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We Are Being Warned That The Last Week Of August “Could Be Highly Volatile” For Global Financial Markets

Michael Snyder
August 26th, 2019
The Economic Collapse Blog
Comments (21)

This article was originally published by Michael Snyder at The Economic Collapse Blog. 

Are things about to break loose in a major way?  At the end of last week, the trade war between the United States and China escalated dramatically, and investors all over the globe really started freaking out.

Unfortunately, developments over the weekend have only made things worse, and that means that this could be a very “interesting” week for global financial markets.  As I write this article, stock prices around the world are plunging, the price of gold is spiking and the Chinese yuan is crashing.  There is clearly a lot of fear out there right now, and at this point, even CNBC is warning that the last week of this month “could be highly volatile”…

The final week of August — the bittersweet end of summer for many— could be highly volatile, as markets fret over the economy and the latest developments in trade wars.

Of course, things can swing rapidly from moment to moment in this environment.  President Trump could say something in a few hours that temporarily gives investors some hope, and that could cause markets to swing wildly upward for a little while.  Everyone is on edge right now, and every piece of significant news is likely to cause gyrations in the marketplace.

But overall the trend is clearly down.  U.S. stocks have now fallen for four weeks in a row, and many are becoming deeply concerned about what September will bring.

And for many U.S. businesses, this trade war has turned into a complete nightmare.  Executives crave predictability, but now everywhere we look there is chaos, and this is causing a lot of headaches for business leaders

Businesses crave predictability so they can make informed decisions and plan for the future. Many companies that depend on Chinese manufacturers and consumers have already shifted supply chains out of the country and taken other steps to reduce their exposure to China. And while Mr. Trump’s tweets are unlikely to trigger immediate changes, more uncertainty is unwelcome.

“Continued escalation and rhetoric are harmful to American businesses, workers and farmers,” said Tom Linebarger, chief executive of Cummins Inc., which makes diesel engines. Cummins pays a tariff on components it imports from its own plants in China for engines assembled at U.S. factories by American workers. The tariffs amount to a tax paid by Cummins’ customers, he said.

Unfortunately, nobody can no longer deny that global economic activity is really starting to slow down.  We just learned that global trade was down 1.4 percent in June from a year earlier, and that represented the largest decline that we have seen since the last financial crisis

World trade volume – a measure of imports and exports of merchandise across the globe – declined in its zigzag manner in June to the lowest level since October 2017, according to the Merchandise World Trade Monitor by CPB Netherlands Bureau for Economic Policy Analysis. The index was down 1.4% from June 2018. This small year-over-year decline is the biggest year-over-year decline since the Financial Crisis, and it’s a reversal from the heady growth in 2017 and 2018 that had topped out at 6.7%.

I have been using phrases like “since the last financial crisis” and “since the last recession” in almost every article recently.  We are seeing so many things happen that we haven’t seen for a decade or longer, and yet most Americans still don’t seem to understand that we have a real crisis on our hands.

If the U.S. and China were to mend their relationship and agree to a comprehensive trade deal, that would certainly help things.

Unfortunately, that isn’t going to happen.

In fact, both sides appear to be digging in even more.  For example, the White House just told us that President Trump “regrets not raising the tariffs higher”

When asked if Trump had second thoughts about Friday’s move to escalate the trade war with China, Trump said “Yup.” “I have second thoughts about everything,” he added.

Hours later, the White House issued a statement saying that Trump meant to say that he wished he had raised tariffs on Beijing even higher.

“His answer has been greatly misinterpreted. President Trump responded in the affirmative – because he regrets not raising the tariffs higher,” White House spokeswoman Stephanie Grisham wrote in a statement.

And the Chinese are warning that we should not “underestimate the determination” of the Chinese people and that they will be the ones to “have the last laugh”

On Saturday, China’s commerce ministry issued a statement calling on Washington not to “misjudge the situation and underestimate the determination of Chinese people” after US President Donald Trump announced new tariffs on Chinese imports.

“The US should immediately stop its wrong action, or it will have to bear all consequences,” the statement said.

At the same time, a sharply worded commentary in the official party mouthpiece, People’s Daily, said China had the strength to continue the dispute and accused Washington of sacrificing the interests of its own people. Published under the pseudonym “Wuyuehe”, the piece described the latest tariff measures by the US as “barbaric”. The op-ed said China’s own tariffs on $75 billion worth of American products, announced late on Friday, were a response to America’s unilateral escalation of the trade conflict, and vowed that China was determined to fight back “until the end”.

“China’s will to defend the core interests of the country and the fundamental interests of the people is indestructible, and will not fear any challenge,” the author wrote, promising that “history will prove that the side on the path of fairness and justice will have the last laugh.”

As I have repeatedly warned, there isn’t going to be a trade deal before the 2020 presidential election.

So that means that things are going to get progressively worse, and we need to be prepared for a lot of economic pain.

At this point, even U.S. Senator Lindsey Graham is telling us that the American people are just going to have to “accept the pain that comes with standing up to China”

Sen. Lindsey Graham, R-S.C., said on Sunday that Democrats should not criticize President Trump for taking on China over trade as they have complained for years about Beijing’s policies but done nothing.

“Every Democrat and every Republican of note has said China cheats,” Graham said on CBS News’ “Face the Nation.” “The Democrats for years have been claiming that China should be stood up to, now Trump is and we’ve just got to accept the pain that comes with standing up to China.”

Sadly, the truth is that the American people are not well equipped to deal with pain.  We have been spoiled by decades of debt-fueled “prosperity”, and even a relatively minor economic downturn would result in a massive national temper tantrum.

Right now our nation is a seething cauldron of anger and frustration, and the mainstream media is stirring the pot on a daily basis.  It isn’t going to take much to spark an explosion, and this will especially be true the closer we get to the next presidential election.

The season of “the perfect storm” is upon us, and what is coming next is going to be one of the most chaotic chapters in modern American history

Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared NowThe Beginning Of The End and Living A Life That Really Matters.

His articles are originally published on The Economic Collapse BlogEnd Of The American Dream and The Most Important News.

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Author: Michael Snyder
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Date: August 26th, 2019
Website: http://theeconomiccollapseblog.com

Copyright Information: This content has been contributed to SHTFplan by a third-party or has been republished with permission from the author. Please contact the author directly for republishing information.

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21 Comments...

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  1. Bill says:

    Has this site been compromised, I suspect shadow banning.

  2. Clown World says:

    “There is clearly a lot of fear out there right now”

    I understand that you want your writing to sound dynamic.

    Responsible investors, and I would even say, responsible gamblers, don’t gamble. They have some responsible reason to expect a pay out.

    They should be rightfully angry, when some contract is broken.

    Otherwise, I flatly don’t believe in that flighty, emotionally-unstable behavior.

  3. TharSheBlows says:

    Got Silver? Its on a roll, been stacking for some time now. Payday coming.

    • Justice says:

      Silver is peace of mind! I don’t really look to “make money” on it. But I’m counting on it holding it’s value. So that I can purchase hard to get items in a collapse (e.g. Medicine and Medical Care). Plus, everything else will just be paper!

      I understand that not everybody can invest in physical silver and/or gold, but having possession of necessary items will be almost as good. Have one or the other is good, having both is better.

  4. jims says:

    I used to enjoy this guys articles, but now it seems like he just preaches that “the sky is falling” with every article. I guess eventually he will be right.

  5. Justice says:

    This sucker/market is going to go up in flames. It’s just a matter of time. Speaking of flames, I’ve been focused on fire recently and I’m examining TOOLS to get fuel for fire. The main purpose of these tools in a SHTF situation would be to gather fuel for my Kelley Kettle (which might be my favorite Tool, worth every penny) and my Rocket Stove (another must have for a prolonged SHTF event).

    I’m ashamed to admit that I’ve been thinking about getting a Silky Saw. Silky New Professional Series KatanaBoy Folding Saw 500mm Extra Large Teeth, 403-50 is only $105.00! I hate trends but it appears to be a good over-priced saw. These are my current firewood processing tools, such as they are:

    1. First, I bought a Bahco Laplander and a hatchet. The preppers mainstays.

    2. Then a couple of years ago I got 2 good pruning shears (long and hand held). I need to get a sharpening device, thinking about the Corona AC8300 Sharpening Tool for $8.00.

    3. Recently, I purchased a Tarvol Folding Hand Saw and a Tarvol Fixed Blade Heavy Duty Pruning Saw (RAZOR SHARP 14″ CURVED BLADE).

    My Kelley Kettle and Rocket Stove use sticks and twigs (although I’m not sure the difference between a stick and a twig, but I digress) so I don’t need something that processes logs. So I’m thinking a Bow Saw.

    I saw a video where a guy did a comparison of a Bow Saw and a Silky and the bow saw out performed the silky in processing sticks. It was a Bow Saw technique that I had never seen before. The video title for anyone interested is Silky Katanaboy 650 vs Bow Saw Cutting Edge Review at the Nature Alive channel, the technique starts at 15 min.

    The saw I want is the Agawa Canyon – BOREAL21 Folding Bow Saw – Black Frame, Green Handle, All-Purpose Blade. It’s a lot of money $68.00, but it’s a great saw and FOLDABLE/PORTABLE!

    The only other tools I think I might need is a splitting wedge. In case I have to process logs down. Plus some kind of axe. These will have to wait because the bow saw and a foldable solar panel eats up this months prepper budget. Any thoughts greatly appreciated.

    • Justice says:

      I forgot the most important part of that video, where at the end he states that everybody loves his Silky and wants to “Borrow it”. I thought that unless you live alone on the side of a mountain, somebody will steal it from you.

      I realized that I will NOT be alone gathering wood and other people will be around and see it, and want it. And they will take it. I have to remember not to have really nice stuff.

      I saw a video of a YouTuber, who said he tried to give a homeless man a new backpack, but he wouldn’t take it. He said that others would see it and beat him up and take it. There is a lesson in there somewhere!

  6. Bert says:

    Z!onist designed the USA trade war with China, they want it to go to the point of war. To enforce the NWO, as the EU is doomed and the Z!onists fear they are losing EU and their trillion dollar free lunch. They now want the entire planet.

    The Z!onist want the 2019-2024 world economy to collapse, all of it, even China, to make 1929-1937 look like a cake walk.

    One day in the early to mid 2020’s there will be a world summit, it will be sold to the people as something good, to save mankind and the economies, to get people to rally behind it. The world summit will be like the 3rd coming of Christ. Anyone pointing out that this is “the mother of all traps” will be castrated.

    In reality, this summit will be the end of the old world order, it will be the birth of the new world order single world government, all nations that want to trade with this NWO will have to surrender its sovereignty, including the nations signing away all the rights of their people, property ownership, and all business entities will have to do business under this new framework. All currencies will have to be traded in by a certain time, all contracts will be converted to the new currency.

    The Z!onists world rule will be like Hitler, Stalin and the Mob. The world for 90% population will be as bleak as 1984.

    And then the great land snatch cometh. And tons of new fees with fancy green names.

    You want to heat your home in -25F winter, be prepared to pay 50 different taxes and dozens of restrictions.

    Your new masters, with full legal rights to kill, are the same ones that run everything. Imagine the CEO of the worlds largest junk food company enforces new laws that prohibit growing food on your private property, requiring a special permit for those that produce food- agreeing to hand over 90% of their profits to the NWO.

    -or- Status quo, as long as the fuel is cheap and we can truck junk food to every two ton Tessie. USA 2050: DOW 100k, S&P 20k, national debt $50T, average adult weighing 250lbs.

    Either way, the saver of money is fucked, and those that can leverage the most debt will live like Ward Cleaver, but look like Fat Bastard.

  7. Anonymous says:

    It’s a bail out.

  8. rellik says:

    Everybody knows the markets are manipulated and overpriced, be it stocks or PMs. Corrections are in order. Nobody that has a brain is surprised. The switch away from a large dependence on China, a society that has no concept of freedom, is a good thing. Painful only to those used to taking advantage of poor people’s labor and lands.
    The correction is just that, a correction.
    The real worry is automation and what do with all the stupid out of work people?
    Farms, factories, and transportation are becoming more and more automated, requiring fewer, and more highly trained workers.

    • Genius says:

      “The real worry is automation and what do with all the stupid out of work people?”

      Soylent Green comes to mind. Soap, lampshades, fertilizer, pet food, The masses will have some value lol.

      • Justice says:

        Genius, that’s why I’m dieting. So I’ll be nothing but skin and bone …and gristle. Not worth cook’n up!

        I saw Soylent Green again a few months ago and it holds up really well (A Classic). That’s how everyone will be living when they heard us all into the cities. Everyone but “them”. My final “movie/picture show” will be clips of Police beating up Hippies. I don’t count sheep, I just picture this over and over till until I fall into a peaceful slumber.

        • Clown World says:

          In one place, where bio-sludge is allowed on farm crops, the chief of police is an Aunty Entity-looking, black womyn with hair shaved up the sides.

          Arch mega shitlibs get sadomasochistic pleasure, seeing on tv, how they have infiltrated law enforcement, military, and the industries. They absolutely see their guys in there, they know it will be tolerated, and they get more radicalized.

          A streetshitting dothead, with genocidal bedside manner, and very broken English, would send you off.

    • Justice says:

      Quantum Computing is here NOW and nothing will ever be the same again. This will change everything. It makes silicon computing look primitive.

      • rellik says:

        “As of April 2019, no large scalable quantum hardware has been demonstrated, nor have commercially useful algorithms been published for today’s small, noisy quantum computers.”
        Wikipedia sometimes gets it right.
        Perhaps my education limits my views, but “non-deterministic” eg Noisy computers aren’t very useful if you want a reliable solution.
        Quantum computers still give “1” and “0” results, but are very fast, when they work.

        • Justice says:

          I thought I read an article recently which indicated that Quantum Computing was recently “successful” at MIT. I didn’t look into it further. I must be wrong. Sorry for any misinformation.

      • Clown World says:

        This line of discussion expects us to see each bit, or Qbit, as a separate universe, unto itself.

        The ones and zeros are like the quantum states of Shroedinger’s cat.

        Put the (hypothetical) cat in a (hypothetical) hot car with those window coverings.

        Does it fracture time and space? Did The Singularity happen?

        What if you use a light switch?

  9. Anonymous says:

    Chicken Little AGAIN? Ho hum back to sleep.

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