Doomer Doug, a.k.a. Doug McIntosh now has a blog at www.doomerdoug.wordpress.com
My end of the world e book “Day of the Dogs” will soon be available for sale at smashwords. The url is
https://www.smashwords.com/books/view/267340 It is also at the following url
I think what we saw today, with the so called “computer glitch” on the New York Stock Exchange, was the first openly visible, well documented cyber attack on the USA. China has been unleashing multiple cyber attacks for the last several years. I think China is seriously angry about the Stock Market chaos now underway in China. China also thinks the collapse in her stock markets is the fault of various “foreigners.” The link below explains the official Chinese government viewpoint.
Sinister forces are at work in China’s stock market, according to at least one “non-biased” Hong Kong newspaper.
To be sure, one might well be tempted to suspect that the inevitable unwind of a completely unsustainable (and by many measures, entirely insane) margin mania is to blame for the brutal selling that has, over the course of just three weeks, cost Chinese shares some $3.5 trillion in market value. But you’d be wrong, according to Ming Pao.
Instead, the paper says, the same nefarious speculator who famously broke the BOE now has his sights set on bankrupting illiterate Chinese farmers.
Doomer Doug reads that and starts to think the Chinese government, already on a path towards open warfare with the USA over multiple issues in the South China sea, is now doing more than talking. After all, now that China is openly saying, in no uncertain terms, it regards the recent stock collapses as part of a foreign plot to destroy China’s economy. And yes, my last post explained why China is now in severe economic trouble.
What we have seen today is the opening phase of a cyberwar between the USA and China. The “computer glitch” at the NYSE can only be viewed in one of two ways. The first is it was an intentional shutdown by oligarchs running the USA to prevent a value collapse deriving from the Greek crisis. The Greek crisis I will compared to the little boy who not only pointed out the Emperor had no clothes, but not to be too crude, let’s just say he was not well endowed. The Greeks have now shown the world the EU really is the farce it has been from the very first day. They have shown the world the debt is not going to be paid. After that, the real deluge starts.
The Greek crisis, especially when combined with the Chinese crisis, is causing people to ask the fatal question. The fatal question involves not the return of profit. It asks if the investor can get his or her PRINCIPAL BACK. And Doomer Doug has to say that one question will be the death knell of our global, debt soaked system. The SEVERAL HUNDRED TRILLION IN DERIVATIVE DEBT IS NOW IN PLAY. The reason it is now “in play” is investors have now concluded they won’t get their money back at all, much less make a profit.
The economic situation is like a third world coastal ferry when everybody rushes to the port side. The ferry tips over and a lot of people drown. What the Chinese government doesn’t get is most investors in China now want to get out of the stock market at all costs.
I know how all this will end. I don’t know the time frame. I will say the shut down of the NYSE is going to call into question the basic ability of the entire global stock markets to function. China, well China is in the early phase of a debt implosion. The implosion is based on corruption, incompetence and greed. I think the same thing would happen in the USA if ever an audit was held to determine whether the Federal Reserve really had any gold in the Fort Knox vaults.
Our entire global economic system is based on debt. The debt is now so vast it is well beyond being paid back. The US federal government would have to cut spending by several hundred billion dollars a year just to stop going into more debt. The idea the US government will ever pay off the 17 TRILLION in debt is delusional. I may post an essay I wrote a while back explaining why the US will default on its debt.
I am telling you the best explanation for the NYSE computer glitch is the oligarchs shut down the system to prevent a cascading debt failure. The worst is China just unleashed a massive cyber attack on the USA. I don’t find either of the two options to be a positive result.
Keep your powder dry; keep your weapons close to you. We are entering a period well beyond interesting.