Business

Surging volatility in global equity, currency, and credit markets and significant stress in a major world economy have George Soros on edge. Speaking at an economic forum in Sri Lanka, the billionaire hedge fund manager warned global markets are facing a crisis and investors need to be very cautious. On the heels of the second trading halt in four days, Soros exclaimed "I would say it amounts to a crisis... which reminds me of 2008."

Volatility is surging everywhere...

With Chinese trading halted mere minutes into its day-session on the back "insane" moves as one Asian manager exclaimed, the rest of the world's markets have borne the brunt of hedging, unwind, selling pressure.

Dow Futures are down 300 points from After-Hours highs...

Crude has crashed back to a $32 handle...

The dollar is weaker as JPY and EUR surge...

And Gold has jumped back above $1100...

Surely, The PBOC will step in at some point and save the collapsing currency? Nope - not if options traders (and Kyle Bass) are to be believed. The odds of the yuan breaking beyond 7 to the greenback by the end of March more than doubled to 12% (from 5.8% at the start of December). Ironically, Bloomberg reports only 1 of 39 analyst predicts Yuan to trade beyond 7 by the end of 2016.

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

This week I am addressing themes I see playing out in 2016.

A number of systemic, structural forces are intersecting in 2016. One is the rise of non-state, non-central-bank-issued crypto-currencies.

We all know money is created and distributed by governments and central banks. The reason is simple: control the money and you control everything.

Governor Jerry Brown has finally declared a State of Emergency for the gas leak in Porter Ranch, southern California. It is the largest gas leak ever recorded, where a blown-out well has been spewing record amounts of methane gas since October last year. Environmental activist and lawyer Erin Brockovich says it is one of the most significant environmental disasters in recent history. Governor Brown has asked for expediency in plugging the well after the plug was left out by Southern California Gas Company.