by John Galt
July 6, 2015 05:20 ET
This morning the so-called Greece crisis has entered its final phase and the futures markets reflect this at about 5 a.m. Eastern Time:
(courtesy of FINVIZ.com)
The Greek government has won the support of the people to take whatever course of action is necessary and the world appears to be wringing its collective bankster hands that this is the “big one” and the Ponzi scheme known as print and pray is about to come to an end with a small nation threatening to leave the Eurozone.
Everyone with half an ounce of intelligence knows this is total nonsense. For example, U.S. stock futures have already improved by well over 100 points (DJIA) off their overnight lows and gold has lost all of its overnight gains. In fact by the end of trading today, despite great volatility, I would not be shocked to see a small gain or loss of less than 0.5% in North American markets and a follow through rally in Asia today.
That being said, the real threat the banksters fear is from the PIIGS contagion returning with a vengeance this year in addition to a follow through with another American real estate and credit crisis which causes a simultaneous deflationary contraction which can not be over come with massive wealth transfers to the financial system from private hands. The failure of market manipulations throughout history has been demonstrated since the Federal Reserve’s failures of 1936-1937, attempts to salvage the socialist fiasco of France in the 1970’s, and again in the United States in 2008-2009.
Fast forward to today and the real problem the international banking cartel fears rears its ugly ahead in China. Last night’s Shanghai composite close provided some hope even though every government controlled fund was under orders not to sell any equities under any circumstances:
(chart via YahooFinance)
The market indicated and rallied almost 8% on the open then closed with a meager 2.8% increase on very light volume. This triggered a wait and see approach throughout other Asian markets despite the Greek crisis. In fact as of this morning, the German DAX index which is usually a good precursor for action on Wall Street was only down about 1% (live chart updates with 15 minutes delay):
(chart via YahooFinance)
The biggest problem terrifying international bankers, especially the Federal Reserve is the crash of China’s economy and subsequent retrograding back into a nationalist communist based economic system protecting their economy and people from outside influence and investment. The fear of a Chinese withdrawal from the international financial system as it has existed up to now has best been reflected by the crash of the Chinese stock market, as reflected by the Shanghai composite over the past 6 months:
(chart from Bloomberg)
The implications of a Chinese retrenchment and refusal to participate in the IMF/ECB/Federal Reserve financial shell game are considerable. With international investors spooked by the sudden realization that China is in fact a communist dictatorship (news flash) and that in fact they will not surrender their sovereignty to maintain a fictitious world peace, it is only a matter of time before the ailments of old become the problems of the current era. The inability of the central banksters to control Russia, Greece, and now China are only the beginning of a new era of economic and geopolitical transition.
The big queston is will this transition be one of peace or war, and as of this morning the latter appears to be the path most nations have elected to prepare for.