Massive short sells dictate gains in US stock markets for 10th consecutive week. Hedge funds, institutional and private investors fear coming economic turmoil as they liquidate billions once again last week.
More bad economic news came out Monday morning as the Department of Commerce revealed that US factory orders have fallen for 16 consecutive months. This information comes on the heels of Friday’s news from the BLS that March saw a decline of another 29,000 manufacturing jobs.
Gold last reported a.m. Thursday is $1241.20 and silver is $15.34.
The IMF is looking to blame China for the coming economic carnage. “Policy choices in the world’s second largest economy would also have increasing implications for global financial stability in the coming years as the country opens up its bond and equity markets. The impact of shocks to China’s fundamentals on global financial markets is expected to grow stronger and wider over time.”
“Clear and timely communication of its policy decisions, transparency about its policy goals, and strategies consistent with achieving them will, therefore, be essential to ensure against volatile market reactions, which may have broader repercussions.”
Broader repercussions are growing and the blame clearly lies on the Fed’s shoulders and not that of China. It’s the Fed that began depreciating its currency in 2008 creating that largest debt and assets bubbles in the history of the world. China finds itself in the unfortunate position of owning US debt and currency debasement is destroying its return.
Managing director of the IMF, Christine Lagarde will warn on Tuesday that the Fund will downgrade its global growth forecasts ahead of its Spring meeting in Washington this month.
The game of central banks creating wealth out of thin air, QE, has come to an end and we can expect continued volatility in 2016 moving forward for several years.
The collapse we’ve been warning of is here.