Black Friday shares its namesake with an event that occurred on Tuesday, October 29, 1929
Black Friday opened with a predictable boom that resounded favorably through the Big Casino on Wall Street. Stocks on the Dow Jones climbed to 22 points to 16,119 soon after opening this morning. Standard & Poor’s index bumped up a modest two points to 1,809 and the Nasdaq jumped 15 points to 4,060.
“Consumers weren’t the only ones shopping on Black Friday. Stocks pushed even higher into record territory, as investors returned from Thanksgiving break for a short, final day of trading in November,” CNN reports.
Despite modest gains on the stock market, the hype that revolves around Black Friday seems to be losing some of its media generated luster. The large retails chains — Wal-Mart, Target, Best Buy, Kohl’s, JCPenney, Kmart and Toys R Us — have downgraded expectations.
“Indeed the latest poll from AC Nielsen’s Holiday Spending Forecast study, which surveys over 22,000 households throughout the US, indicates that 85% of consumers plan on skipping the stores on Black Friday this year,” Zerohedge reports. “This is up from 82% in 2012, 82% in 2011 and 80% in 2010 so a negative four-year trend is taking shape. Black Friday shopping seems to be merging with Cyber Monday as well with 51% of consumers say they will do their Black Friday shopping online this year. According to the National Retail Federation, the holiday season generally accounts for about 20% of the retail industry’s annual sales so all eyes will be on retail sales updates/snippets over the weekend.”
The bullish frame of mind ruling the stock market is little more than voodoo. “We think odds favor some sort of a pullback in the coming weeks and months,”Jonathan Krinsky, chief market technician at MKM Partners, told the Wall Street Journal. For more than a decade, stocks have rallied in late summer only to fall off between Thanksgiving and Christmas. The bump gets harder which each passing year and nobody knows when it will finally bottom out.
The Real Black Friday
The real Black Friday, October 29, 1929. Click image to see larger version.
Black Friday shares its namesake with an event that occurred on Tuesday, October 29, 1929, when the stock market experienced its largest one day drop in history — a precipitous 22% — and heralded in the first Great Depression. This calamitous event was created by the Federal Reserve. It had inflated the money supply by 61.8 percent between 1921 and 1929 and created a massive inflationary bubble that imploded on that black day in October.
Academics and establishment media talking heads like to say the Great Depression was caused by the excesses of free market capitalism. In fact, it was created by the Federal Reserve and its conniving cartel of banksters.
Debunking the popular myth, Julie Borowski cites the economist Henry Hazlitt who wrote that “worse than the slump itself may be the public delusion that the slump has been caused, not by the previous inflation, but by the inherent defects of ‘capitalism.’” The slump was, in fact, created by the Fed with its notorious whipsaw economic policies of artificial boom and bust.
Another economic catastrophe is now in the works and it looks like it may be set into motion by China. It has called for a “de-Americanized” world where the dollar is no longer the global reserve unit. China is now the largest single holder of U.S. government debt with 26 percent of all foreign-held U.S. Treasury securities, which represents 8% of total U.S. government-generated debt.
“Foreign investors in U.S. dollar assets have seen big losses measured in dollars, and still bigger ones measured in their own currency. While unlikely, indeed highly improbable for public sector investors, a sudden rush for the exits cannot be ruled out completely,” warned the bankster elite from their tower in Basel, Switzerland, after the plug was pulled on the economy back in 2008.
When China and other debt holders finally back away from the dollar, “the consequences for the U.S. economy will be absolutely catastrophic and every single American will feel the pain,” writes Michael Snyder. “The standard of living that all of us are enjoying today depends largely upon China. They can bring down the hammer at any moment and they know it.”
For now, crowds of ebullient consumers are reveling at Walmart, a store packed to the rafters with cheap flat screen televisions and other electronics manufactured by China’s labor gulag slaves. The good times continue to limp along on the sputtering tail wind of the greatest economic expansion in history. That wind will soon stop blowing. When it does we will all experience the greatest single bust in the history of the world.