China will “Crash” Again

It’s all about the Derivatives Stupid. Not calling you stupid, but the financial world; there are $700 Trillion worth of derivative trades out there. This is why the central bankers have kept the interest rates at zero or as close to zero as they can.  If interest rates get to 3 percent, there is not enough money to pay the interest on the margin calls.

Who is behind all of this insanity? Mostly, the central bankers and bankrupt states in Europe, the developing world and, of course, it includes the United States. But, hey, it also includes China, Russia, India, Saudi Arabia, Iran, Venezuela, Brazil and all of the rest. They have all spent more money than they have and the piper will get his due.

Think about it; the US owes $18 Trillion and cannot pay it. Oh, they are paying the interest on it, but at near to zero percent for the past 5 or 6 years. We are talking about $700 Trillion.

OK. To China. The latest 30 percent drop in the Chinese Stock Market was all about Derivatives coming due and a margin call by the Overseas Chinese (Headquartered in Singapore). Guess what? More are coming due in July and China does not have the funds. There will be a 60 percent “Crash” in China and a 30 percent “Crash” in the Eurozone. There will be a 22 percent “Market Correction” in the US Stock Market, but as more Derivatives come due, with no money to pay them, the entire system will “CRASH” down to about 3000 on the Dow Jones (a 5/6s loss in value).

Sell now and buy gold; bonds will be worthless and stocks will take ten years to begin appreciating again. The Euro will collapse along with the Yen, Yuan and the Ruble. The IMF and World Bank will be stripped of their funds by the cash-strapped Donor Nations. As worthless as the US Dollar is now, it will be the only major currency left standing. The US will default on its $18 Trillion debt and pay pennies on the Dollar to its domestic debtors. Foreign debtors will not get anything. You Europeans will be using German Marks and British Pounds soon.

The Biggest Bubble of All Time (the $700 Trillion) is collapsing and all of that digital money will be wiped out leaving the world a much poorer place; Capital will be scarce and highly valued again.

Don’t be too alarmed; there will still be good companies and products, but their value will plummet. Imagine what losing 85% of the money in the world will do; it is called DEFLATION. Bread will go to one dollar and, then, 50 cents, and then, 25 cents; same for housing, salaries and transportation.

This Depression will dwarf the Great Depression of the 1930s and it will last about ten years. It is not going to be fun, but the survivors will be able to handle it. This is part of the Great Earth Changes that we are all beginning to experience.

This is all related to the take-over of the Light. It will be Very Difficult for Dark-oriented people and not-so-difficult for Light Beings.

Love, Light and Laughter,

Merln

Category: Uncategorized
You can follow any responses to this entry through the RSS 2.0 feed.You can leave a response, or trackback from your own site.

Leave a Reply

Your email address will not be published. Required fields are marked *