September 13, or Elul 29 on the Hebrew calendar has finally arrived, and is occurring on a day in which the markets are closed for primary trading. However, with Asia beginning their Monday open while the West still resides in the Shemitah for a few more hours, the opportunity for market chaos because of the frequency of this event is still alive and well, and will continue at least until the Fed announces its policy changes for the coming months this Thursday.
The idea behind the Shemitah is that it entails a spiritual law from God that requires man to heed certain economic requirements when it comes to debts, land, finances, and even agriculture. Every seven years the land, (or in this case markets), must be allowed to remain fallow, and with little productivity so that the economic system can use this year to dissolve toxic assets and prepare the land (or markets) for new blessings. However, when man chooses not to heed this commandment or policy, nature itself will force a dissolution of wealth, and we have seen this occur time and time again in the markets going back as far 1873 in modern times.