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OUR LYING POLITICIANS AND U.S.A NEWS MEDIA CONTINUES TO LIE TO US. You might find some solace in the article below if you are willing to take advantage of other people's misfortunes in the future and are very, very, very careful.
January 16, 2015
Euro on death watch --
– and US economy a hop, skip and jump away from its next Great Depression...
Well, that $1.45 euro is now under $1.15, collapsing more by the day.
Yields on the US 10-year bond are plunging. They are close to breaking through their previous lows.
Euro-zone GDP has turned negative. Greece is about to leave the EU. The Swiss just broke the peg between their currency, Swiss franc, and the euro: the euro fell 30% in one minute against the franc.
All hell is breaking loose. Not just in Europe, but the US. As usual, Wall Street and our Leaders in Washington are bull-shitting themselves and the masses.
Oil is wiping out. Half of all government securities issued around the world pay no interest. Soon they will yield negative interest: you will have to pay them for the privilege of lending them your money.
US PPI (wholesale inflation) for goods fell 1.2% in December, the most recent month. December US import prices plunged 2.5%. The trend is getting worse: import prices fell 1.4% in October, and 1.8% in November.
On top of that, US export prices were down 1.2% -- and the December CPI fell 0.4%. The biggest decline since the heart of the 2007/08 financial crisis.
Unless you're 90 years old, you've never seen this before. The world is going through a deflationary depression... not inflation. As ugly an event as you could ever imagine.
Commodities prices are collapsing. Oil is well under $50 a barrel: it even hit $45 (I hope you made the trade we recommended). This is oil's longest losing streak since the 1986 collapse. That wipeout brought us the 1980s real estate crash and the 1987 stock market crash. This wipeout will be even worse -- because these bubbles are many times bigger.
Copper prices fell 8% this week alone, and are at their lowest level since Wall Street began manipulating global commodities markets six years ago.
Oil companies are firing employees like there's no tomorrow. That's because for many of them there will be no tomorrow.
e.g. giant oil field service company Schlumberger announced it is laying off 9000 employees. Nearly 10% of its workforce.
Oil companies are cutting their exploration budgets to the bone. The industry is quietly preparing for the coming bankruptcies.
As further proof of the depression we are in, U.S. Xmas retail sales fell a dismal 0.9%. Sales of electronic goods fell 1.6%. Apparel fell 1.3%. Receipts at general merchandise stores fell 1.9%. Sales at building supply outlets dropped 1.9%.
Gasoline in some US markets is under $2 a gallon. The lowest price in 7 years.
Expect the stock market to drop like a rock.
In the last oil wipeout, you could pick up houses in Houston TX for a dollar. Same in parts of Oklahoma. Soon you will be able to do so again.
Do not buy into the myth that cheap oil is good for the US economy. Just the opposite. It is our death knell.
The oil/energy industry, directly and indirectly, makes up nearly 20% of the US economy. Thanks to fracking, our nation went through an historic energy boom. Fracking is the main thing that kept the US economy alive these past six years.
That party is over. Low oil prices killed it. The major driver of US economic growth is (for now) dead and buried. This alone will cripple vast portions of the US economy.
But it's even worse. Wall Street bankers took the Fed's bailout money, and again jumped into the derivatives casino. They again made trillions of dollars of leveraged speculations -- this time in oil and energy.
All these speculations were based on $100 a barrel oil. Now oil is under $50, and they are wiping out.
So are other Wall Street's vast, leveraged investments in other commodities markets. Its manipulations -- in everything from copper, coal and aluminum, to precious metals and agricultural products -- are falling apart big-time.
Remember the 2007/08 financial crisis? Huge, leveraged Wall Street derivatives -- based on real estate -- triggered that collapse.
Now it's worse. Wall Street holds even bigger, leveraged speculations. Just like before, they bet the farm, and they bet wrong.
They are taking leveraged losses on tens of trillions of dollars of borrowed money. This has already started to decimate the economy.
I don't think there's any comprehension yet, of how big this wipeout is. No clue about the major financial catastrophe in the making. Investment bankers of the world are taking hits like never seen before.
Be very careful where you put your money for now.
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