by Steve St. Angelo
The Global Financial System is now under severe stress. While there have been many factors leading to up to this point, the situation that is unfolding in China and abroad seems to be speeding up the process. Yesterday, the market got a small WHIFF or WOKE up a TAD in regards to a global contagion and soon to be the rapid contraction of the JIT – Just In Time Inventory Supply Chain System.
Even though the Dow Jones Index lost 1,031 points on Monday and another 400+ points so far today, this is mere peanuts when we take into account what is coming in the following weeks and months ahead. Because China accounts for 21% of Global GDP and it supplies a lot of goods, parts, and consumables around the planet, a severe contraction will impact the rest of the world in short order.