GUALFIN, Argentina – September is here. As expected, market volatility is increasing. The Great Zombie War is intensifying. And investors are getting scared.

Yesterday, the Dow lost 470 points – a nearly 3% drop. Bloomberg:

U.S. stocks joined a worldwide selloff, after equities' worst month in more than three years, amid continuing concerns that China's slowdown will weigh on the global economy.

'The problem is, as much as China is the catalyst for this, it's also that we're seeing weakness in fundamentals here,' said Matt Maley, an equity strategist at Miller Tabak & Co LLC in New York.

'A lot of company earnings were hurt by China in the second quarter and it's only gotten worse. People are losing confidence with the whole situation there breaking down, not just in the stock market but in data as well.'

Losing Confidence

Yes, investors are losing confidence…

They're probably losing confidence in corporate managers, for instance.

Who wants to own stock in companies run by numskulls who buy back shares in their companies at record prices just before a major sell-off?

Or maybe they're wondering whether the world's $200 trillion in total debt (roughly 300% of total output) can possibly be paid back?

Or maybe they're beginning to puzzle out how scammy and fraudulent the Fed's policies are.

But watch out! Reeling from the jabs of the last two weeks, expect a strong counterattack from the zombies and their allies.

Some Fed governor will come forth – maybe even Janet Yellen – and tell us not to worry about a return to more "normal" interest rates anytime soon.

We're way too far into the weird to get anywhere near normal now. And surely Wall Street shills will be in the news explaining how markets become unreasonably fearful from time to time. They will tell investors that it is time to hunt for bargains.

Dow 25,000! Why not?

And they may be right. There's bound to be an inflationary blow-off waiting somewhere ahead.

Stocks will soar. But not before they crash.

Retiring Another "Barbarous Relic"

In the meantime, watch your rear: There's a serious counterattack coming.

It will be an attack on our supply lines. The cronies and the feds will attempt to cut off our finances and our line of retreat, trapping us between the anvil of the market's deflation and the hammer of the Fed's inflation. There will be no escape, no way out.

Last week, the influential Financial Times newspaper ran an article calling for the abolition of cash. It was titled "The case for retiring another 'barbarous relic.'" And it claimed that cash causes "a lot of distortion in the economic system."

Can you believe it?

Cash causes economic distortions! From the FT:

The existence of cash – a bearer instrument with a zero interest rate – limits central banks' ability to stimulate a depressed economy. The worry is that people will change their deposits for cash if a central bank moves rates into negative territory.

It also repeated the familiar claims that cash also is what finances terrorism, tax evasion, and the black market. Making cash illegal, it says, would "make life easier for a government set on squeezing the informal economy out of existence."

You see where this is going, don't you, dear reader?

If the feds are able to ban cash, they will have you completely under their control. You will invest when they want you to invest. You will buy when and what they want you to buy.