The Quiet Before The Storm

I remember like it was yesterday in August 2015 during a quiet two hour drive back home from a job in the western part of my state. I was relaxing and catching up at around 830 PM and listening to CNBC Asia on my satellite radio. They were a little more animated that night with the Chinese Yuan devaluation just announced and the effects on the Asian markets. China futures I recall were taking a drubbing and were going to open within the hour. They exchanged comments on the effects this announcement seemed to be having on global futures and how many points the U.S. markets futures were crashing. 

We were 6 years into the manipulation of global markets so I assumed this was another beta test that would be resolved with little fanfare by morning when the New York markets opened. For some reason which remains unclear, they allowed New York to open 1000 points down before cutting off the carnage. Eventually markets stabilized over the next few weeks after three chemical plants in China were destroyed by “explosions”. China’s markets were essentially nationalized with most stocks being closed to trading or closed to “buy only” orders. Of course our press dismissed this as just normal market stabilization antics and pronounced our markets normal too.

At this point we were in a confirmed technical major Bear market but with almost no commentary on the mainstream media of this important fact. Within a few weeks the algobots returned the market to a “comfortable” trading range and life seemed somewhat normal for us. However the damage had been done to some very big players and by December people like Dalio, Druckenmiller, and Soros announced they had taken Gold positions in the paper gold market and gold mining shares. Over the next 8 months a lot of money was made in these shares, before the profit taking was begun in earnest. 

Why did China do what they did with the Yuan? No one talks about it now, but it told me that when the change comes in the global monetary order, it just might be without a lot of warning. I don’t think its theater when warning bells are being sounded again by the Dalios and Drucknemillers. You better listen to the big money. They see something they don’t like out there and they didn’t make their bones by being chicken littles. It ain’t “all good”. Its actually a lot worse now than 2015. Does that mean its going down in the next week or two? Obviously no one can predict that, but I would pay attention to this calm. You always look up at the calm before the storm. It might save your life.