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U.S. Markets Fear Contagion From “The China Syndrome” Meltdown

Charles Hugh Smith
January 12th, 2016
Of Two Minds
Comments (75) Read by 5,659 people

China-syndrome3

This article was written by Charles Hugh Smith and originally published at his Of Two Minds blog.

Editor’s Comment: There’s little doubt this thing could spread. It’s all interconnected globally now. If the Fed raises the temperature here, it gets hot across the globe. If China panics and runs for the exits, people watching from Wall Street will run out of their towers, too.

The animal instinct has been chained to the highly-complex computerized model, and the entire market has been rigged for some time. The process now is just squeezing to pick winners and losers as the money supply contracts, and the wild, illusory game of Russian roulette places a call on that bluff.

The China Syndrome: The Coming Global Financial Meltdown

by Charles Hugh Smith

All the phantom wealth piled up in China’s boost phase is now melting down, and the China Syndrome will trigger a meltdown in global phantom assets.

The 1979 film The China Syndrome took its name from the darkly humorous notion that a nuclear reactor meltdown in the U.S. would burn straight through the Earth to China.
(wikipedia: The China Syndrome)

In today’s world, the financial meltdown in China has burned straight through the global financial system to the U.S. financial markets. The mainstream financial media is delighted to promote the many links between the U.S. and Chinese economies when the two economies are feeding each other’s expansion in a tightly coupled virtuous cycle.

But once China’s slowdown starts impacting the American economy, the mainstream financial media trundles out the usual pundit suspects to declare that the U.S. and Chinese economies are decoupled, so a meltdown in China will have little impact on America–and vice versa.

The rationalizations for this decoupling are many–and specious. Exports are actually only 10% of China’s economy, we’re assured, so any slowdown in China will be modest and of little relevance to the U.S. economy.

Various experts also assure us that China’s vast stash of foreign reserves and U.S. Treasuries will enable it to quickly smooth over any spot of bother in its currency (RMB/yuan) resulting from capital flight out of China.

None of these rationalizations change the fact that China is integral to the global financial markets, and so its slowdown and capital flight are toppling carry trade and other risk-off financial dominoes.

China is tightly coupled to the U.S. and global economies via capital flows and supply/demand. It’s important to understand that demand drives profits on the margins: of ten sales, the first nine sales just cover production and overhead costs; only the last sale generates substantial profits.

China has provided marginal demand in everything from iron to oil to machine tools. Now that China’s demand is faltering, global demand is weakening and profits are collapsing because China provided the critical marginal demand that fueled immense profits.

This decline in marginal demand is crushing commodity-based economies and triggering recessions as profits, sales and wages all decline.

The tidal wave of cash flooding out of China has provided marginal demand for high-priced real estate in Europe and the U.S. From London flats to Chateaux in France to single family homes in Vancouver B.C. and Southern California, trillions of yuan have escaped China and flowed into pricey real estate, pushing prices into the stratosphere.

Now that trillions of yuan of phantom wealth are disappearing in China, those immense capital flows into Western assets are drying up. A staggering percentage of China’s household wealth is tied up in illiquid and overvalued real estate. The wealth that is yet to be lost as China’s markets transmit the reality that the fuel of financialization has been consumed and the resulting losses will be in the trillions of dollars, not yuan.

The fundamental context is that China’s economy has traced out an S-Curve–as have previous fast-developing nations such as Japan and South Korea.

The S-Curve can be likened to a rocket’s trajectory: first, there’s an ignition phase, as the fuel of financialization and untapped productive capacity is ignited.

The boost phase may last for several decades as credit-fueled production and consumption expand:

In the boost phase, investors and leaders can do no wrong. The high growth rate of credit and production overwhelms all other factors, as the virtuous cycle of expanding profits and production increases wages which then support further expansion of credit and consumption which then supports more production, and so on.

But then the fuel of financialization is consumed, and the previously fast-growing economy coasts on momentum. Depending on how much leverage, corruption and wealth has piled up in the boost phase, this phase may last a few years. This is the top of the S-Curve.

As the economy weakens, the momentum is to the downside. Everything that worked in the boost phase–every investor and leader was a genius and could do no wrong–reverses: nothing works any more. Investors lose every bet and leaders’ efforts to reverse the decline are ham-handed failures.

This decline is inevitable in fast-expanding economies that play fast and loose with credit/debt and leverage. All the phantom wealth piled up in China’s boost phase is now melting down, and the China Syndrome will trigger a meltdown in global phantom assets.

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Author: Charles Hugh Smith
Views: Read by 5,659 people
Date: January 12th, 2016
Website: http://www.oftwominds.com/blogjan16/China-Syndrome1-16.html

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75 Comments...

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  1. areyouready? says:

    ht tp://thelastgreatstand.com/2016/01/12/oregon-victory-judge-and-2-us-marshals-in-route-to-restore-constitutional-rule-of-law/

    Michael Emery in Burns, Oregon verifies today a judge who will remain unnamed is on his way to Burns, Oregon escorted by two U.S Marshals. The purpose of the visit is to reinstate the rule of law according to the U.S constitution.

    • KY Mom says:

      Fourth Turning – Our Rendezvous With Destiny
      “The future of our country has hung by a thread during the three previous Fourth Turnings, on the snow covered fields at Valley Forge, at the stone wall in Gettysburg, and on the blood soaked beaches in Normandy. The time will come when the future of our country will be determined by the actions of a few.”

      “We now enter the most dangerous phase of this Fourth Turning. Whether the next financial implosion leads to war or the next war leads to a financial implosion, the consequences will be far reaching and destructive.

      I see the chances of a unified country choosing shared sacrifice to fight a common foe as almost nil. The eight year reign of Barack Obama drastically increased the divisiveness and mistrust within our borders and around the world.”

      “When the dominoes of debt begin to topple, a global depression will ensue, leading to an enormous surge in unemployment, skyrocketing budget deficits, intensifying currency wars, plunging global trade, and a final discrediting of central bankers and puppet politicians around the world.

      Civil unrest will unfold in urban enclaves across the U.S. and around the world. The police state will attempt to crush civil disturbances, but if they go too far, a backlash from heavily armed Americans will be in the offing.”
      http://www.zerohedge.com/news/2015-11-30/fourth-turning-our-rendezvous-destiny

    • Acid Etch says:

      http://www.zerohedge.com/news/2016-01-12/meanwhile-chicago-120-people-shot-first-10-days-2016

      120 people shot in shitcago so far in 2016.

      The overwhelming majority of non-whites belive in gun control, especially Hispanics.

      And they will become the majority very soon.

      Buy all the guns you can and bury some for posterity to bequeath to your kids as an heirloom.

      Our only options when whites are not the majority will be to form a new country in one of the Midwest states, or to force an apartheid state.

      South Africa was first world, even for blacks, until they were pressured to end the system, at which point it became a shithole.

      African and South American countries were doing far better under colonial rule than native rule.

      For every 100 years of British colonialism the GDP per capita increases by 40%

      Whites must take a stand now, our country is being ruined.

      OBAMA HAS ACHIEVED HIS OBJECTIVE OF FUCKING UP AMERICA REAL BAD.

  2. buttcrackofdoom says:

    you can’t fight the FED…that crap has been sooo overused, for so many years. it’s been true for the most part for decades, but it’s all coming to an end….SOON! those too-low interest rates have allowed the FED to be painted into the corner. if they raise, then our debt becomes untenable, if they lower, our nat. debt will STILL keep mounting, and we ALREADY owe more than can ever be paid back. so that debt jubilee is on it’s way, it’s a SURE THING. backed by the full faith of the U.S. government?…you might want to shop around a little…

    • KY Mom says:

      The contagion spreads…

      The finances and economies of the world are so interconnected.

      China’s Hard Landing To Trigger Meltdown In India: “We Will See Another Crisis”

      “A devaluation of the yuan could weaken the rupee, creating ‘huge problems’ for Indian companies that have to pay back dollar loans…”

      http://www.zerohedge.com/news/2016-01-11/chinas-hard-landing-trigger-meltdown-india-we-will-see-another-crisis

      • buttcrackofdoom says:

        thanks ky…yup. it will come out of left field when it DOES all go down…something very few saw coming. thanks for the link.

        • KY Mom says:

          bcod,

          I agree.

          I keep thinking about this sentence from a recent article at Zerohedge.

          Perfect Storm –
          “this time around a whole bunch of seemingly-unrelated things are unraveling all at once.”

          Take care. Keep prepping. Stay alert.

          • freebornman says:

            From UK Daily Mail
            ht tp://www.dailymail.co.uk/news/article-3396092/RBS-issues-sell-alert-fears-mount-10-oil-price.html
            When it is near lead article, second to a footballer getting a divorce, in the MSM, I become suspicious. Why are they actually telling us this? Everything is that hypothicated and derivativeated that it’s about to sublimate into the ether is how it looks to me. Thanks KY Mom, and all regular commenters here, it’s like the best bar-room parliament ever.

      • Rodster says:

        No Nation will get out of this alive. All the eCONomies are too interconnected and are dependent on one another to function. If you remove one piece it all collapses. It’s the same reason why a tiny insignificant country such as Greece was NOT allowed to default.

        And for all the nonsense talk that a collapse is all part China’s plan to create a gold backed world reserve currency is bullshit. China has more problems besides it’s economics. Their resource mgmt is pathetic. They have MASSIVE pollution problems which will have a direct affect on its aging population and the have destroyed over 60 percent if its fresh water supply.

        And regardless of what anyone says you CAN’T have a gold backed currency with our current money system. It’s designed on purpose to constantly generate debt. A gold backed currency is the direct opposite of that.

        Once everything comes crashing down globally it will take industrial civilization with it and lots and lots of people will die, like many billions. Then there’s the kickback from Planet Earth and what we’ve done to the ecosystems and biosphere. Science says we’re already in the midst of the 6th great mass extinction.

    • Justice says:

      buttcrackofdoom, people always talk about a debt jubilee or debt forgiveness of national debts. I always say, give me any historic example of debt forgiveness. Britain JUST finished paying off its WWII debt. Ask Greece about debt forgiveness. How about Argentina?

      In short, the Money Changers ALWAYS get paid. What do you think all that Government land out west is going to be used for?

      • buttcrackofdoom says:

        “historic example”…troll talk for “it aint never happened before, so it can’t happen HERE”….is that what yer trying to say?…they MIGHT get TITLE to that land, but we MIGHT just be takin’ it back from the sumbiches at a later date…………they can’t take it to china WITH them.

  3. Infidel-2 says:

    Sorry off topic: A friend just sent me this no author or where it is from;

    The Political class doesn’t give a shit. Not about you, not about the country, not about anything but their own power and money. The fear in both the GOP and Democratic party is visible at the surface when it comes to Trump, and it’s not that he’s any of what they’ve accused him of. No, it’s really much simpler than that, and both Republican and Democrat parties, along with the mainstream media, are utterly terrified that you, the average American, is going to figure out what underlies all of these institutions in America: They don’t give a shit.

    • Anonymous says:

      I would be perfectly happy with an event taking place that destroyed and put to death the entire area within 100 miles of DC, i would do my happy dance, then i would connect

    • Justice says:

      Patrick Buchanan wrote that in a recent article. Good Stuff!

    • watching and waiting says:

      No, they do not care.

      George Bush,SR was to have quoted to have said that if we (the public)knew what they had done, we would hang them from the lamp posts.

      He is also the author of the re birth of the term “The New World rder.

      • George Bush Sr. was the first US President to authorize the use of depleted uranium as munitions in weapons. Gulf War Syndrome was mostly radiation poisoning. His son did the same. Both littered the Middle East with radiation. The Great Satan. George Bush two was toured as a good Christian man. Was he? Or did he? Or did he have so little value for our children (and my cousins) that he decided to alleviate our corporate and military nuclear waste problem at the expense of our own children? And the deformities if their children? Bush and Cheney are war criminals protected by Obama from prosecution in the World Court.Unlike Carter, they are effectively imprisoned in the US for their own safety.

  4. Jacknife says:

    I’m tryin to think of something crafty to say but I’m all out. I wonder though, if a nominee becomes ill and cannot continue, and we’re say a month away from the election, how is it handled? I should know the answer but I just don’t. Anyone?

    • lost karma says:

      I heard this discussed on Fox by Andrew Napolitano. The leadership in each party (Reince Priebus – GOP, Wasserman Schultz – Dems) would form a committee to select a candidate to replace the dead or incapacitated nominee in their party. He said it would be chaos since this has never happened before. So I guess the new nominee would be selected by just a handful of people in each party.

  5. Houston/Cypress/Katy/Shtf says:

    SHTF TEMPORAL MARKER.

    Milita rains down on Oregon in mass.

    http://thelastgreatstand.com/2016/01/12/oregon-victory-judge-and-2-us-marshals-in-route-to-restore-constitutional-rule-of-law/

    Mac, you may need to put up and articel on this video.

    Aka,

    HCKS..

  6. Sgt. Dale says:

    I said about a year ago that China was only a shadow of itself, when it to its economy. There was on way the country was as strong as they said they were. The have a population of around 3 Billion. 2.5 billion are still living in the 1920’s pre Great depression. This said the Chinese don’t invent anything they steel the ideas and then make it.

    You can’t have 2.5 B. people with no money and still have an economy.

    Sgt.

    • “Chinese don’t invent anything they steel the ideas and then make it.”

      To be somewhat fair to China – they had some help with their innovation and technological advances from people in high places in America.

      Namely a guy named Bill Clinton leading the path to their success. Kinda have to go back in time, notably around the NAFTA era. China can not steal, if information & documentation is provided to them for exchange of said currency and breaking deals.

      This is no secret, many other nations have advanced through means of “insider technological opportunities” from an outside source.

      Hence the term – “politicians have sold Americans out to the highest bidder”

      No mistake – all by design – power & money go hand ‘n hand.

      In a way – information was given to them, for an exchange.

      Business as usual – per American Standards & Practices.

    • Jim in Va. says:

      Sgt. Actually its 1.3 billion.

  7. maddog says:

    “As the economy weakens, the momentum is to the downside”

    The US has printed trillions, corrupted every market indicator, increased the money supply 4 fold 8 billion to over 4 trillion and pumped untold trillions into social welfare to hide the truth. Get ready, not even your average idiot will believe its all due to China. When this fails they will bring us to war to cover their sorry asses.

    • Maddog –

      Your post is spot on accurate … and yes … the average idiot will not believe this, but evidently America is chuck full of over average idiots.

      Many will believe this is China’s fault – because Mainstream Media will “honestly” report the truth on this particular matter. – drool~~~~

  8. The realist says:

    All is not lost.. The good will prevail over the evil as history has shown us over and over .. And there are many good eggs still out there ..

    The Problem I see is that no one wants to put in the work these days.. It’s all a make believe –fantasy world and the numbers are made up for just eye candy..

    We all complain .. We all are worried .. Well.. These are the chewy chunks of life.. So either get up and do something about it or shut up and keep chewin..

  9. Enemy of the State says:

    ht tp://www.washingtonexaminer.com/house-homeland-chair-warns-of-terror-attacks-at-disney-oscars-mall-of-america/article/2580219

    Disney ..one of the biggest GFZ’s ever .. I wouldnt step foot in the place,, but plenty of sheeple do..all unarmed

    • Gun FREE Zones – should be what is says.

      As in, … Receiving FREE guns from the Government, just like the ObamaNation got their ObamaPhones ‘n Shit.

      Constitutionalist/Patriotic Freedom Lovers should get their piece of the action too – no need to discriminate – we want more guns, and we want them now!

  10. STRAIGHT SHOOTER says:

    Face the fact folks the way we are headed world wide is a

    SOCIALIZED, or COMMUNIST, or SHARI SYSTEM ????????

    Brought to you by ????????????????

    WW3 ???????????????????????????????????????????????????

    This is for what awaits for the survivors.

    uhhh!

    • Oligarchy by banksters. Mulims are what they are feeding to you as a distraction and scapegoat.

      • Today’s “Truth Trophy Award” goes to Rebecca!

        It doesn’t get much simpler than that .. nice job ツ

        “Fighting the “distraction”, is not defeating the “source”.

      • Plan twice, prep once says:

        All illegal immigrants that came from all over S. America and C. America are tools for liberals. First to mess with the heads of American voters, next to mess with demographics. Just look at the mileage Trump got off the issue, in this case it backfired on progressives.

        Progressives love the base views of poor Central and South American immigrants, they are a bunch of communists.

        • Most of those immigrants flooded the US while we were trashing their countries and economies on behalf of global megacorporations. Most of that was done by Republican war hawks which enriched the military – industrial complex. This endless pretense that libtards destroyed this country ignores the reality of their partners in crime, Republicans. Go back and read about US meddling in the affairs of South and Central America. In fact, every wave of immigration in my lifetime has been tied to our government’s forays into empire building. Republicans have always been empire builders in my lifetime.

          • Plan twice, prep once says:

            During the Cold War the US pumped trillions in to South and Central America to counteract instability the Soviets created.

            When the Soviet Union collapsed, the US just cut S & C America off, and left them to flounder, instead of setting them up to be independent and safe for the long term.

            During the Cold War the CIA took an interest in how US corporations behaved in those countries, after the Cold War, US corporations were left free to rape those countries, and they did. After the Cold War the CIA had little to do and just got in bed with the drug dealers, who undermined S&C America. Very sad.

            The sins of the past will always come back to haunt us.

        • KY Mom says:

          The Obama administration is responsible for the HUGE increases in illegal immigrants from Central America crossing the southern border.

          We are seeing a textbook Cloward-Piven strategy at work.
          This is NOT sustainable and the government KNOWS that. They are overwhelming the system to crash it.

          Urged by local media (and news of Obamas promises), minors from Mexico and Central America are clogging Border Patrol stations.

          Central American radio and television ads (probably paid for by American taxpayers) encourage people to move north to the United States.
          -National Review

        • KY Mom says:

          Administration is now importing FELONS into the U.S.

          Report: Deported Immigrations to Be Flown BACK into USA – paid for by Taxpayer Money

          “This year, the U.S. (tax payers) will pay for unaccompanied alien “children” (The majority are young men who “report” their age as “17”) to be flown BACK into the country, even if they were convicted of a FELONY, and furnish them with federal benefits to boot.”

          It’s called the In-Country Refugee/Parole Program for Central American Minors.”
          -National Review

          Dec. 2015 – AZ Sheriff Babeu: We’ve Had 10,000 Unaccompanied Juveniles In Two Months, Obama Admin Says ‘Border Is Wide Open’

          “Pinal County, AZ Sheriff stated, “just the last two months alone, we’ve had 10,000 unaccompanied juveniles” who are “staying here” and

          “the Obama administration says the border is wide open, that there is no law (when) it comes to immigration”
          Breitbart dot com

          Obama ordered the border patrol to “stand down” and let the illegals stay.

          Why?

          This administration is building the voter base for 2016…

          “Local state government officials are registering non-U.S. citizens as valid voters even when the non-citizens say they are NOT Americans on their voter registration forms, a former Justice Department attorney tells The Daily Caller.”
          -Daily Caller

  11. Anonymous says:

    Big banks issuing warnings on how to play in the casino. Yea whatever. Just wait until the herd goes after silver and gold.

  12. Anonymous says:

    He has it backward. We’re not suffering because China in going down; China is going down because we are suffering.

    China’s major markets are the US and EUrotopia. The US and the EU are in a worsening financial depression – the markets China depends upon, are both incapable of buying enough to keep China afloat.

    China is roadkill. I will not be surprised to see people starving to death in China in the near future.

  13. He has it backward. We’re not suffering because China in going down; China is going down because we are suffering.

    China’s major markets are the US and EUrotopia. The US and the EU are in a worsening financial depression – the markets China depends upon, are both incapable of buying enough to keep China afloat.

    China is roadkill. I will not be surprised to see people starving to death in China in the near future.

    • The good news for China’s peasants is that they are well equipped to survive the storm because the still live an ancient lifestyle. Most of China’s migrant workers sent what money the could home and return home themselves. They accept a 3 generation home and this improves their ability to survive. China’s elite are buying out and trying to move to other countries. Six governments from now the people will still be there.

  14. Ketchupondemand says:

    I read a year or so ago that 30 million Chinese live in caves.
    Whoa, that’s shtf!

  15. Plan twice, prep once says:

    I really suggest people listen to Harry Dent who does his financial analysis by watching demografics. Demographics being the influence of populations and how the changing age and spending drive economics.

    This interview is long but includes Dents latest predictions. ht tp://youtu.be/NI7rF4YpeqI
    (Remove the space in ht tp to make the link work.

    Because of China’s one child policy, they are now experiencing one of the sharpest demographic drop offs of any nation. Their aging, retiring population vastly outnumbers the younger workers. Most of China’s exconomy is internal, only small part is exports. When aging population become a drain, economies go into recession, or if extreme enough, depression. Germany, the financial powerhouse of the EU is the next big nation to hit a baby boom retirement bust. The US is already on the downside as Japan has been for a decades. Notice how well Japan was able to recover? Yeah, Japan couldn’t, because demographics take decades to change. Make a baby and it takes 20 years for them to enter the workforce. Take millions of working age immigrants out of S. And C. America, send them to the US and they actually help the US economy while their loss crushes the economies of the countries they left.

    You can’t change this kind of demographic shift by printing money. China is going into a depression as a result. The Chinese stock market s crashing just like it did in the US in the Great Depression.

    China is facing a huge crash, they can’t stop that will effect the whole world. They were the worlds second biggest economy and they are about to literally have it shut down. They will burn through all their US dollar holdings and in the process flood the world with more worthless US currency than the world can process with the velocity of money being so slow. Thus they I’ll export their crash to the already crashing by itself US economy.

    Dent expects the real Chinese market crash to occur in the next 17 months that will last in the 5 month range, when it does some money will flee to US markets causing a temporary rise, but that money will dry up fast. A real estate crash will follow, the new billionaires of China will get their clocks cleaned and spending will stop. The real estate crash will take a year or two to unwind causing the credit system to fail.

    China’s economic crash will lead the world into an economic disaster the likes of which the world has never seen. There is no force that can stop these bubbles from popping, at most they can be delayed, but historically, delaying tactics just make the inevitable crashes more painful and longer lived. Re Japan in recession for decades.

    It really isn’t evil bankers, it’s just demographics, but it’s still ok to hate bankers, they really do suck. One of the most interesting relationships is economic crashes and suicide! Thus Japan’s huge suicide rate even though they have no guns. It’s their crashing economy. Obama’s an idiot if he thinks any gun law or regulation would have any effect on suicide, and note I said that before Obama’s state of the union worker speech, where he will blame all our problems on guns. What a dick.

    Preppers the plans you make for this crash are what will keep you and your family alive, don’t let the stress get to you, and stay away from tall buildings with lots of bankers in them.

    • Plan twice, prep once says:

      Here’s a working link for the Harry Dent interview. http://youtu.be/NI7rF4YpeqI

    • Plan Twice Prep Once,

      I acknowledge your points about an aging population causing economic issues for nations which rely on the endless growth of population and consumption paradigm. Where has that gotten us? 7 billion human beings and rising, and pollution of our land, water, and skies. At this point in time we can no longer afford that economic model. Right now that model is crashing, as well it should. We sorely need a new model, and I have seen a few put forth, but nothing that impressed me. Japan is massively overpopulated and with Fukushima it is enough to make you cry. Factor the health issues into their economic future and it is not pretty. Ditto China with the pollution levels they have and the health problems. They need to lower their population.

      Japan is the only country that I know of that is seriously considering these issues. There are some bright people looking at the issue around the world… voices in the wilderness, mostly.

      The US has enough empty space to continue population growth, for a while. New populations go straight to cities and ours are already choked.

      One question I have re the growth issue… no employment and money for these supposedly needed people. That is true in every country.

      • Plan twice, prep once says:

        Obama opened the gates like no one else to illegal immigration. Problem is he never ended the economic crash of 2008. His crazy explosion of regulation on new business, over bearing EPA etc crushed anyone thinking of risking family money to start a new small business.

        Obama not only did nothing to spur a recovery, he maliciously poisoned any recover, and sought to take from the rich to give to the poor, but that never worked out. The rich got cleaned out, the poor got pennies while Obama Chronies got super rich.

        QE money never got into the right hands, Mr control freak, Obama had too many strings and regulations on the money, it ended up being horded by banks and big corporations. Much was pumped into the stock market turning it into a bubble. Much was used for M&A, corporate takeovers and buyouts. It created an illusion of wealth, but without growth. The velocity of money has not increased in seven years of the Obama recovery. They lied. About unemployment and in the midst of growing unemployment they brought in millions of people willing to work for less, that slowed the velocity of money. Obama’s recovery is all a lie, it really was a recession.

        • Obama deported more illegals than any president. Until he got a letter from the Chamber of Commerce signed by 100 US corporations denouncing deportations. Look it up. He was reigned in just like Trump would be if he considered doing something against corporate interests. QE money went straight to the banksters as it was intended to and as all money from the Federal Reserve does. It is designed into the system. And the banksters gave that money to big corporations and they used it to buy back stocks instead of putting Americans back to work. They got cheap money and that is what they did. Republicans made all the fat cat tax breaks permanent. I know that will create zero jobs, it is being offshored. Their money, their profits? Our money given to them. There is no recovery, only more destruction. That is why I keep saying our economy collapsed in 2008. History books will say that because there was no recovery, just the burning up of our assets and savings. Bush did his part, Obama provided follow through. Maybe Trump’s role is to be sure we blame Muslims and scapegoat them for D/R crimes and treason.

          • KY Mom says:

            “Obama deported more illegals than any president.”

            ???

            No. Obama has ordered the border patrol to “STAND DOWN” and allow the illegals to stay.

            Yet, despite the sluggish labor market and many thousands still unemployed, Obama promises executive amnesty for illegals.

            “The Center for Immigration Studies reports 100% of Employment growth in the U.S. since 2000 went to immigrants.

            On a population adjusted basis, the numbers look horrific. Population-wise, native US citizens account for two-thirds of the working-age population growth, yet FEWER work today.

            Here’s the harsh reality: 17 million working-age native US citizens were NOT working in the first quarter of 2014 than in 2000.”

            Global Economic Analysis

        • As for all the new regulations making it harder on new business startups… those regulations are written by the global law firms where I worked. Have been for over 40 years. Global megacorporations have law firms write those laws to suppress competition and they are attached to other legislation by their cronies in the House and Senate. This I saw first hand while working in the legal field and is not research. Just like Chase Bank wrote the new bankster bailout pushed through by Republicans. Democrats started to rebel and Obama and Boehner shoved it through. Just like oil company attorneys wrote up the rescission of no oil exports… a law that protected Americans from $10/gallon gas. This is how this country is run. Libtards? Divide and conquer c.rap. It is a fixed system. It is a broken system. Libtard/Republitard is street theater to keep Americans blaming each other for what is going on. Criminals at the top is what is going on.

        • My entire career was working in government policy for a big oil company and later in the big corporate lobbying firms. I will probably go to hell for being a servant to these people.

          • Plan twice, prep once says:

            Corporate fascism is perhaps one of the most destructive forces acting on our society. The government used to be the watchdog that protected us from corporate monopolies. Now corporate monopolies control the government, and the citizens become slaves.

            Political pendulums do swing, and sometimes innovation destroys the big fat cats. Change is also very possible in economic resets. Too bad so many people will suffer in the reset.

            Dent felt a Chinese market crash would likely start in the next few months, and the first of the year correction happening now is just an early tremor.

            I really hope the crash so many expect, starts well before the US election. I’d love for it to be out in front, and I’d like to see Keynesian Economics and Progressives to be totally discredited before the next US election.

            I watched Obama tonight, he got many standing ovations on cue. I wasn’t impressed, and when he does leave office, perhaps the door will hit him on the way out! Oh and Michele Obama’s dress made her look like Big Bird.

            • I hope Dent is right about how long it will take, he is fairly optimistic on his timeline. One reason fat cats are writing laws to suppress small business is because they know their death is guaranteed. That is the nature of capitalism and is why they work so hard to establish oligarchy… it is their form of socialism for themselves. Not for individuals! TPP makes corporate hegemony have the force of law and means they no longer have to bribe government officials, which they resent. A claim made to a corporate tribunal is cheaper than the current system and locks in those at the top. I worked at oil companies when they were buying up and suppressing solar technology. It put solar back at least 50 years. More time and effort is spent to control and suppress than on innovation and service. Just the lack of service is indicative of suppressed competition.

              • Plan twice, prep once says:

                Dent is only talking “time to total destruction”, not recovery. Japan has been in recession for 20 years. From when the big Chinese market crash starts to full depth of the following real estate crash = 2 to 2 1/2 years.

                US recovery may require enough time for the baby boomers to die off, and a new generation to take over. This would imply another 20 to 25 years for a recovery.

                • Plan Twice Prep Once,

                  I wasn’t thinking it meant recovery, that is a long way out. I am not clear about what he means by total destruction. Many economies have collapsed, and people get through, badly, but through. Argentina, Venezuela, etc. Total destruction implies (to me) something far worse.

  16. Asshat says:

    Who cares about China really we do not export much to them. So we don’t have Walmart anymore how is this gonna hurt my family. Just not seeing it. Population growth is bad in every instance it creates more demand on resources and labor. Some people aren’t worth the extra food. Sure lets tear down a nice forest to build housing for useless eaters so they can turn it into crackville. You paid for it and they vote against you. Bums.

    • Plan twice, prep once says:

      Point is the Chinese economy crashing will take down the rest of the world economies when it goes. Knowing this gives you a little warning of that is coming to America shortly thereafter.

      • HBOMB says:

        Harry says gold goes to 450 an ounce.

        • Plan twice, prep once says:

          That is assuring the original currencies survive intact.

          Gold is perfect if the dollar is cancelled and they give you a ten for one deal on the new currency called the caputnics! Gold and silver is a hedge against governments devaluing currencies.

          The US has so over printed dollars we may like the German Mark pre WWll she hyperinflation. Then gold and silver go wild, you won’t actually make any money, you’ll just preserve what you started with.

          If things stay orderly through a great depression 2.0 then gold and silver will be like Dent says, a bust.

          My suggestion, stay diversified. There is no sure thing.

    • Our banksters loan a pot of money to Chinese businesses to build those empty buildings and factories. They will default on the banksters and the government will use us to foot the bill.

  17. watching and waiting says:

    Everybody knows what is coming, it is still time to prepare.

    Now to upset a few.

    America used to be known as “Christian America” but we have kicked God out of school, Government, public displays, public speech, The Church and so why should we be surprise when God removes his hand of protection in regard to safety,peace of mind and prosperity. Some, not all, lifting and praising Islam and persecuting Christians even from The President, who is enabling Muslim privilege in America I believe.

    Part of our problem and many will not see it until they take a quite moment and reflect. There is a different spirit in America now than what used to be. The Country has changed and you may disagree with me, but sites like this(a good site) and firearm and ammunition dealers are not complaining.

    You may disagree with my opinion but, I think it is relevant in our situation. Some people will say, they are not afraid, but inside they are. Fear and uncertainty is becoming the norm for America.

    The American Revolution not only started in the streets, it started in the pulpits of Churches praying for freedom from oppression of British rule.

    Just my opinion.

    • Plan twice, prep once says:

      Liberals got laws changed, a political pulpit in a church risks their church losing its tax free status and be taken over the an angry government.

      There is no freedom of speech while exercising your freedom of religion, it’s been banned by the loving liberal progressives that want people of faith dead. And yes they are bringing Muslim Jihadists in to do their dirty work. And if you don’t like it progressives will label you zenophobic and racist. You will be perp-walked in the press, and your business taken from you.

  18. Asshat says:

    Point s we import more from China than we export to them. How will that take us down we shouldn’t even be doing business with a communist nation. China’s problems can’t hurt us if they go under. It will make more jobs here not good ones though but more jobs for the useless eaters to take to become productive members of society. I think it’s great if this happens. To think that China could bring the whole world Down is defeatist attitude. There are so many other nations to do business with. I don’t think it will cause a collapse of us economy.

  19. swinging richard says:

    I am not sure how a Chinese collapse will impact the US economy. I always thought another country would step in to fill the void. Pretty easy to replace the goods produced by China. If they dump our debt, print more money and buy it back through a third party at a discount.

  20. The whole system is about to crash, and only those of God will be protected…

    More End Time News At:
    http://www.shininginthedark.com/?page_id=3755