Politics and Economics

There’s a Bad Storm Coming … part 2

(continued from part 1) …

Bob Dylan

Of course, as Bob laments in his song, The Times They Are A-Changing, but not to anything we haven’t seen before, even in our short lifetime.

….  For these accomplished proxy killers this is a perfectly natural, even normal and desirable state of affairs, as long as it doesn’t disturb their reign.

So with that for starters let’s proceed to current sources of conflict and future chaos in the world we live in with material wants and needs like groceries and gas and TV and so on.   (continued from part 1) …

So let’s take a look at other sources of conflict in the secular world, which most imagine as the “real” world, the short term, visible world. The world which tells us whether to buy pork or chicken, steak or hamburger. Or maybe just cat food and crackers if things are getting really bad.

***

1. Last week, the EIA announced in its Weekly Petroleum Status Report a OIL Production Drop- OST080515_IMG1head-turning decrease of 145,000 barrels per day in U.S. onshore oil production:

I think this is a big deal that U.S. production would be rolling over in Q2 of this year. There is no way that onshore U.S. production decreased by 145,000 barrels per day week on week. This was a “catch-up” adjustment by the EIA to correct prior estimation errors. This is already happening in real time and has been for a while.

2. The International Monetary Fund has urged China to eventually unwind measures taken to stem a stock sell-off that wiped out almost $4 trillion in market value, according to a person familiar with the matter. The Washington-based fund told the Chinese government that while interventions in general are appropriate to prevent major disorder, prices should be allowed to settle through market forces, said the person, who is familiar with IMF discussions on the issue and asked not to be identified because the talks are private. China Stock market 1200x-1Chinese officials assured the lender that the measures should be considered temporary, the person said.

3. Beijing’s efforts to engineer a strong stock rally and the recent Shanghai market collapse have had quite limited effects on western markets, but going forward the fallout from Chinese market meddling will likely be less benign. Unlike western corporations, Chinese businesses are much more dependent on bank financing than selling stock to raise capital. And ordinary Chinese workers have more of their savings in banks and less in equities than Americans.

(continued in part 3)

***

 There is a bad storm coming, soon.

Cheers

Joe

CSRFreedom is not free. Free men are not equal. Equal men are not free.

 

 

 

 

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One thought on “There’s a Bad Storm Coming … part 2

  1. Pingback: There’s a Bad Storm Coming … part 3 | Not My First Rodeo

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