The devaluation of the yuan by China this week triggered the largest one day drop for that currency in the modern era, causing global currencies to crash relative to the U.S. dollar as stock markets all over the world were rattled with the Dow falling 212 points on Tuesday, and Apple stock plummeting another 5 percent.
Since the Chinese have devalued their currency, other nations that rely on exports are indicating that they plan do the same thing creating the prospect for a global “currency war.” The surging U.S. dollar is now putting an extraordinary level of stress on emerging markets nations as Emerging Market stocks just hit a brand new four-year low on Tuesday. The last three times Asian currencies collapsed against the U.S. dollar at this rate, the global financial system was shaken to the core.
Also, this is the very first time that the 50-day moving average for the Dow has moved below the 200-day moving average in the last four years. This is known as a “death cross,” and it is a very troubling sign. The only other times in history we’ve seen more than 50 split days during the past year were March 1968, August 1972, October 2000 and July 2006.
After all four of those, stocks lost more than a third of their value at some point during the next two years.
In regards to the credit markets, High-Yield Bonds have been “Extremely Overvalued” for the longest period ever. For U.S. stock investors have lost touch with reality, as Bloomberg reports, the collapse in high-yield bonds “is something that sooner or later is going to impact the stock market.”
Against this backdrop, Bill Holter included a long list of ominous financial warnings that were issued over the year by either the IMF or the Bank for International Settlements that has recently warned the world is unable to fight the next global financial crash because central banks have spent everything in their reserves to overcome the last meltdown in 2008.
- July 2014 – BIS –BIS Issues Strong Warning on “Asset Bubbles”
- July 2014 – IMF –Bloomberg: IMF Warns of Potential Risks to Global Growth
- October 2014 – BIS –”No One Could Foresee this Coming”
- October 2014 IMF Direct Blog — What Could Make $3.8 Trillion in global bonds go up in smoke?
- October 2014 IMF Report –”Heat Wave”-Rising financial risk in the U.S.
- December 2014 – BIS –BIS Issues a new warning on markets
- December 2014 – BIS —BIS Warnings on the U.S. Dollar
- February 2015 – IMF – Shadow Banking — Another Warning from the IMF – This Time on “Shadow Banking”
- March 2015 – Former IMF Peter Doyle – Don’t expect any warning on new crisis
- April 2015 IMF – Liquidity Shock –IMF Tells Regulators to Brace for Liquidity Shock
- May 2015 BIS – Time to Think about New Global Rules of the Game?
- June 2015 BIS Credit Risk Report
- June 2015 IMF (Jose Vinals) –IMF’s Vinals Says Central Banks May Have to be Market Makers
- June 2015 (UK Telegraph) –The world is defenceless against the next financial crisis, warns BIS
- July 2015 – IMF – Warns US the System is Still Vulnerable
- July 2015 – IMF – Warns Pension Funds Could Pose Systemic Risk to the US
Jonathan Cahn, author of The Harbinger and The Mystery of the Shemitah, says “We are now approaching the month of the Shemitah.” Cahn stunned millions across America and the world with the mysteries revealed in his New York Times best-seller The Harbinger. His books uncovers and reveals a new realm of astonishing biblical mysteries which foretold the destruction and fall of great civilizations, economic recession and financial collapses. In the “Shemitah,” Cahn reveals that judgment comes to a backslidden nation in accordance with a seven-year cycle that correlates with the Hebrew calendar.
In Leviticus 25, God commanded the Israelites to observe a Sabbath year once every seven years in which they would let their land lie fallow:
25 Then the Lord spoke to Moses on Mount Sinai, saying: 2 Speak to the children of Israel, and say to them: When you come into the land that I give you, the land shall keep a sabbath to the Lord. 3 For six years you shall sow your field, and six years you shall prune your vineyard and gather in its fruit,4 but in the seventh year there shall be a sabbath of complete rest for the land, a sabbath for the Lord. You shall neither sow your field nor prune your vineyard. 5 That which grows by itself from your harvest you shall not reap, nor gather the grapes of your unpruned vines, for it is a year of complete rest for the land. 6 The sabbath produce of the land shall be food for you: for you, and for your male and female servants, and for your hired servant, and for your stranger who sojourns with you, 7 and for your livestock, and for the wild animals in your land, shall all its increase be food.
While in Deuteronomy 15, God instructed the Israelites to cancel debts in line with this same seven-year timetable:
15 At the end of every seven years you shall grant a relinquishing of debts.2 This is the manner of the relinquishing: Every creditor that has loaned anything to his neighbor shall relinquish it. He shall not exact it of his neighbor, or of his brother, because it is called the Lord’s relinquishment.
The Shemitah year was also called the year of “release” in biblical times because the land was allowed to rest and the financial accounts were wiped clean once every seven years. Chan states that the seven-year cycles can manifest as blessings as long as a nation follows the will of God. But for those nation’s that stray from God’s law, the Shemitah can bring severe judgment, often striking in the financial realm of a nation with severe political implications.
Fourteen years ago, on September 17th, 2001, which was Elul 29 on the Jewish calendar, the Dow Jones fell an astounding 684 points. At the end of the next Shemitah year, seven years later, on September 29th, 2008, which was Elul 29 on the Jewish calendar, the Dow Jones again plummeted 777 points, which still today remains the greatest one day stock market crash of all time!
The period from September 2014 through September 2015, is a most crucial time on the biblical calendar, for according to Cahn a new Shemitah cycle starts this September 13th and it’s actually the culmination of a 50 year cycle — a kind of super-Shemitah, and it will run through September 2016. According to Cahn,
“On September 13th 2015, the Shemitah reaches it peak on Elul 29, the Day of Nullification, when all debt and credit are wiped away.”
What is interesting to note for astrologers is that there will also be a Partial Solar Eclipse on September 13th, 2015. Over the past century, there have only been two other times when a Solar Eclipse has corresponded with the end of a Shemitah year. Those two times were in 1931 and 1987, and both foreshadowed market panics and major financial corrections.
As we head toward the Shemitah’s climax the Barbault Planetary Cyclic Index continues its precipitous downward plunge, descending 494 points from its peak in May 2014 at 994 to 500 in March 2022, as the Uranus-Pluto Archetypal Complex continues to constellate on the world-stage, indicating that we are lining up perfectly for a global financial crisis and a major depression beginning in the fall and winter of 2015.
Even Gerald Celente, who has had a long track record of making some of the most controversial, yet correct calls in terms of global trends and events, just a few days ago told Eric King the following:
“I’m now predicting that we are going to see a global stock market crash before the end of the year.”
Celente says that it won’t just be U.S. stocks either. He believes that crashes are also coming to “the DAX, the FTSE, the CAC, Shanghai, and the Nikkei.” In other words, it is going to be a truly global financial crisis and he says that there is “going to be panic on the streets from Wall Street to Shanghai and from the UK down to Brazil”.
Conclusion: Both the secular indicators and the mundane astrological portents are screaming that we are heading toward a Deflationary Implosion that will initiate the process of a Full-Blown Global Collapse by the end of the decade. Therefore we can expect powerful shocks to occur in the system resulting in drastic changes in financial positions, along will titanic geopolitical power plays, accelerating market volatility, major market corrections, bank panics, and often sudden and large-scale economic failure. Also during the weeks ahead we can expect excessive rationalization by the talking heads of the mainstream financial news media, and unprecedented proclamations by governments and their respective leaders, to prevent the loss of credibility with the general populace, as unexpected “volcanic shocks” to the global system continue to accelerate and intensify.
POST UPDATE: 8/21/2015 The DOW is down more than 1300 points from the peak of the market as we continue moving toward the Shemitah’s climax.