Do Five 'C's Equal A Market Crash?

By: DK_Matai

1.  The first 'C' is for Christmas time and the trading volumes are already getting thin, as they often do, at this time of the year;

2.  The second 'C' is for Capital flows which are increasingly leaving illiquid and riskier asset classes like peripheral sovereign debt and currencies like the euro and heading towards perceived safer cash havens like the US dollar, Japanese yen, Swiss franc and UK sterling;

3.  The third 'C' is for Currency exchange and as the number of dollars available as a transit lounge currency diminishes, the exchanged currency like the euro is falling further faster;

4.  The fourth 'C' is for commodities and since the rising dollar is at present inversely correlated with all commodities, the more it rises, the more they all fall including oil and gold; and

5.  The fifth 'C' is for China, which is experiencing a rapid slow down and that is undermining confidence amongst the Chinese business and investor community in regard to:

a.  Competitiveness;

b.  Self-evident bubbles; and

c.  Capacity to honour obligations.

Is a crash inevitable?

Confidence

The juxtaposition of the five 'C's demonstrates a swift erosion of confidence around the world across most asset classes except the US dollar.  Even the remaining confidence in the global financial markets in regard to the European leaders' capacity to solve the Eurozone crisis is evaporating completely in the aftermath of the much vaunted summit which delivered little of any substance.  ATCA 5000 had already warned that this would be the case. 

Conclusion

Is the synchronicity of the five 'C's, that is undermining confidence, likely to lead to a crash?

What are your thoughts, observations and views? We are hosting an Expert roundtable on this issue at ATCA 24/7 on Yammer.

By DK Matai

www.mi2g.net

Asymmetric Threats Contingency Alliance (ATCA) & The Philanthropia

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ATCA: The Asymmetric Threats Contingency Alliance is a philanthropic expert initiative founded in 2001 to resolve complex global challenges through collective Socratic dialogue and joint executive action to build a wisdom based global economy. Adhering to the doctrine of non-violence, ATCA addresses asymmetric threats and social opportunities arising from climate chaos and the environment; radical poverty and microfinance; geo-politics and energy; organised crime & extremism; advanced technologies -- bio, info, nano, robo & AI; demographic skews and resource shortages; pandemics; financial systems and systemic risk; as well as transhumanism and ethics. Present membership of ATCA is by invitation only and has over 5,000 distinguished members from over 120 countries: including 1,000 Parliamentarians; 1,500 Chairmen and CEOs of corporations; 1,000 Heads of NGOs; 750 Directors at Academic Centres of Excellence; 500 Inventors and Original thinkers; as well as 250 Editors-in-Chief of major media.

The Philanthropia, founded in 2005, brings together over 1,000 leading individual and private philanthropists, family offices, foundations, private banks, non-governmental organisations and specialist advisors to address complex global challenges such as countering climate chaos, reducing radical poverty and developing global leadership for the younger generation through the appliance of science and technology, leveraging acumen and finance, as well as encouraging collaboration with a strong commitment to ethics. Philanthropia emphasises multi-faith spiritual values: introspection, healthy living and ecology. Philanthropia Targets: Countering climate chaos and carbon neutrality; Eliminating radical poverty -- through micro-credit schemes, empowerment of women and more responsible capitalism; Leadership for the Younger Generation; and Corporate and social responsibility.

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