Sunday, May 20, 2018

THE SHALE OIL PONZI SCHEME EXPLAINED: How Lousy Shale Economics Will Pull Down The U.S. Economy

by Steve St. Angelo, SRSRocco Report:

Few Americans realize that the U.S. economy is being propped up by the Shale Oil Industry. However, the shale oil industry is nothing more than a Ponzi Scheme, so when it collapses, it will take down the U.S. economy with it. Unfortunately, the reason few Americans understand how lousy the economics are in producing shale oil and gas is due to the misinformation and propaganda being put out by the industry and energy analysts.

I am quite surprised how bank analysts and brokerage firms can continue to fund the shale oil and gas or advise clients to purchase stock when the industry is behaving just like the Bernie Madoff Ponzi Scheme. The only big difference is that the U.S. Shale Industry is a Ponzi at least four times greater than Madoff’s $65 billion fiasco.

Wall Street Shill Mike Novogratz, Late To The Crypto Party, Acts Like He Knows What’s Going On

by Jeff Berwick, The Dollar Vigilante:

I’ve been involved in bitcoin since 2011 when it was just $3. Many of my friends were in earlier in 2010. At the time, it actually felt like I was late to the party.

We all jumped on board as soon as we learned about cryptocurrency and what was happening, because we knew a censorship-free digital money held the potential to eradicate the tyrannical central-banking monetary system, as well as its crony capitalist monsters like Goldman Sachs.

But, now in 2018, a bunch of Wall Street deadbeats have finally seceded that crypto is unstoppable and are predictably pouncing on it to retain their ill-gotten gains.

Brick & Mortar Meltdown Pummels These Stores the Most

by Wolf Richter, Wolf Street:

Only about half of retail is under attack from e-commerce, but that half is getting crushed.

E-commerce sales in the first quarter soared 16.4% from a year ago to a new record of $123.7 billion (seasonally adjusted), according to the Commerce Department this morning. E-commerce includes sales by online retailers such as Amazon but also by the online operations of brick-and-mortar retailers, such as Walmart, Target, or Macy’s. Over the past five years, e-commerce sales have doubled:

Videos: Dissidents Revolt Against Torture in Venezuela’s Shopping Mall-Turned-Prison

by Frances Martel, Breitbart:

Political prisoners being held in Caracas’ Helicoide prison – once destined to be the capital’s largest shopping mall, but now home to over 50 political dissidents – began protesting against the regime and demanding their freedom Tuesday night, prompting a violent response from Venezuela’s secret police (Sebin).

Among the political prisoners are Daniel Ceballos, the former mayor of western San Cristóbal; General Ángel Vivas, arrested for refusing to follow orders from Hugo Chávez; student opposition leader Lorent Saleh; and American hostage Joshua Holt, arrested for allegedly planning a revolution on behalf of Washington. Relatives of those imprisoned began assembling outside of the prison Wednesday night, announcing they would not leave the area until their loved ones were free.

“Worthless, Meaningless Gold”

by Rory Hall, The Daily Coin:

Many of you may remember the great debate between then Congressman, Dr. Ron Paul and then Federal Reserve Chairman, Ben Bernanke, when Dr. Paul ask Mr. Bernanke if gold was money. The look on Bernanke’s face is absolutely priceless.

America’s long-term challenge #2: the looming retirement crisis

by Simon Black, Sovereign Man:

Last week, the financial services giant Northwestern Mutual released new data showing that 1 in 3 Americans has less than $5,000 in retirement savings.

It’s an unfortunately familiar story. And Northwestern Mutual’s data is entirely aligned with other research we’ve seen in the past, including our own.

The Federal Reserve’s most recent Survey of Consumer Finances, for example, shows that the median bank balance among US consumers is just $2,900.

And Bank of America’s annual report from last year showed that the average balance per HOUSEHOLD (i.e. -not- per person) was $12,870… which was actually LESS than the average account balance that Bank of America reported in 1997!

The War on Cash and the Future of Cryptocurrencies

by Nick Giambruno, International Man:

Editor’s Note: Financial repression is a devious tactic, and at some point, every heavily indebted government uses it. It’s inevitable. And no entity on the planet is more indebted than the US government.

The Financial Times defines financial repression like this:

A term used to describe measures sometimes used by governments to boost their coffers and/or reduce debt. These measures include the deliberate attempt to hold down interest rates to below inflation, representing a tax on savers and a transfer of benefits from lenders to borrowers.

Financial repression is also used to describe measures to facilitate a domestic market for government debt and the imposition of capital controls. The combined effect of all these measures means funds are channeled to the government that would otherwise flow elsewhere.

GOLD Has Replaced The Dollar As LOCAL CURRENCY OF CHOICE For Iranians

from Silver Doctors:

There’s a new ‘Forex market’ in Iran, and it shows something very interesting about what people do in a fiat currency crisis. Here’s more…

It’s no secret that past economic sanctions have hurt the value of the Iranian Rial.

Making maters worse for Iranians, after President Trump pulled out of the Iran ‘Deal’, the Rial absolutely nose-dived: