Since China recently manipulated their own currency, the Western media has been quick to blame this move for the volatility that we've seen in the market. At the end of last week, we saw the markets plunge several points, and they've continued to promote worry this week as well when they fell again by several more points. To ease the panic, China came out this week and their central bank lowered their interest rates on Tuesday even further. They cut their key lending rate by 0.25 percent to 4.6 percent. This makes the fifth interest rate cut by the People's Bank of China since late last year. But their move several days ago to devalue the Yuan, isn't the only reason that markets in the West are having problems.
Unfortunately, fear isn't the only motivator in this financial storm. There are underlying fundamental reasons as to why the U.S. Stock market and other markets around the world may have cause to worry. “The fundamentals are driving this, and it's not China,” says financial expert Peter Schiff. “The media is blaming this on China, look the Chinese market is going down for the same reason that the U.S. market is going down. It's not that China is causing our market to go down. Both markets are responding to the Federal Reserves' threat to raise interest rates.” The Federal Reserve has been cautioning that they might raise rates for some time now, but many don't expect that they will do anything now this year. Financial experts at Barclays have asserted that they don't believe the Fed will make a move now on interest rates until at least the beginning of next year. This leaves some to speculate that we could see the beginning of QE4 starting sometime in the near future.
The Federal Reserve has been propping-up the market with low interest rates and quantitative easing for many years now. It operates on a self-destructive fiat scheme that has nowhere to go but to eventually end-up at a financial disaster. Many experts have warned that when the scheme does eventually fail, it will be a financial disaster the likes of which the world has never seen before.
“The market is going to implode,” warns Schiff, and it has “thousands of points to surrender,” if it is really going to correct itself. Problems that we've seen in Greece, Cyprus, and other places around the world, could soon be coming to the West. Some experts, like Jeff Berwick of DollarVigilante.com, have warned that we could see the markets get much worse in the not so distant future. For those people who have their financial well-being tied up in these markets, they may soon find themselves in a difficult and unexpected position.
If you do not use PayPal or credit cards you can still donate! We accept checks, money orders, cash and equipment. With good old fashion mail you can send Dan stuff to:
Mail to Dan Dicks:
505-8840 210th Street
Langley BC, V1M 2Y2