As overviewed in my September Stock Market Crash Alert, there is a tendency for signficant reversals in mass mood that involve 'historical shocks' when the Dow reverses from psychologically significant thousand marks.
Will this pattern repeat here?
If so, there are three points of obvious concern right now that could lead to a dramatic upset of collective expectations:
1. The Economy: This already has proven to be the source of a 'shock' with news today that unemployment will rise above 9% and the federal deficit will rise to at least $1.2 trillion in 2009. Also, a stark profit warning was issued by Intel today. All in all, with a reversal from Dow 9000 has come news that signals the economy is slumping far harder and faster than had been thought by most up to now.
2. The Middle East: Israel's invasion of Gaza is still underway and could easily ignite into a full-scale Arab-Israeli War if Hezbollah, Syria and/or Iran decide to get involved. Again, if there's a chemical SCUD missile attack on Israel, then global nuclear war will follow as I foresaw in my apocalyptic vision 18 years ago this February.
3. Russia & The Ukraine: Russia is stirring an international crisis over natural gas supplies.
Purportedly because the Ukraine owes Russia late fees and won't agree to a rise in natural gas prices, with the new year Gazprom, the Russian natural gas monopoly, cutoff gas supplies to the Ukraine. The Ukraine, in turn, started siphoning gas from the Russian pipelines that run through their country. Russia has since completely cutoff the natural gas flowing through pipelines crossing the Ukraine and has thereby triggered gas shortages throughout Europe into the coldest part of the winter. The EU has demanded the gas supply be returned immediately.
What's clear is that this crisis is but the newest misleading Kremlin concoction. Russia still underhandedly controls the Ukraine, regardless of the false opposition seemingly in power there, so whatever crisis there is between the states is by design. (Viktor Yushchenko is apparently devoted enough to his FSB/KGB handlers that he was willing to drink Dioxin to cement the idea that he's pro-Western. Note that Dioxin would be an absurd choice for a poisoning assassination since it is not lethal regardless of the popular hysteria over the substance's toxicity.) It's possible that Russia is planning to stage some sort of military action against the Ukraine and this purported gas squabble is going to be used as a pretext. Such a move would likely lead to a NATO-Russia military cofrontation which would feed into any Arab-Israeli War and add up to the global nuclear war Moscow has long been planning.
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