German DAX crash?

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strabes's picture
strabes
Status: Diamond Member (Offline)
Joined: Feb 7 2009
Posts: 1032
German DAX crash?

Just checking rest of world before I head to bed and it looks like the German DAX is heading down hard.  Offers a good time for reflection.  I wonder where the largest economy in Europe is going to end up by 2011.  I wonder if it will need to bailout Eastern Europe.  And wherever Germany ends up is the same place most of the developed world is going to end up.  These fairly minor crashes in equities are nothing compared to what will happen once the bond market finally exerts its power.  I do see this easily moving politicians toward a push for global governance.  I desperately hope that push fails.

The DAX, Asian markets, plus more bad news at AIG and more tax money being funneled into it...I'm not looking forward to the morning in the US.  I really think I'd be healthier if I had no internet access.  I'm looking forward to building a sustainable community and being completely off the grid so I don't play this old game of following markets and concerning myself with "the system."  Cool

strabes's picture
strabes
Status: Diamond Member (Offline)
Joined: Feb 7 2009
Posts: 1032
Re: German DAX crash?

Well I wish we could delete our posts.  In a matter of 5 minutes my DAX quote went from 12% down to 2% down.  Good night.  

cat233's picture
cat233
Status: Platinum Member (Offline)
Joined: Aug 20 2008
Posts: 575
Re: German DAX crash?

At the current moment in time, and we have  4+ hours before US markets open... If we opened now, the INDU would open down about 100 points.

cat233's picture
cat233
Status: Platinum Member (Offline)
Joined: Aug 20 2008
Posts: 575
US Futures and World Markets

If one is ever interested in the US futures, and what other world markets are currently doing... CNN Money has them all together.

http://money.cnn.com/data/premarket/index.html

You can also check Chris' resources tab, he has many links that follow different markets.

Cat

 

Michael Höhne's picture
Michael Höhne
Status: Silver Member (Offline)
Joined: Nov 16 2008
Posts: 119
Re: German DAX crash?

Hi strabes,

I think it's ok to treat Germany as a subsidiary of the U.S. After WWII everything was done to never allow the German industry to get as powerful as it was before. Of course the German industry still is one of the biggest in the world, but funny enough we have big deficit spending though having a gigantic trade surplus. And that with only 82 million people and a land area that it pretty small compared to the U.S. or China.

Many people fear Germany because of its economical strength and WWI, WWII and the following occupation by the allies was a logical consequence to limit that power. There really wasn't a reason for WWI. It was somehow introduced and the game is the same like you can see in Iraq/Iran, Israel/Palestine for a long time. Two or more countries receive money and weapons and then some catastrophic event leads to war. And after the war ends, the same people having initiated these wars give even more money to rebuild the infrastructure.

The Nazi regime in Germany was a result of the Great Depression and it's easy to understand how it was created. Hitler received a lot of support from foreign countries, allowing him to create a big propaganda machinery in Germany, which actually gave him all the power to start WWII. Just look at what the U.S. and other countries have done in the middle east and you will clearly see the scheme.

Sorry for that excursion, but it's important to know when looking at the German market. Our news in the morning go like this: "Because of bad inputs from the Dow Jones, the DAX has opened 2 pct lower than yesterday." - or - "The DAX is expected to open friendly because of the Dow Jones" - or - "There is no activity in the market because the US markets are closed due to a public holiday."

There is no decoupling between the markets. It's almost 1:1. Now see what Germany (and other European countries) do to "fix" the economy: massive bank bailouts. Bailouts for auto makers. Investment in infrastructure, alternative energy and a slight tax cut, which really isn't that much. Sounds familar?

The Hypo Real Estate, an investment bank, already received more than 100 billion Euros in bailout money and guarantees. It is now said that they have derivatives in the range of 1 trillion Euros. So government is preparing to nationalize this institution. Sounds familiar?

All of this information is present in the media, but nobody is questioning it. "We have to do something!" - Sounds familiar?

After 9/11 new security laws were enforced and it was even incorporated into the basic law (which was given to us by the allies after WWII) that it is allowed to use technical equipment to spy out people. Of course only if there is sufficient proof that you are doing something wrong, but in a case of emergency that can change. We started implementaing a carbon tax and are well ahead of other states in terms of surveillance. 

Sorry for this second excursion, but it should help you to understand that everything being implemented in the Unites States was also implemented in Germany and most other European states, thanks to the ever growing power of the European Union.

As far as I have seen, Germany isn't too much exposed to Eastern Europe debt, but it doesn't matter, because many other countries are, especially Austria. I'm living about 60 miles away from the Austrian border, so this threat is real. Furthermore many German companies make money by exporting goods, so we face the same problem as China: a strong US Dollar is good for export, but bad for energy prices. A strong Euro is good for energy prices, but kills the export to overseas. So we are in a situation where neither a strong nor a weak Dollar helps. It would be totally different if crude materials were paid in Euros instead of Dollars, but they're not. Iraq tried it once but certainly will never do again.

Current statues do not allow printing money like the FED does, so even this option is not possible. But I'm sure that people are working on this.

Summarized: you won't get too much news when looking at the German stock exchange. It simply follows the U.S. market and sometimes the Asian market, if there is no input from the U.S. In the hours before NYSE opens, people are just waiting. Based on what happens at NYSE, the DAX then closely follows the U.S. stock market.

 

strabes's picture
strabes
Status: Diamond Member (Offline)
Joined: Feb 7 2009
Posts: 1032
Re: German DAX crash?

Hi Michael, thanks for your post.  It reveals how scary it is that we already have a 1-world government system in effect without anybody really knowing it because our political governance structures are still national.  It's also scary to see how this system of robbing the people to bailout super rich bankers is totally global as well.  

So the global monetary system (debt-based, dollar-based) is what effectively makes Germany a subsidiary of the US.  But the US is really just a pawn as well in the game being played by the British crown, the Rothschilds, and the rest of the global banking oligarchy.  The US became their lab experiment on how to implement global financial slavery.  Worked quite well. The Federal Reserve ensures the entire world pays rent to the Rothschilds.  

 

 

 

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