Why The Global Economy Will Disintegrate Rapidly (reflector)
As I stated in the interview, all other sectors and industries in the economy are powered by energy. To understand gold and silver, one must understand energy. Precious metals investors who do not understand the energy predicament we are soon to face, may sell their gold and silver prematurely… believing business as usual will continue for many years in our highly manipulated markets.
“The four plants in Sri City (Andhra Pradesh) are operating at 1.2 million capacity a month, down from 2.5 million that it has,” a senior industry executive aware of Foxconn’s manufacturing details said, asking not to be named. The company has put about 1,700 of its workforce on the bench, or on forced leave for two weeks during which they will get paid but the number of days would be cut from their earned leaves. Benching may continue if production – directly related to consumer demand – does not come to the 2 million a month levels by January, the person added.
Having observed the economic chaos to emerge as a result of India’s shocking Nov. 8 demonetization announcement, and perhaps confident it can do better, today president Nicolas Maduro of Venezuela, Latin America’s most distressed economy, mired in an economic crisis and facing hyperinflation, likewise shocked the nation when he announced on state TV that just like India, Venezuela would pull its highest denominated, 100-bolivar bill (which is worth about two U.S. cents on the black market), from circulation over the next 72 hours, ahead of the introduction of new, higher-value notes, as large as 20,000.
Diversion is not uncommon. Last year, Rebecca Horting, a 36-year-old nurse in Topeka, Kan., was offered a similar deal for an offense that caused far greater harm. She was charged with reckless battery and texting while driving after she hit a girl on a bicycle, causing brain damage and the loss of a leg.
“I don’t know the man much at all, but let’s put it this way: If you received an award from the Kremlin, ‘the order of friendship,’ then we’re gonna have to do some talkin’. We’ll have some questions. I don’t want to prejudge the guy, but that’s a bit unnerving.”
Traders have been ever watchful of the OPEC deal that was sealed on the 30th of November, and now of the OPEC/non-OPEC meeting scheduled for the 10th of December. But the industry is also keenly aware of the Baker Hughes rig count figures, which serve as a fair metric of how the U.S. oil and gas industry is responding to the current price fluctuations and the OPEC chatter of the day, rather than how the speculators are responding.
Nigeria has been particularly hard hit. It continues to writhe from a drop in oil prices that set off a currency devaluation and now a recession. Food prices have soared even in major cities far from areas where Boko Haram operates. High prices have rippled into neighboring countries that rely on Nigeria for trade.
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