There is going to be an economic and stock market crash it is simply a matter of when or why.
The insanity the world is witnessing, the excesses be they political or financial, and the loss of confidence in the West all will lead to a thundering conclusion of a twenty year bull run which started after 2001. If this progresses to an even worse stage in world history, it easily could devolve into The Everything Crash triggering the Kondratieff Winter I discussed just a few weeks ago.
Below I outline the five triggers I have rationalized that individually or worse, collectively, that could start this crash and spread it beyond a financial system issue and into the entire nation’s economic and political structure.
I. China’s Financial System collapses
With the current and ongoing collapse of Evergrande in China, this contagion could spread rapidly. There are literally thousands of unlisted and unkown foreign investors, be they hedge funds, banks, or sovereign wealth funds who might hold liability if the People’s Bank of China elects to pay or restructure only domestic investors while offering foreign investors pennies on the dollar as the U.S. Treasury initially did during the 2008 financial crash. If this were to occur, the Lehman moment consequences are unknown as there is no regulatory structure visible to foreign oversight for the offshore derivative contracts created by Evergrande and other Chinese financial corporations.
II. President Kamala Harris
Need I say more?
I’m not promoting nor assuming the worst, but let’s face reality, mentally and physically speaking the old man looks like he’s one nap nap away from a dirt nap. Should Vice-President Harris assume the office of President of the United States the equity markets will crash at least 50% initially unless immediately shut down with bank runs running parallel until a holiday is declared.
This non-denial denial by the Biden junta today was not exactly reassuring:
.@PressSec is asked about Biden’s repeated cough during press conferences:— Daily Caller (@DailyCaller) September 16, 2021
“I don’t think it’s an issue of concern. There’s a range of reasons why we need to clear our throat or have a light cold.” pic.twitter.com/xTtgNiVm2s
III. The Pfizer Vaccine is Declared a Failure
Evidence is building, especially in Israel, that Pfizer’s Covid-19 vaccine is more of a temporary therapeutic rather than an actual cure or long term deterrent to the China Virus. It is so bad that the CDC actually went to great lengths to redefine what a vaccine and immunization is.
Should Israel, some Asian nations, Canada, or the European Union individually or as a group declare it is as such, the shadow would be cast over Johnson and Johnson’s medication plus the other mRNA vaccine by Moderna.
Add in the strong possibility that the vaccines have already created new infectious variants yet to be determined and a man made formula for disaster is in the offing as distribution of vaccines accelerates while cheaper, validated therapeutics work and exist.
Markets would crater on such news and the consequences of the threat of further lockdowns and shutdowns of international and intrastate commerce would be devastating to the U.S. and global economy.
IV. January 6th on September 18th
The so-called rally for the January 6 political prisoners reeks of a false flag operation by someone who wishes to create a dramatic situation which causes radical action by the current regime. God forbid there are numerous injuries or terrorist attacks, be they real or staged, which result in death or destruction including civilian and military casualties. Should that occur and a declaration of a national emergency happen as the old fool is told to do, then all bets are off as to the reaction of innocent Americans or our financial system afterwards.
Remember, the senile old fool views anyone not for him as a personal enemy, so it would not take much to persuade him to overreact.
V. War, Hostages, Humiliation
The current regime and American media are successfully tamping down discussion of American hostages in Afghanistan at this time. However as I speculated last month, after show trials and possibly several executions, the inability to free the hostages can not be covered up and is now a national issue which humiliates the Biden regime internationally even further. To make matters worse, the Chinese offer to mediate and free hundreds of U.S. citizens and Afghan SIV’s to demonstrate the impotence of the American President.
The war option however much I would like for this to be off the table is front and center now. America is weak. Our will to fight for our allies has been demonstrably reduced in the first 180 days of Biden’s woke military agenda along with an incompetent foreign policy. Much like the old USSR invading Afghanistan while Jimmy Carter was floundering, China could attack and invade Taiwan, leaving hundreds of thousands dead but an ally in the Far East now in the hands of the Communist Party.
The U.S. Navy is basically impotent against such an invasion as the first three days would determine the course of battle and our resources are insignificant compared to the large numbers of troops and material that China could sacrifice to reunite Formosa with their nation and reset the balance of power for decades in Asia. I seriously doubt Biden has the intestinal fortitude to sacrifice one, two or possibly even three of our nuclear powered aircraft carriers along with support ships for a defense of Taiwan; much less an exchange of nuclear weapons in defense of Taipei.
The consequences of such a conflict are beyond the scope of comprehension as the economic impact on the semiconductor and electronics industry would reverberate for a decade.
And all it takes for the triggering of this event or all of them is the flick of a finger, a domino falling, and the rest is history.