Dec 8, 2014
Manipulation Mondays with Andrew Hoffman:
Plunging oil prices
-shale is 15% of U.S. junk bond market - $210 billion
-energy bonds in freefall
-energy is 1/3 of S&P 500 capex, and was
falling before this fall's oil plunge
-merger mania will paralyze big oil (see Baker Hughes/Halliburton),
while shale will spectacularly default
-shale was massively cash flow negative at $100 oil!
-plunging currencies worldwide, particularly in oil exporting
nations like Russia, Venezuela, Nigeria, Indonesia - and frankly,
all commodity currencies like Australia, Canada, etc.
-for that matter, Thursday's audioblog
"crashing oil prices and currencies, America's death knell" could
not be more important
-liquidity vaccuum caused by global economic collapse, driven by
Central bank market manipulation, is creating - per the title of
today's article - "lemmings for the ages."
-record valuations of insolvent government bonds, equities amidst
depression, and the dollar as the Fed destroys it, whilst record
demand for physical PMs but plunging prices due to naked
shorting
-Chinese gold, Indian silver, U.S./Canadian silver demand will
exceed 2013's record levels in 2014. Only Indian gold won't,
but only because much of such demand now in unreported black
market
due to import tariffs. Irrespective, surging Indian demand
this Fall, and now that import restrictions being lifted (and Rupee
plunging), will likely surge anew in 2015
Swiss "no" was second to last chance for West to try to save
itself. This weekend, Japan snap election is second.
-However, Abe likely to win, as Yen amid 40% plunge, Japan CPI at
multi-year highs, and massive recession. Heck, yen gold just
6% from all-time high. But lo and behold, rising stock market
prompts the lemmings to vote for Abe.
NFP report
-today's article was "all economic data are lies," in reference to
it
-household survey NEGATIVE jobs, ADP report worst November since
2010, "Labor Market Index" declined today
-plus, further decline in labor participation, to essentially a 36
year low; and a "mysterious" positive birth/death number, in a
month that is always negative. Let alone, with small business
formation at
multi-
decade lows and small business bankruptcy at multi-decade
highs.
-plus, all jobs still retail, amidst worst retail environment in
decades (McDonalds, biggest sales decline in 12 years today).
Not only that, with online sales growing relative to brick/mortar,
makes no sense that so many
retail jobs (even though really just "half jobs," as mostly min.
wage, no benefits, part time). Let alone, alll the "waiters
and bartenders" if restaraunts doing so badly.
-and oh yeah, all other data bad - from trade deficit, to
(negative) factory orders, contracting credit, etc. Let
alone, the world round, where essentially everyone is in
recession!
