by Michael Synder
Is a great shaking coming to America? An amazing convergence of events is going to take place during the last several weeks of September 2015.
Many are suggesting that this could indicate that something really big is about to happen. In fact, some vendors of emergency food are reporting shortages because so many people are stocking up on food and supplies in anticipation of what is coming.
And of course the list I am about to share with you is not necessarily exhaustive. There are events that are currently unknown or unanticipated that could also fall during this time frame. But without a doubt, the incredible confluence of events that we already know will happen appears to be unlike anything that we have ever experienced before.
It all starts with the end of the Shemitah year on September 13th. During the last two cycles, we witnessed historic stock market crashes on the very last day of the Shemitah year (Elul 29 on the Biblical calendar). For example, if you go back to September 17th, 2001 (which was Elul 29 on the Biblical calendar), we witnessed the greatest one day stock market crash in all of U.S. history up until that time. The Dow plunged 684 points, and it was a record that held for exactly seven years until the end of the next Shemitah cycle.
On September 29th, 2008 (which was also Elul 29 on the Biblical calendar), the Dow plummeted 777 points, which still today remains the greatest one day stock market crash of all time in the United States.
Now we are in another Shemitah year. It began in the fall of 2014, and it ends on September 13th, 2015.
So will we see a stock market crash in the United States on September 13th, 2015?
No we will not, because that day is a Sunday. So I can guarantee there will not be a stock market crash in the U.S. on that day. But as author Jonathan Cahn has pointed out in his book on the Shemitah, we have witnessed major stock market crashes happen just before the end of the Shemitah year and we have also witnessed major stock market crashes happen within just a few weeks after the end of the Shemitah year. So we are not necessarily looking at one particular date.
And this time around, a whole bunch of critical events just happen to fall in the period of time immediately following the end of the Shemitah year.
The following are 10 things that are going to happen within 15 days of the end of the Shemitah…
September 14th – Rosh Hashanah
September 15th – The Jade Helm military exercises are scheduled to end.
September 15th – The 70th session of the UN General Assembly begins on this date. It has been widely reported that France plans to introduce a resolution which will give formal UN Security Council recognition to a Palestinian state shortly after the new session begins. Up until now, the U.S. has always been the one blocking such a resolution, but Barack Obama has already indicated that things may be different this time around. If alarm bells are going off in your head as you read this, then you probably already understand how significant this event could potentially be.
September 20th to September 26th – The “World Week For Peace in Palestine Israel” sponsored by the World Council of Churches.
September 21st – The UN International Day Of Peace. Could this be the day when the UN Security Council resolution establishing a Palestinian state is actually adopted?
September 23rd – Yom Kippur
September 23rd – Pope Francis arrives at the White House to meet with Barack Obama. Some have suggested that the timing of this event is highly unusual…
Francis is the 266th pope who will be meeting with President Obama on the 266th day of the year, leading one Internet preacher to wonder if “something is being birthed” on that day, since 266 days is the typical human gestation period from conception to birth.
September 24th – The Pope addresses a joint session of the U.S. Congress.
September 25th to September 27th – The United Nations is going to launch a brand new sustainable development agenda called “The 2030 Agenda“. The following is an excerpt from an article that I just wrote about this insidious new plan…
If you didn’t like “Agenda 21″, then you really are not going to like “The 2030 Agenda”. Next month, the United Nations is going to launch “The 2030 Agenda” at a major conference that will be held from September 25th to September 27th in New York City. The Pope is actually traveling to New York to deliver an address which will kick off this conference. Unlike Agenda 21, which primarily focused on the environment, the 2030 Agenda is truly a template for governing the entire planet. In addition to addressing climate change, it also sets ambitious goals for areas such as economics, health, energy, education, agriculture, gender equality and a whole host of other issues. As you will see below, this global initiative is being billed as a “new universal Agenda” for humanity. If you are anything like me, alarm bells are going off in your head right about now.
September 28th – This is the date when the Feast of Tabernacles begins. It is also the date for the last of the four blood moons that fall on Biblical festival dates during 2014 and 2015. This blood moon falls on the very first day of the Feast of Tabernacles, it will be a “supermoon”, and it will be clearly visible from the city of Jerusalem. There are many that dismiss the blood moon phenomenon, but we have seen similar patterns before. For example, a similar pattern of eclipses happened just before and just after the destruction of the Jewish temple by the Romans in 70 AD.
Many have also suggested that the Large Hadron Collider “is scheduled to perform a controversial experiment in September“, but so far I have been unable to find any solid confirmation of this.
Just recently, author Jonathan Cahn released a new video in which he expressed his belief that a “great shaking is coming to America and the world.” He points to the Biblical pattern of desecration preceding judgment, and he is convinced that we recently witnessed a historic act of desecration here in the United States…
Many have asked Cahn whether America is headed for revival or shaking.
He is convinced that revival can come out of shaking.
Personally, I believe that we will not have revival unless there is shaking.
As a nation, we have unapologetically embraced evil. We are extremely proud, arrogant, greedy and cold-hearted. I do not believe that there is any hope for our nation unless we are shaken to our core.
I am fully convinced that the months ahead are going to dramatically change life in America, but whether it happens right now or not, I am 100 percent convinced that a great shaking is coming to this nation at some point.
by Michael Snyder
What I am about to share with you is quite stunning. A well-respected financial expert that correctly predicted the last two stock market crashes is now warning that we are right on the verge of the next one. John Hussman is a former professor of economics and international finance at the University of Michigan, and the information in his latest weekly market comment is staggering.
Since 1970, there have only been a handful of times when a combination of market signals that Hussman uses have indicated that a major market peak has been reached. In 1972, 2000 and 2007 each of those peaks was followed by a dramatic stock market crash. Now, for the first time since the last financial crisis, all four of those signals appeared once again during the week of July 17th. If Hussman’s analysis is correct, this could very well mean that the next great stock market crash in the United States is imminent.
It was an excellent article by Jim Quinn of the Burning Platform that first alerted me to Hussman’s latest warning. If you don’t follow Quinn’s work already, you should, because it is excellent.
When someone is repeatedly correct about the financial markets, we should all start paying attention. Back in late 2007, Hussman warned us about what was coming in 2008, but most people did not listen.
Now he is sounding the alarm again. According to Hussman, when there is a confluence of four key market indicators, that tells us that the market has peaked and is in danger of crashing. The following comes from Newsmax…
He cited the metric among the indicators that foreshadowed declines after peaks in 1972, 2000 and 2007:
*Less than 27 percent of investment advisers polled by Investors Intelligence who say they are bearish.
*Valuations measured by the Shiller price-to-earnings ratio are greater than 18 times.
*Less than 60 percent of S&P 500 stocks above their 200-day moving averages.
*Record high on a weekly closing basis.
“The most recent warning was the week ended July 17, 2015,” Hussman said. “It’s often said that they don’t ring a bell at the top, and that’s true in many cycles. But it’s interesting that the same ‘ding’ has been heard at the most extreme peaks among them.”
It is quite rare for the market to set a new record high on a weekly closing basis and have more than 40 percent of stocks below their 200-day moving averages at the same time. That is why a confluence of all these factors is fairly uncommon. Hussman elaborated on this in his recent report…
The remaining signals (record high on a weekly closing basis, fewer than 27% bears, Shiller P/E greater than 18, fewer than 60% of S&P 500 stocks above their 200-day average), are shown below. What’s interesting about these warnings is how closely they identified the precise market peak of each cycle. Internal divergences have to be fairly extensive for the S&P 500 to register a fresh overvalued, overbullish new high with more than 40% of its component stocks already falling – it’s evidently a rare indication of a last hurrah.
The 1972 warning occurred on November 17, 1972, only 7 weeks and less than 4% from the final high before the market lost half its value. The 2000 warning occurred the week of March 24, 2000, marking the exact weekly high of that bull run. The 2007 instance spanned two consecutive weekly closing highs: October 5 and October 12. The final daily high of the S&P 500 was October 9 – right in between. The most recent warning was the week ended July 17, 2015.
The following is the chart that immediately followed the paragraph in his report that you just read…
When I first took a look at that chart I could hardly believe it.
It appears that Hussman’s signals are able to indicate major stock market crashes with stunning precision.
And considering the fact that we just hit a new “ding” for the first time since the last financial crisis, what Hussman is saying is more than just a little bit ominous.
According to Hussman this is not just a recent phenomenon either. Even though advisory sentiment figures were not available back in 1929, he believes that his indicators would have given a signal that a market crash was imminent in August of that year as well…
Though advisory sentiment figures aren’t available prior to the mid-1960’s, imputed data suggest that additional instances likely include the two consecutive weeks of August 19, 1929 and August 26, 1929. We can infer unfavorable market internals in that instance because we know that cumulative NYSE breadth was declining for months before the 1929 high. The week of the exact market peak would also be included except that stocks closed down that week after registering a final high on September 3, 1929. Another likely instance, based on imputed sentiment data, is the week of November 10, 1961, which was immediately followed by a market swoon into June 1962.
Of course the past is the past, and what has happened in the past will not necessarily happen in the future.
So is Hussman wrong this time? With all of the other things that are happening in the financial world right now, I certainly would not bet against him.
Other financial professionals are concerned that a market crash could be imminent as well. The following comes from a piece authored by Andrew Adams…
More than 13% of stocks on the New York Stock Exchange are at 52-week lows, which is about 6 standard deviations above the average over the last three years (1.62%) and an extreme only seen one other time during said period (last October when the S&P 500 was percentage points away from a 10% correction).
This dichotomy has created what I believe to be the biggest question about the stock market right now – have we already experienced a stealth correction in the majority of stocks that will soon come to an end or will the market leaders finally succumb to the weight of the laggards and join in on the sell-off? The answer to this could end up being worth at least $2.2 trillion, which is how much money would essentially be wiped out of the stock market if we finally get the much-discussed 10% correction in the overall market (the total U.S. stock market capitalization was $22.5 trillion as of June 30, according to the Center for Research in Security Prices).
Do you understand what that is saying?
In 2007 and 2008, junk bonds started crashing well before stocks did.
Now, we are witnessing a similar divergence. If a similar pattern holds up this time, stocks have a long, long way to fall.
Like Hussman and so many others, I believe that a stock market crash and a new financial crisis are imminent.
The month of August is usually a slow month in the financial world, so hopefully we can get through it without too much chaos. But once we roll into the months of September and October we will officially be in “the danger zone”.
Keep an eye on China, keep an eye on Europe, and keep listening for serious trouble at “too big to fail” banks all over the planet.
The next several months are going to be extremely significant, and we all need to be getting ready while we still can.
Commodities Collapsed Just Before The Last Stock Market Crash – So Guess What Is Happening Right Now?
by Michael Snyder
If we were going to see a stock market crash in the United States in the fall of 2015 (to use a hypothetical example), we would expect to see commodity prices begin to crash a few months ahead of time.
This is precisely what happened just before the great financial crisis of 2008, and we are watching the exact same thing happen again right now. On Wednesday, commodities got absolutely pummelled, and at this point the Bloomberg Commodity Index is down a whopping 26 percent over the past twelve months. When global economic activity slows down, demand for raw materials sinks and prices drop.
So important global commodities such as copper, iron ore, aluminum, zinc, nickel, lead, tin and lumber are all considered to be key “leading indicators” that can tell us a lot about where things are heading next. And what they are telling us right now is that we are rapidly approaching a global economic meltdown.
If the global economy was actually healthy and expanding, the demand for commodities would be increasing and that would tend to drive prices up. But instead, prices continue to go down.
The Bloomberg Commodity Index just hit a brand new 13-year low. That means that global commodity prices are already lower than they were during the worst moments of the last financial crisis…
The commodities rout that’s pushed prices to a 13-year low pulled some of the biggest mining and energy companies below levels seen during the financial crisis.
The FTSE 350 Mining Index plunged as much as 4.9 percent to the lowest since 2009 on Wednesday, with BHP Billiton Ltd. and Anglo American Plc leading declines. Gold and copper are near the lowest in at least five years, while crude oil retreated to $50 a barrel.
“This commodity bear market is like a train wreck in slow motion,” said Andy Pfaff, the chief investment officer for commodities at MitonOptimal in Cape Town. “It has a lot of momentum and doesn’t come to a sudden stop.”
Commodity prices have not been this low since April 2002. According to Bloomberg, some of the commodities being hit the hardest include soybean oil, copper, zinc and gasoline. And this commodity crash is already having a dramatic impact on some of the biggest commodity-producing nations on the globe. Just consider what Gerald Celente recently told Eric King…
We now see that the Australian dollar is at a six-year low against the U.S. dollar. What are Australia’s biggest exports? How about iron-ore and other metals.
If we look at Canada, their currency is also now at a six-year low vs the U.S. dollar. Well, Canada is a big oil exporter, particularly some tar sands oil, which is expensive to produce.
We also now have the Brazilian real at a 10-year low vs the U.S. dollar. Why? Because it’s a natural resource rich country and they don’t have a strong market to sell their natural resources to.
Meanwhile, the Indian rupee is at a 17-year low vs the U.S. dollar. This is because manufacturing is slowing down and there is less development. If the Americans aren’t buying, the Indians, the Chinese, the Vietnamese — they’re not making things.
All of this is so, so similar to what we experienced in the run up to the financial crisis of 2008. Just a couple of days ago, I talked about how the U.S. dollar got really strong just prior to the last stock market crash. The same patterns keep playing out over and over, and yet most in the mainstream media refuse to see what is happening.
Something else that happened just a few months before the last stock market crash was a collapse of the junk bond market.
That is starting to happen again too.
I know that I must sound like a broken record. But I think that it is extremely important to document these things. When the next financial collapse takes place, virtually everyone in the mainstream media will be talking about what a “surprise” it is.
But for those that have been paying attention, it won’t be much of a “surprise” at all.
When the stock market does crash, how far might it fall?
During a recent appearance on CNBC, Marc Faber suggested that it could decline by up to 40 percent…
The U.S. stock market could “easily” drop 20 percent to 40 percent, closely followed contrarian Marc Faber said Wednesday—citing a host of factors including the growing list of companies trading below their 200-day moving average.
In recent days, “there were [also] more declining than advancing stocks, and the list of 12-month new lows was very high on Friday,” the publisher of The Gloom, Boom & Doom Report told CNBC’s “Squawk Box.”
“It shows you a lot of stocks are already declining.”
Others, including myself, believe that what we are going to experience is going to be even worse than that.
We live in such a fast-paced world, and most of us don’t have the patience to wait for long-term trends to play out.
If the stock market is not crashing today, to most people that means that everything must be fine.
But once it has crashed, everyone is going to be complaining that they weren’t warned in advance about what was coming and everyone will be complaining that nobody ever fixed the things that caused the exact same problems the last time around.
Personally, I am trying very hard to make sure that nobody can accuse me of not sounding the alarm about the storm that is on the horizon.
The world has never been in more debt, our “too big to fail” banks have never been more reckless, and global financial markets have never been more primed for a collapse.
Amazingly, there are still a lot of “experts” out there that insist that everything is going to be okay somehow.
Of course many of those exact same “experts” were telling us the same thing just before the stock market crashed in 2008 too.
A great financial shaking has already begun around the world, and it will hit U.S. financial markets very soon.
I hope that you are getting ready while you still can.
I firmly believe there is a deliberate plan in operation to financially subdue the masses. Freedom in this world is only experienced by those who have enough money to say NO! If you are financially reliant on anyone or anything, you don’t have that freedom. And it is that freedom which is the number one enemy of those who wish to impose their New World Order upon us.
Has anyone stopped to think about the absurdity of the current situation? Our governments borrowed trillions from banks to bail out the banks, and now we are all over our heads in debt, trying to pay back the money to the banks that got us into debt in the first place.
Someone is definitely laughing all the way to the bank!
by LEO HOHMAN
President Obama’s state of the union address was loaded with sweet delights meant to bedazzle America’s long-suffering middle class as he signaled economic prosperity for all is waiting just around the corner.
But the author of a New York Times-best-selling book about America’s future in a post-Christian society was not impressed.
He sees dark storm clouds closing in on Obama’s rays of sunshine, citing “harbingers” that the country is sliding headlong toward a collapse – with blindfolds securely fastened.
“Listening to the president’s State of the Union address, I was reminded of ancient Israel,” said Jonathan Cahn, author of “The Mystery of the Shemitah” and “The Harbinger,” which draws parallels between America’s falling away from God and a series of judgments that will come as a result.
“The people of Israel convinced themselves that they were coming back stronger than before,” Cahn told WND. “And then it all collapsed, and the judgment came.”
Cahn sees warning signs of potential judgment coming to America as the current Shemitah year nears the halfway point.
The Shemitah comes once every seven years. In biblical Israel it brought a canceling of debts, a resting of the land from sowing and reaping, and a resetting of financial accounts. The seven-year Shemitah cycle was meant as a blessing as long as the Israelites followed God and observed his ways, but it could manifest as judgment if the nation turned to its own devices and removed God from its culture and legal system.
The specific avenues of potential judgment Cahn is watching are the economy and the rise of ISIS as a new terrorist threat to America. The last two Shemitah years — 2000-2001 and 2007-2008 — brought the 9/11 attacks on Sept. 11, 2001, and the historic stock market crash of September 2008.
Notably missing from Obama’s speech was any mention of radical Islam or Islamic terrorism, even as the issue has taken center stage in the wake of the Charlie Hebdo attacks in France and subsequent arrests of militants in France, Belgium and Germany.
Taking a back seat to China?
Cahn speaks of the American age that began in 1871 when the U.S. surpassed Britain to become the strongest economic power on earth.
“I’ve warned in ‘The Harbinger’ and as I’ve spoken across the country that if this nation doesn’t return to God, its crown as head of nations will be removed,” he said.
Two weeks into the Shemitah year, which began in Sept. 25, 2014, Cahn said the first sign of America’s removal as the pinnacle of economic power was already apparent to those who were paying attention.
The American age that began more than 140 years ago, quietly came to an end.
According to a report by the International Monetary Fund, China’s economy had for the first time surpassed that of the United States and now claims the distinction of being the world’s largest economy, according to an October report by Business Insider.
“America’s crown as the strongest economic power on earth was removed. It passed to China,” Cahn said. “The word Shemitah can mean ‘the fall.’ That alone would constitute one of the greatest falls in modern history – the end of the American age.”
The IMF measures both GDP in market-exchange terms and in terms of purchasing power, reported Business Insider.
“On the purchasing-power basis, China is overtaking the US right about now and becoming the world’s biggest economy,” BI reported on Oct. 8, 2014. “By the end of 2014, China will make up 16.48 percent of the world’s purchasing-power adjusted GDP (or $17.632 trillion), and the U.S. will make up just 16.28 percent (or $17.416 trillion).”
Marriage case on docket, terrorists lying in wait
As the year of the Shemitah grinds toward its climax on Sept. 13, 2015, Cahn is also watching the Supreme Court.
“The harbingers have continued to manifest and America’s apostasy from God has only accelerated. In April of this year, in the midst of the Shemitah, the Supreme Court will hear a case that will likely end marriage as we know it,” Cahn said. “The verdict will be released in June. That will mark a critical point in America’s fall from God.”
Another one of the harbingers is that of the terrorist has resurfaced in the form of ISIS, he said.
“The judgment and destruction of Israel was carried out by the Assyrians, the fathers of terrorism,” Cahn said. “The emergence of ISIS and its conflict with America is ominous.”
As for the economy, destabilization in the currency markets and disruptive oil markets are creating a springboard for turbulent times ahead.
Whether America’s economic judgment comes with a sudden, painful jolt or as a slow, grinding down until it becomes subservient to other nations, remains to be seen. But either way, the messianic Jewish rabbi from New Jersey believes America will be knocked off its perch atop the world order, especially economically, if widespread repentance does not occur.
“There’s an eerie kind of unease,” he said. “The stock market has been hit by strange waves of volatility and violent swings. And it actually began the very first week of the Shemitah.
“I believe we’re watching a house of cards. It could implode at any time.”
For sure, Cahn is not the only one one who sees hard times ahead for America.
Shell shocked by oil, currency ploys
Two “black swan events” have financial experts reassessing their forecasts.
One is the falling price of crude oil and its corrosive effect on Russia’s economy. The other is Switzerland deciding last week to decouple the Swiss franc from the Euro, resulting in billions of dollars in losses for large banks and currency traders.
The oil price shock started out with most economists predicting a short-term “blip” that would quickly reverse course, only to see prices further plummet with no end in sight.
That is driving economic indicators and propelling economies in directions not previously forecast.
Russia, for instance, is under extreme pressure, as is Iran and Venezuela. Saudi Arabia stands to gain market share at the expense of Russia and the burgeoning U.S. shale-oil industry.
The United States meanwhile continues to chug along with low interest rates and what some analysts see as a bloated stock market ripe for a fall.
Michael Snyder, who writes the Economic Collapse blog, put it this way in a recent article:
“As I have written about previously, we are moving into a time of greatly increased financial volatility. And when we start to see tremendous ups and downs in the financial world, that is a sign that a great crash is coming. We witnessed this prior to the financial crisis of 2008, and now we are watching it happen again.
“And this is not just happening in the United States.”
Chinese shares plunged about 8 percent Monday after the country’s securities regulator imposed margin trading curbs on several major brokerages, a sign that authorities are trying to rein in the market’s big gains, Snyder reported. It was China’s largest drop in six years.
“Sadly, most Americans have absolutely no idea what is coming.
They just trust that Barack Obama, Congress and the ‘experts’ at the Federal Reserve have it all figured out.
“So when the next great financial crisis does arrive, most people are going to be absolutely blindsided by it, even though anyone that is willing to look at the facts honestly should be able to see it steamrolling directly toward us.”
Snyder concluded that the relative stability experienced over the past couple of years is about to come to an unexpected halt.
“I hope that you are getting ready for what comes next,” Snyder told his readers.
Snyder posted another article in which he postulates that the price of copper, which recently hit five-year lows, is a leading indicator for a stock market crash.
China is the world’s biggest buyer of copper and it has cut back drastically on its consumption as its economy has slowed. This could push back a Fed rate hike and impact the U.S. economy, CNBC reported on Jan. 15.
Shock waves across oil country
An unexplainable, lightning-swift fall in the price of crude oil over the past month has left Texas and other oil-producing states, which had been among the few growth spots and success stories in the U.S. economy in recent years, poised for a dramatic shift in fortunes. Hundreds of layoffs could soon be in the offing and in fact have already started, according to an article in the Washington Times.
Henry Resources President Danny Campbell says the company will cut activity by up to 40 percent.
“We’re not cutting back in one area, we’re cutting across the board,” he told the Midland Reporter-Telegram, adding that no one had expected prices to fall so low and so quickly.
by David W. Thornton
What would you do if you knew that divine judgment on your country and the world was imminent? If you are Jonathan Cahn, you write two best-selling books that detail the revelations that you have received about how the United States is already undergoing judgment and has been for more than a decade. Like a latter day prophet of the Bible, Cahn is issuing his warning that September 13, 2015 might be the next key date in the on-going series of judgments using a variety of mediums, from television to the internet, that were not available to the prophets of old.
Cahn’s first book, “The Harbinger,” dealt with clues that linked the September 11 attacks and the 2008 financial crisis to the prophetic judgments found in the Book of Isaiah as well as to an ancient Jewish custom of forgiving all debts and letting fields lie fallow every seventh year. It is the story of this Sabbath year that Cahn expounds upon in his newest book, “The Mystery of the Shemitah,” the Jewish term for the Sabbath year.
Cahn’s analysis of the relationship between the terrorist attacks of September 11 and the 2008 economic collapse turned up the astounding fact that stock market collapses in both years, which currently rank as the two largest stock market point crashes in U.S. history, occurred on the same day of the Jewish calendar.
Even more remarkable is the fact that the Jewish date on which the markets collapsed was the last day of the Shemitah year, the day in which all debts were wiped away. This action would result in a situation much like a modern recession as the accumulated wealth of seven years was blotted out and agricultural production plummeted.
When Cahn looked back at previous Shemitah years, he found that the pattern extended even farther back into U.S. history. The Shemitah of September 1993 through September 1994 (the Jewish New Year starts in September on the Gregorian calendar used by the U.S.) saw a selloff in the bond market that swept around the world. In 1987, a stock market crash occurred that held the record for largest point drop in a single day until the post-9/11 crash of 2001.
In 1980, the U.S. suffered a severe recession that lasted until 1982. In 1973, an oil shock brought on by the Arab oil embargo sparked another recession. In 1966, the U.S. experienced a credit crisis. In 1958, the Eisenhower Recession was a sharp, worldwide downturn. For more than 50 years, every Shemitah year has seen the U.S. experience financial upheaval.
In addition, the Shemitah was linked to the Great Depression as well. Although the initial stock market crash of 1929 was not in a Shemitah year, the decade of the 1930s contained two Shemitahs, 1930-31 and 1937-38. As a chart of the Dow Jones Industrial Average of the 1930s shows, 1932 was the darkest year of the Great Depression. By 1937, the recovery had begun, but country experienced a second recession within the Depression.
As Cahn points out, the law of averages would dictate that there is only a one-in-seven chance, less than a 15 percent, of a recession or crash occurring within a Shemitah. When the statistics are examined, the relationship between financial upheaval and the Shemitah is far stronger than can be explained by random chance.
The Wall St. Journal’s list of the 20 largest one day stock market crashes includes 10 that are in a Shemitah year. Nine of these crashes were in Elul, the last month of the Shemitah, or Tishri, the first month of the year that follows the Shemitah (late September or October on our calendar). A further three crashes were in months that followed (November and December). The total of 13 crashes, more than half of the crashes, is far more than the 15 percent expected.
The same list also shows that many of the largest stock market gains come in the wake of the Shemitah. If the Shemitah culminates in a recession, the recovery would be expected to begin in the first months of the new Jewish year. In all, five of the largest 20 gains occurred during a Shemitah year, which is close to the random distribution. Seven of the largest gains occurred in the wake of the Shemitah. This may reflect the extreme volatility of the markets in the Shemitah. Many economists note that sudden, sharp crashes are often followed by equally quick recoveries.
Many stock market analysts have noted the tendency of the stock market to falter in the fall of the year. This correlation may be explained by the end of Shemitah, which occurs in September, and the recovery that follows.
Additionally, the National Bureau of Economic Analysis lists 33 business cycles that have impacted the U.S. economy. A comparison of the list of business cycles to Shemitah years shows that in four cases the cycle was entirely contained within a Shemitah. In 14 cases, the cycle was partly contained within the Shemitah including three cycles which completed before the culmination of the Shemitah. The 18 cycles which were linked to the Shemitah is more than half of the U.S. business cycles.
Cahn goes further. In “The Harbinger” Cahn discussed the link between the towers of the World Trade Center and an obscure Bible verse quoted by Sen. Tom Daschle (D-S.D.) on the Senate floor on September 12, 2001. The same verse, defiantly vowing to rebuild the towers, symbols of pride, was echoed repeatedly in the following years by other government officials.
Cahn relates that the World Trade Center was conceived in the Shemitah year of 1945 when it was proposed by developer David Scholz. Groundbreaking for the World Trade Center was in the Shemitah year of 1966. In the Shemitah year of 1973, the twin towers opened as the world’s tallest buildings. In the Shemitah year of 1993, terrorists exploded a car bomb in the basement garage of the north tower, killing six people and injuring more than a thousand. Seven years later, in the Shemitah year of 2001, another group of terrorists succeeded in destroying the World Trade Center. The new tower on the World Trade Center site, One World Trade Center, also called the Freedom Tower, opened six weeks into the current Shemitah on Nov. 3, 2014.
Cahn also discusses the seventh Shemitah, the Jubilee. The 50th year, the year following the seventh Shemitah, was a “super Shemitah” that restored lands to their previous owners and set captives free. According to Cahn, no one today is sure when the Jubilee occurs, but there is another startling pattern. On November 2, 1917, British Foreign Secretary James Balfour signed the Balfour Declaration, which began the process of restoring a Jewish homeland in Palestine. This followed the 1916-17 Shemitah. Fast forward 50 years to June 7, 1967. This was the day that Israeli forces recaptured the city of Jerusalem in the Six Day War. This momentous event followed the Shemitah of 1965-66. This pattern suggests the possibility that these restorations both took place in Jubilee years.
If Cahn’s assumption is correct, the next Jubilee would follow the current Shemitah. The current Shemitah runs from September 25, 2014 through September 13, 2015 and the possible Jubilee would begin on September 14, 2015 through October 2, 2016.
Cahn points out the confluence of astronomical signs in the current Shemitah as well. The current Shemitah is associated with four blood moons, partial lunar eclipses, all of which fall on Jewish holidays. Additionally, there will be two solar eclipses. The first occurs exactly halfway through the Shemitah and the other on September 13, the last day of the Shemitah. Eclipses are often associated with judgment in the Bible.
Cahn makes no predictions about what to expect during the Shemitah and the possible Jubilee. As financial forecasts note, past performance is not indicative of future results. Nevertheless, the statistical correlation between the Shemitah and financial upheaval is a strong one. It may be worthy to note that shortly after the current Shemitah rang in, the stock market suffered a sharp downturn. At the same time, the US experienced a small panic over Ebola. What surprises does the rest of the Shemitah hold in store?