Economic Crisis News 2015-09-5
Before we get into the data, we'd like to take a moment to warn our listeners and make sure as many people as possible are prepared. We have an anemic economy and a likely market crash potentially worse than 2008 looming.
We are suggesting to have at least a month of food stored, some gold & silver for security and financial stability, guns, supplies like toilet paper, diapers, extra medicine, flashlights and batteries; because this could turn from a just bumpy ride to ugly depending on the powers that be and/or the deal of the cards. Needless to say, keep some cash and don't be all in stocks!
On to the markets, FMT Advisory's analyst Nicholas Green is predicting the Dow to Gold Ratio to crash, which will mean one of 2 things: gold will be severely revalued higher or the stock market will coming crashing down. It is very likely we could see both happen. The way things are playing out is looking very similar to the 1970's right before gold made huge gains.
In mainstream propaganda, the blame is similar to alternate news that China has caused the US stock market crashes and poor economy...though for different reasons.
Stock Market Volatile
Compared to last week the Dow Jones is down 541 points. Except for August 25th, it's near an 18 month low. This week, we have seen it go up and down like a roller coaster. The Dow is down about 10% for this year. The S&P 500 is near a 9 month low, well under 2,000 now.
Though US stocks are collapsing, so is the rest of the world, and thus the US Dollar Index actually rose to over 96 again. There's probably 5 years left before a major change or replacement is made for the US Dollar. Remember that a high level official, Secretary of State John Kerry, finally mentioned the weakness in the US Dollar's position as a world reserve currency.
His warning was that if the Iran Deal fell through this could be the end of it. We're still waiting on an expected vote in Congress on the Iran Nuclear Treaty that is expected this month; perhaps with a Veto by Obama if they pass a bill against the deal, and then an attempt at an override by Congressional Republicans.
Oil price has recovered from the slump back to $46 for WTI and $50 Brent. After 6 straight weeks of rig count increases here in the States, last week saw a drop, the biggest since May, causing some of the jump in WTI crude.
Canada saw a gasoline shortage which begs the question; Could America face a fuel shortage too? Realize that if freight trucks stopped, there would be food shortages in most areas within 3 days. Fortunately, Labor Day Weekend gas prices appear to be the lowest in 11 years. In California prices are actually down to $2.50 in Sacramento, $2.95 in Los Angeles, $2.75 in Fresno, and just under 3 dollars in Riverside and Orange County according to Gas Buddy.
Gold fell more to around $1,120 and Silver is still struggling in the mid 14 dollar range. For Silver we'll estimate premiums from the biggest and most free exchange; ebay, where it's hitting between $17.20 and $18.50 per ounce for retail silver rounds. This puts the premiums inbetween 16 to 26%, we expect this to rise if silver stays here or drops further. Most of the sales are from the Scottsdale Mint.
Bitcoin is also struggling to gain any support over the low 230's where it's been since August 18th. The price was about the same 3 months ago though it reached over $300 in between then and now. One year ago it was over twice this price at $480 per bitcoin. Two years ago though it was barely over half this price at $130 before catapulting to over 1 thousand in late 2013.
Be sure to watch our new micro-documentary 'The End of America' we just released a part 1 of an upcoming series on Future Money Trends.
Future Money Trends has also had some great interviews recently with two opposing views. John Williams speaking on coming hyperinflation and Harry Dent warning of severe deflation and further market crashes.
So far more money printing and inflation is the prevailing prediction supported by FMT & CTS viewerships.