ECONOMIC NOTES: YOUR WEEKEND SUMMARY
Following Trump winning – consumer confidence rose to the highest levels just before the busy year-end Holiday critical buying – to the highest level since last June surprising experts. The USA economy is growing well right now.
The Fed is expected to raise interest rates. As predicted. Janet Yellin will not be welcome as policy maker by Trump so the Fed will be in disarray more than before the election which was substantial. The Fed is dysfunctional having lost market confidence globally.
China had worse than expected numbers as Holiday season peak exports did not materialize and the run in China is ongoing. The SUPER BUBBLE of Debt and Real Estate is reaching crises stages.
Home repossessions in October reached the highest levels in a long while ticking way up last month a surprise and showing housing is weaker than experts believe.
Overall world trade is rising and good. Struggling along. Everyone trying to see what the new President means for THEM. That will take some time.
We expect volatility with swings largely due to offshore events versus USA events.
Saudi reported the glut of oil growth that is on going. We do not see any end near term to the supply rising as demand falls. The world IS drowning in Oil. You can’t return to speculator influenced premium profit taking in a commodity where supply exceeds demand and oil are common, not rare.
The market continues to rebalance as the hidden tax on the people’s of the world from wild market speculation and speculators – is removing its influence from price and the market of supply and demand. Economics 101. Painful for those on the wrong side of the bet.
Venezuela is about to default as we stated on its bonds. The billions owned in the coming month and tens of billions forward collectively can not be paid. These defaults are going to hit the DEBT BUBBLE hard. Monitor this as their agreements with bond holders on swap’s were just rejected pre-weekend. Again.
Billions more in OIL PATCH debt defaults and bankruptcies held off till year end are coming at year end and early in the new year.
100 billion of commercial real estate refinancing in 2017 is going to RE-TERM and create record bank repossessions of defaulting commercial debt. This is another item to watch carefully as it is an enormous economic PIG in the PYTHON in 2017 we are tracking for you.
Taken as a whole we have a long way to go to renew stability in the world system.
It’d just have a great weekend. We are sorting this all out for business owners from solo to matures on Dec 13th at CEO SPACE we hope business owners reading will join this critical skills training for 2017.
Berny Dohrmann – Chairman CEO SPACE— November 12, 2016