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Economics

The Return Of Crisis

Chris Martenson - February 8, 2016 - 20:28

Financial markets the world over are increasingly chaotic and either retreating or plunging.  Our view is that there’s a gigantic market crash in our future and it’s possible that this has started now.

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Categories: Economics

The Breakdown Has Begun

Chris Martenson - February 8, 2016 - 20:26
Executive Summary
  • Oil patch defaults will be the trigger that burns down the markets
  • Defaults will ripple widely across many industries and sectors
  • The banks are suddenly turning on their central bank brethren
  • How to protect yourself from the coming era of wealth destruction

If you have not yet read The Return Of Crisis, available free to all readers, please click here to read it first.

Oil Troubles

The financial sector may be suffering through a bad time, but the oil sector is experiencing something far worse. While overall demand for petroleum is flat or down nearly everywhere, every producer is pumping like mad either to achieve a geopolitical agenda (as with Saudi Arabia and Russia) or to simply survive.

This chart of the price of WTIC oil also sports a pretty convincing head and shoulders formation, a common warning of “lower prices dead ahead”:

It looks like the $30 mark is the area to keep a close eye on, as that represents one possible ‘neckline’ to the H&S formation drawn above.  If that fails, look out below. Expect that area to be defended pretty vigorously by those institutions long oil.

I'm anticipating quite a skirmish over the $30 mark. But ultimately, I believe oil prices have further to fall. I think this because the economic news is dismal – no growth, only contraction right now and that’s going to hit demand – and also because the US has too much of the stuff to store. And because the next...

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Categories: Economics

Daily Digest 2/8 - Hyperinflation In Venezuela, Rip-Off By The Federal Reserve

Chris Martenson - February 8, 2016 - 08:01
  • Living Out of a Van Is the New American Dream
  • Venezuela Orders Bank Notes by Planeloads
  • Rip-Off By The Federal Reserve
  • Paul Craig Roberts: There Is No Freedom Without Truth
  • French police 'abuse' Muslims under emergency laws
  • Above The Fold
  • Exclusive: Iran wants euro payment for new and outstanding oil sales - source
  • Will climate change move agriculture indoors? And will that be a good thing?

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Categories: Economics

Edinburgh Tool Library: Creativity, Community, and Cutting Resource Use

Shareable Magazine - February 8, 2016 - 07:37

Article and images cross-posted from Make Resources Count. Written by Paul Hallows

The average power drill is used for just 13 minutes in its lifetime. We clearly don’t all need to own one, and they’re often too pricey for many people to buy them in the first place -- meaning a whole lot of untapped creativity and a huge amount of wasted money. And it’s not just drills which are expensively gathering dust in cupboards.

Categories: Economics

Real Economy Lab Continues Mapping the Next Economy Ecosystem

Shareable Magazine - February 8, 2016 - 07:36

The Real Economy Lab (REL) has taken up the task of mapping the ecosystem of the next economy. Their goal is better collaboration between the stakeholders within this emerging ecosystem. In the first round, some 50 organizations completed a survey with all data flowing into the current beta-map

Categories: Economics

Daily Digest 2/7 - Weak Jobs Report Not Weak Enough For Stocks, Why Are Americans So Angry?

Chris Martenson - February 7, 2016 - 08:29
  • A Key Technical Indicator Just Rang The Bell On The Cyclical Bull Market
  • 22 Signs That The Global Economic Turmoil We Have Seen So Far In 2016 Is Just The Beginning
  • Schiff: Weak Jobs Report Not Weak Enough For Stocks
  • As Flint Fought to Be Heard, Virginia Tech Team Sounded Alarm
  • Why are Americans so angry?
  • Insiders: Bernie scored in debate with Wall Street slams
  • Whatever Happened To Peak Oil?
  • Cover Crops, a Farming Revolution With Deep Roots in the Past

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Categories: Economics

Sandra Postel: Repairing The Water Cycle

Chris Martenson - February 6, 2016 - 17:13

El Niño has been dropping much-needed rain this winter on a parched American West. But it's making little difference to the greater water scarcity issues the US as well as the rest of the world is increasingly facing.

Here to talk about the state of the world situation for fresh water -- arguably the single most important resource to humans on the planet, next to oxygen -- is Sandra Postel, Director of the Global Water Policy Project, author, lecturer, and former National Geographic Fellow. The punch-line to her message: as more and more demands are placed on our finite freshwater supply by human consumption and climate change, intelligent conservation is now an absolute must.

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Categories: Economics

Daily Digest 2/6 - Gold For A Finite World, The Bear Mauls The Banks

Chris Martenson - February 6, 2016 - 06:48
  • ‘Big Short’ Guy Says China’s Banking System Is Near Implosion
  • Kiev estimates loss from trade war with Moscow at $1.1bn a year
  • Study: The Trans-Pacific Partnership Will Cost US a Half Million Jobs, Drag Down GDP
  • Chamber of Commerce Lobbyist Tom Donohue: Clinton Will Support TPP After Election
  • Steve Forbes Speaks Out on the Presidential Race, Fed Recklessness, and Gold
  • Surely Hillary Clinton Knows Why Wall Street Pays Her
  • The Bear Mauls The Banks—Stock Index Down 27% From 2015 High
  • Indonesia's growth in 2015 slows for fifth consecutive year
  • Non OPEC Oil Production To Collapse In 2016
  • INDICATORS SHOW: Collapse Of The Paper Gold & Silver Market May Be Close At Hand 
  • Gold For A Finite World
  • Pentagon unveils budget priority for next year: Countering Russia and China
  • "Fukushima Class Disaster" - L.A. Gas Leak Spewing Lethal Levels Of Breathable Nuclear Material

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Categories: Economics

Off The Cuff: A Serious, Serious Mess

Chris Martenson - February 5, 2016 - 08:39

In this week's Off The Cuff podcast, Chris and Mish Shedlock discuss:

  • Oil And Stock Prices
    • Correlated at 0.9 right now
  • "A Serious, Serious Mess"
    • The service sector quickly weakens
  • Bank Losses
    • Need to be taken, but whom will get stuck with them?
  • Gold's Shine
    • It's relative performance for 2016 has been very good

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Categories: Economics

Daily Digest 2/5 - Good News Friday: HS Students Bring Solar To Kenya, How To Be Reasonable

Chris Martenson - February 5, 2016 - 08:25
  • Oakland High students bring portable solar power to Kenya
  • Brilliant Light Power Post Fourth Public Demonstration Video
  • Wages Rise as U.S. Unemployment Rate Falls Below 5%
  • How To Be Reasonable
  • New Collar Promises to Keep Athletes’ Brains from “Sloshing” During Impact
  • Gold Coins’ Untold Opportunity
  • Fun Job Alert: Apply to be a Farmer-In-Residence On Staten Island
  • Brian Bagnell's Tips for Smart Oil and Gas Investing 

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Categories: Economics

Brooklyn Youth Create Jobs (and Community Roots) Through Local Compost Program

This neighborhood made gardens out of vacant lots to tackle gentrification and high youth unemployment.
Categories: Economics

My 2016 Life Experiment: Can I Thrive Living Exclusively on the Sharing Economy?

Shareable Magazine - February 4, 2016 - 14:29

In September last year, I spent a month seeing if I could survive in the sharing economy in London. It was hard. However, one of the reasons it was so hard was I was traveling. I only had a backpack and laptop with me, so I could not leverage the two profitable areas of the sharing economy -- stuff and space.

Categories: Economics

Daily Digest 2/4 - Ambitious TPP Trade Deal Signed, Major Alerts Issued By Two Legends

Chris Martenson - February 4, 2016 - 08:58
  • Two Legends Just Issued Major Alerts
  • State of The Transition, mid – late January: Oil oversupply, shale bankruptcies, gas leaks, and a whiff of securities fraud
  • Negative Interest Rates Already in Fed’s Official Scenario
  • The Global Economy Could Fall Farther and Faster Than Pundits Expect
  • Another Hillary Falsehood: She Didn't Tell Banks to "Cut It Out" Pre-Crisis; She Blamed Homeowners
  • Investors Heading for Slaughter One More Time-David Stockman
  • Gold to Beat Stocks?
  • A Giga Breakout In A Mid-Sized Gold Miner
  • Ambitious TPP trade deal signed
  • Cheesed-off Italians swap bank bonds for Parmesan
  • Freak Storms and Butterfly Die-Offs: This Is Your Climate on Fossil Fuels
  • Canada's Cauliflower Price Crisis Is Ending. Did Public Pressure Make A Difference?

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Categories: Economics

Sharing Cities: Why Ownership, Governance and The Commons Matter More Than Ever

Shareable Magazine - February 3, 2016 - 21:06

Ballarat St permanent park providing green space for the people of Yarraville (Melbourne).

Categories: Economics

Mass Layoffs To Return With A Vengeance

Chris Martenson - February 3, 2016 - 12:58

Remember the mass layoffs of 2008-2009? The US economy shed millions of jobs quickly and relentlessly, as companies died and the rest fought for survival.

Then the Fed and the US government flooded the banks and the corporate sector with bailouts and handouts. With that crap-ton of liquidity sloshing around, as well as taking on massive amounts of new cheap debt, companies were able to finance their working capital needs, hire workers back, and even buy-back their shares en mass to make themselves look deceptively profitable. The nightmare of 2008 soon became a golden era of recovery.

Well, 2016 is showing us that that era is over. And as stock prices cease to rise, and in fact fall within many industries, layoffs are beginning to make a return as companies jettison costs in attempt to reduce losses.

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Categories: Economics

How to Defeat Monopoly Power in the Sharing Economy

Shareable Magazine - February 3, 2016 - 08:09

The RSA’s recent report explores the emergence of a new kind of monopoly power in the sharing economy, and considers how we might challenge increasing economic concentrations of power through rethinking our approach to governance and regulation.

Categories: Economics

Daily Digest 2/3 - Corporate Distress Deepens, Brazil Industry Drops Most In 12 Years

Chris Martenson - February 3, 2016 - 08:01
  • Corporate Distress Deepens as Emerging Bond Spread Widens
  • Moody's: US corporate defaults to hit six-year high in 2016 as commodity fallout continues
  • Inside the Fed's `D-Day' War Games for Breach of U.S. Debt Limit
  • Emanuel heads to Wall Street after CPS bond deal postponed
  • U.S. Treasury expects to borrow $250 billion in first quarter
  • ECB Bought 62.4 Billion Euros in Bonds in January as QE Reviewed
  • Negative Yields From Paris to Tokyo Draw Investors to U.S. Debt
  • Worst Asian Junk Bond Start Since 2008 Limits Lippo Debt Revamp
  • China Unleashes New Steps to Control Financial Risks, Outflows
  • China Will Probably Tighten Capital Controls, SocGen Says
  • Brazil Industry Drops Most in 12 Years With December Surprise
  • Japan's Central Bank Isn't Out of Options Yet, Abe Aide Says

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Categories: Economics

Your Study Guide to the Cooperative Movement

Shareable Magazine - February 3, 2016 - 07:53

Because cooperatives have the power to change the world, one economy and one community at a time, the folks over at the TESA Collective have gathered up into a study guide all sorts of helpful resources, from board games to user manuals. All of them were developed to help everyone "understand what a cooperative is, how to practice cooperation, and the power of the cooperative movement."

Here's a sampling of what the guide encompasses:

Categories: Economics

The Pipeline Strikes Back: The Audacity of TransCanada's $15B Suit Against the U.S.

The political saga of the Keystone XL pipeline is like a real-life version of The Force Awakens. So why are we giving the Dark Side even more power?
Categories: Economics

Daily Digest 2/2 - The Lesson From Davos, The Impact Of Our Consumption

Chris Martenson - February 2, 2016 - 08:50
  • The Lesson from Davos: No Connection to Reality
  • Ukraine attempts to block French documentary exposing ‘fairytale of good Maidan forces’
  • China police arrest 21 in alleged $7.6B investment fraud
  • China factories continue to lose steam
  • The Spread Of Ignorance
  • John Cleese: Political Correctness Will Lead To An Orwellian Nightmare
  • Banks On The Hook For Bad Energy Loans
  • Tell the truth, ExxonMobil: a low-carbon future is affordable – and necessary
  • Fracking brine leak in North Dakota reaches Missouri River, prompts state Democrats to call for more regulation
  • The Impact Of Our Consumption

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Categories: Economics