Current Events-The Markets

http://www.usatoday.com/story/money/markets/2015/08/28/stocks-friday/71292112/

Stocks dropped in early trading Friday as Wall Street gets set to close out a turbulent week that saw the major indexes swing dramatically and fall into official correction territory for the first time since 2011.

The up-and-down swing should continue for a while...

Current Events-Markets

http://www.usatoday.com/story/money/markets/2015/08/27/dow-rebound-gains-speed--wall-street--fear-subsides/32466145/

Stocks surged again Thursday as Wall Street builds on the Dow's historic rally Wednesday as order is restored to the U.S. stock market following its first dip into correction territory in four years.

Stock Market volatility is akin to a car fishtailing. Sooner or later, it will crash.

Also:

Also driving the bullish price action today on Wall Street was "news that the Chinese government was directly buying equities in addition to making liquidity injections into the banking system," according to a report from Bespoke Investment Group. The government support helped the Shanghai composite index reverse losses late in the day and finish up more than 5%.

So the Chinese govt is pumping money directly into their markets. I wonder if the US govt does the same...

Current Events-The Markets

http://www.usatoday.com/story/money/markets/2015/08/25/stocks-tuesday/32317511/

Stocks jumped about 2% at the open Tuesday as Wall Street rebounded from Monday's 588-point drop in the Dow in a stock market rout that sent all the major indexes into official correction territory.

On other, more important news:

The People's Bank of China said the rate for a one-year loan will be cut 0.25 percentage point to 4.6% and the one-year rate for deposits will fall to 1.75%. The central bank also lowered the amount of crash reserves Chinese banks are required to hold.

Yes. A major US newspaper with writers who graduated from top-notch schools misspell CASH. Instead, they put CRASH.

The announcement was made after the close of Chinese and other Asian markets, which were volatile Tuesday as Chinese stocks plunged again and Tokyo markets also fell sharply after earlier rebounding. The Shanghai composite index declined 7.6% to 2,964.97. The index is now below the psychologically important 3,000 level.

At least YAHOO! made the news a headline:

China cuts rates, reserve ratio after stocks plummet again

http://finance.yahoo.com/news/china-stocks-fall-again-beijing-041447524.html

Current Events-World Markets

http://g1.globo.com/economia/mercados/noticia/2015/08/bovespa-240815.html

Markets throughout the world in disarray...

The Dollar bubble

So we find ourselves in the midst of a semi-stock market crash precipitated by moves the Chinese are making, namely, the devaluation of the Yuan.

It has become obviously clear that the US and China are clearly pegged together, at least for the time being, and what happens to China happens in the US and the rest of the world.

The chinese have manipulated their currency, and as a result, the following has occurred:

#1-August 9, 2015- China has reduced its holdings of US Treasuries by about $180 billion...and yet Bloomberg chooses to indicate that the demand for US treasuries is still "robust"...

Why would China make such a move?

https://www.youtube.com/watch?v=Kl4D84YqTTY&index=196&list=PLE6FD224009596635

Current Events-The Markets

http://www.usatoday.com/story/money/markets/2015/08/24/stocks-monday/32254435/

NEW YORK —Stocks plunged at the open as the market bloodbath showed no signs of letting up with the Dow tumbling as much as 1,089 points in the opening minutes of trading.

The Standard & Poor's 500 index plunged 4.4% as the broad-based index joined the Dow in correction territory, a drop of 10% or more from its recent high. The Nasdaq composite index dropped 5% and also fell into a correction.

Market anxiety is on the rise after a big sell-off in China overnight, where the Shanghai composite index shed 8.5%, its biggest one-day decline since 2007 — and Chinese media were dubbing the selloff "Black Monday." The global stock rout then moved to Europe where major indexes there are off roughly 5%.

It goes to show....that China is indeed in control.

In other news NOT reported by USAToday:

http://finance.yahoo.com/news/nyse-invokes-rule-48-market-130238430.html

NEW YORK, (Reuters) - The New York Stock Exchange invoked Rule 48 on Monday in an effort to speed up and smooth trading at the market open, as exceptionally high volatility is expected.

Current Events-The Markets

http://www.usatoday.com/story/money/markets/2015/08/24/global-markets-rattled-china-stocks-plummet-85/32252311/

BEIJING — Wall Street followed global markets lower Monday with the Dow plunging as much as 1,089 points at the open as China's slowing economy rattled investors from Shanghai toFrankfurt.

The sell-off Monday began once again in China as the Shanghai composite index fell over 8.5% to 3,209.91.

Current Events-The Markets

http://www.usatoday.com/story/money/2015/08/24/whats-bad-china-bad-us/32255125/

What’s bad for China is bad for the U.S.

China’s plunging stock market is ricocheting around the globe and dragging down U.S. markets, raising awareness of how the world’s two largest economies are profoundly interconnected despite political consternation over trade competition between the two nations.

The futures market indicates that the Dow could drop more than 500 points when trading opens this morning. That comes after China’s Shanghai composite indexposted its biggest one-day drop since 2007, falling 8.5% Monday.

Current Events-What is China doing??

Excerpt starting @9:12...Schiff breaks down the dilemma.

https://www.youtube.com/watch?v=BfxR0vhu0kY


"Everybody is focused on the de-valuation, which is tiny. TWO or THREE percent. The PRinciple here is what's important. CHina said they do not want to be pegged to the dollar but to 'kinda reflect fundamentals'. Everybody forgets the Dollar has risen over 30% against a basket of currencies over the past couple years. Since the chinese currency is tied to dollars, it TOO rose. However, when the dollar collapses, China will not "fantasy fog lift" it by suppressing the value of the Yuan by purchasing US securities any further, China is not gonna be there to catch us this time.