Just a few weeks ago, priced paid at the pump have gone down significantly enough to notice a change that has not occurred in the entire last 5 years. So those of you that say it is a supply and demand thing that oil is dropping now because people are not heating yet and supply is down, you are most likely a troll as we all know by now the special interest trolls all over the net with the cat face avatars using words like “dumbass” all over the net.
The reality of oil prices dropping suggests deflation and while deflation sounds good, it is hardly good as it will create a domino effect and probably lead to one of the worst depression periods to ever hit the United States and highly likely as we are all intertwined right now will hit the rest of the world. Our highly inflated stock market will come crashing down, companies will lay off workers to meet deflationary demands. Gas will go down below $2.00 a gallon if it gets as low as 50 or 60 a barrel and there may very well be millions of unprepared people without work.
Some say this is a strategic sanction move against Iran and Russia but if this really creates havoc in Iran and Russia as Russia needs oil above $120 per barrel, this may be the catapult into war. Which could also be the move at this time, it’s hard to say with so many different outcomes with oil prices suddenly taking a nose dive. It may feel good for the short term but long term it will cause major problems.
The downturn in inflation is in part linked to consumer demand in the euro zone taking a turn for the worse again over the summer. Market’s Eurozone Retail PMI, which provides an advance guide to retail sales in the region, signaled the steepest drop in sales for almost a year-and-a-half in September. A slump in the amount of goods retailers bought for resale paints a particularly downbeat picture for consumer spending. The deterioration sits in stark contrast to the revival of consumer spending that had been signaled earlier in the year by both survey and official data. Rising retail sales had helped drive a 0.3% increase in consumer spending in the second quarter, the largest rise for three-and-a-half years.
Deflation Worries in Asia
One danger from reduced oil prices is that the world’s second-largest economy faces excessively low inflation, akin to what’s happened in developed nations including in the euro region. In October, China’s producer-price index dropped 2.2 percent from a year earlier while consumer price gains held at 1.6 percent, the least since 2010.
Slower inflation increases the real burden of debt, at a time when China is contending with the legacy of a record credit boom. Bad loans rose to the highest level since 2008 last quarter, the country’s banking regulatory commission said. A real-estate slowdown has contributed to the jump.
“Deflationary pressures are already mounting in China’s industrial sector,” said Donna Kwok, senior China economist at UBS Group AG. “They will likely intensify as the ongoing property downturn unfolds, so we expect real interest rates to rise even higher going forwards, adding further to corporates’ debt servicing burden.”
A cashless society is the goal
Whenever massive issues hit the leadership figures out a way on how to use it against the citizenry and to remove more power from the peasants. Whether it is the agenda to nationalize the police as we continue to have rioting in cities against the police and implementing a training period for Police but not for criminals. If we collapse they can do away with cash which will benefit them in many ways, first is they would have access to all your money. No more cash saving in the home piggy bank. They will be able to collect 100% of the taxes owed to them automatically.
Makes you wonder if this is already in the works covertly as the new chips have been mandated in credit cards in the name of credit card breaches which should be questioned in itself as I really think that these breaches were for the sole purpose of chip implementation. Think about, now all American express cards have automatic trackers in the card and know exactly where you are. Cell phones weren’t enough as many people utilize the pre paid cards which gives them a feeling of security still. Now government has its hands in everything so what’s left after chips. Money and how money is moved around which in order to do that must come collapse of some sort.