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As I write on Friday afternoon – the 25th anniversary of the 1987 stock market crash – it’s quite fitting the Dow is down more than the PPT’s typical 1.0% downside cap; i.e., the polar opposite of the Cartel’s 1.0% upside cap on daily gold movements.  Of course, we’re amidst “ELECTION LOCKDOWN”; thus, HORRIBLE earnings reports or otherwise, I’d be shocked to see the PPT lose control two weeks in front of the election.  After all, it’s done a masterful job in stepping up its algorithmic propping ALL YEAR – protecting the “DOW JONES PROPAGANDA AVERAGE’s” 200 DMA for the first half of the year; and now – in the election homestretch – its 50 DMA…

Yes, the 1987 market crash – i.e. “Black Monday” – when the Dow fell 22.7%…

Black Monday: The 1987 Market Crash Revisited

…supposedly catalyzed by “portfolio insurance” – i.e, equity DERIVATIVES…

Bill Gross Warns “Very Likely’ Central Banks Will Cause 1987-Like Crash

…yielding impromptu creation of the “Plunge Protection Team,” or PPT…

Happy Anniversary! – Bill Holter, Miles Franklin

…formalized five months later when Ronald Reagan signed into existence the…

President’s Working Group on Financial Markets

In 1987, the world was a far less dangerous place than today; and markets – for the most part – freely-traded.  “Portfolio Insurance” may well have catalyzed the crash, much as HFT trading caused the May 2010 “Flash Crash.”  In other words, derivatives were still in their “SINGLE-CELLED OPTION” stage; not yet able to destroy the world, but dangerous enough to wreak near-term havoc.

At the time, global economic activity was not booming, nor suffering either.  For the most part, the crash turned out to be more of a stock market event than anything else; immediately bottoming and causing minimal economic damage…

Unfortunately, the upcoming “crash” will NOT be a short-term event, nor limited to the stock market.  It will NOT be U.S.-centric, nor Western-centric either; as the ENTIRE WORLD will be enveloped.  The problem, of course, is not equity derivatives or overvalued stocks, but a GLOBAL FIAT CURRENCY REGIME on its last legs.  Sure, the PPT and other “market protection” schemes will attempt to “kick the can down the road” by masking REALITY via overt and covert intervention.  However, the END GAME has nothing to do with financial markets, but MONEY ITSELF.

How the COLLAPSE of an evil, cataclysmic currency regime manifests itself on the stock, bond, and FOREX markets matters not.  ALL that matters is the CERTAINTY that ALL PAPER SECURITIES will lose purchasing power against ITEMS OF REAL VALUE; per my April 19th RANT, “WANT VERSUS NEED.”  And of course, REAL MONEY; i.e. PHYSICAL gold and silver.  Most importantly, this generational, all-encompassing crash will likely usher in an era of political, economic, and social instability unrivaled since WORLD WAR II; and perhaps, a Middle East-centered WORLD WAR III – NO MATTER WHO IS PRESIDENT.

October 19th, 1987 may have been “Black Monday;” but in hindsight, will be remembered as the “good old days” once the “BLACK DECADE” commences.

PROTECT YOURSELF, and do it NOW!

Call Miles Franklin at 800-822-8080, and talk to one of our brokers.  Through industry-leading customer service and competitive pricing, we aim to EARN your business.