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December 11, 2014
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Charts of the Week Topics Covered This Week Include: Crude Oil Continues To Fall An Updated Look At Gas Prices More On Falling Crude Oil Prices The Dollar Index U.S. Stocks And Other Countries’ Problems Trouble In Greece Chinese Stocks Does The Payroll Report Have A Measurement Issue? Does The Payroll Report Have A Measurement… Continue reading Charts of the Week
The Wall Street Journal – OPEC Sees Less Demand for Its Oil in 2015 OPEC cut its collective oil output to just above the producer group’s targeted production ceiling last month, but said it expects demand for its oil to be further below the level at which it is currently pumping next year. In its… Continue reading Is Oil Demand Driving Prices Lower?
Comment Let us repeat our comments from yesterday as we have another batch of stories that fit with it. What level of crude oil prices affect production? There are two ways to answer this question: 1) You can read expensive energy consultant reports. They will always give you the same answer, a rolling target that… Continue reading More On The Level Of Crude Prices That Affects Production
<Click on chart for larger image> The Telegraph (UK) – Bank of America sees $50 oil as Opec dies “Our biggest worry is the end of the liquidity cycle. The Fed is done. The reach for yield that we have seen since 2009 is going into reverse”, said Bank of America. The Opec oil cartel… Continue reading How Low Will The Price Of Oil Go?
MarketWatch.com – Opinion: U.S. stock market can withstand other countries’ problems Early Tuesday, U.S. stocks were hit by a one-two punch — a right cross from China and a left hook from Greece. But by the end of the day, they recovered most of their losses. First, China’s Shanghai Composite index, which has been on… Continue reading U.S. Stocks And Other Countries’ Problems
Foreign Affairs – (July/August 2014) Richard Katz: Voodoo Abenomics Japan’s Failed Comeback Plan The United States does so well in information technology today because it boasts a fertile ecosystem for nurturing start-ups. When IBM flagged, Microsoft and Intel were ready to take its place, and when Microsoft started to coast, Google and Apple quickly stepped… Continue reading Japan’s Problems Summarized In One Sentence
<Click on charts for larger image> The Wall Street Journal – Political Uncertainty Rattles Greek Stocks and Bonds Yield on Greek 10-Year Government Bonds Rises; Investors Wary Political uncertainty in Greece continued to rattle the country’s stock and bond markets Wednesday, a day after Athens’ main equity index suffered its sharpest single-day loss since 1987.… Continue reading Trouble In Greece
Reuters – Fed Signals Rate Guidance Likely to Stay for Now Federal Reserve’s vow to keep interest rates near zero for a “considerable time” is likely to remain in place for now, with the US central bank set to take a slow and steady approach to its first rate rise in a decade. The pledge… Continue reading More On The Fed’s Rate Guidance
<Click on chart for larger image> The Financial Times – China: Turning away from the dollar Questions remain over the global economic impact of Beijing’s efforts to reduce its financial reliance on the US Not only is China’s desire to buy US debt diminishing, so is its ability to do so. The banner years of… Continue reading Chinese Holdings Of U.S. Treasuries
Of Two Minds – Charles Hugh Smith: Central Banks Create Deflation, Not Inflation Financial and risk bubbles don’t pop in a vacuum–all the phantom collateral constructed with mal-invested free money for financiers will also implode. If there’s one absolute truism we hear again and again, it’s that central banks are desperately trying to create inflation.… Continue reading How Central Banks Create Deflation