This is one of the most important articles I have written ever since my article on the global currency reset, which I wrote when I first started my website. This has been one of those weeks that all of us need to remember. Many things happened that were huge. To begin with, the Chinese Hang Seng Index plunged 5.8% which was the largest fall since the 2008 financial crisis. In addition to that, the New York Stock Exchange thought it would be fun to suspend trading for nearly four hours due to a tech glitch. United Airlines was forced to ground many planes. The BRICS Bank officially opened. The U.S. Mint also announced it ran out of silver to produce the 2015 Silver American Eagle. More on that below.
Last Updated On: 7/9/2015
By: Nick Giammarino
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The above screenshot was taken from CBS prior to the market closing. The market closed 32% down, not 30% as the screenshot shows. At the time it was taken, the SSE (Shanghai Stock Exchange) First off, trading was halted today on the New York Stock Exchange (NYSE) for over three hours starting around 11:32 a.m. EDT according to what the exchange was calling an “internal technical issue.” Time will tell if this truly, was the cause. Today also marked the NYSE’s longest trading halt since October 2012, when Hurricane Sandy hit the East Coast.
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The president of the NYSE, Thomas W. Farley stated “I can’t say with precision exactly what drove it,” He also stated, “We found what was wrong and we fixed what was wrong and we have no evidence whatsoever to suspect that it was external.”
This was an interesting statement given the fact that the hacker group Anonymous posted on Twitter the day before:
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Wonder if tomorrow is going to be bad for Wall Street, we can only hope.
The NYSE made the following statement today:
The issue we are experiencing is an internal technical issue and is not the result of a cyber breach. We chose to suspend trading on NYSE to avoid problems arising from our technical issue.
Facts About China’s Stock Market Collapse
Here are a few quick facts about today’s collapse:
- Hang Seng Index fell 5.8 percent to end at 23,516.56, this is the biggest drop since November 2008
- All stocks save for one on the 50-member gauge slid amid the 148% higher trading volume compared to the the 30-day average.
- There was a large measure of Asian stock shares heading towards their steepest drop in about two years.
- China Life Insurance Co. fell 8.8 percent
- China Overseas Land & Investment fell 10 percent.
- The Hang Seng China Enterprises Index, or H-share gauge, dropped 6.1 percent which is a 20% drop from its May high.
- The Shanghai Composite Index closed another 5.9 percent lower, so it’s now down 32% compared to its high on June 12 2015.
- Since June 12 2015, China’s stock market has lost $3.2 trillion.
- Our world economy depends heavily on China. If China were to implode or go through a recession, a new world-wide recession would be the most likely outcome.
- China Shenhua Energy Co. plunged 9.3 percent
- China Resources Land Ltd. lost 8.4 percent
- HSBC Holdings Plc retreated 3.9 percent
The Wall Street Journal’s homepage also went down, though other parts of the site were fine.
For tomorrow, Thursday, it’s expected that the NYSE will begin trading at the usual time of 9:30am.
On Monday, just two days ago, China halted trading, much like what happened in the U.S. Today.
Why is China Collapsing?
A large sum of money has been placed into the Shanghai Stock Exchange (Chinese Stock Market) over the past year by millions of everyday Chinese citizens poured lots of borrowed money into shares. This, in turn, inflated prices to unsustainable levels. The Chinese government has encouraged this, and as a result, there are now estimated to be about 90 million “retail” investors, regular people who own Chinese stocks, which accounts to about 80% of all shareholders. What is means is that there are actually more market investors in China than there are Communist Party members. That was out of Bloomberg. Getting back to the market itself, as prices began to dip, these new, orginary citizen investors became forced to sell these shares to pay back the initial money they borrowed, and also to cover losses they incurred. This dangerous circle of selling is now creating a huge panic and is pushing down prices.
Shutting Down of NYSE
Not long after China suffered huge losses on Wednesday, the New York Stock Exchange temporarily halted trading due to an alleged “technical issue.”
Gold and Silver Market News
The Silver price closed at $15.24 and gold ended at $1161.90. Silver is down from about $16 one month ago, gold was around $1170.
Chat below to discuss this topic and other currency / finance news.
The current Gold / Silver Ratio stands at 76.24, a far cry from the 55 that was seen for many years and according to silver-coin-investor.com:
There is much less available silver in proportion to demand—both above and below ground—than available gold.
What this means is that silver is extremely cheap right now, and at some point, we may see silver approach the price of gold.
Read more about gold and silver and the ratio of the two here: http://globalcurrencyreset.net/gold-silver-ratio/
United States Mint Runs Out Of Silver
Since the U.S. Mint stated on 7/7/15 that they are out of the silver they need to make the American Silver Eagle coins, we have to wait until sometime in August when they resume production.
More news on Greece will come in a new post. For now, there is a bank holiday, and it’s extended through Monday, July 13, 2015. People have been restricted to only taking out €60 per day from the ATM machines. However, if they come across an empty ATM (which is quite common) they get nothing. In laymens terms, people in Greece, who use the Euro, cannot get to their money because the banks are shutdown and the ATMs are out of cash. Suddenly, your bank safe deposit box doesn’t sound so safe does it? Remember when the banks shut down on and after 9/11/2011? Same thing, you couldn’t withdrawal any money. Guess who had cash on hand? The gold and silver dealers, I’ve been warning you guys for a long time, it’s time you bought gold and silver. Buy it from your local dealers, support them. I put up a link here in case you are not sure which gold and silver to buy, here is the link: http://astore.amazon.com/globalcurrencyreset-20
In the photo above, aging Greek pensioners are holding their hands out in desparation, they were told the banks were closed, the ATMs had no cash, and they would NOT be able to access their money.
This same situation could happen here, just read this http://globalcurrencyreset.net/collapse-article
If you want my analysis on that book, go here instead: http://globalcurrencyreset.net/conquering-collapse-review-video/
A headline out of the Crux reads, Greece bans gold coin sales too. Bloomberg states, Europeans Rush to Gold Coins as Bank of Greece Stops Sales.
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