30,000 DOW – HOW MUCH CORRECTION 1st ?
The global expansion is hostage to debt. The debt of nations at record levels. The debt of corporations and institutions at record levels. The debt of individuals at record levels for mortgages – credit cards – student debt – consumer debt – all debt and growing at accelerated rates.
The repayment of debt is hostage to economic growth, wage growth and employment levels.
Oil – the energy cost of everything – should be 50 dollars. Oil has risen by 100% in a short time – from 29.00 dollars at the low to presently almost 80 dollars. Why?
Growth demand is slowing and will drop off a cliff. Our blogs reported to you why.
Oil supply is soaring with new finds and lower cost supplies. Oil storage is filling again to over flow and the glut is here and is not abating. Iran is going to elevate its production in response to SAUDI’s world to isolate IRAN economically, and raise oil. Iran hurts Saudi by lowering the price of Oil.
Iran today was given enormous revenues by Trump as oil spiked this week. Why? Supply demand?
Speculators. Enormous sums in the NEW CASINO CAPITALISM asset prices like oil are controlled and manipulated by speculation side bets – not buying and selling oil – but 100 to 1 – in leveraged investing – buying side bets on which way up or down oil may go. IF the trillions slide to greater bets on oil price rising it tends to rise if those bets slide to short sale or prices falling oil tends to slide. All super money pools bet on both sides to hedge their loss potential I the casino roulette wheel of second by second AI software betting – supply and demand are the only real economics. Eventually the crashing demand and the soaring oil supplies will defeat the speculators.
The Speculators and oil companies benefiting from price gauging the 7 billion on the earth for the cost of:
- Movement of everything
- Packaging of everything
- Chemicals fertilizers and pesticides for food
- Water and its pumping and movement
- Air conditioning heat and all electricity
The cost of everything is hugely OVER PRICED so that wealthy fantastically wealthy cartels and super money pools can realize even more fantastic wealth – by legal theft.
Until the CASINO CAPITALISM is G 100 Regulated with new digital law frame works – the global market is at risk for failure due to debt and leverage.
The cost of oil – being artificially raised versus at 50 dollars a barrel runs economic wealth from nations and economic growth is at risk. If the oil price creates artificial declines in economies of the world – recession – nations will be forced to default on debts which risks debt CASCADE a risk to the entire system at peak debt.
Oil price is a shock absorber for the growth of economies globally and nations. China is paying a trillion dollars too much for energy. Why? Greed. Is why. Manipulation as crimes against humanity is why.
Oil companies should form a normalization of price cartel to manage oil in economically responsible outcomes for the entire world and its people as a responsibility.
Competitive capitalism – and communism – are flawed – as they operate to maximum profit and gain at any cost benefiting an elite class. This is now obsolete economics.
Cooperative Capitalism maximizes benefit outcomes to the customers served while making a profit.
Economics that impoverish the majority of humanity to protect wealth for elite few against the many are unconscious and dying. The new COOPERATIVE CAPITALISM will replace the old model because AI see’s the alternative as insane. Which is is.
Why risk the entire world system into wars to elevate oil prices for a few elites?
I have predicted the IRAN EFFECT which is political not economic will wear off. Iran and the USA will make a new deal over time lines that will surprise you all. I believe the deal machinery is already done.
Oil will CRASH coming forward in 2018 and the markets will because of that stimulus to world economic growth soar to 30,000 DOW. I suggested AI software controlled markets profiting on volatility where billions are made on vocality bets as a new asset class – which is not even a real asset. The side bets in Casino Capitalism will keep markets weaving around curves like a drunken sailor.
Portfolio’s as we have reported are systemically AI software rebalancing against a bond market soaring in guaranteed no risk returns or low risk higher yields. The rebalancing will achieve new equilibrium and the equity market gains will elevate over time.
Invest however you invest long terms. Don’t enter markets as a casino bet in the short term. You can not time this new casino capitalism market space. AI and software will undermine strategic moves against the AI wars as AI is evolving into new forms of market trading ranges using fantastic leverage never known before.
The world is inside a new bubble in all asset classes created by central bank errors in policy over a decade of free money. The result is imbalances. These global imbalances with current debt load stress an work their way through the system with enough time.
Economic shocks such as OIL the cost of everything being bid artificially high – stressing debt loads and economic growth cap growth and risk a recession IF that artificial manipulation keeps prices at peak levels.
The elite supply nations reap untold wealth from 7 billion victims. The price of oil is flying against economics and market supply demand realities. This imbalance can never sustain itself. An OIL CRASH is economic 101. The same AI software that bid the price up on news humans would moderate – Iran – will crash oil with equal ruthless software logic when the TURN occurs which is coming next.
The crash of oil should assure a signifiant global economic growth into 2020 – as a recession also crashes demand for oil – not in supplier best interest over time lines. Saudi is 100 billion in red ink as just one nation Russia is worse. The higher price of oil for this period helps to stabilize their recovery including IRAN.
However if oil doesn’t normalize the world crashes.
So economics 101 – the oil market rebalances or the world crashes.
Follow the bouncing ball folks where she lands in new AI controlled manipulated casino leveraged markets without any regulatory controls – is the new WILD Wild West where man has never gone before.
My bet – oil crashes the market goes to 30,000 DOW and the recovery goes on and on. No assurance though and the ultimate risk is imbalances globally and DEBT STRESS.
Debt is the SUPER BUBBLE of our time and age and a risk to the world order at ever single level. Time is needed to grow past the Mount Everest of unsustainable debt loads.
Berny Dohrmann – Assessing WHAT is really going on out there