A New Black Monday: Economic Crisis Underway

The world financial scene is looking like its feeling the pain.

The question is how much will it impact all of us?

Michael Snyder lists it all off:

BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On Two Consecutive Days

On Monday, the Dow Jones Industrial Average plummeted 588 points. It was the 8th worst single day stock market crash in U.S. history, and it was the first time that the Dow has ever fallen by more than 500 points on two consecutive days. But the amazing thing is that the Dow actually performed better than almost every other major global stock market on Monday. In the U.S., the S&P 500 and the Nasdaq both did worse than the Dow. In Europe, almost every major index performed significantly worse than the Dow. Over in Asia, Japanese stocks were down 895 points, and Chinese stocks experienced the biggest decline of all (a whopping 8.46 percent). On June 25th, I was not kidding around when I issued a “red alert” for the last six months of 2015. I had never issued a formal alert for any other period of time, and I specifically stated that “a major financial collapse is imminent“. But you know what? As the weeks and months roll along, things will eventually be even worse than what any of the experts (including myself) have been projecting. The global financial system is now unraveling, and you better pack a lunch because this is going to be one very long horror show.

Our world has not seen a day quite like Monday in a very, very long time. Let’s start our discussion where the carnage began…

Asian Markets

For weeks, the Chinese government has been taking unprecedented steps to try to stop Chinese stocks from crashing, but nothing has worked. As most Americans slept on Sunday night, the markets in China absolutely imploded…

As Europe and North America slept on Sunday night, Chinese markets went through the floor — the Shanghai Composite index of stocks fell by 8.49%, the biggest single-day collapse since 2007.

It wasn’t alone. Hong Kong’s Hang Seng fell 5.17%, and Japan’s Nikkei fell 4.61%. Stocks in Taiwan, the Philippines, Singapore, and Thailand also tumbled.

Things would have been even worse in China if trading had not been stopped in most stocks. Trading was suspended for an astounding 2,200 stocks once they hit their 10 percent decline limits.

Overall, the Shanghai Composite Index is now down close to 40 percent from the peak of the market, and the truth is that Chinese stocks are still massively overvalued when compared to the rest of the world.

That means that they could very easily fall a lot farther.
European Markets

The selling momentum in Asia carried over into Europe once the European markets opened. On a percentage basis, all of the major indexes on the continent declined even more than the Dow did…

In Europe, the bloodbath from Friday continued unabated. The German Dax plunged 4.7%, the French CAC 40 5.4%, UK’s FTSE 100 dropped 4.7%. Euro Stoxx 600, which covers the largest European companies, was down 5.3%.

But wait… Europe is where the omnipotent ECB and other central banks have imposed negative deposit rates. The ECB is engaged in a massive ‘whatever it takes” QE program to inflate stock markets. But it’s not working. Omnipotence stops functioning once people stop believing in it.

U.S. Markets

Even before U.S. markets opened on Monday morning, the New York Stock Exchange was already warning that trading would be halted if things got too far out hand, and it almost happened…

The thousands of companies listed by the New York Stock Exchange and Nasdaq Stock Market will pause for 15 minutes if the Standard & Poor’s 500 Index plunges 7 percent before 3:25 p.m. New York time. The benchmark got close earlier, falling as much as 5.3 percent.

There were other circuit breakers in place for later in the day if too much panic selling ensued, but fortunately none of those were triggered either. Here is more from Bloomberg…

Another circuit breaker kicks in if the S&P 500 extends its losses to 13 percent before 3:25 p.m. If the plunge reaches 20 percent at any point during today’s session, the entire stock market will shut for the rest of the day.

When the U.S. markets did open, the Dow plunged 1,089 points during the opening minutes of trading. If the Dow would have stayed at that level, it would have been the worst single day stock market crash in U.S. history by a wide margin.

Instead, by the end of the day it only turned out to be the 8th worst day ever.

And in case you are wondering, yes, investors are losing a staggering amount of money. According to MarketWatch, the total amount of money lost is now starting to approach 2 trillion dollars…

As of March 31, households and nonprofits held $24.1 trillion in stocks. That’s both directly, and through mutual funds, pension funds and the like. That also includes the holdings of U.S.-based hedge funds, though you’d have to think that most hedge funds are held by households.

Using the Dow Jones Total Stock Market index DWCF, -4.21% through midmorning trade, that number had dropped to $22.32 trillion.

In other words, a cool $1.8 trillion has been lost between now and the first quarter — and overwhelmingly, those losses occurred in the last few days.

Unfortunately, U.S. stock prices are still nowhere near where they should be. If they were to actually reflect economic reality, they would have to fall a lot, lot lower.

For example, there is usually a very strong correlation between commodity prices and the S&P 500, but in recent times we have seen a very large divergence take place. Just check out the chart in this article. At this point the S&P 500 would have to fall another 30 to 40 percent or commodities would have to rise 30 or 40 percent in order to close the gap. I think that the following bit of commentary sums up where we are quite nicely…

“Markets are afraid of further economic weakness in China, further pain in global commodity markets and uncertain about Fed and PBoC policy — what they will do and what the impact will be,” Societe Generale’s Kit Juckes wrote on Monday. “The divergence between global commodity prices and equities is not a new theme but the danger now is that they begin to re-correlate – as they did when the dotcom bubble burst in 2000 and what had previously been an emerging market crisis became a US recession.”

And commodities were absolutely hammered once again on Monday.

For instance, the price of U.S. oil actually fell below 38 dollars a barrel at one point.

What we are watching unfold is incredible.

Of course the mainstream media is bringing on lots of clueless experts that are talking about what a wonderful “buying opportunity” this is. Even though those of us that saw this coming have been giving a detailed play by play account of the unfolding crisis for months, the talking heads on television still seem as oblivious as ever.

What is happening right now just doesn’t seem to make any sense to the “experts” that most people listen to. I love this headline from an article that Business Insider posted on Monday: “None of the theories for the Black Monday market crash add up“. Yes, if you are willingly blind to the long-term economic and financial trends which are destroying us, I guess these market crashes wouldn’t make sense.

And if stocks go up tomorrow (which they probably should), all of those same “experts” will be proclaiming that the “correction” is over and that everything is now fine.

But don’t be fooled by that. Just because stocks go up on any particular day does not mean that everything is fine. We are in the midst of a financial meltdown that is truly global in scope. This is going to take time to fully play out, and there will be good days and there will be bad days. The three largest single day increases for the Dow were right in the middle of the financial crisis of 2008. So one very good day for stocks is not going to change the long-term analysis one bit.

It isn’t complicated. Those that follow my writing regularly know that I have repeatedly explained how things were setting up in textbook fashion for another global financial crisis, and now one is unfolding right in front of our eyes.

At this point, everyone should be able to very clearly see what is happening, and yet most are still blind.

Why is that?

http://theeconomiccollapseblog.com/archives/black-monday-the-first-time-ever-the-dow-has-dropped-by-more-than-500-points-on-two-consecutive-days

Dear Christian, Please Do Some Basic Research On The Pharisees: Who They Were, What They Did, And Why Jesus Was Forceful With Them And Not All The Other Sinners He Encountered

I can’t recount the number of times I have heard something along the lines of “Jesus spent time with sinners, not the Pharisees”

On almost every occasion, this statement has been used as a veiled attack against someone they disagreed with. Usually, it’s used against me.

The “Pharisee” ad hominem is, contrary to popular belief, the best way to hurt a Christian. Now before all those non-believers out there start rubbing their hands together in glee, it only hurts when it comes from other genuine believers. Indeed, that is why it hurts at all – because it’s family.

There not much worse than being misunderstood by family, to the extent that family accuse you of sharing the morality of people whom John the Immerser describes as a “brood of vipers” and whom, upon seeing Jesus cure the sick and the lame, accused him of doing by demonic power.

So you can understand why it’s not so nice to hear your fellow brothers and sisters accuse you of being a Pharisee, especially given that some of these guys were literally on their way to the lake of fire and even leading others with them.

So I write with sobriety that if you are a Christian and you are going to accuse your brothers and sisters of being like the Pharisees, you should do two important things:

  1. Understand that your accusation is massively serious, and;
  2. Do some basic research to understand why it is massively serious.

Needless to say, a lot of Christians who casually throw out “Pharisee” against people whose opinions they don’t like (or are too lazy to find biblically sound arguments to refute) may just find out that in no surprising twist of irony, the real Pharisees were the ones throwing accusation, specifically false ones against the innocent Son of God because they didn’t like him or his Father.

So what did Jesus say about the Pharisees?

“Then Jesus said to the crowds and to his disciples, “The scribes and the Pharisees sit on Moses’ seat, so do and observe whatever they tell you, but not the works they do. For they preach, but do not practice.” Matthew‬ ‭23:1-3‬ ‭ESV‬‬

To begin with, the Pharisees had the very serious God-given responsibility of teaching and maintaining the God’s Torah, given through Moses, in the nation of Israel, the nation God himself chose to bring forth the only hope all humanity had of escaping judgment for sin and death: Messiah.

As far as responsibility goes, this was right up there and I would argue that there is nobody since, bar the apostles, who carried a greater weight of responsibility before God.

The serious crime of the Pharisees is that they did not aspire to keep the Torah themselves, according to Jesus own words, and not that keeping the Torah was itself a bad thing. Funny that – many Christians have internalised the false dichotomy of “law versus grace” which paints keeping the Torah as some kind of heinous legalism attempting to earn salvation. Since Jesus kept the Torah perfectly and had to in order to be accounted righteous according to the Torah, a bit of biblical education would not go astray for the church in this area.

And their crimes were multiplied beyond this:

They tie up heavy burdens, hard to bear, and lay them on people’s shoulders, but they themselves are not willing to move them with their finger.” Matthew‬ ‭23:4‬ ‭ESV‬‬

Anyone who has ever looked at the Talmud, known in Judaism as the “oral law”, might begin to piece what Jesus says here together. In Judaism, the Talmud is considered the interpretive key of the scriptural Torah and it is considered equally inspired by God.

Simply, interpreting the Torah through the Talmud makes obeying God very complex and difficult. More importantly, teaching the oral Torah as equal to the written scriptural Torah actually adds to the Torah, something God expressly forbids.

But that’s not all!

“They do all their deeds to be seen by others. For they make their phylacteries broad and their fringes long, and they love the place of honor at feasts and the best seats in the synagogues and greetings in the marketplaces and being called rabbi by others.” Matthew‬ ‭23:5-7‬ ‭ESV‬‬

Not only were the Pharisees adding to the Torah with Talmudic interpretations, making human interpretations equal to God’s instructions (a big biblical no-no) and keeping the average Israelite bound up with complex commands instead of wholehearted devotion to God, but they were equally unconcerned about the people in their care and their own hearts and instead concerned about privilege, power, and their outer appearances.

All of this becomes evident in the following passage:

“Then he said to the man, “Stretch out your hand.” And the man stretched it out, and it was restored, healthy like the other. But the Pharisees went out and conspired against him, how to destroy him.” Matthew‬ ‭12:13-14‬ ‭ESV‬‬

Imagine having a withered hand that you can’t use. Then suddenly, theirs guy comes along and miraculously heals it! Imagine the celebration as you run around excitedly telling people all about it. How would you respond when your respected community leaders turn up and start gunning for the guy who just changed your life for the much better?

That’s who many of the Pharisees were.

So the Pharisees, at least the ones who accosted Jesus, are a bit different to someone who disagrees with you on a theological issue and even more so that someone who makes a good point that you just don’t understand.

When you throw in that the Pharisees turned Jesus over to be brutally murdered because they didn’t like his liberating threat to their power base, calling someone a “Pharisee” is really just a step down from “Antichrist”.

Hey, if the shoe fits but the important question is – are you sure it fits?

Perhaps I’m getting ahead of myself and calling someone a “Pharisee” isn’t so bad after all?

““But woe to you, scribes and Pharisees, hypocrites! For you shut the kingdom of heaven in people’s faces. For you neither enter yourselves nor allow those who would enter to go in. Woe to you, scribes and Pharisees, hypocrites! For you travel across sea and land to make a single proselyte, and when he becomes a proselyte, you make him twice as much a child of hell as yourselves. “Woe to you, blind guides, who say, ‘If anyone swears by the temple, it is nothing, but if anyone swears by the gold of the temple, he is bound by his oath.’ You blind fools! For which is greater, the gold or the temple that has made the gold sacred? And you say, ‘If anyone swears by the altar, it is nothing, but if anyone swears by the gift that is on the altar, he is bound by his oath.’ You blind men! For which is greater, the gift or the altar that makes the gift sacred? So whoever swears by the altar swears by it and by everything on it. And whoever swears by the temple swears by it and by him who dwells in it. And whoever swears by heaven swears by the throne of God and by him who sits upon it. “Woe to you, scribes and Pharisees, hypocrites! For you tithe mint and dill and cumin, and have neglected the weightier matters of the law: justice and mercy and faithfulness. These you ought to have done, without neglecting the others. You blind guides, straining out a gnat and swallowing a camel! “Woe to you, scribes and Pharisees, hypocrites! For you clean the outside of the cup and the plate, but inside they are full of greed and self-indulgence. You blind Pharisee! First clean the inside of the cup and the plate, that the outside also may be clean. “Woe to you, scribes and Pharisees, hypocrites! For you are like whitewashed tombs, which outwardly appear beautiful, but within are full of dead people’s bones and all uncleanness. So you also outwardly appear righteous to others, but within you are full of hypocrisy and lawlessness. “Woe to you, scribes and Pharisees, hypocrites! For you build the tombs of the prophets and decorate the monuments of the righteous, saying, ‘If we had lived in the days of our fathers, we would not have taken part with them in shedding the blood of the prophets.’ Thus you witness against yourselves that you are sons of those who murdered the prophets. Fill up, then, the measure of your fathers. You serpents, you brood of vipers, how are you to escape being sentenced to hell? Therefore I send you prophets and wise men and scribes, some of whom you will kill and crucify, and some you will flog in your synagogues and persecute from town to town, so that on you may come all the righteous blood shed on earth, from the blood of righteous Abel to the blood of Zechariah the son of Barachiah, whom you murdered between the sanctuary and the altar. Truly, I say to you, all these things will come upon this generation. “O Jerusalem, Jerusalem, the city that kills the prophets and stones those who are sent to it! How often would I have gathered your children together as a hen gathers her brood under her wings, and you were not willing! See, your house is left to you desolate. For I tell you, you will not see me again, until you say, ‘Blessed is he who comes in the name of the Lord.’”” Matthew‬ ‭23:13, 15-39‬ ‭ESV‬‬

Guess I’m not.