Stock markets collapsed only to be propped up yet again and now we have China dumping $100billion in US debt.
When we look at debt on a global level, one thing that stands out is that the combined debt of the United States, Japan and Europe accounts for 75% of total global debt.
Despite this fact, China has been blamed in the media and by politicians for the recent volatile stock market swings. With Citigroup going as far as saying China must print money or we will have a global recession. (ie. solution being offered by Citigroup = more debt)
Keep this in mind next time they try blame China. The asian nation and world's second largest economy is the main exporter on the planet. The main reason their economy is slowing down is because their exports are down. Their exports are down because global demand, particularly in Europe, is down.
China did lower its interest rate this week as it struggles to keep its economy going. They also devalued their currency for 3 days straight, which was followed by three mysterious explosions. Two in China and one in Japan at a US munitions base a fews hours later. Maybe a coincidence but oddly timed either way.
We are yet to see politicians or mainstream media calling out the Federal Reserve for all their QE and 0.25% interest rates or ECB who is printing trillions out of thin air and has negative interest rates...instead this is all China's fault apparently.
We've discussed time and time again that the only 'solution' these central planners have is to lower interest rates and print money. Well they can't lower rates anymore (unless they go to 0%) so the only other solution they have is QE4.
While the Fed may even raise rates by 0.25% it will be just for show. If interest rates were to rise to even a mere 1% overall the US economy would enter a deep recession, so we see QE4 as being the likely outcome.
What can I do?
Each persons situation is different but here are a few ideas that may apply to you.
It would be a good idea to get as self sustainable as you can with a vegetable and fruit garden, get some solar panels on your roof, find like minded people who are aware of what's going on, convert some of your digital money into physical gold and silver, share articles and information on your social media to help educate others, read books that increase your knowledge and understanding of things (free from a library), start a business on the side to create some cash flow, get some exercise and eating healthy foods so you are not on the bill of Big Pharma either now or in the future and primarily invest in yourself, only by being the best you can you contribute and live a life worth living.
Obviously there are many more things you can do, but people often ask us so there's some ideas to get your mind thinking of solutions.
With that said, there are a lot of events taking place around the globe in September and we expect the economic and political volatility to only accelerate.
We'll do our best to keep you informed so be sure to check HangTheBankers.com daily for the latest news.