Mon, 8 December 2014
Manipulation Mondays with Andrew Hoffman:
Plunging oil prices -shale is 15% of U.S. junk bond market - $210 billion -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.
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
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Mon, 8 December 2014
John writes, Of all the problems with fiat currency, the most basic is that it empowers the dark side of human nature. We’re potentially good but infinitely corruptible, and giving an unlimited monetary printing press to a government or group of banks is guaranteed to produce a dystopia of ever-greater debt and more centralized control, until the only remaining choice is between deflationary collapse or runaway inflation. The people in charge at that point are in a box with no painless exit. As further proof, just look at today, the dollar index is over 89 and the rest of the world's major/minor currencies are sinking.
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