As always, your Economic Crisis News update is full of must-listen-to macro information that the mainstream media isn't reporting. Major news has been released, and it appears that the yuan is on the verge of getting the approval to join other top currencies of the world in the IMF SDR basket. IMF Chief Christine Lagarde just gave the thumbs up to put the yuan on par with the U.S. dollar, Japanese yen, British pound, and the euro. The IMF yuan inclusion change is supposed to take effect in October 2016, which will mark the first time in history the number of currencies in the SDR basket has been increased.
In a time where the world is ramping up for holiday spending, we are seeing economic indicators that are extremely bearish for the global economy. News today hit that the Baltic Dry Index, a symbol of the strength of world trade, has just hit an all-time low of 504. Overall, the Baltic Dry Index is down more than 60% over the past year. For those looking for this season to be very merry, you might want to think again. A severe slump in dry bulk shipping is a clear-as-day signal that the world is in serious trouble.
With the government in never-ending budgeting problems, they have yet another one that is in need of immediate attention. After plugging a temporary hole in the Social Security Disability fund, Congress now has another hole to plug for the Highway Trust Fund. A new bill is being proposed to fund the expenditure, which is called the Drive Act. Part of this bill is to sell off 100+ million barrels from the Strategic Petroleum Reserve at a time when oil is at multi-year lows. And another "pleasant" part of the bill, if passed, will allow the government to revoke your passport if they believe you owe more than $50,000 in federal tax, with no judicial review or due process.