Why Governments Love Terrorism “Wars”

Telltale Signs

Dow down a little on Tuesday. Gold almost unchanged. Oil kept slipping.

From Bloomberg:

“Oil fell below $45 a barrel amid speculation that US stockpiles will increase, exacerbating a global supply glut that’s driven prices to the lowest in more than 5½ years.

Oil slumped almost 50% last year, the most since the 2008 financial crisis, as the US pumped at the fastest rate in more than three decades and OPEC resisted calls to cut production.

Goldman Sachs said crude needs to drop to $40 a barrel to “re-balance” the market, while Societe Generale also reduced its price forecasts.”

We’re studying the drop in the oil price. Is it an isolated phenomenon – the product of fracking technology, petro politics and other special circumstances? Or is it, too, a feature of the worldwide credit bubble?

We will write up our conclusion in this month’s Bill Bonner Letter. But you can probably guess. The more we look, the more we find telltale signs of the credit bubble at every accident and crime scene.

Through a Glass, Darkly

Tomorrow, we’ll start a new series on practical investing. Today, let’s look further at how the global credit bubble has distorted investment markets, perverted the economy and corrupted our government. They all now depend on something that should never have happened… and can’t continue for much longer.

Hardly a day goes by that we don’t squint through a glass, darkly, to try to see what the end of the credit expansion will mean for stocks, bonds and other asset classes. Today, we look at what it will mean for the US Empire of Debt.

Typically, empires succeed by conquest. They take property… women… slaves. The loot is then parceled out like a federal budget – with big portions for the honchos and cronies… and lesser portions to the foot soldiers.

…click on the above link to read the rest of the article…