This oil chart is more than scary!
Walmart in the U.S. claims that deflation may be coming to certain food items in the next quarter. Demand may have fallen off a cliff.
reply
Enjoy the lower prices while you can, they won't last long.
reply
Nothing would terrify the U.S. govt more than deflation. Interest rates would be back at 0 quicker than you could say Bernanke.
reply
Seems likely...Elsewhere, UK BOE (small beer compared to the Fed, I know!) already flagging rate cuts next Summer as jobs market starts to stop. Europe's ECB only got up to 4.5% and stopped there with recession indicators already flashing red. They're gonna get the slowdown they wanted and then hit reverse!!
reply
I got the impression this week with europ. industry production cratering to -6.9% YoY they will be cutting far earlier.
reply
Jaw dropping! Also saw EU imports down 24%, exports down 9%; seems crazy but presumably values are heavily impacted by oil and gas prices? https://tradingeconomics.com/euro-area/balance-of-trade
reply
That's very true
reply
That's for sure. It would give my family a nice chance to relocate. Probably would be pretty bad for everyone else though
reply
This is the new normal. Think the big short. If you’re not confused your not paying attention
reply
deleted by author
reply
have been watching that chart a bit lately, curious to know if you have any immediate predictions for what kind of scary outcomes low oil prices will result in?
or if this is just a sign that consumer demand is down, what comes next in your view?
reply
Yeah, it doesn't strike me as scary. I'd be more concerned if it were going the other way.
reply
If I put my macro data together it seems that we are heading towards a deflationary bust faster than I thought. The crash with reality for an entirely over-indebted world could be epic! But I better do not give time-lines. They always make You look stupid afterwards. But it's coming
reply
Supply and demand
reply
deleted by author
reply
Remember it was briefly trading negative only a few years ago...
reply
That was the result of the lovely lockdowns to save humanity
reply
deleted by author
reply
Confusing chart- what's the units here on the timeframe of each candle?
reply
This happens all the time, shortly before they need to fire up additional money printers.
Because the money is fake it is constantly inflating or deflating, there is no balance possible.
It's a game of ping-pong and we're about to head the other direction, at some point in the next year they're going to need a new fake pandemic / war / or some other bullshit thing to sweep it under the rug.
Be prepared.
reply