Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. Most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today, we look at crude oil demand. (See the Commodities section.)
Economy & Finance:
At Zero Hedge: QE Or Not QE? Here Is The Market’s Answer In One Simple Chart. Here is a an excerpt:
“The upshot to this attempt to mislead the market what it is doing according to Bank of America, is that:
- the Fed is continuing to “ease” even though rate cuts are now on hold, which is supportive of growth, higher interest rates and higher equities, and
- the Fed is loosening financial conditions by increasing the availability of, and lowering the cost of, leverage, which broadly supports asset prices potentially at the cost of increasing systemic financial risk.
And while we have repeatedly argued why we think that, stripped of all its semantic veneer, the Fed’s latest asset purchase program is, in fact, QE, BofA effectively confirmed why we are right.
Which brings up a tangential, if just as important question: Why is the Fed so concerned about not signaling QE, and why are so many Fed fanboys desperate to parrot whatever Powell is saying day after day? Simply said, there are several reasons why the Fed is making a great effort to let the world know that its security purchases are not QE and are not reflective of any change in monetary policy stance.”
o o o
Commodities (Crude Oil Demand):
OilPrice News reports: All Eyes On China As Oil Demand Dwindles. Here is a quote:
“Despite oil prices trading in a range that should have stimulated a notable improvement in consumption, the world actually consumed just 1.6 percent more oil between June and August this year than last, data from the Joint Organisations Data Initiative has shown.
Reuters’ John Kemp quotes the data, noting that this lackluster demand growth was the fastest growth rate since the start of the year and followed a consumption decline in the previous three-month period, but added that most of this growth came from China. And if it weren’t for China, the picture would look even worse.
Excluding China, the 18 largest consumers of oil globally would have recorded a combined consumption decline of 0.9 percent in June-August.
The spike in oil consumption in China is easily explained: a 400,000-bpd new refinery came on stream in May this year and another one with the same capacity was put into operation later. This spurred a jump in oil imports that may not reflect consumption trends accurately or simply do not fit with economic growth figures.”
Forex & Cryptos:
o o o
Bitcoin Halving, Explained. Here is a snippet:
“As many know, Bitcoin’s (BTC) supply is finite. Once 21 million coins are generated, the network will stop producing more. That is one of the main reasons Bitcoin is often referred to as “digital gold” — just like with the yellow metal, there is only a limited amount in the world, and someday, all of it will have been extracted.
Right now, there are around 18 million BTC in circulation, which is roughly 85% of the total cap — but it doesn’t mean that the cryptocurrency is about to reach its limit any time soon. The reason is the protocol, which has been coded into the blockchain from the very start: Every 210,000 blocks, it performs the so-called Bitcoin “halving” or “halvening,” and producing new coins becomes more difficult — just like in gold mining where finding new deposits becomes more challenging over time.
More specifically, the protocol cuts the block reward in half. So, every time a Bitcoin halving occurs, miners begin receiving 50% fewer BTC for verifying transactions.”
o o o
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who closely watch specific markets. If you spot any news that would be of interest to SurvivalBlog readers, then please send it in. News from local news outlets that is missed by the news wire services is especially appreciated. And it need not be only about commodities and precious metals. Thanks!