The market wants deflation, but the Government Workforce requires Inflated Wages: U.S. crude price collapses, turns negative for first time ever – April 20, 2020,
I own gold, I own silver, I own mining stocks, and I own oil stocks I own a lot of commodities and I personally don’t measure my wealth in terms of currency, nor do I measure my wealth in Gold. I measure my wealth based on Oil prices, like it or not, oil is energy, I’m in my home, oil is all over my house, plastic here, polyester there I have more oil than Gold and silver in my house, the tools needed to maintain my standard of living come from oil.
I’m actually pro-clean energy, but what a lot of people don’t understand is what alternative energies do to the burning of oil. Oil isn’t going anywhere, however, there’s only so much money citizens can pay to their governments. When the government prints money it’s a silent tax on the people, it doesn’t matter that the money is being saved, it doesn’t matter that the money is being spent or lent, a fool and their money is one big party.
The responsible with money regardless of what that money is will be responsible with that money, but fools with money are going to be fools with their money. What’s happening in the global economy right now is that a lot of fools have a lot of money!
Welfare for the rich has the exact same result as welfare for the poor when you create a culture of Government dependence, the bastard baby that comes from that womb is modern monetary theory. Global prices are distorted EVERYWHERE all over the globe and what’s happening is that as the Central banks of the world race to the bottom so are the Oil producers, who are pretty much using USD dollars to soak up all their oil.
Debt Servicing Problems are everywhere
Gambling that the Federal Reserve is going to get it right is no longer a gamble, they’re the only game in town and you’d have to be an idiot not to see it. The problem with this, however, is the integrity of the system is at risk, Most people do not comprehend deflation, I don’t blame most people for not being able to comprehend deflation because lower prices and higher interest rates to most people sounds like a relic from ancient times.
But it’s here, it here now, and a lot of companies heavily dependent on the government to survive are beyond overleveraged, but you see, they’re still reliable customers to the Oil cartels, it’s just that well, the size of the government has to shrink to make the economy work again. I personally do not know what they look like.
My personal advice to the President of the United States would be to renegotiate America’s debts during his second term, have an honest conversation to Americans and to Politicians about balancing their budgets, deal with the backlash and ride off into the sunset.
For the record renegotiating America’s debts is not as easy as I’m making it sound, it’s Austerity measures it’s challenging beliefs people hold true, it’s being targeted not only by the Democrats but by the Republicans, it’s being the scapegoat for everyone who knows nothing about Austrian economics.
U.S. crude price collapses, turns negative for first time ever | MSN
America can’t pay its bills, but bankruptcy protection for America now is only bad if some other country can offer the world a better alternative? Does anyone know of a country that was designed to please the consumer? Most European countries are based on regressive taxation, regressive taxes punish consumers for abundance. Now, the problem with a regressive taxation system is the barrier to entry, it gets very high and is problematic during an economic downturn.
For me, it’s a no brainer what’s going on, but hey, I’m a mere merchant in pursuit of profits, if people the people want hyperinflation or a return to a Gold Standard, whatever, as long as I can purchase property, my business systems have held strong so far. The price of oil turns negative for the first time? or have we entered into a deflationary cycle that people don’t want or can’t comprehend?
There are debt servicing problems everywhere, it’s not to say that you’re not being financially responsible, but you might be inadvertently be affected by someone or some entity who hasn’t been financially responsible!
Those interest rates gotta go up one way or the other, sometimes interest rates go up via hyper-inflation, who knows, who cares, prepare yourselves accordingly!
Historic day for oil markets as WTI crude closes below zero for first time | financialpost.com
Interesting times ahead!