That giant sucking sound is the bay disappearing.

Right now I look around and I see normal people, good people, of all types, friends, family, co-workers and strangers all looking around in a bit of confusion at the recent market commotion.  There is some concern on Wall St at present but not all that much on Main Street yet.  The people who do not understand the fundamental truth that the global economy is nothing more than a gigantic debt Ponzi entering the collapse stage see the recent stock market declines here and abroad as no big deal.  After all, stocks go up and they go down.  It happens. Boomers who are heavily invested in the markets are of course more worried than millennials who have fewer jobs at less pay than before and so they don't have any savings.  Thus they believe that they have nothing to lose in the markets and so who cares.

Folks, I'm not trying to alarm anyone and in fact one of the reasons I have been spending so much unpaid time and energy writing this blog over the years is in order to give people as much advance notice of the risk that we all face as possible.  Whether or not people understand it, a global economic earthquake is happening and it is destabilizing all markets globally.  The first main tremor happened far enough out at sea that many didn't feel it. 

Americans and Europeans can see some unprecedented things happening in foreign countries but the effects on our respective homelands are minor still.  But look at the wave of global refugees, of food riots in South America and many other signs and you have to know something is very, very wrong.  And it is now shaking China's financial system to its foundations.  Over there, the government tried to stem the market collapse but got its ass handed to it by the markets.  Like I have written for many years, the market is faaaar bigger than government.  The market will have the last word.  So the very next day after discontinuing direct market purchases, the Chinese government began a witch hunt and rounded up hundreds of people and charged them with with spreading fear (cough cough telling the truth).

Of course these people are not the cause of the collapse and thus arresting them and parading them around won't stem the collapse and so the people will come to understand that this was not the real cause.  As all of these efforts of government to "do something" fall flat, government loses face and the people lose confidence in the con game.  They say you don't know that the rumor is true until you get the government denials.  Well, China is now so desperate that is is sending central bank officials out to say soothing things to calm the herd. 

Such efforts may help engineer a strong retracement but it will just be an a-b-c counter trend move and then the shares will actually accelerate to the downside even faster than the first wave down.  There is nothing anyone can do to stave it off forever and it is foolish to even try.  When the bounce comes and then reverses downward, PBOC is going to be disgraced.  That is the one thing that the con men cannot talk their way out of.  When people give up on them, it's game over.  Do not be surprised if it turns into a matter of life or death for them.  I expect bankers to be suicided by their governments and murdered by their people once the people figure out how they have been had as well as the role of the central banks in all of this.

When a tsunami is on the way, the first sign is that the bay empties very quickly.  People who have not lived through them before and who have not studied them at all initially do not understand.  After all, they are fairly rare.  So the people walk down into the now empty bay and poke around.  They know something is strange but no fear enters their ignorance-is-bliss minds.  Then they see the waves start to rise up on the outer reef as the wave hits the shallows and they still just stand there and look at it.  They wonder if maybe it will hit the beach.  Of course, by the time they figure it out the wall of water is upon them and they get creamed.  This is human nature.  Review these things in this video so that you will recognize them in the world around you today.

Folks, the global economic bay is now empty and the crashing waves are seen causing damage on the horizon.  Most people will just wonder at them as they loom larger and larger.  The following three charts are from the most recent EWI Elliott Wave Financial Forecast (EWFF).  I have always found this to be a good source of supplemental economic insight.  It is available at www.elliottwave.com for a monthly subscription fee that I think is worth the money.  I have no affiliation with them other than being a long time customer.  The charts are public info but the juxtapositioning of them begins to tell the story that it's all one market during the collapse phase.  I added the monkeys and the chart interpretations of course.  Only the charts below come from the EWFF publication.



If you think this is only going to impact stock market participants, think again.  Governments will go bankrupt and civil unrest will likely become a common occurrence.  After all, governments foolishly took credit for societal prosperity during the pump phase of the Ponzi and so the people will be angry at government during the dump phase.  There will be strikes in critical industries. It could likely cause supply chain interruptions.  If store shelves go empty for more than about 1-2 weeks then hungry and scared people are going to do things that you would not have believed to be possible.  They will revert to their survivalist primitive nature. 

Now is the time to stock up on food - several months at least.  Immediate access to guns and ammo as well as firearm proficiency is a must.  Nobody knows how bad the tsunami will actually be when it hits but it will be global in nature because the charts say it is.  This is going to shock a lot of people who just didn't see it coming.  Try not to be one of them.

I'll close with something I've written many times before: we ain't seen bad yet, but its coming.