Economic Crisis News 2015-05-23
First off, what the hell is going on with the stock market? The Dow Jones Industrial hardly moved Tuesday, Wednesday and Thursday. In contrast the S&P 500 reached a record close Thursday, which was its 10th closing high for the year. Friday the Dow dropped 54 points and the S&P lost point 2 percent.
The Fed Minutes were released with no surprise that Interest rates will not be raised in June; in their inability to raise rates they’re admitting that the United States remains in a crisis 7 years after the 2008 crash. However Yellen is stating they hope to raise rates by the end of this year.
Oil is up near 61 dollars WTI and the dollar index at 95.38. Watch for the OPEC meeting June 5th, again we expect no production cuts. This will inevitably mean more US oil companies will go bankrupt this year.
War on the Plebians
A Plebian was the general body of Roman citizens not in the ruling class. Today, Americans are being fleeced by government. Oregon is beginning testing tax per mile driving which is another tax on their freedom which will likely become the norm. The government is harming its citizens by stealing the money that is earned through unfair taxation. This especially hurts the lower and middle class which whips people into a perpetual cycle of government handouts..
Over 100 million, or roughly a third of Americans get some kind of federal food aid. What will they do when government needs to cut its bills as the rest of the world dumps the dollar? Even if the world continued to tolerate the globalist cabal siphoning off the world’s wealth, the United States will still collapse under debt. Federal debt is expected to reach $40 trillion in 2035, just 20 years from now. The economy is not growing and many are now speculating that official GDP numbers are massively inflating the US economy just as they manipulate the unemployment numbers. The number of Americans receiving Social Security benefits will increase 53% by 2035. Unfunded liabilities can collapse our already withered economy if something else doesn’t crash it first.
We’re still on the road to default if a new budget is not passed soon. If Congress doesn’t pass all appropriation measures by the start of fiscal year, October 1, it still must enact a continuing resolution.
Reversing last month’s swing, China is now once again the top official holder of US Treasuries; having raised their holdings this last March by 37.3 billion dollars, the biggest increase in years. Mysteriously Belgium’s holdings dropped by 92.5 billion dollars. The decline in foreign central bank holdings was the most in 2 years at 23.69 billion.
The IMF and World Bank are meeting October 9 to 11 this year when it could be decided to add China’s yuan to the SDR basket of currencies that would go into effect January 1st, 2016. If it doesn’t happen we’ll be waiting another 5 years for the next SDR currency revision.
Despite the revolution that bitcoin is now trading on the stock market, the price remains stagnant around 235 dollars. There are currently over 14 million units released out of the near 21 million bitcoin units expected by the year 2032.
Final New York regulations are supposed to be released in the next few days; though bitcoiners seem unsure what this will do to the price. Interestingly the architect of the regulations, Benjamin lawsky of the NYDFS is stepping down next month after they’re released.
Perhaps a bigger catalyst for a rally will be the COIN bitcoin ETF going live, allowing investors the easiest way to buy and sell bitcoin and redeem it through shares when they would like to. The GBTC stock has declined to 32 dollars, slightly overpriced compared to official bitcoin price since it represents one tenth of a unit. Because it’s difficult for the average person to convert their fiat into a bitcoin exchange, the price is artificially depressed. After COIN launches, Wall Street may fully embrace it the now being that Bitcoin is a 6 year old currency proving itself to be viable.