The Europeans are only REACTING to the GE HON merger in a polluted economic environment created by the 2nd Greenspan induced recession, do not forget high OIL prices and the California Energy crisis are the result of failed economic planning starting at the Federal Reserve, the US has outlived CENTRALLY PLANNED CENTRAL CONROL OF THE ECONOMY. Europe gets 90% of its OIL from the Middle East, and I can safely predict that OPEC will not BUDGE on increasing OIL production to lower the price UNTIL THE FOMC LOWERS INTEREST RATES, that was the real reason OPEC put this decision off for a month, so that it would be AFTER the FOMC Federal Reserve Governors meet to lower interest rates. The untold story is that unless OPEN CARRY is achieved, and then some, in which the FOMC Fed rates must drop BELOW 2 year Treasury Yield rates, it is impossible to RE-CREATE the needed LIQUIDITY of the $10 Trillion Dollars lost by Greenspan's failed monetary policy, if OPEN CARRY is achieved, banks can borrow from the Federal Reserve Banks at lower interest rates, buy Treasury notes to cover their required reserves, and loan out that money at a profit, thereby increasing the money supply with the insurance that they can pay the money back and make a profit, this will create a multiplier effect of about 8X the money borrowed from the central banks, and start adding the lost LIQUIDITY back into the economy, saving the economy and also the markets. Without it, expect a world depression, more trade wars, and eventually a very nasty world war. Even Greenspan and other Fed Reserve Governors are now admitting they were unable to see this coming, that the economy is not responding the way they thought it would, and that means more interest rate cuts are needed and will occur next week. If we had a Volcker, it would be 100 basis points, it needs to be at least 50 basis points with 25 more inter-meeting and then another cut at the next much later FOMC meeting yet again.
I am,
Truly your$,
-Crystal Ball |
