Global financial markets are starting to collapse, it is not simply China, though China is clearly the last stop in the game of credit roulette, but the underlying nature of the coming implosion is systemic to the entire architecture of the finance capitalism that drove the economies of the past century.
Marx was correct, or perhaps Hegel more accurately, there is a dialectical process at work in historical evolution, certainly so in the underlying dynamics of the socioeconomic substrate that supports a major eras patterns of economic activity. In order to have the conflicts of this era’s capitalism become the poisonous drought that kills the system that birthed it, it was required that the last to accept the Anglo-Saxon model become saturated, bloated with debt and massive misallocation of capital. Capital allowed by a system perpetuated by untenable flows of bank created paper.
China is that last domino needed to be in place for the glaring intrinsic fallacies of perpetual expansion built on a house of credit to lead to global revulsion and repudiation. China was infected with our credit boom-bust finance, their economic weakness and inevitable social unrest is a direct import of the Anglo-Saxon model which America has been the world wide spearhead.
The era of credit finance capitalism is coming to an end, though very few will see this, for we have all been almost genetically imbued with the Anglo-Saxon meme of perpetual wealth built on consumption beyond our means as a right. A right only executed through the generous compliance of finance capital’s creative ingenuity at devising mechanisms requiring ever more leverage until the world is satiated with excess goods capacity, matched only by the debt instruments to which a global eraser has, despite what we have been told, been taken to reduce the massive obligations that will be destroyed before this collapse is over.
- There will be war before the end of this year, at the least the end of 2017. War is the inevitable outlet for a world economy in collapse.
- The social unrest erupting in Europe is just starting.
- I remain concerned about the coming American elections, the criminals in charge of the world stage will not allow an honest man (the Hillary Clinton being among the most evil and dishonest ever to reach the halls of American power) to achieve power. It cannot happen.
- Revolt is being egged on by Obama and his ilk, it is intended for from government civic opposition, armed or not, comes the prescription of tyranny.
The Royal Bank of Scotland is telling clients that 2016 is going to be a “cataclysmic year” and that they should “sell everything”. This sounds like something that you might hear from The Economic Collapse Blog, but up until just recently you would have never expected to get this kind of message from one of the twenty largest banks on the entire planet.
Unfortunately, this is just another indication that a major global financial crisis has begun and that we are now entering a bear market. The collective market value of companies listed on the S&P 500 has dropped by about a trillion dollars since the start of 2016, and panic is spreading like wildfire all over the globe. And of course when the Royal Bank of Scotland comes out and openly says that “investors should be afraid” that certainly is not going to help matters.