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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (189069)6/21/2022 6:54:06 PM
From: TobagoJack  Respond to of 217588
 
(9) Watch & brief re Xinjiang by Vanessa Beeley




To: TobagoJack who wrote (189069)6/21/2022 6:57:17 PM
From: TobagoJack  Read Replies (2) | Respond to of 217588
 
(10) Am concerned about the trajectory of oil

Up is bad for gold miners and economy
Down is bad for XOM

oil-price-reversions-inevitable-outcome-recessions

Oil Price Reversions – The Inevitable Outcome Of Recessions

Authored by Lance Roberts via RealInvestmentAdvice.com,

An oil price and energy stock price reversion may be starting. The reason is that oil price reversions are the inevitable outcome of economic recessions. Of course, such is due to the previous price spikes that create demand destruction in the economy.

The chart shows the price of oil since 1946.

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Higher oil prices benefit oil companies by making the extraction process more profitable. However, there is also a negative impact on the economy.

“High oil prices add to the costs of doing business which pass, ultimately, on to customers and businesses. Whether it is higher cab fares, more expensive airline tickets, the cost of apples shipped from California, or new furniture shipped from China, high oil prices can result in higher prices for seemingly unrelated products and services.” Investopedia

Of course, consumers who fill up their gas tanks each week immediately notice high oil prices. While core inflation reports strip out food and energy, those items drive short-term consumption patterns. Given that consumption comprises roughly 70% of the GDP calculation, the impact of higher oil prices is almost immediate.

As shown below, spikes in oil prices have a high correlation with economic recessions, financial events, and oil price reversions.

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The Link To OilOil prices are crucial to the overall economic equation. As prices increases, it translates into higher inflationary costs to consumers. Unsurprisingly, there is a high correlation between the rise and fall of energy prices and the consumer price index.

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Oil prices impact virtually every aspect of our lives, from our food to the products and services we buy. Therefore, the demand side of the equation is a tell-tale sign of economic strength or weakness. As shown, oil prices track our combined rates, inflation, and GDP index.

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Given that the oil industry is very manufacturing and production intensive, rising oil prices increase manufacturing, CapEx, and economic growth. It also works in reverse.

“It should not be surprising that sharp spikes in oil prices have been coincident with downturns in economic activity, a drop in inflation, and a subsequent decline in interest rates.

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The most recent surge in oil prices resulted from the massive flood of fiscal policy and a supply shortage. During the last few years, an aggressive political and Wall Street “green energy” campaign restricted drilling and refinery permitting. Those policies reduced capital formation for drilling projects and removed oil exploration incentives.

While the pandemic-driven shutdown of the economy created a supply shortage, the flood of liquidity inevitably created a demand surge. That “pull-forward” of consumption led to surging inflationary pressures and rising oil prices. We show the high correlation between oil prices and breakeven inflation rates.

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The short version is that oil prices reflect supply and demand. With liquidity reversing, economic demand is weakening as the cost of living outpaces real wages. As shown, the correlation between oil spikes and declines in economic growth (3-year average growth rate) should not be surprising.

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Warning Signs Of The Next Oil Price ReversionWhile many analysts are talking about $200/bbl oil, it is just as possible that oil prices could fall to $60. After all, it wasn’t so long ago that oil prices went negative for a short period.

With the U.S. economy on the verge of a recession, the risk of a deflationary backdrop is rising.

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Furthermore, retail sales are also showing problems with consumption. Retail sales get measured in “dollars” rather than “volume.” So, the most recent decline in retail sales was a drop in volume purchased as prices rose.

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Naturally, slower economic growth and deflationary pressures will contribute to an oil price reversion as consumers opt to drive less. Lastly, Federal Reserve rate hikes, and balance sheet reductions, extract liquidity from speculative trading. Such is why commodities, particularly oil, tend to crash regularly.

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While the recent rally in energy stocks has been quite strong, the Fed is about to aggressively tighten monetary policy with the sole goal of combating inflation. In other words, to bring down inflation, they will slow economic growth, which reduces demand for commodity-based products.

Unfortunately, if history repeats, it won’t be just oil prices and energy stocks that get brought down in the process.



To: TobagoJack who wrote (189069)6/22/2022 10:18:01 AM
From: Pogeu Mahone  Read Replies (1) | Respond to of 217588
 
12 Major Corporations Benefiting from the Prison Industrial Complex


By Rahiem Shabazz elementary genocide



Prison labor in the United States is referred to as insourcing. Under the Work Opportunity Tax Credit (WOTC), employers receive a tax credit of $2,400 for every work-release inmate they employ as a reward for hiring “risky target groups.”

The workers are not only cheap labor, but they are considered easier to control. They also tend to be African-American males. Companies are free to avoid providing benefits like health insurance or sick days. They also don’t need to worry about unions, demands for vacation time, raises or family issues.

According to the Left Business Observer, “the federal prison industry produces 100 percent of all military helmets, war supplies and other equipment. The workers supply 98 percent of the entire market for equipment assembly services; 93 percent of paints and paintbrushes; 92 percent of stove assembly; 46 percent of body armor; 36 percent of home appliances; 30 percent of headphones/microphones/speakers; and 21 percent of office furniture. Airplane parts, medical supplies and much more: prisoners are even raising seeing-eye dogs for blind people.”

With all of that productivity, the inmates make about 90 cents to $4 a day.

Here are some of the biggest corporations to use such practices, but there are hundreds more:



McDonald’s
McDonald’s uses inmates to produce frozen foods. Inmates process beef for patties. They may also process bread, milk and chicken products.






Wendy’s
Wendy’s has also been identified as relying on prison labor to reduce it’s cost of operations. Inmates also process beef for patties.



Wal-Mart
The company uses inmates for manufacturing purposes. The company “hires” inmates to clean products of UPC bar codes so that products can be resold.



Starbucks
The company uses inmates to cut costs as well. Starbucks subcontractor Signature Packaging Solutions hired Washington state prisoners to package holiday coffees.



Sprint
Inmates provide telecommunication services. Inmates are used in call centers.



Verizon
Inmates provide telecommunication services.





Victoria’s Secret
The company uses inmates to cut production costs. In South Carolina, female inmates were used to sew products. Also, inmates reportedly have been used to replace “made in” tags with “Made in USA” tags.



Fidelity Investments
401(K) or other investments are held by Fidelity, and, in some cases, some of your money invested by Fidelity is used for prison labor or in other operations related to the prison industrial complex. The investment firm funds the American Legislative Exchange Council (ALEC), which has created laws authorizing and increasing the use of inmates in manufacturing.



J.C Penney and Kmart
Kmart and J.C. Penney both sell jeans made by inmates in Tennessee prisons.



Airlines and Avis
American Airlines and the car rental company Avis use inmates to take reservations.

Repost from Elementary Genocide The School to Prison Pipeline