Ponzi World (Over 3 Billion NOT Served)

The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.

Tuesday, April 19, 2016

Oil Is Caught In the Poverty Trap

The Poverty trap: More supply and less demand...

Quite apart from the unresolved supply glut, conventional economics would assume that lower prices would stimulate demand. But that's not happening...

U.S. Deflation (TIP:Treasury ratio) with oil:

Emerging Markets are the marginal consumer of oil, AND Emerging Markets derive substantial income from oil. Hence paradoxically, demand is constrained by low prices.

In other words, the price of oil (black line) is down -60% while oil demand (red line) is up a puny 2%, as EM economies get decimated and the economic multiplier works its "magic" in reverse:

https://www.eia.gov/forecasts/steo/report/global_oil.cfm

EM stocks and Energy stocks:

Here's the other chart they don't want us to see...

Chinese FX reserves with Oil:

U.S. Deflation aka. imported poverty: