Economic Avalanche?
Written on 7 April 2025.
Economic Avalanche?
Over the weekend and into Monday, global markets have entered what appears to be the early stages of an economic avalanche. On Sunday evening, U.S. time, financial commentators including Mike Adams and Hal Turner issued stark warnings about what was to come. By Monday, their fears were beginning to materialize across Asia and Europe.
Sunday Night Shockwaves
At 6:00 PM Eastern time on Sunday, U.S. stock market futures opened to an immediate and sharp decline. Within 17 minutes, the Dow Jones futures were down more than 1,400 points. Meanwhile, Japan's Nikkei 225 and TOPIX indices tripped circuit breakers, halting trading after losses exceeded 8.5% — the steepest drop since October 2023.
At the same time, over $200 million in cryptocurrency was liquidated in a single hour, indicating forced selling and margin calls across the digital asset space. Silver, often a barometer of industrial demand, was also hit hard in anticipation of reduced economic output. Gold saw a more modest dip as investors sold to meet liquidity needs, though it is expected to rebound.
Asia Crashes Hard
Monday morning in Asia confirmed the worst-case scenarios. Hong Kong’s Hang Seng Index fell a staggering 13.22%, the largest single-day drop since the 1997 Asian Financial Crisis. The Shanghai Composite lost 7.34%, closing at 3,096.58. Taiwan’s stock market recorded its biggest one-day crash ever, with circuit breakers triggered for tech giants TSMC and Foxconn — critical components in the global semiconductor supply chain.
Europe and the U.S. Brace for Contagion
Germany’s DAX opened 6.61% lower, France’s CAC 40 and the UK’s FTSE 100 both dropped nearly 6%, marking their lowest levels in over a year. The SPDR S&P Regional Banking ETF (KRE) fell 4% at last check, suggesting increasing concern over U.S. regional banks.
A Controlled Collapse?
While some analysts described the market action as "controlled," the widespread triggering of circuit breakers suggests a systemic crisis in motion. Liquidity is drying up fast, and the sell-offs are not isolated to speculative assets. Critical infrastructure sectors — tech, banking, and industrial commodities — are all being hit.
Is This the Avalanche?
This is not a typical market correction. The velocity and scale of the declines across continents, the involvement of both traditional and digital markets, and the panic-driven margin calls all point toward a deeper unraveling. Central banks may be forced into emergency measures. Bailouts could follow. Trump’s tariffs may be the spark, but the fuel has been building for years.
Mike Adams framed it bluntly: Smart people will hold gold, silver, and crypto. Silly people will hold stocks all the way down and get decimated. The most stupid people of all will stay in dollars and see their value evaporate. That may not be hyperbole anymore.
The coming days will determine whether this is just a deep tremor or the full-scale avalanche many have warned about.