World Oil Price Depends on “Marginal” Barrel
AUSTIN, TEXAS – April 15, 2019 The production and supply of American oil is a more important factor for the global market than the situation in oil-producing countries, according to the Wells Fargo Investment Institute. The growth rate of production in the US will determine the movement of oil prices until the end of the year. However, the growth of production in the country is increasingly dependent on the development of shale deposits, which extract the "marginal" barrel - oil, the production of which may be unprofitable due to fluctuations in WTI quotations. Falling i...
Trump Calls Fed Policy a Stock Market "Killer"
WASHINGTON, DC – April 15, 2019 If not for Fed policy, the stock market could grow by 10,000 points, the President Trump is certain. He called the “quantitative tightening” program (or officially - the normalization of balance), in which the regulator cleared its inflated balance in 2017, a “killer.” “If the Fed had done its job properly, which it has not, the Stock Market would have been up 5000 to 10,000 additional points, and GDP would have been well over 4% instead of 3%...with almost no inflation. Quantitative tightening was a killer, should have done the exact oppo...
The World of Cash at the Crossroads
NEW YORK – April 13, 2019 Today, the world is entering an era of the “digital” economy. An important feature of such an economy is the predominance of non-cash money in circulation, and they already have an exclusively electronic, or “digital” form. Cash in the form of paper currency (banknotes) and coins are present in circulation, but in the whole world, there is a tendency to their final replacement by non-cash money. The process is very uneven and the level of cash circulation varies greatly from country to country. Recently, an attempt was made to draw an overall pi...
US Opens Second Front of Trade War
NEW YORK – April 11, 2019 President Donald Trump threatens Europe with duties on goods worth 11 billion dollars. In parallel, the White House continues to discuss import charges on European cars. What is the reason for the new round of trade wars? Trump's Ultimatum The formal reason for Washington’s new restrictions against EU countries is the conclusion of an appeal in the World Trade Organization on a dispute between the US and the EU on the legality of subsidizing the largest aircraft manufacturer Airbus by France, Germany, Spain, and the UK. Referring to the WTO de...
PayPal Is Global Financial Fraud
USA – April 6, 2019 In a recent interview with the Wall Street Journal, PayPal CEO Dan Schulman claimed that his company, which processed $578 billion in transactions last year, has partially outsourced the task of deciding which accounts to ban to the Southern Poverty Law Center. “There are those both on the right and left that help us. Southern Poverty Law Center has brought things. We don’t always agree,” Schulman said. By incorporating the hard bias of SPLC into its business model, Paypal cuts off a major avenue for financing nonprofit groups and independent writers....
Why Oil Prices Are Cut Off From Reality
NEW YORK – April 5, 2019 Oil prices have reached multi-month highs and the future direction cannot be determined. Some experts believe that the market is on the verge of collapse The efforts of the world's central banks have forced financial assets around the world to rise in price, playing almost all the fall of the end of last year. Crude oil futures are no exception, since they are also a financial asset. Nevertheless, sometimes this asset still takes into account the fundamental factors, and here is not the most favorable picture. The fact is that the world economy...
US Economy Not Strong Enough to Win New Cold War
NEW YORK – April 5, 2019 President Trump said his country's economy remains strong despite "unnecessary and destructive actions" taken by the Federal Reserve. “Despite the unnecessary and destructive actions taken by the Fed, the Economy is looking very strong, the China and USMCA deals are moving along nicely, there is little or no Inflation, and USA optimism is very high!” Despite the unnecessary and destructive actions taken by the Fed, the Economy is looking very strong, the China and USMCA deals are moving along nicely, there is little or no Inflation, and USA op...
Fed's attempts to accelerate inflation may result in severe crisis
CHICAGO – April 4, 2019 The Fed may create financial “bubbles” in an attempt to warm up inflation. The probability of such a development is quite large, analysts say. Federal Reserve head Jerome Powell called low inflation one of the challenges of the time, and it looks like he wants to take up the challenge. The Chicago Fed Index now indicates the mildest financial conditions since 1994, that is, all the conditions for accelerating the growth of prices are already there. The Fed, in seeking to spur inflation, risks provoking the emergence of those "bubbles" of assets...
The Focus Will Be on Labor Market Data in the US
NEW YORK – April 2, 2019 Last week, the world stock indices showed positive dynamics at the end of the trading week. For example, in the US, the Dow Jones blue chip index rose by 1.67% over the week, the Standard & Poor's 500 broad market index increased by 1.21%, and the Nasdaq Composite high-tech industry indicator rose by 1.13%; Germany's stock market increased by 1.42%. During the last trading week, optimism prevailed in world markets, in particular, after the news that the next round of negotiations on tariffs for the import of goods between the US and China w...