‘History Does Not Repeat Itself, But It Often Rhymes’: Gas Prices Are Falling So Fast Because The Economy Is On The Verge Of Collapse
Conditions are so bad, they are just plain bad. (Sandy and California gas crisis are just the catalyst this time) I believe anything which can trigger the collapse of consumer spending and slowdown in economic activity will crash the stock market because the institutions will suddenly begin betting on a fall in the oil price and then stock market.
At this point, watch the price of oil if you want to know when the next recession is going to begin. As I’ve pointed out many times in the past, recessions (well, at least since World War II) have all been preceded by a sharp spike in the price of energy. Any move of 100% or more in a year or less, has historically been the straw that breaks the camel’s back. Modern economies cannot survive that kind of shock. It invariably triggers the collapse of consumer discretionary spending and economic activity comes to a grinding halt.
“It’s going to be bad after the next election.” How bad remains to be seen. An influential economic team expects serious trouble. They discovered a “frightening pattern.” It looks catastrophic.
According to Money Map Press chief investment strategist Keith Fitz-Gerald, “What this pattern represents is a dangerous countdown clock that’s quickly approaching zero. The resulting chaos is going to crush Americans.”
Global economic trend forecaster Chris Martenson also suggests catastrophe, saying:
“We found an identical pattern in our debt, total credit market, and money supply that guarantees they’re going to fail,” he said. “This pattern is nearly the same as in any pyramid scheme, one that escalates exponentially fast before it collapses. Governments around the globe are chiefly responsible.”
“And what’s really disturbing about these findings is that the pattern isn’t limited to our economy. We found the same catastrophic pattern in our energy, food, and water systems as well.”
Everything could implode at the same time, he thinks. “Food, water, energy, money. Everything.”
US Gas Prices Are Falling At Their Fastest Rate In 4 Years
The average U.S. price for a gallon of regular gasoline took its biggest drop since 2008 in the past two weeks, due to lower crude oil prices, a big price drop in pump prices in California and Hurricane Sandy, according to a widely followed survey released on Sunday.
Gasoline prices averaged $3.5454 per gallon on Nov. 2, down 20.75 cents from Oct. 19 when drivers were paying $3.7529 at the pump, Lundberg said.
The decline was the biggest two-week price drop since the survey recorded a 21.9 cents price decline Dec. 5, 2008 due to a crash in petroleum demand during the global recession.
He believes that the doubling in the price over the last year is partly due to investment institutions, such as pension funds, who are pumping money into indexes that track the cost of crude.
According to the FT, Soros will warn that there could be very serious consequences for global stock markets if the institutions suddenly began betting on a fall in the oil price.
“In both cases, the institutions are piling in on one side of the market and they have sufficient weight to unbalance it. If the trend were reversed and the institutions as a group headed for the exit as they did in 1987 there would be a crash,” said Soros, in remarks prepared for a committee hearing later today.
‘History does not repeat itself, but it often rhymes, as Mark Twain noted’
Obama: Gas Prices Low ‘Because the Economy Was on the Verge of Collapse’
In response to a question concerning high gas prices, President Obama explained that gas prices were low when he took office in January 2009 “because the economy was on the verge of collapse”:
2 views CF TEST