Economies Melting – Bankers Did It Again – Wall Street Underground

By Nick Guarino | August 14, 2015

Debt Crushing China.

China’s life and death fight for survival will bring down the world economy.

If you read my Special Report on China titled “Chinese Economic Miracle Turning Into A Nightmare” what is going on now is no surprise. The biggest con job in modern history is the “China Miracle”. Try rocky mountain Horror Show. Their debt is 400% of GDP. Their economy is powered by 1 billion slaves producing the cheapest shit, substandard products the world has ever seen. They compete on price and price only. Which means they operate on razor thin margins. They need massive volume to survive and service their out of control debt.

And here lies the heart of the crises. China’s massive debt means they need to have massive growth. It’s the old joke.. they are losing a few pennies on everything they make. But they will make it up with volume. What they forget to tell you is their model is to cover the ever growing losses with more and more debt owed to the west…. And when the growth stops they wipe out as you are seeing.

Yes there is more. You got it, our friendly banker buddies are up to their sleazy neck ties in this. What no one is telling you is the fact the Chinese owe unbelievable sums of money to our banker buddies, the whores of Wall Street.

And China can’t pay them back. And our greedy banker buddies loaned money to China with absolutely no recourse. Which means they have no chance of collecting on these debts that have started going bad. The first loans to default are the massive loans our banker Einsteins have made on commodities.

Yes, you got it. Banker buddies have made massive commodities loans on Copper at an average price of $5 a pound, iron ore at $100 a ton and oil at $100 a barrel. The list goes on and on.

With the global slow down and commodity price wipe out it’s desperation time in Bankerville.

It’s bad enough that our Bankers and fund buddies can’t collect on their bad China loans. But it’s far, far worse than that. Because China, like every Ponzi scheme, requires fresh cash as in a mountain of new loans. A constant stream of new money to survive the spreading global slow down. Their only prayer of survival is to maintain and increase sales and exports. Which means they need to lower prices. And to lower their currency, to lower the final price of Chinese plastic dog shit.

In desperation the Chinese have started a Currency War

That will devastate the global economy. It has changed in the past week to the entire global landscape. Let me explain.

Loser analysts and snake oil salesman have long predicted the demise of the dollar and the rise of gold. The bullshit story goes like this. The massive yearly budget deficits and the massive balance of trade deficits debt, coupled with government printing of money will collapse the dollar into a hyperinflation, out of control spiral.

SIMPLE ANALYSIS FOR SIMPLE FOLKS WRITTEN BY IDIOTS TO TAKE FOOLS MONEY

The fact of the matter is, the US budget deficits are far from crises. Everyone the world over buys all the debt the US issues, at the lowest interest rate in world history. They offer to buy the debt 3 times over and scream for more.

The truth is, the US yearly deficits have been cut in half. From a peak of a trillion dollars a fiscal year to 500 billion. Well within reason for an economy as large as the US. And it’s still dropping.

And the other twin in the twin deficits, the balance of trade deficit, has been cut in half. See chart below.

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After peaking in 2007 – as you can see it’s half.

The REAL crises is the dollar is too strong, not too weak

The fact of the matter is, it’s a stronger dollar that is death to business. The higher the dollar goes, the more money US companies lose who on average get 40% of their net profits on overseas sales. The higher your currency goes, the less you sell and the less profits you make. Now for economies like Japan that rely upon 60% of their profits from foreign sales. And the Chinese who rely upon foreign sales for 80% of their income, the currency value is critical. The cheaper your currency the cheaper your products. Giving you an enormous competitive advantage.

Look at the chart below of the dollar index. As the hucksters told you to buy gold because the dollar will crash, the dollar has soared in value.

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And to make matters even worse, people who got sucked into alternative dollar investments are not done losing money. Gold will drop to under $300 an ounce. People who bought the hyper inflation hype have been wiped out in gold. Remember the most gold ever sold to individuals occurred at over $1500 AN OUNCE. See the gold chart below.

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Pretty ugly, especially when you consider the fact that gold will drop to not just $300 an ounce but under $150.

People who got suckered into silver did even worse. Talk about pitying the fool. Look what they did to Silver traders.

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From $50 an ounce to $15 and this was supposed to be a wealth preservation investment. That’s how the Wall Street whores pedal precious metals. Well the truth is, every report flashes it’s deflation warning. And reality is the dollar has soared in value as precious metals have wiped out.

It’s a deflation and as you are seeing the dollar is king and precious metals are inviting disaster.

But the real disaster is the strong dollar, it’s destroying profits on Wall Street and crushing markets the world over.

Oil is the first domino that is falling

It should be no surprise to any one. Global demand for all commodities is falling off a cliff. And Oil is the most widely used commodity in the world. It’s the perfect storm.

Production is off the chart. Iraq is fighting for its survival. And oil shipped out through the south is now up to 4 million barrels a day.

Iran is anticipating sanctions being lifted no matter what the US does. The fact of the matter is the EU and the UN both have agreed to lift sanctions.

Iran is already ramping up productions and no one has the stomach to enforce sanctions that they know are about to be lifted. The Iranian oil ministry says within 6 months their oil output will go from 1.5 million barrels per day to 4.5, an increase of 3 million BPD.

Add to the equation the 45 million barrels of oil Iran has in storage. Oil that is readily available to market and record high OPEC output lead by Saudi Arabia. The US fracking revolution has made the US totally independent of foreign producers or sources of oil. So you can see why we are predicting oil between $10 to $20 a barrel in the next 12 months.

It is one of the all time great trades. And there is more. Oil feeds the deflationary spiral. As the price of oil comes down, producers especially in the US halt exploration. They cut costs, workers and dump oil in a desperate bid to survive. They feed the oil price collapse and deflationary spiral.

Ultimately the Big losers are our good friends the bankers

Now let’s look at the financial side of the equation. Commodities were driven to record bubble highs. Funded by massive loans and manipulations by our banker buddies. The entire commodity complex is wiping out as we speak. The losses are staggering.

The record high commodities prices put in these last few years are now crashing. One hell of a lot of money has been and is being lost. And these massive unprecedented losses are being taken by our banker buddies.

That is why I am so bearish on the stock market (still near record highs) and Financial stocks. Many of you are concerned about the FAZ which is tied directly to the Russell 1000 financial stock index. Your concerns are duly noted and would be correct if we were in ordinary times. But we are not. As a result of the greatest blow up in commodity prices ever, all funded by massive loans and leverage by our banker buddies. I predict a financial collapse of biblical proportion.

It’s really very simple. If we don’t get the greatest banking wipe out ever our FAZ trade is doomed. We will never make any money.

BUT, BUT, BUT, if I am right and the bankers wipe out like I believe with all my heart and soul, the FAZ will soar to new highs. Whether they daily settle it or not.

Question! Is it not my job to see the mega events before everyone else? Did I not see the deflationary spiral first? Did I not see the commodities wipe out? The crashing oil?

I could appreciate it if you were concerned a year ago. When once again it looked like I was a fool and full of shit. But now that you understand that commodities were the greatest manipulated markets ever. Manipulated by our banker buddies on huge leverage with record amounts of borrowed money. And now you see the crashing commodities, the death plunge in oil, the Chinese wipe out starting. You should be able to connect the dots and see what a brilliant group of trades I have put you in.

As I have pointed out over and over again, events that are common knowledge known by the market opinion makers are not trade-able market events. And if markets were all seeing and all knowing, they would never grow these crazy bubbles. And they would certainly not wipe out.

But the truth is, the majority of people can’t see the future. They, in the name of being contrarians, really are running with the pack. Market opinion makers use ANYTHING to trap the fools. Right now, the most beautiful women in the world, who in another time would be dance girls, are on every single business network. Shapely red dress and all. The market sites and studio sets have been redesigned to have them do a shake your booty walk in front of giant screens of the markets.

The ugly ones have disappeared off of every business network. Just enough cleavage and dresses just short enough to slip a little higher when they give you the side shot of them sitting down. They have sports heroes appearing and celebrities too. All touting Wall Streets latest creations… designed to steal people money. It would be laughable if it weren’t so sad.

I love a beautiful women as much as the next man

But let’s not get carried away here and certainty don’t let her carry away your money. The truth is, the Wall Street’s steal your money machine has gone into hyperdrive. They are trying to vacuum up every buck they can. They have deployed new tools and rewritten the book of tricks. Do not mistake this for the height of their power. It is not. It’s the height of their desperation.

Here is your two minute warning. We will soon be adding many trades in our stock market tools. Reality is the US stock market is still very close to its all time highs. So we have some time.

The really big story will be the next banking crises. It will be global and it will be bigger than anything mankind has ever seen before.

Half the wealth of the planet will be wiped out overnight

And you will have the tools to not only survive but thrive. I want you to line your ducks all in a row. Get your house in order and get your head clear.

We know how to do this. I have been preparing all my life for this day that is on the near horizon. Let’s talk straight here. You know I deliver the goods and you know I have the gift to see these things ahead of time.

Relax, you’ve got a ticket to be in the game here. No matter how rich or how poor you are, you can make a killing in these events which have already started.

I am at your service,
Nick Guarino

And I thank you

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