After yesterday's historic -6.9% rout in the Shanghai Composite, which saw the first new marketwide circuit breaker trading halt applied to Chinese stocks (on its first day of operation), many were wondering if the Chinese government would intervene in both the once again imploding stock market, as well as China's plunging and rapidly devaluing currency.
Submitted by Howard Kunstler via Kunstler.com,
Forecast 2016
There’s really one supreme element of this story that you must keep in view at all times: a society (i.e. an economy + a polity = a political economy) based on debt that will never be paid back is certain to crack up. Its institutions will stop functioning. Its business activities will seize up. Its leaders will be demoralized. Its denizens will act up and act out. Its wealth will evaporate.
Led by a 4.3% collapse in Germany's DAX index, European Stocks plunged 2.5% today which is the worst start to a year ever. European credit markets spiked higher in risk. 10Y bund yields tumbled over 6bps and peripheral sovereign risk spreads jumped 10-15bps. Not a good start for Draghi and his pals...
Germany led the collapse...
Which has driven Stoxx 600 - the broadest European stock index - down over 2.5% for its worst start to a year ever!!
Charts: Bloomberg
With the world once again gripped by the latest Middle East snafu in which suddenly every Gulf State has found itself in the worst diplomatic crisis with Iran in 30 years which, incidentally, started after Saudi Arabia executed a Shiite cleric in its biggest mass execution yet, unleashing righteous Iranian anger at its action, many have forgotten - if only temporarily - about Europe's biggest crisis at the moment: the onslaught by over one million refugees, who are desperate to escape from the political disaster that are the broken states of Syria and Iraq.
According to a new report issued by the Ministry of Foreign Affairs, the Obama administration are very concerned following Turkish President Erdogan’s public praise of Nazi Germany. The report states that Erdogan has requesting to become a “super president” by increasing the executive powers available to him, looking at Hitler’s Germany as inspiration for a constitutional reform in Turkey.