PM is going to get any money from China though...

"The new leftist government of Prime Minister Alexis Tsipras in Athens had initially announced plans to halt the privatization of Greece's largest seaport, Piraeus, alarming investors from the Chinese shipping giant Cosco, which is keen to take a majority share in the Greek facility. But as part of the four-month bailout extension reached earlier this week between Greece and the so-called troika made up of the European Commission, the European Central Bank and the International Monetary Fund, Greece has reversed course and will go ahead with previously agreed-upon privatizations, including Piraeus."

The funny thing is I tried to figure out what use China could possibly have for Greece, and the only thing I could think of was for them to develop a port to cut sailing times for their goods going through the Suez Canal. So I searched and found I thought of this idea about 10 years *after* those crafty Chinese did.  And they decided to bypass the canal to boot.


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