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Thursday, February 4, 2016

is the U.S. economy seriously slowing down

Hi readers

While oil continues to fall in price you have to start to sit back and really see what's going on..
Sure shale oil is starting to cut into the Arab profits and market share but so did ethanol to a point before that died down due to grains become very expensive.
If there is more people on earth and car sales are running hot shouldn't we be using more oil?
Or is it a case as I said previously, the lower oil prices is holding the world economy from collapse.
To put it simply if oil was to get back above $40 or even $50 we would see a recession in my view.
Yes we are in an election year in the US and oil is always down.
But I put this to you all is the biggest economy in the world slowing down to almost stalling.
The Stockmarket is an illusion of the real economy.
It's doesn't give a true reflexion of how the economy is going.
If you look at money supply by central banks and Stockmarket performance you'll see they walk hand in hand.
With out money supply from the central banks, stock markets can't sustain these high prices.

We see in Japan that you now have negative rates..
I spoke to a friend yesterday and got told that as of the 1st of March he will be charged to keep money in the bank.
Central banks have lost the plot in regards to monetary policy.
It's ok to have negative growth and even a recession as long as you allow it to play out properly.
Not try to manage it.
Excess gets cleaned out properly allowing for proper growth to occur.
Throwing money upon money to issue won't solve a thing if anything it will only inflate the problem.
Households budget and get by to afford what's required.
So why do governments just print more money to afford what's required.
The monetary system is in some very serious trouble in the future if this the of practice doesn't stop.
Does that mean buy gold ........ NO
Buy land is the best investment.. Not apartments or houses but rural land.

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