Don't WAIT!

Friday, May 6, 2016

Backdoc and Thunderhawk Friday PM  5-6-16

KTFA:

BACKDOC:  DURING THE TRANSITION TO THE "SDR BLACK GOLD BASED ONE WORLD CURRENCY", WE MAY SEE SOME INSTABILITY IN PRICES AND POSSIBLY EVEN A CRISIS. 
 
ONCE THE TRANSITION IS COMPLETE OZ WILL SIMPLY CONTROL SUPPLY AND DEMAND BY CONTRACTS! 
 
THIS IS WHY TPP WILL BE THE MAJOR PLAYER IN CONTROLLING VALUE!   THE MIDDLE EAST WON'T BE ABLE TO USE LOWER EXTRACTION COSTS AS A TOOL TO CONTROL OR DOMINATE THE WORLD MARKETS BECAUSE OZ WILL CONTROL PRICES! 

SUPPLY AND DEMAND WILL BE CONTROLLED JUST LIKE GOLD IS NOW! 
 
REMEMBER WE ARE NOT GOING BACK TO A GOLD STANDARD BUT A CONTROLLED ASSET-BACKED STANDARD BASED ON BLACK GOLD! 
....
IN THE TRANSITION WE SHOULD SEE SOMETHING DEFINING THAT DE-PEGS THE DOLLAR FROM GOLD AND OIL! 
 
THAT WILL ALLOW SAUDI ARABIA TO HAVE A CURRENCY OF COMPATIBILITY WITH ITS NEIGHBORS AS WELL!  THEY NEED A HIGHER PURCHASING POWER!   WE SEE PRIVATIZATION OF THEIR OIL COMPANY, ARAMCO! 
 
THEY HOPE TO USE THE MONEY TO DIVERSIFY THEIR ECONOMY.  IT APPEARS THAT THEY WANT TO GO INTO THE HOME MORTGAGE BUSINESS. 
 
WILL THEY REPLACE FANNIE MAE AND FREDDIE MAC AFTER THE CRISIS?  MMMMM   DOC   IMO

Thunderhawk:  Backdoc Alert

Oil Market at Crossroads as Big Rally Masks Risks Lurking Ahead

If the oil market needed a theme song for now, it might turn to the one where Taylor Swift nervously sings: “Are we out of the woods yet?”

A slump in U.S. production, unexpected cuts in output from Nigeria to Colombia and rising gasoline demand have helped drive a major rally since mid-February. As investors boost their bullish bets, analysts from UBS Group AG to Morgan Stanley and Goldman Sachs Group Inc. see pitfalls ahead.
 
The global crude glut has spread to diesel and will threaten gasoline after the peak summer driving season. Unplanned outages may be resolved in coming months, boosting supplies as Iran seeks to regain market share and Saudi Arabia defends its turf. Demand is “underwhelming” in emerging markets, says Morgan Stanley. Goldman Sachs warns U.S. output may rebound if prices rally too quickly.

“Oil fundamentals are improving but the market is still apprehensive,” said Ehsan Ul-Haq, a senior consultant at KBC Advanced Technologies in London. “Only when refiners start complaining about the lack of supply will we see a sustainable recovery.”  Read More at: 

http://ift.tt/1T1BsBZ

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BACKDOC:  SINCE PRICES WILL BE CONTROLLED, THE U.S. WON'T USE AS MUCH OF ITS RESERVES ANYMORE. 
 
THEY WILL SIMPLY TAKE THE ROLE OF BEING THE SWING PRODUCER! 
 
THEY WILL INCREASE PRODUCTION ONLY IF THE MIDDLE EAST DROPS SUPPLY. 
 
AS A GENERAL RULE THE U.S. WILL USE THE MOST PRODUCTIVE WELLS!  DOC  IMO

Thunderhawk:  Moody’s: Oil Industries Face Worst Downturn Since 1980s Amid Low Prices

Low energy prices continue to negatively impact the global oilfield services and drilling

(OFS) industry that is facing the worst economic decline since 1980s, Moody's Analyst Sajjad Alam said in a press release on Friday.

The analyst explained that low oil prices have prolonged lower spending by exploration and production companies, which are set to experience an increase in defaults.

"The OFS industry is facing the worst downturn since the early 1980s after an unprecedented drop in global oil and North American natural gas prices," Alam stated.
"Drilling activity has plummeted in most oil producing regions, curbing demand for oilfield support services," Alam added.

Global land drilling reached a 17-year low in April, according to the press release. In addition, the rig activity in the United States hit the lowest point in 40 years.

Oil prices have plunged more than 60 percent from their peak of over $110 a barrel in June 2014 due to the global oil production outpacing the world’s demand.

http://ift.tt/1UGfyqj

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Thunderhawk:  Article is on TARGET!

BACKCOC:  OH SO CONTRARE MY FRIEND, BUT WE HERE AT KTFA DO UNDERSTAND! 
 
YES THIS IS A STRUCTURAL ADJUSTMENT TO A NEW REALITY THAT WILL COME ABOUT AS THE BIRTH OF THE UNIVERSAL CURRENCY, BLACK GOLD!
 
WE LOOK FOR THE FED TO BE ABSORBED INTO THE U.S. GOVERNMENT OR BE REMOVED OR REPLACED BY THE U.S. TREASURY!
 
WE SIMPLY WILL HAVE TO LET THAT PLAY OUT.
 
YES, ACTIONS MEAN THINGS!
 
LIKE I'VE BEEN TELLING YOU FOR SOME TIME NOW THE BIG COMPANIES HAVE BEEN BUYING BACK SHARES TO REDUCE THEIR DEBT SO THAT WHEN THE GREAT REPRICING OCCURS THEY WILL BE LIKE A CAT PLAYING WITH A DYING MOUSE! 

THEY WILL LET SMALLER COMPANIES WITH HIGH DEBT LOADS OR TAKE THEM OVER IF THEY SEE VALUE IN THEM! 
 
AT THE END OF THE DAY THERE WILL BE FEWER COMPANIES LEFT AND THE BIG BOYS WILL BE TAKING OVER MANY DEBT LADEN COMPANIES.
 
THIS WILL NARROW THE FIELD WHICH GIVES FEWER COMPANIES MORE CONTROL!   DOC    IMO

Worst is Yet to Come? US Billionaire Warns of Crisis Worse Than 2008

The current situation in the global economy is similar to the situation on the eve of the crisis of 2008, billionaire trader Stanley Druckenmiller said.

According to the businessman, the main risks stem from actions of the US Federal Reserve and the People’s Bank of China.

He criticized the Federal Reserve for its "myopic policy" of low interest rates which has led to growing bullish sentiments in the market.

"The bull market is exhausting itself," he said at the Ira Sohn Investment Conference in New York.

The Fed’s easy monetary policy has resulted companies taking on massive debt loads which they then used to buy back shares, instead of increasing capital spending.
By keeping interest rates low, the Fed is ‘raising the odds of the economic tail risk they are trying to avoid, Druckenmiller pointed out. The same policy of the Chinese Central Bank is also harmful to the global economy.

The slowdown in China’s growth is a big concern, as well as the uncontrollable growth of US debt, the investor added. According to him, US corporations are "stuck in the mud, forlorn of growth, unwilling to invest, and addicted to share buybacks to gin up their stocks."

The Ira Sohn Conference is one of the most prestigious meetings of investors and hedge fund managers. At the 2005 event, Druckenmiller warned his colleagues that the policy of Alan Greenspan, who at the time was Chairman of the Federal Reserve, would result in a housing bubble.

Finally, this happened and the global economy engulfed in a crisis in 2008. Druckenmiller believes that the bubble was further inflated by former chair Ben Bernanke and current chairwoman Janet Yellen.

"The Fed has borrowed from future consumption more than ever before. It is the least data dependent Fed in history. This is the longest deviation from historical norms in terms of Fed dovishness than I have ever seen in my career," Druckenmiller was quoted as saying by CNBC. "This kind of myopia causes reckless behavior."

According to media reports, Druckenmiller whose net worth is estimated at $4.4 billion is making long-term investments in gold while holding short positions on US companies’ shares.

At the same time, some economists believe that the current state of the global economy indicates that it may be facing structural adjustment and not only the downward part of the economic cycle.

In April, the International Monetary Fund (IMF) announced that the global economy was expected to grow at 3.2 percent in 2016, with a further growth of 3.5 percent in 2017.

"Maybe it is not just an economic cycle we are facing, but some kind of structural adjustment of the world economy that we do not understand yet, what the consequences are and how to deal with this," European Commission Europe-Aid head of unit Jose Correia Nunes said.

http://ift.tt/21GbzLb

Thunderhawk:  This song say's it all

Kenny Loggins- This Is It (1979)    https://youtu.be/U8SSdyflGN4
BACKDOC:   HELLO! IS ANYBODY IN THERE?  HELLO MCFLY! BAAA HAAA
WELL, THUNDER JUST AS I HAVE BEEN SHARING!

THE DEBT LOAD OF U.S. COMPANIES IS AT THE HIGHEST LEVEL IN HISTORY!  THE SPIRAL OF DEFLATION WILL NOW CAUSE DEBT TO RISE DISPROPORTIONALLY!

THOSE BIG FAT CAT COMPANIES ARE JUST LICKING THEIR CHOPS WAITING TO POUNCE WHEN THE FINANCIAL RUG GETS PULLED OUT FROM UNDER THEM IN THE GREAT REPRICING!  OUCH!  DOC   IMO

Thunderhawk:   Global Banks Struggle Amid Credit Squeeze, Rising Bad Loans

Multinational financials are facing losses in revenues stemming from tighter policies and regulations, and insufficient growth in real economies, resulting in financial sector instability, in turn, affecting global growth outlook in the medium-term.

Largest international financials are facing hard times second straight quarter as underperforming economies across the globe resulted in a shrinking demand for credit,
while developing economies have been hit by the over-the-top increases in non-performing loans (NPLs, or ‘bad loans').

Subsequently, while banks in advanced economies are cutting jobs against the background of lower earnings, led by Goldman Sachs and other Wall Street heavyweights, financials based in emerging markets are closing equity positions and adjusting to the new reality of a huge volume of NPLs.

The US-based financial services enterprise Goldman Sachs Group Inc. has undertaking massive job reductions in its equity divisions, along with cuts in bond market units, throughout the first two quarters of this year. The scale of layoffs is rather significant, with roughly 10% of personnel being laid off, primarily, in New York and London, as global shares have been posting lackluster results, reflecting the faltering negative dynamics in most sectors of the real economy, whilst the bull market having dominated fixed-income, is all but ended as well.   Read More at:

http://ift.tt/1UGfyql

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Mike100:  i have been reminded we are in the final year of of the 70th "Great Year of Jubilee". It last all the way up to fall of 2016.  Its very interesting how things are playing out.

 I truly believe the start of the new asset backed system will be here by this fall no later no earlier imho. I do believe the IMF, WB and BIS is prepping Iraq for the new system that is being put in place along with the new SDR basket of currencies to be added.

We are truly entering some might call a new golden era where the old system must be replaced.  

Will the entire system get a overhaul including corrupt officials, IRS, fiat money, market manipulation etc? only time will tell but lets remember God isnt done not by a long shot with his people and i believe the HUGE blessings are coming this year in the last year of the smetiah of its cycle. According to scholars it comes every 49 years.

BACKDOC:  YOUR RIGHT MIKE AND THIS IS A 50 YEAR JUBILEE YEAR CYCLE!    DOC  IMO


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