The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label oil prices. Show all posts
Showing posts with label oil prices. Show all posts

Sunday, April 17, 2016

Consumer trust and hope in the economy falling

Late last week, the Atlanta Fed lowered their Q1 GDP expectations down for the third time in a week to .1%, yet the mainstream continues to dismiss any possibility that the economy is either moving into recession, or that it is already in one.  And at the core of their propaganda is the belief that the consumer is alive and well, and spending money assumed to have been garnered from lower oil prices.
But two new polls and surveys out on April 15 show that not only is this assumption a lie, but that trust and sentiment in the economy is falling rather than growing.
Read more on this article here...

Wednesday, April 6, 2016

The power of gold: Russia's purchase of the metal was the key to their currency's rebound due to falling oil prices

Over the past three years, Russia's economy has been hit hard due to economic sanctions from the West, and falling oil prices in the global markets.  And while Russia was forced to sell off millions of dollar reserves early on to stabilize their currency following the imposition of these sanctions, it has been their ongoing accumulation of gold that has not only aided in the recovery of the Ruble, but also in limiting the duration of a recession brought on by these two-fold factors.


Here’s why Governor Elvira Nabiullina is in no haste to resume foreign-currency purchases after an eight-month pause: gold’s biggest quarterly surge since 1986 has all but erased losses the Bank of Russia suffered by mounting a rescue of the ruble more than a year ago. 
While the ruble’s 9 percent rally this year has raised the prospects that the central bank will start buying currency again, policy makers have instead used 13 months of gold purchases to take reserves over $380 billion for the first time since January 2015. The central bank will wait for the ruble to gain more than 12 percent to 60 against the dollar before it steps back into the foreign-exchange market, according to a Bloomberg survey of economists. 
Central banks including Russia added to their gold reserves with “renewed vigor” in the second half of 2015, accelerating their purchases as diversification of foreign reserves remained a top priority, according to the World Gold Council. Nabiullina then piggybacked on a 16 percent jump in bullion prices in the first three months of the year to move closer to the Bank of Russia’s target of $500 billion for its stockpile. It burned through a fifth of its reserves to prop up the ruble in 2014. - Bloomberg
Russia is proving beyond a shadow of a doubt that gold is not only money, but a much better form of wealth protection than the dollar, or any paper currency or asset.

Wednesday, March 23, 2016

Canada preparing for bail-ins as collapse of oil industry forces new legislation in their budget

On March 22, Canada's new ruling party submitted their budget for fiscal year 2016-17, and hidden within it was new legislation to approve of depositor bail-ins for banks that might become insolvent.  And with the Canadian oil industry in fill collapse due to lower oil prices, the leverage by the banks in the energy industry is pushing them closer and closer to default.



Introducing a Bank Recapitalization "Bail-in" Regime 
To protect Canadian taxpayers in the unlikely event of a large bank failure, the Government is proposing to implement a bail-in regime that would reinforce that bank shareholders and creditors are responsible for the bank’s risks—not taxpayers. This would allow authorities to convert eligible long-term debt of a failing systemically important bank into common shares to recapitalize the bank and allow it to remain open and operating. Such a measure is in line with international efforts to address the potential risks to the financial system and broader economy of institutions perceived as “too-big-to-fail”. 
The Government is proposing to introduce framework legislation for the regime along with accompanying enhancements to Canada’s bank resolution toolkit. Regulations and guidelines setting out further features of the regime will follow. This will provide stakeholders with an additional opportunity to comment on elements of the proposed regime. 
Bail-in Regime for Banks 
Canada’s financial system performed well during the 2008 global financial crisis. Since that time, Canada has been an active participant in the G20’s financial sector reform agenda aimed at addressing the factors that contributed to the crisis. This includes international efforts to address the potential risks to the financial system and broader economy of institutions perceived as “too-big-to-fail”. Implementation of a bail-in regime for Canada’s domestic systemically important banks would strengthen our bank resolution toolkit so that it remains consistent with best practices of peer jurisdictions and international standards endorsed by the G20. - Zerohedge

Saturday, February 27, 2016

Saudi Arabia gains a strong victory as 18 month battle to kill U.S. fracking fells big opponent

Geo-politics is a messy business, and quite often much more complex than domestic politics.  Because when one nation decides to implement a policy that has global ramifications, more often than not innocents can get killed in the crossfire, and the actual goals of the government citing the conflict may exist far beyond those announced publicly.
When the leading head of the OPEC cartel decided to start an energy war by lowering the price of oil to levels not seen since the 1980’s, it started a chain reaction that would come to include Russia, the United States, Turkey, Canada, Mexico, and even Iran.  In fact, one could argue that Saudi’s oil gambit was the catalyst for forcing the U.S. to settle their decade’s long dispute with Iran as a means to put pressure on the Saudi’s to come back to Washington’s hegemony.
And despite the fact that Saudi Arabia was cutting their own throats in lowering oil prices, on Feb. 25 it appears they have finally taken a major piece from the board as the largest U.S. fracking company in the Bakken region of North Dakota announced they were halting production.
petrochina-china-oil-derricks
Read more on this article here...

Saturday, January 30, 2016

GDP for 4th quarter comes in below 1%, and would have been negative without forced Obamacare tax

Although we have mentioned it several times, the primary factors that make up U.S. GDP are consumer spending, and government spending.  Combined these two categories within the Gross Domestic Product account for 85% of the total production numbers.
So when 4th Quarter GDP growth came in at less than 1% on Jan. 29 (.69%), it validated that sales over the holiday shopping season were incredibly dismal, and that consumers are close to tapped out when it comes to buying products in the economy.
q4 gdp
Read more on this article here...

Monday, January 25, 2016

Following Davos, Norway’s biggest bank calls for an end to the use of cash

As the annual World Economic Forum in Davos ended on Friday, the ‘Masters of the Universe’ returned home to enact some of the many topics they discussed on finance and the global economy.  And in accordance with the growing trend among the elites to ban the use of cash in the marketplace, the biggest bank in Norway on Jan. 23 raised their voice and joined in with the trend.
Norway had long been a poster child for fiscal responsibility, with nearly a trillion dollars stored away for their people from oil revenues in their North Sea production.  However, it is because of these same oil prices, and in particular their year long decline, which has led the Norwegian economy to suffer greatly and look for alternative ways to protect against capital flight.

Read more on this article here...

Venezuela past the point of no return, expected to be next hyper-inflationary state

It has been about a decade since the last instance of true hyperinflation rocked a nation state, with Zimbabwe becoming the most recent ‘Weimar Republic’ example in the global economy.  And while their solution was to simply stop printing their local currency and transition into using dollars (and now Yuan) as their domestic medium of trade, their overall impact on the global economy was relatively negligible.
But the same cannot be said for the newest partner in this auspicious club, as the IMF reported on Jan. 22 that Venezuela is beyond the point of no return, and should enter into the realm of hyperinflation by the end of 2016.

Read more on this article here...

Thursday, January 21, 2016

IMF pumping out declines in global growth forecasts like central banks print money

On Jan. 19, the International Monetary Fund (IMF) cut its forecast for global growth for the third time in less than a year, validating that the largest financial centers in the world have little idea on what is actually occurring within the global economy.
The IMF’s cut follows today’s announced decline in China’s GDP, and last Friday’s Atlanta Fed announcement that they were cutting estimates on U.S. GDP growth for the quarter ending December 2015.

Read more on this article here...

Tuesday, January 19, 2016

Think $30 oil is bad? Get ready for $20 now that Iran has officially re-entered the market

Saturday the 16th of January was officially D-Day for the collapsing oil markets as it is now the time for Iran to enter in with its sanction held supplies, and prepared coming production.  And if the world economy thought Friday’s $29 oil was bad for markets, just wait for what the introduction of Iranian supplies does for these markets going forward.
For nearly a decade, economic sanctions against Iran had financially locked the OPEC nation in bondage, and required them to sell small amounts of oil through the ‘black market’ channels in Turkey we now know as the oil for gold scheme.  But since the U.S. decided to suddenly shift gears over the past few months in attempting to collapse Iran’s economy, the Islamic power has prepared for today with huge offerings of oil that are expected to create even greater chaos in an already saturated market.

Read more on this article here...

Sunday, January 17, 2016

Venezuela in crisis: Oil nation put into 60 day state of economic emergency

Last week we focused on Canada, and the economic crises that has exploded across that country due to low oil prices, and massive debts created in the building of a housing bubble.  And with markets crashing all across the world over the first 17 days of 2016, the situation in another oil producing country is also dissolving into economic crisis.
On Jan. 15, Venezuelan President Nicolas Maduro declared a 60 day state of economic emergency for the South American nation in what appears on the surface to be an escalation of capital controls that have already destroyed their economy for almost a decade.

Read more on this article here...

Tuesday, December 15, 2015

Oil falls below $35 a barrel while natural gas drops to lowest level since 2002

Energy prices are not simply barometers of inflation and deflation, but they are also red flags that point towards recession in ways few other indicators can.  And when you couple the current declines in oil and natural gas with highs in inventories worldwide, the result is that the global economy is slowing way down, and no amount of hyperbole from the mainstream media can change this.
A few weeks ago, Dr. Jim Willie gave an interview in which he said one of his primary sources intimated that oil would eventually fall to around $20 per barrel, and this was on a day that prices were sitting around $41-42.  And in less than two weeks, the price has now fallen below $35 per barrel heading into the new year.

Read more on this article here...

Monday, December 14, 2015

Got Karatbars? As the next financial crisis appears on horizon, remember this... central banks traded gold as money in 2008

Dateline December 14, 2015.  Two new financial indicators are rocking the markets just two days away from the Fed's biggest policy decision in a number of years.  First, oil prices fell to below $35 a barrel with natural gas prices falling to their lowest since 2002.  And secondly, the bond markets are starting to crack, with liquidity problems in the junk bond market eerily forecasting the 2010 crisis that led to the start of Quantitative Easing.


As you can see from the above chart, the last time oil prices were this low and liquidity problems occurred we were in the middle of the Great Recession.

Yet with all the talk over the past few years about the dollar, the Yuan, and about ongoing currency wars, one thing seems to have fallen off the radar, and that was the fact that following the 2008 October crisis, central banks began transacting not in the dollar or in their primary currencies, but instead they traded in gold.

The one real form of money.
Alan Greenspan, the venerable former Federal Reserve chairman, speaking to the U.S. Congress in 1999, said, "Gold still represents the ultimate form of payment in the world. Fiat money, in extremis, is accepted by nobody. Gold is always accepted." 
In 2002, in a speech given before the Economic Club of New York, Mr. Greenspan also said, “As recently as a decade ago central bankers, having witnessed more than a half-century of chronic inflation, appeared to confirm that a fiat currency was inherently subject to excess.” He confirmed what Aristotle stated 2,500 years ago when he said, “In effect, there is nothing inherently wrong with fiat money, provided we get perfect authority and god-like intelligence for kings.” - Goldbroker
During the 2008 crisis several transactions of the Bank for International Settlements (BIS) involved gold. What is significant in this is that gold is being used in international settlements again after so many decades of being sidelined in the monetary system. Gold’s old emergency usefulness has resurfaced, albeit behind closed door sat the BIS in Basel. The transactions themselves confirm that gold is being used in this manner, which is a dynamic confirmation of gold's return to the monetary system.
And perhaps it is not ironic that following the 2008 crisis, Russia, China, India, and a few other nations we now know as the BRICS began purchasing physical gold in record numbers, and have systematically moved most of the world's gold from the West over to the East.  And they have done so following the same intentions that the BIS used in their realization that fiat currencies, including the dollar, cannot function outside of a stable and controlled financial system, and are worthless in a real monetary crisis.

As we come to the end of 2015, and enter into a year where market indicators like oil, bonds, equities, and currencies are screaming that we have entered into a new recession, what potential magic tricks do the central banks have since interest rates are already at zero, and Quantitative Easing has surpassed the point of diminishing returns (see the fact we are all in a deflationary environment)?  The answer is that there is nothing left but hyper-inflation for the banks to attempt, and this, along with doing nothing short of a Jubilee reset, will stop the inevitable from happening.

So if the answer for any monetary crisis is the use of gold, and a return to a gold based monetary system as was done by the central banks themselves following the 2008 collapse, how can we as individuals protect ourselves in both the short and long terms from a complete loss of wealth, and to be on the ground floor of what the world will transition to next?  Because if you don't get your protection now, policies are being put in place where you may never be able to.


India’s Failing Gold Monetization Scheme: Seizure Imminent?
“A finance ministry official said if banks fail to win over temples, the government could intervene directly as it is looking for a big boost to the scheme to keep both imports and the current account deficit under control.” - Mises
With this in mind, there is a way to accumulate gold and protect your wealth outside the realms of banks and governments... and it is with a company called Karatbars




Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, Karatbars is working on a new e-wallet system that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.


The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Sunday, November 29, 2015

One of three major black swans could trigger dollar collapse

In this month’s commentary from the Hat Trick Newsletter, Dr. Jim Willie reveals three potential black swans on the near horizon that could trigger a collapse of the dollar, and even the entire Western banking system.
Nearly all three are tied in some fashion to the price of oil, and the derivatives that are tied to these contracts which are held by most of the major Western banks.  In addition, the decline of economic activity and subsequent recessions in emerging markets have the potential as well to expand the globe’s current deflationary environment, and usher in any number of defaults that range between $6 and $11 trillion.

Read more on this article here...

Monday, October 19, 2015

How long can Saudi Arabia still hold out with low oil prices?

Earlier this year, Saudi Arabia decided to put all their chips on the table for a gambit that they believed would crush foreign oil producers, and allow them to remain at the top of the global oil scheme despite their dwindling supply problems.  However, even with the U.S. fracking industry being decimated by declines in prices, the Saudi’s have not been able to crack Russia’s hold on production and distribution.  And in what is soon to be a nightmare scenario for the OPEC giant, Iran is within weeks of adding another 500,000 barrels of oil into the markets, creating even greater pressures on prices as the world sinks into a new recession.
Now several months later, Saudi’s gambit may have put themselves on the verge of decimation as the Arab Kingdom is experiencing massive budgetary problems that is finding the government unable to pay its debt obligations, and are forcing them to delay payments to contractors.

Read more on this article here...

Monday, August 31, 2015

Global trade study validates the recessionary decline in Baltic Dry Index

One of the most important, but usually least talked about indicators that denotes the strength of the economy is the Baltic Dry Index (BDI).  This is a measurement that tracks shipping costs and quantities and is a strong signal for whether trade and exports are rising, or in decline.
And a new study out on Aug. 28 by the World Trade Monitor has now validated the recessionary numbers of the BDI, and shows trade within the global economy is now down to levels not seen since the Great Recession period of 2009.

Read more on this article here...

Monday, December 22, 2014

Think Russia has been hit hardest by lower oil prices? Think again!

One thing you can tell about Washington’s stance in their proxy war against Russia is that they care little about any and all collateral damage they might inflict upon themselves or their allied nations.  In face, economic sanctions directed at Putin and the Eurasian power have overall caused greater harm to Germany, France, and other members of the European Union while the ramifications of their ‘secret deal‘ with Saudi Arabia has brought about several economic crises including…
 
The destruction of America’s shale production and Britain’s North Sea oil.
 
 
Read more on this article here...

Friday, September 14, 2012

Crude oil scoffs at Fed as it zooms past $100 per barrel

The major issue with central banks is that they are extremely myopic to the real economy.  They live in an ivory tower of data, and charts, stocks, and Wall Street, and have little comprehension regarding the lives of the 99%.

So when Bernanke finally chose the path of least resistance, and fired up the printing presses on Sept. 13, it did not take long for crude oil to zoom part $100 per barrel, and push gas prices in many areas over $4 per gallon.

Crude futures soaring by nearly 2% overnight to over $100 is what all those evil, evil speculators at work looks like. That, or the Federal Reserve's "all in" bubble reflation policy perhaps. No, it has to be the speculators: the margin hiker-in-chief said so. And for those who are surprised by Crude's move into triple digit territory, which in turn will send gas prices to the highest they have ever been for this time of year just in time for the election, wait until the reality of $150 oil is priced in, which as we explained yesterday, is the matched price for a $4 trillion Fed balance sheet. - Zerohedge

$100 is not new, but it appears to be only the beginning.  With the Federal Reserves new monetary policy of bond buying and monetization being open ended, expect the price of crude oil, which is valued in U.S. dollars, to continue to rise.

Those in the ivory tower known as the Federal Reserve have little concept of what inflation really means to those in 99% who must experience ever increasing prices in food, energy, rent, and items that don't fit into their paradigm of 'assets'.

Friday, February 24, 2012

Oil prices: Expect gasoline prices to rise for a long time moving forward

There are several factors that are leading the way in higher oil prices, and for the American people, higher gasoline prices.  These factors are so powerful and so numerous that there is little expectation they will fall anytime soon.

1.  Growing concerns with Iran and the Middle East

With Israel, the US, Syria, Iran, and now Turkey all hedged for a showdown in the Middle East, one small event could trigger an instant stop in the flow of oil to both Europe and globally.  Iran is already cutting off oil shipments to Britain and France because of economic sanctions, and this has led to a rise in WTI where record highs are already taking place in respect to Euro prices.

2.  US exporting more oil than it imports.

You would think that the US government would consider its people first when it comes to the economy and to gasoline prices, but a new study proves this is not the case.  For the first time ever, US oil companies exported more oil than we imported, and validates concerns that the Obama administration is bought and paid for by the oil cartels.  All one has to do is go back to last year when the President loaned Brazil $2 billion to help their offshore drilling, while at the same time, cutting off our own drilling in the Gulf of Mexico.

3.  Devaluation of the dollar and price inflation.

Unlike 2008 when Congress declared the need to print money to stave off bank insolvency, the Federal Reserve is not publically announcing their bond buying and QE efforts.  However, the markets are now showing exactly what the Fed's actions are resulting in.  Food price inflation, coupled with the massive rise in gasoline prices is intimately tied to how central banks are devaluing the dollar.  Simply look at this.  In 2007, when oil reached a new high of $145 per barrel, gas prices were ranging between $4.50 and $5.00 nationwide.  Now, oil has only risen to $108 a barrel, and yet in some places in Florida and California, the price has crossed $6 a gallon.

4.  Keystone pipeline

President Obama has nixxed the building of a pipeline coming from Canada which would increase oil imports at lower prices into the US, and instead has chastised oil companies and speculators as being the problem for gas prices.  This of course is simply a scapegoating mechanism by the President in an election year, and the markets are rejecting his assertions by going higher... almost by the minute.  You can see this video by ABC where a reporter talking about gas prices has the prices change by .10 in less than 2 minutes while on the air.

video platformvideo managementvideo solutionsvideo player


Like in 2007, America is coming to a crossroads in energy prices, inflation, and a coming crisis that today's gridlocked Congress, and denying President are ill prepared to address.  Leadership requires acknowledging the problem, understanding the problem, and offering solutions to the problem.  That is, unless like President Obama's prior actions, he and Congress are part of the problem.

Sunday, January 8, 2012

French bank SocGen sees oil moving to as high as $200 with Iranian actions

French bank Societe Generale (SocGen) came out with a new assessment for oil prices now that Europe has bought into the potential of an embargo on Iranian oil, and the possibility of a closure of the Straits of Hormuz.

Previously we heard Pimco's thoughts on the matter of an Iranian escalation with "Pimco's 4 "Iran Invasion" Oil Price Scenarios: From $140 To "Doomsday"", now it is the turn of SocGen's Michael Wittner to take a more nuanced approach adapting to the times, with an analysis of what happens under two scenarios - 1) a full blown EU embargo (which contrary to what some may think is coming far sooner than generally expected), and the logical aftermath: 2) a complete closure of the Straits. The forecast is as follows: 1) "Scenario 1: EU enacts a full ban on 0.6 Mb/d of imports of Iranian crude. In this scenario, we would expect Brent crude prices to surge into the $125-150 range." 2) "Scenario 2: Iran shuts down the Straits of Hormuz, disrupting 15 Mb/d of crude flows. In this scenario, we would expect Brent prices to spike into the $150-200 range for a limited time period." - Zerohedge

For all these years, Americans have been calling for oil independence, and we had more than a decade during the Iraq/Afghanistan war years to do it.  However, because of the Gulf spill, and anti-drilling sentiments of the Obama administration, consumers here and in Europe can expect to pay for the ideological agendas of progressive nutjobs who know nothing of business and economics.

Wednesday, December 28, 2011

Oil prices watching the escalation by the US and Iran in the Straits of Hormuz

Oil prices are down more than $1 this morning in trading due to the strengthening US dollar, but are still over $100 per barrel.  Traders however, are watching very closely to a growing escalation between the US Navy and Iranian sabre rattling that threatens to close the Straits of Hormuz, and potentiall skyrocket oil prices.

A senior Iranian official on Tuesday delivered a sharp threat in response to economic sanctions being readied by the United States, saying his country would retaliate against any crackdown by blocking all oil shipments through the Strait of Hormuz, a vital artery for transporting about one-fifth of the world’s oil supply.
The declaration by Iran’s first vice president, Mohammad-Reza Rahimi, came as President Obama prepares to sign legislation that, if fully implemented, could substantially reduce Iran’s oil revenue in a bid to deter it from pursuing a nuclear weapons program. - NY Times

From Reuters:

"The free flow of goods and services through the Strait of Hormuz is vital to regional and global prosperity," a spokesperson for the Bahrain-based fleet said in a written response to queries from Reuters about the possibility of Iran trying to close the waterway.
 "Anyone who threatens to disrupt freedom of navigation in an international strait is clearly outside the community of nations; any disruption will not be tolerated."
Asked whether it was taking specific measures in response to the threat to close the Strait, the fleet said it "maintains a robust presence in the region to deter or counter destabilizing activities", without providing further detail.

Already, the end of 2011 and the beginning of 2012 is shaping up to be a time of chaos and fear as each side is preparing for an inevitable confrontation over oil, nuclear power, and the right of the West to control events and national policies in a sovereign state.