Debt Rattle December 17 2014
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Russell Lee Proprietor of small store in market square, Waco, Texas Nov 1939 • Oil Plunge Sets Stage for Energy Defaults (Bloomberg) • Crude Collapse
[See the full post at: Debt Rattle December 17 2014]As usual, your litany of news items—the Lewis and Das pieces in particular, this time—demonstrate the absurdity and futility (i.e., insanity) of our cultural choice to rely on money and exchange.
Just reading the headlines sounds like a discussion in an insane asylum.
My takeaway is that nobody has a clue…A video describing how oil and the new junk bond link to create a banking problem.
Just like to point out though its not just an oil problem its a resource problem. Everything is being tapped to its limits and players are destablizing prices to gain a market position.
Noteable is that it takes a buyer for oil to create price. Manufacturing has done less buying which destablizes price. Governments with low cost oil realize the ability to damage high cost operators with low price oil.
Since commodities are dropping together my guess is manufacturing is slipping downward world wide. What I don’t believe is that this will be as bad as first thought. If growth slows and becomes non existent it would seem logical. Since we are trying to bring inflation to zero, growth should be zero. If you are not inflating you are not growing. Also the only things that are sustainable long term have a zero growth rate.
Think about it. Cancer is something with an eternal growth rate. Healthy people have a stable wieght and are not growing. What if a sustainable healthy economy only exists if there is no rate of growth.
Growth is really just another word for consumption of resources. When resources are limited it seems obvious that increasing consumption is not good.
WTI up 9% today. Might need to start using this blog as a Contrarian trading indicator.
The Fed just fired a .22 cal across the bow. Mess with ’em and they will pull out a nuke tipped Cruise Missile.
Or fight ’em and go in the ditch.
Bottom line here is, they can simply nationalize oil if they please. They already own the currency in which it is denominated.
Saw this posted elsewhere:
“Russia Crisis Hits Pimco Fund, Wipes Out Options
After the single worst day in Russia’s nine-month-old financial crisis, the fallout is spreading across global markets.Pacific Investment Management Co. (PEBIX) is facing mounting losses on its Russian bond holdings; almost every bullish ruble option contract registered in the U.S. has been made worthless; and foreign-exchange brokers in New York and London told clients they’re no longer taking ruble trades. Sergey Shvetsov, a first deputy central bank governor, expressed astonishment at the scope of the collapse during a business conference in Moscow.”
Anyone feel like moving to Uruguay??
https://truth-out.org/news/item/27932-uruguay-takes-on-london-bankers-marlboro-mad-men-and-the-tppVisionHawk – that was such a great article! Thanks for posting it. We had all better sit up and take notice of what is going on down there in order to see what is heading our way.
Supranational trade tribunals superseding sovereign nations? These guys have got to be stopped.
“In a touching display of bipartisanship, passage of the TPP is a top priority for President Obama, Sen. Mitch McConnell (R-Kentucky) and Rep. John Boehner (R-Ohio) when the new Republican-controlled Congress convenes in January 2015. However, there is opposition in both the Democratic and Republican congressional caucuses that may be responsive to public opinion.”
Read the article and get on the phone!
Suddenly Cuba is on Santa’s list:
“Following months of secret negotiations with the Cuban government, President Obama on Wednesday announced sweeping changes to normalize relations with Cuba, a bold move that ends one of the most misguided chapters in American foreign policy. […]
‘These 50 years have shown that isolation has not worked,’ Mr. Obama said. ‘It’s time for a new approach.'”
It only took half a century.
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