China’s Plan to Exit the Fiat Stock Market Confirmed

As we have been saying all along, China is not only planning but is already executing a carefully controlled exit from the fiat system and pave the way for a return to a financial system that is backed up with a basket of tangible sovereign currencies, e.g. gold, silver, natural gas, high quality export products.

This is, of course, in line with the global wide movement to get rid of the organized crime group from controlling all economies solely for its own whims and delusions of grandeur.

The $28 Trillion Disaster

China has already dumped $100 billion of its $1 trillion of U.S. Treasuries this month and will continue to sell.  As the dollar weakens there will be a stampede by foreign investors to get rid of their Treasury holdings as well.  The combination of debt that can never be repaid and higher interest rates that no government can afford to pay will create an absolute panic in bond markets.  This will of course be very beneficial to gold, just as it was in the 1970s. KWN

China’s Crazy Month Sends Tremors Into Europe Equity Bull Case

The Euro Stoxx 50 Index had climbed as much as 22 percent this year before stalling. Then came August, which spurred a rout that wiped off as much as $8.4 trillion of equity values. Even optimism over European Central Bank stimulus wasn’t enough to keep the region’s shares afloat. Credit Suisse Group AG cut its year-end target on the Euro Stoxx 50 by 10 percent, and Goldman Sachs Group Inc. reduced its allocation to the equities.

The biggest monthly surge in volatility since 2008 spurred a rush to hedge. The cost of bearish Euro Stoxx 50 options has jumped about 50 percent since Aug. 20, relative to bullish ones. Eight of the 10 most-owned contracts are bearish. Bloomberg

So far, the ongoing covert financial war has solicited at least two major kinetic attacks against chemical storage facilities recently, one of which was confirmed to be nuclear.

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