* It wasn't a Black Monday of the 1987 variety, but it was one for the record books * The Dow was down opened downjust over 1,000 points - the biggest intra-day point drop ever * When the market opened down that low, bargain hunters came in for a spectacular rally * Bringing the Dow almost back into positive territory before surrendering those gains and ending the day down 588 points, another 3.5% drop, closing at 15,871 * Taking out the 16,000 handle just a few days after taking out the 17,000 handle * All of these drops are being blamed by the media on China * The Dow Jones is down about 11% year to date * After today's drop, the Chinese market was down less than 1% * This is not all about falling Chinese stocks * It's the Fed - Everybody believes the Fed is going to end the party * As we got closer to September, the stock market was already going down * I've said all along that the Fed was bluffing - it is a game of chicken * Finally, today, Barclay's is predicting a Fed rate hike in March of 2016 * I think the Fed will launch QE4 before we get to a rate hike in March 2016, which is an election year * The media wants to blame the correction on China, as if there are no domestic problems to worry about * China should be blaming it on us - we're the ones who got the world hooked on zero percent interest rates * The fantasy was that we could raise rates without an impact on the economy * The falling stock market is going to have an impact on the real economy * The economy is weak and getting weaker * This correction will turn into a full-fledged bear market unless we get some official statement from the Fed that they will not raise rates * That may come later this week in Jackson Hole * I am going to be in Jackson Hole at an anti-Fed conference * Here's an example of how ridiculous the "Blame China" rhetoric is: * Maria Bartoromo was talking about the market decline with respect to the China currency devaluation * She actually said that by devaluing the Yuan, Chinese made products will be more competitive against American-made products * America does not produce products that compete with Chinese products! * She's grasping at straws to connect the stock market correction with the Chinese Yuan devaluation * Right now it is positive for America if we can purchase Chinese products more cheaply because we're buying them anyway * Eventually, however, Chinese products will get more expensive when the yuan goes up * She's just trying to fit the narrative because that's what makes everybody feel comfortable * That's why I am not on CNBC and CNN - they realize my comments do not support their editorial policy * I am not talking about Armageddon for the markets - I am talking about the Fed saving the day * I don't think the market is going to crash, but I believe it will go down until the Fed cries "Uncle" and prop up the equities markets with another round of QE * The Federal Reserve did not solve our problems in 2008 - they interrupted the crisis with QE and zero percent interest rates * That crisis would have solved the problem but we kicked the can down the road and we finally caught up to that can * We are resuming the financial crisis that the Fed interrupted from a much deeper hole * Had the Fed raised rates two years ago, we would have been in recession sooner * They should have allowed the markets to solve the problems they caused * Now we have more debt than ever before * I have also been talking about the developments in the foreign exchange markets * The dollar has been strong because rate hikes were expected * The strong dollar has weakened commodities,Our Sponsors:* Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD* Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.comPrivacy & Opt-Out: https://redcircle.com/privacy

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“What did the council decide on item 42?” — answered with the speaker and the moment.

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