Two days ago, I posted a blog article about the second largest Japanese financial institution (Daiwa) concluding in its analysis for investors that the most likely, base case assumption going forward is for an economic crash in China to spread to a global depression right about – late 2015 into 2016.
Now in case Westerners aren’t impressed with this coming from Daiwa, how about hearing the same thing from Citibank?
As explained in another good article at Zerohedge.com:
“Over the weekend, we reported that in a dramatic turn of events, the research division of Japan’s second biggest brokerage house, Daiwa, did what nobody else has done before and released a report in which it made a global financial “meltdown”, one resulting from nothing short of a Chinese economic cataclysm its base case scenario, its base case. It added that the impact of this global meltdown would “be the worst the world has ever seen.” To wit:
Of all the possible risk scenarios the meltdown scenario is, realistically speaking, the most likely to occur. It is actually a more realistic outcome than the capital stock adjustment scenario. The point at which the capital stock adjustment is expected to hit bottom is at a much lower point than in the previously discussed capital stock adjustment scenario (see Chart 8). As shown in the bottom right portion of this chart, the actual economic growth rate will continue to register considerably negative performance. If China’s economy, the second largest in the world, twice the size of Japan’s, were to lapse into a meltdown situation such as this one, the effect would more than likely send the world economy into a tailspin. Its impact could be the worst the world has ever seen.
We ended the post with the following rhetorical question: “now that Daiwa has broken the seal on Chinese and global doomsday scenarios, how soon other banks will follow in Daiwa’s path, and predict an Armageddon scenario which sooner or later, becomes a self-fulfilling prophecy even without the help of China’s increasingly clueless micromanagers.”
Today we got the answer: 48 hours – that’s how long it took Citi’s chief economist Willem Buiter to issue a report which was just as dire as Daiwa’s, but because Citigroup is much more reliant on keeping it traditionally bullish clients as happy as possible, one had to read between the lines to get to the bottom line.
This is Citi’s punchline: “A global recession starting in 2016, led by China is now our Global Economics team’s main scenario.”
— But these are just forecasts and predictions by economists. What is ACTUALLY HAPPENING NOW?
This article is just two hours old: “China stocks resume sharp slide as economic worries mount”
“SHANGHAI Sept 15 (Reuters) – Chinese stocks dropped by almost 4 percent on Tuesday, denting hopes that a slew of regulatory measures issued by Beijing over the past three months had brought some stability to the market. Concerns about the Chinese economy mean stocks are down 6 percent so far this week, with the drop exacerbated by thin trading volumes as many investors opt to stay on the sidelines. China’s benchmark CSI300 index of the biggest listed stocks in Shanghai and Shenzhen closed down nearly 4 percent on Tuesday, while the Shanghai Composite Index dropped 3.55 percent to end at 3,004, just above the psychologically important 3,000 mark.
The fall will be of dismay to Chinese policymakers trying to halt the market slide, given that up until this week trade in September had been relatively steady compared with the previous two tumultuous months. Chinese equity markets have dropped around 40 percent since mid-June.”
— Jonathan Cahn had predicted in “The Harbinger” and in much greater detail in “The Shemitah” that an extreme stock market crash was due on September13-14, 2015. There was no thousand point drop yesterday. But the Shemitah year just started, and Cahn could still be generally correct in his main premise that economic destruction looms ahead in the coming months.
I still assume that an economic “Greater Depression” would be necessary to get the public panic-stricken and desperate enough to accept dictatorship by mid 2016 (which would have to happen for my conclusions in Antichrist 2016-2019 to be correct.) Of course the nuclear destruction of New York, which I conclude prophecy warns us will happen in June 2016, would also achieve said panic and desperation.
Even if you don’t take religion or Bible prophecy or my analysis seriously, do consider the economic warnings from Daiwa and Citibank. If they say it will be bad soon, expect it to be VERY bad soon, because they make money being optimists. Consider diversifying if all your investment eggs are digitized in stock markets – you might soon wish you had land and gold and silver and food and lead…