China Bank Run

Reports of a possible expanding bank run in China as customers scramble to get their cash out-of-deposit accounts. Two (2) major real estate developers in serious financial trouble. EVERGRANDE filed for bankruptcy. COUNTRY GARDEN reportedly defaulted on debt payments recently. China’s real estate index HY has collapsed 85% from its high. 85% COLLAPSE IN CHINA’s REAL ESTATE INDEX. Note: China’s GDP is made up of a staggering 25% real estate only.

VOLATILITY ALERT. Middle East crisis spiked gold and crude oil on Friday. China deepening recession is overall bearish global commodities, including the king of commodities . . . CRUDE OIL. This erupting global situation suggests the potential of excessive price swings in both energies and precious metals in the coming days.

Central bankers remain out-of-touch on rate hike talk. CENTRAL BANKERS REMAIN OUT-OF-TOUCH ON CONTINUED RATE HIKE TALK. This is concerning as added rate hikes simply add fuel to this financial fire. The debt crisis is now exploding. Maintain ‘cash is king’ as deflationary pressures may only be magnified. DEFLATIONARY COMMODITY ASSET PRESSURES MAY ONLY BE MAGNIFIED BY CURRENT GLOBAL EVENTS AND DISRUPTIVE CENTRAL BANK POLICY. Stay tuned to Errol’s Commodity Wire, Calgary