"Oil will be dirt cheap, and we're going to re-possess your truck to save even more money"
Trump wanted lower interest rates and now he's getting them compliments of a weaker economy. He also wants lower oil prices, which will also be compliments of a collapsing economy and imploding U.S. oil sector. Last week Trump was managing the Federal Reserve, this week he's the Oil-Manager-in-Chief. Can't someone tell this guy he's a fucking moron? What is John Kelly doing these days, hiding under his desk?
No one knows what will happen at tomorrow's high stakes OPEC meeting, and we don't have long to wait, but here is one opinion:
"OPEC needs a unanimous vote to pass decisions such as curtailing production. Yet, Iran—one of OPEC’s biggest producers but also one of the most sidelined members in recent months—warns that the group is unlikely to reach an agreement on a sizeable cut of around 1.4 million bpd as some are suggesting. Such a failure to act decisively would send oil prices plunging to $40 a barrel"
Bigger picture, factoring in weakening global demand, it turns out the Canadian dollar was right again with the customary lag:
This is what a futures-based margin call looks like:
The other massively over-leveraged reflation trade is now getting monkey hammered:
This is what is known as a career-ending trade:
Put it all together, what do you get?
10x leveraged violent deflation, mandated on Twitter by an insane con man:
Trump’s “leaning on” Saudi Arabia, the most influential OPEC nation, “has had a great effect,”
Trump’s campaign against OPEC cuts comes after he stood by the kingdom and Saudi Crown Prince Mohammed bin Salman despite U.S. politicians calling for sanctions over the October killing of journalist Jamal Khashoggi"
"If only we could execute journalists in this country. No more fake news"
