GLOBAL FINANCIAL CRISIS: 1.29.22 - We Are Being Warned That A Horrifying STOCK MARKET CRASH Which Could Wipe Out Trillions Has Now Begun

We Are Being Warned That A Horrifying STOCK MARKET CRASH Which Could Wipe Out Trillions Has Now Begun- by Michael Snyder - https://www.raptureready.com/2022/01/23/they-dont-see-it-coming-by-daymond-duck/ What would our country look like if an epic market crash suddenly wiped out 35 trillion dollars in financial wealth? You may not want to think about something so horrible,but we are being warned that it could soon happen. Stock prices have been falling for three weeks in a row, and last week was the worst week for U.S. stocks in a really, really long time. The S&P 500 is now down more than 8 percent from the peak of the market,and the tech-heavy Nasdaq is already in correction territory. At this point, the Nasdaq is off to its worst beginning to a year in decades, and many are extremely concerned about what is coming next. In fact, Bank of America is warning that all hell breaksloose if the Nasdaq closes below 14,000. Hopefully that won’t happen this week. But it might. Last week, one of the most respected names in the financial world made headlines all over the globe when he warned that the stock market crash which has now begun will endthe “superbubble” that Wall Street has been enjoying for so many years… Jeremy Grantham, the famed investor who for decades has been calling market bubbles, said the historic collapse in stocks he predicted a year ago is underway and even interventionby the Federal Reserve can’t prevent an eventual plunge of almost 50%. In a note posted Thursday, Grantham, the co-founder of Boston asset manager GMO, describes U.S. stocks as being in a “super bubble,” only the fourth of the past century.And just as they did in the crash of 1929, the dot-com bust of 2000 and the financial crisis of 2008, he’s certain this bubble will burst, sending indexes back to statistical norms and possibly further. According to Grantham, there have been five other “superbubbles” and they have all ended badly… He noted that US stocks have experienced two such “superbubbles” before: 1929, a market fall that led to the Great Depression, and again in 2000, when the dot-com bubbleburst. He also said the US housing market was a “superbubble” in 2006 and that the 1989 Japanese stock and housing markets were both “superbubbles.” “All five of these superbubbles corrected all the way back to trend with much greater and longer pain than average,” Grantham wrote. We should give some credit to the “geniuses” at the Federal Reserve for keeping the party going for as long as they have, but by inflating this bubble to such an absurdsize they have set the stage for a meltdown that will be unparalleled in our entire history. As I have warned so many times over the years, stock valuation ratios always return to their long-term averages eventually. If they were to fall just two-thirds of the way to historical norms, Grantham says that wealth losses in the U.S. “could total $35 trillion”… “For the first time in the U.S. we have simultaneous bubbles across all major asset classes,” said Grantham, co-founder of investment firm GMO, in a paper Thursday. He estimatedwealth losses could total $35 trillion in the U.S. should valuations across major asset classes return two-thirds of the way to historical norms. If this actually happens, it will result in an economic horror show that will be unlike anything we have ever seen before in all of U.S. history. And it was all set up by the Federal Reserve and our extremely irresponsible politicians in Washington. But hopefully stock prices will bounce back up a bit this week and we will have some more time before the really big crash arrives. Because once it gets here, nothing will ever be the same again. When the S&P 500 fell below its 200 day moving average last week, that freaked a lot of people out. To many investors, that was a clear sign that it was time to leave the party. Tech stocks were the poster children for the seemingly endless stock market rally, and now they are starting to lead the way down. In fact, the tech-heavy Nasdaq fell more than 1 percent during every single trading session last week. The last time that happened was during the implosion of the “dotcombubble”… To wit, the Nasdaq 100 just did something it hasn’t done since the aftermath of the internet bubble: fall more than 1% in every session of a week. It doesn’t count as asuperlative because Monday was a holiday. But for investors caught up in the selloff, it felt like something shifted. A full week of big down days hasn’t happened since the dot-com bubble burst, first in April 2000 and then in September 2001. Back then, the Nasdaq went on to fall another28% before the market bottomed roughly a year later. Thanks to disappointing subscriber numbers, Netflix was a tech stock that was hit particularly hard… Netflix shares fell 21.8% Friday after the company quietly admitted in its fourth-quarter earnings that streaming competition is eating into its growth. It marks Netflix’sworst day since July 25, 2012, when shares fell 25%. It’s also its worst week since July 27, 2012, when the stock fell about 28%. And Amazon was another tech stock that really got hammered… Shares of Amazon fell 12% for the week, as a broader market sell-off pressured technology stocks. It marks Amazon’s worst one-week performance in four years, since Dec. 21, 2018, when the shares fell 13.4%. If you can believe it, Jeff Bezos actually saw the size of his fortune shrink by 20 billion dollars last week. Ouch. Could you imagine losing that much money in a single week? Bitcoin investors are feeling a lot of pain right now as well. At this point, the price of Bitcoin is down more than 50 percent from the record high in November… Bitcoin extended its decline on Saturday, and has shed more than 50% from its record high in November while adding further momentum to the meltdown in cryptocurrencies. But this isn’t the end of the party on Wall Street. This is just the beginning of the end. Unless there is some sort of an unexpected trigger event, I think that it is likely that we will get some sort of a bounce this week. Of course nobody should take a bounce as a sign that the pain is over. Ultimately, Grantham is quite correct that our “superbubble” is going to spectacularly burst. Theonly question is the timing. Once the inevitable implosion takes place, things will start to change in this country at a pace that is absolutely breathtaking, and nothing will ever be the same again. ------------------- Two Shortages That Threaten To Absolutely Eviscerate The Global Economy In 2022- by Michael Snyder - http://theeconomiccollapseblog.com/two-shortages-that-threaten-to-absolutely-eviscerate-the-global-economy-in-2022/ This was supposed to be the year that things �got back to normal�, but here we are at the end of January and things have only gotten worse. As we move forward into Februaryand beyond, there are two key global shortages that we are going to want to keep a very close eye on. One of them is the rapidly growing fertilizer shortage. A few days ago, the Wall Street Journal ominously warned that �high fertilizer prices are weighingon farmers across the developing world�� From South America�s avocado, corn and coffee farms to Southeast Asia�s plantations of coconuts and oil palms, high fertilizer prices are weighing on farmers across thedeveloping world, making it much costlier to cultivate and forcing many to cut back on production. That means grocery bills could go up even more in 2022, following a year in which global food prices rose to decade highs. An uptick would exacerbate hunger�already acutein some parts of the world because of pandemic-linked job losses�and thwart efforts by politicians and central bankers to subdue inflation. According to the International Fertilizer Development Center, exceedingly high fertilizer prices could result in a reduction of agricultural output in Africa alone �equivalentto the food needs of 100 million people�. So this is a really, really big deal. And this crisis is going to deeply affect us here in the United States too. The following comes from a recent piece authored by U.S. Senator Roger Marshall� It�s no secret farmers are faced with a fertilizer crisis. Prices for phosphorus-based and potassium-based (potash) fertilizers have more than doubled in Kansas while Nitrogen-basedfertilizers have more than quadrupled. Fertilizer is vital to feeding not only the country, but the world. It contains essential nutrients for plant life, and without it, American agricultural yields will quickly suffer as well as food prices in local grocerystores. As I discussed the other day, these crazy prices for fertilizer are going to make it impossible for many U.S. farmers to profitably plant crops this year. That means that a lot less food is going to be grown. On the other side of the world, the North Korean government is asking their citizens to start creating �homemade� fertilizer from their own waste� State-run media has also been encouraging people to make �homemade� manure, The Daily Beast reported. A source in North Hamgyong Province told Daily NK that residents hadstarted �producing fertilizer from human waste� after authorities launched a 10-day drive to increase production. Perhaps U.S. citizens should give this a try, because a lot of us are certainly full of crap. The other major shortage that I want to highlight in this article is the ongoing computer chip shortage. According to a report that was just put out by the Department of Commerce, chip inventories around the nation have become dangerously thin� Today, the U.S. Department of Commerce released the results from the Risks in the Semiconductor Supply Chain Request for Information (RFI) issued in Sept. 2021. Key findingsfrom the report provided data-driven information about the depths of the semiconductor shortage and underscored the need for the President�s proposed $52 billion in domestic semiconductor production. The RFI showed that median inventory held by chips consumers (including automakers or medical device manufacturers, as examples) has fallen from 40 days in 2019 to lessthan 5 days in 2021. If a COVID outbreak, a natural disaster, or political instability disrupts a foreign semiconductor facility for even just a few weeks, it has the potential to shut down a manufacturing facility in the U.S., putting American workers andtheir families at risk. At this point, computer chips used to produce automobiles and medical devices are particularly in short supply. In a blog post, Commerce Secretary Gina Raimando explained that a lack of chips resulted in �$210 billion in lost revenue� for automakers in 2021� �In 2021, auto prices drove one-third of all inflation, primarily because we don�t have enough chips,� Raimando wrote in her blogpost. �Automakers produced nearly 8 millionfewer cars last year than expected, which some analysts believe resulted in more than $210 billion in lost revenue.� If there is additional disruption to chip production this year, 2022 could easily be even worse. Many may wonder why we just don�t plop down a bunch of factories and start pumping out more chips. Unfortunately, it isn�t that easy. Chip factories take a very long time to build, and we are being warned that it could take �until 2023� before things return to normal� But industry executives aren�t optimistic that the funding would help alleviate the crisis, the Washington Post reported. They argued federal funding could help build upthe long-term supply of chips but wouldn�t help in the short term because chip factories take years to build. Chip consumers that were surveyed by the department similarly estimated that shortages wouldn�t go away in the next six months, and some suggested it could take until 2023. We should have never become so dependent on chip production in Asia. Today, Taiwan accounts for a whopping 63 percent of all computer chip production in the world� The majority of chip factories are currently based in Asia, which houses about 87% of the market share of semiconductor factories (with Taiwan alone accounting for some63%), separate industry data indicates. The political climate in the region, and tensions between Taiwan and China, has come under renewed scrutiny as the shortage has exposed how much U.S. industry relies on these sources. So what is going to happen to our economy if China invades Taiwan and our main supply of computer chips gets completely cut off? I have been warning for years that military conflict with China is coming, and now we are closer than ever. What is our economy going to look like if a Chinese invasion of Taiwan this year instantly puts us into a state of war with the Chinese? How in the world will we even be able to function as a society? You might want to start thinking about such questions, because what was once �unimaginable� threatens to become reality in 2022. ----------------------- The Lessons of History - The Price of Bread Can Bring Revolution � Simon Black - https://www.prophecynewswatch.com/article.cfm?recent_news_id=5184 On the morning of October 5, 1789, dozens of women were looking for food at an outdoor market in the Faubourg Saint-Antoine neighborhood of Paris. But the store shelves were nearly empty. Bread in particular- a staple of the French diet- was in critically short supply. And what little bread the shops did have availablewas being sold for sky-high prices. This was nothing new for French peasants; the government had mismanaged the economy so poorly that food supplies had been falling (and bread prices rising) for several years. There had even been food riots and protests going back more than a decade to the mid 1770s. But the situation only worsened. People finally reached their breaking point that October morning in 1789, when a single young woman standing in corner of the marketplace began beating a drum, signalingthe other women that it was time for another protest. As they marched through the streets, more and more supporters joined, with some estimates as high as 10,000 people. Their first stop was City Hall in Paris, located at the Hotel de Ville; there, officials opened grain reserves to feed the protesters. But the mob's anger wasn't quenched. At this point they didn't just want bread, or even a single meal. They wanted revolution. So from there they set out to Versailles, the King's palace outside of Paris. It took them about six hours to reach Versailles, where, that evening, King Louis XVI met personally with some of the protest leaders. He made promises to give them more food, then later announced that he would voluntarily relinquish some of his power and accept a new bill of rights for the French people. But the crowd still wasn't satisfied. So around 6am the following morning, the protesters decided to enter the palace. Royal guards barely resisted this insurrection; they shot one protester, and one guard waskilled. But for the most part, people were easily able to access the inside of the palace where they freely wandered the halls as if enjoying a museum tour. By 1pm the protesters' leadership had found the king and demanded that he accompany them back to Paris. He agreed. The march back took roughly 9 hours, and it had the feeling of a parade. The crowd (which had grown to 60,000 by that point) was overjoyed, because it was clear that theKing was at their mercy. And they were the ones in control. There are so many similar examples throughout human history, and they all lead to the same conclusion: don't screw up the food supply. Politicians can get away with an astonishing level of corruption and incompetence, and their citizens will tolerate it. But if enough people struggle to put food on thetable for their families, trouble is coming. Any politician with half a brain understands this lesson. Sadly it's not clear if the people in charge today even have half a brain. Inflation has been rising for nearly a year. None of the so-called experts saw it coming. Even when inflation was obvious, their approach was to gaslight people and denyit. Then they told us that inflation was "transitory". Then when they finally admitted it was a problem, they said they'd consider doing something about it in a few months. After its two-day meeting this week, officials from the Federal Reserve are expected to announce that they're FINALLY going to take some action to combat inflation... inMARCH. So just sit tight another month and a half. Unfortunately, any action the Fed takes at this point is "too little, too late". Today's inflation is the result of a number of factors- demand, supply, and money. On the demand side, the federal government literally deposited cash in people's bank accounts, fueling a surge in consumer spending. Yet on the supply side, they closed businesses, told people to stay home, and compelled companies to fire millions of heretical workers. The end result is fewer goods and services being produced, at a time when people have more money to spend and the appetite to do so. This is what has caused rising prices. Yet on top of this mess, the Federal Reserve has been supercharging inflation by shoveling money into the US economy by the trillions. Now they're promising to reduce their money printing and promise to have a few tiny, symbolic interest rate increases. Sorry, but this won't really move the needle, especially when it comes to food. Most people would be surprised at how labor intensive agriculture is. Certainly there are a number of crops (especially grain) that are fully mechanized throughout the entireprocess- planting, maintenance, harvest, and distribution. But many key food products require significant manpower at some point in the chain. Meat, for example, is very labor intensive because of the number of people required to run a pack house operation. And many staple fruits and vegetables require an army of harvest workers to hand pick the produce. So now, because of Covid (and the government response to Covid) pack houses in the US are struggling to maintain staff. And finding enough harvest workers in America hasbecome borderline impossible. There's also a major problem in US agriculture that so many farm costs, from fertilizers to fuel to even packing materials (like cardboard and plastic containers) are soaring.And these costs are all obviously passed on to consumers. Container ports also continue to be a major bottleneck, as meat, fruit, vegetables imported from overseas are literally rotting off the coast of California. Increasing interest rates by 0.25% is not going to fix any of these issues. It won't clear the ports, and it won't bring the workers back. Fortunately it's not 1789 anymore. And even though capitalism is on the ropes, there's enough of it remaining for now to prevent dire food shortages. Talented people around the world are working very hard to ensure that quality food is being grown and delivered to consumers, despite every obstacle the government putsin their way. So I'm not suggesting that food riots are imminent. But rising prices? Absolutely. And that's going to have serious implications for political leadership. It's interesting that the French Revolution is typically considered to have begun on July 14, 1789; that's the day that revolutionaries stormed the Bastille armory in Paris.And its anniversary remains one of the most important national holidays in France today. But back in 1789, the response to the storming of the Bastille was fairly tame. Thomas Jefferson, for example, was coincidentally stationed in Paris in the summer of 1789 and witnessed everything. He wrote to John Jay on July 19th, just five days after the storming of the Bastille, "Tranquillity is now restored to the Capital: the shops are again opened; the peopleresuming their labours, and, if the want of bread does not disturb our peace, we may hope a continuance of it." So even Jefferson, who was incredibly astute, didn't think that the storming of the Bastille was the start of a full blown revolution. It was only until three months later, when an angry mob had literally taken control of the King, did everyone realize the truth: people want change, and they're not messingaround. And it all started because of the price (and scarcity) of bread. VISIT: PROPHECY WATCHER WEEKLY NEWS: HTTP://PROPHECY-WATCHER-WEEKLY-NEWS.BLOGSPOT.COM