As I’ve watched the situation in China recently I began gathering notes on the usual suspects. It appears the United States is in the midst of two things: first, it is seeking to curb or contain China through as series of legislative acts that will give the President extraordinary powers of secrecy and legislative and legal abilities over corporate trade agreements; and, two, through this policy it will curb growth in the US workers ability to compete and even to buy. That we’ve been living in a soft fascism for a while now, that our government is owned lock, stock, and barrel by Wall Street and the Financial Capitalism that sponsors it. That for years we’ve been redistributing the wealth of our country to the corporations and global banking systems is already well known. Now their greed is seeking to bring China to its knees. Below is aspects of how they are doing this, as well as bringing themselves down with it.
Stocks were clobbered Friday on Wall Street — a brutal finish to the worst week in the market in four years. The Dow Jones industrial average closed down 530 points, the ninth-biggest point decline in its history. A 1000 for the week. Investors worried about signs of a slowdown in the Chinese economy that could hammer companies and countries around the world. The stock of Apple, which depends heavily on demand from China, fell more than 6 percent. (NBC News)
Today crude oil is at $40.61 and many traders then expect to see prices settle somewhere in the $30s before a bottom is reached.
For a while now I’ve studied Oil and how the Saudi’s might be pushing the world into a monetary collapse by flatlining the oil markets it controls. Jeff Gundlach recently suggested that if Oil prices dropped to $40 dollars a barrel there would be dire consequences. “I hope it does not go to $40,” Gundlach said in a presentation, “because then something is very, very wrong with the world, not just the economy. The geopolitical consequences could be — to put it bluntly — terrifying.” (Business Insider) NY Post reported back in 2014 that the price plunge in oil has been driven by Saudi Arabia, OPEC’s dominant power. While it’s true that part of Riyadh’s actions respond to the energy renaissance in North America, the greater motivation is breaking Iran’s will. The Saudis believe they can no longer rely on the US to contain Tehran’s imminent nuclear threat, so they’re out to do what our lukewarm sanctions couldn’t. There’s no love lost between the Saudis and the Russians, either. The Saudis want the Assad regime in Syria to go. Moscow props it up.
Today on CNBC the stock indexes show that Oil is expected to do just that to fall at or below $40 dollars a barrel. (CNBC) “U.S. crude threatened to break below $40 per barrel for the first time since early 2009 this week, raising fresh fears about the cost of producing crude in America’s oil patch—or perhaps “patches” is the better term.” That’s exactly where prices are heading, according to Citibank, which recently revised downward its outlook for oil to an average of $39 per barrel for the fourth quarter of 2015 and first quarter of 2016. And all this as the Federal Reserve makes noise about raising interest rates, having some in the market asking whether these external factors — what the Fed would call “exogenous” factors — will stop the Fed from changing its interest-rate policy for the first time in over almost seven years.