1.Central Banks are panicking. Latest figures show US oil reserves at record levels. On the news the price of oil crashed. The following day a rumour was making the rounds that Russia and OPEC were getting together to limit oil supply. The Russians denied the rumour but the oil price continued to rise. So who was the mysterious buyer? Some say Central Banks understand that a continued fall in the price will lead to pandemonium in the market place....and they are buying. COMMENT: If they are the the buyers, its definitely not for profit. Sharp downward moves in market places are usually detrimental to economies. Therefore a slower retreat is required and and Central Banks often co-ordinate such moves.
2.If one is searching for further evidence of stress in world markets, look no further than the bank shares in most countries, especially those exposed to energy debt. Down they go! COMMENT: The creaking door is opening!
3.In December, the US Federal Reserve raised interest rates in The US. This continued to prop up the USD. Was it a mistake? Suspicious minds definitely wondered. Now out of the blue we see two days of strong falls in the USD. And this after Japan joined Germany, Switzerland and others announcing negative interest rates on the Japanese Yen. Logically, if one has to pay interest to hold a currency (instead of receiving interest), that currency should fall in value. Just the opposite is happening. COMMENT: The US Fed might be contemplating reversing that interest rate rise.
4. How does it happen that the US raises rates while the rest of the world is stagnant or lowering theirs? Some Americans have a mindset that America is the world. Only half of Americans have travelled outside the US. Only about 30% hold passports. Perhaps the Fed is of the same mindset and therein lies a potential answer to this particular conundrum (apologies to my American friends, especially since I love the US of A).
5.The price of gold has jumped in the last days. Gold usually rises when there is systemic instability (like banking systems in trouble) or perhaps when countries are in danger of becoming failed states (oil producers that rely on oil income as their major source of income). Gold definitely rises when cheap money is created or about to be created. The explanation could be more simple. Most currencies are paying negative interest rates. The zero interest rate on gold might be attractive. COMMENT: When markets move in what appears to be an irrational manner, somebody usually knows something us normal beings don't. How does all this add up? Any ideas? Its fun trying to connect the dots.
6.I've been watching the US elections in Iowa and now New Hampshire. For heavens sake...who votes for Donald Trump or Bernie Sanders? (Some of the others don't cover themselves in glory either.) Most of the stuff they sprout are unfeasible empty promises. It doesn't seem to faze anyone. A lot of the younger folk appear to be irrationally hopeful or uncontrollably angry. As for the adults in the room... COMMENT: When paper money is printed to "solve" a problem, historically the populace loses faith in the paper and especially in the perpetrators. Loss of faith under any circumstance can lead to dire consequences.
7. For some of those who think I am suffering from concussion...pls watch.
https://youtu.be/uOQ39HIqP8s
I know God will not give me anything I can't handle. I just wish that He didn't trust me so much - Mother Teresa
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