At a time where millions of Americans are already having trouble making ends meet, what could the current middle east crisis mean for the economic crisis and also Obama's political future.
Some analysts out there are seeing that the price of crude going up to as much as $200 per barrel. But that will depend on a break on a larger oil producer such as Saudi Arabia, maybe something happening with Iran or closure with the Suez canal, what what we are looking at is the repeat of the 1979 when the Iranian crisis broke out. Because there is another element that is important to all of this. That is inflation. What we are looking at as we look back to the 70's is that it was high inflation and Iranian oil spike that sent the economy into a tail spin. It is a combination of many things, but more so the effect of the devaluing U.S. dollar.
Here is where it really gets tricky. The only reason this US ponzi scheme continues to go on, is because the federal reserve has interest rates near zero. What is going to happen as inflation skyrockets and interest rates have to go up to hold down oil prices and other things like rising commodities. Because these commodities are based in dollars. They have to raise interest rates. But if the interest rates go up, the economy goes down.
This all could be detrimental to the US economic recovery. But that is because there was not really a recovery to begin with. The lies of the government continue. Obama seems to be boasting about the US economy. But what do they have to boast about. Look at the unemployment numbers. The government said they would be under 7% by now. According to John Williams from shadow stats, the real rate of unemployment stands at just over 10%.
So as you can see, there is not recovery. It is just a cover up. It is only being holsted up by the low interest rates you see. Again, when inflation skyrockets, the government will have to raise rates and that will crash the economy. It is quite difficult to tell when this will occur. But in fact it is already underway right now. Its under way, when you look at china, India and many other countries who are raising their interest rates because of the fears of inflation. In the US they are cooking the numbers.
When the US government look at the numbers and say - when gasoline goes up by X% the GDP falls by X%. That is not the way it works. When people go to the gas station and fill up their tank, and see it registering $70 dollars on the pump, do you think they are going to go out and splurge.
http://newstyleupdate.blogspot.com/
Some analysts out there are seeing that the price of crude going up to as much as $200 per barrel. But that will depend on a break on a larger oil producer such as Saudi Arabia, maybe something happening with Iran or closure with the Suez canal, what what we are looking at is the repeat of the 1979 when the Iranian crisis broke out. Because there is another element that is important to all of this. That is inflation. What we are looking at as we look back to the 70's is that it was high inflation and Iranian oil spike that sent the economy into a tail spin. It is a combination of many things, but more so the effect of the devaluing U.S. dollar.
Here is where it really gets tricky. The only reason this US ponzi scheme continues to go on, is because the federal reserve has interest rates near zero. What is going to happen as inflation skyrockets and interest rates have to go up to hold down oil prices and other things like rising commodities. Because these commodities are based in dollars. They have to raise interest rates. But if the interest rates go up, the economy goes down.
This all could be detrimental to the US economic recovery. But that is because there was not really a recovery to begin with. The lies of the government continue. Obama seems to be boasting about the US economy. But what do they have to boast about. Look at the unemployment numbers. The government said they would be under 7% by now. According to John Williams from shadow stats, the real rate of unemployment stands at just over 10%.
So as you can see, there is not recovery. It is just a cover up. It is only being holsted up by the low interest rates you see. Again, when inflation skyrockets, the government will have to raise rates and that will crash the economy. It is quite difficult to tell when this will occur. But in fact it is already underway right now. Its under way, when you look at china, India and many other countries who are raising their interest rates because of the fears of inflation. In the US they are cooking the numbers.
When the US government look at the numbers and say - when gasoline goes up by X% the GDP falls by X%. That is not the way it works. When people go to the gas station and fill up their tank, and see it registering $70 dollars on the pump, do you think they are going to go out and splurge.
http://newstyleupdate.blogspot.com/
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