It's not just the US that is having volatility in their stock market, the Australian stock market is not escaping the turmoil that is affecting so many other major markets around the world. This recent downturn in Australia is being driven by decline in the Asian markets as well as increasingly lower commodity prices. Australia, like Canada, is very economically dependent on their natural resource sector. So the decline in the prices of commodities such as iron ore, coal, natural gas, gold, and aluminum hurts their economy.
Iron ore and coal in particular make up the biggest portion of the county's exports, and these two both have been some of the worst performing commodities of them all for the past four to five years. Australia's exports also consists of a lot of natural gas, gold, crude oil, and aluminum, all of which have been declining in price for several years as well. The recent change in Australian leadership was expected to keep the market there a little more stable, but that political news did not encourage the market. The one exception was the Australian dollar rallying shortly before falling against the US dollar and ending the day at 71 cents to the US dollar.
There is almost no major stock market in the world that is not experiencing tremendous amounts of volatility. The looming decision of the Federal Reserve to raise interest rates or not, is causing more and more panic in the financial markets of the world. The fact that the whole world is waiting on the what the Fed will do shows how incredibly fragile the entire global financial system is.
Virtually every action the Fed has taken since the last financial crisis has been intended to temporarily keep the whole train going forward just a little bit longer, in spite of the massive fundamental issues that have not been resolved (and have been made worse) since the last crisis. Since rising interest rates inherently cause the stock market to go down, the Fed has an incentive to delay any rise for as long as they can get away with, but the markets all around getting very shaky due in large part to what the Fed as well as other central banks will do.
There are some experts such as Jeff Berwick who has been predicting that a major crash is likely to be coming in this month. This event could very well coincide with a rise in interest rates, or any of the other countless black swans that are out there. Jeff and a few other contrarian financial experts have been warning people to get their assets and their residency out of the U.S. For a few years now, and it might almost be too late if the crash happens soon.
Once the financial system crashes, do you think the government will stand idly by and let citizens freely move their wealth out of the country? The recent events in Greece and China give us a glimpse as to what that might look like. Bank holidays, freezing of brokerage accounts, and even the arresting of short sellers were all done in attempt to keep “control” of the crashing markets. Wouldn't a major crash be a convenient time to fully implement the war on cash and putting citizens into a fully digital banking system?