Economic Crisis News 2015-06-10

As we predicted multiple times, OPEC did not cut production at their June 5th meeting. They will leave output unchanged at 30 million barrels per day for the next six months, ensuring a continued glut of oil on world markets. Oil responded with a $4 price fall, but as of yet hasn’t reached our potential drop to between 50 and 55 dollar oil. Oil then recovered 2 dollars on tuesday.

Last week Greece rejected a proposal from the EU and IMF, now time is running out and Greece may be leaving the Euro. The June 5th IMF payment was delayed. An additional payment is due June 12th as well as a huge chunk of treasury debt and this could be the final straw.

In domestic news, after some google searching we discovered the plan for a budget reconciliation between the House and Senate to report proposals by July 24, 2015. The 2016 Fiscal year begins October 1st. Without a budget the US Government will be in default even if this is not specifically admitted in Western media. Remember Social Security Disability Insurance is underfunded by next year.

In Bitcoin news, New York has finally released final BitLicense regulations for bitcoin businesses. The price is literally unaffected; perhaps waiting a resolution of a grand debate on whether to raise the bitcoin block size limit, a step that will forever affect how bitcoin is used in the future.