Why the Next Stock Market Crash Will Happen Any Day Now

China on the other hand is making moves to challenge the dollar by backing up its currency with gold and also acquiring oil from the ME with it. This has been growing exponentially over recent years and it really illustrates that the death of the dollar is coming soon to your doorsteps. Although keeping it weak against the dollar has aided in maintaining exports from China competitive, China has made the decision that they are prepared to take the risk and basically set their course by themselves.

 

The US sought after an attack on Syria, but did not push through with it. In my personal analysis, this illustrates the gradual desperation of the central bankers and their affiliates in the United States government. Obama did not accumulate any significant support in a conflict with Syria. He tried to convince his people that Assad was using chemical weapons as a very see-through justification to try and get directly involved in Syria. However, we all know the real reason, which was to look after the disintegrating petrodollar and keep all that oil flowing and being acquired with US dollars. This shows that the United States only has one route left to take to avert the blame of a crumbling economy away from the real lawbreakers in the central bank, and that is to go to war.

 

Basically, the Federal Reserve is trapped between a rock and a really, really hard place. Because as long as there is a huge budget deficit, the Federal Reserve has to QE to purchase bonds or else bond prices will plummet which also means that interest rates will escalate. If they continue to QE which literally means print money, inflation will unquestionably intensify and build momentum. And once the momentum reaches a point where confidence in monetary value is lost, it will be a very difficult thing to regulate.

 

The enormous expanse of money printed had already gone into asset markets which arefluctuating on this liquidity with no actual productive money that is backingthe price. If the Federal Reserve continues with the low interest rate and loosemoney, more and more business models will eventually be erected on this. Moreover,derivative financial products will be built on these companies just like the loanmarket.

 

Wheninflation behaves problematically, even bringing the QE to an end will be catastrophic.This is exactly like the last stage of a dying star that is expanding rapidly,burning off whatever mass it has and rapidly disintegrating into a black hole.

 

I definitely agree that in general, the markets are due for a correction. 2014 had a great bull-run but not necessarily because it reflected a healthy, recovering market. It's recovering but there's still so much to go. I think we're all lucky that 2008 is still fresh in our minds because I think retail investors won't be burned as much this time.

 

The markets do look overbought at the moment but I am waiting to see clear evidence of a sustained downturn before being convinced of an impending crash.

 

Even if a crash is generally bad news on a global level, I can't wait for it, as it would allow me to get into the market; it's far too expensive to get into it at the moment.

 

The stock market is doing nicely, and the economy is in the tank. While this seems crazy, I don't think we are expecting a stock market crash anytime soon. We will soon see the economy continue to improve. In the next decade or two, something will strain the economy once again, most likely war, and then the market will crash again. That is a long time away.