Yesterday was THE DAY! This is the stuff that creates wars and revolution. Your life, my life, everybody's life ....is permanently changed.
So, yesterday oil opened up at $17.70 and crashed close to around negative 40. Well, this is the world we live in right now. Everything can go negative. Things that you thought were impossible, are happening today.
How can price of oil go negative, you ask?
I already watched few pro traders, who told the same thing, but on legacyias.com I found perfect written explanation for all :
"For the first time ever, a key U.S. oil benchmark, West Texas Intermediate, went below zero on 20th April, as Oil traders (future contracts) approach a deadline to find buyers. The entry of prices into negative territory meant that the sellers (of oil or its contracts) will pay money to get rid of the oil stock they have.
At the start of 2020, a barrel of WTI cost around $60. Prices had dropped swiftly because of the coronavirus, landing at around $18 a barrel.
Then on 20th April, they plummeted through the floor. WTI for May delivery settled at a negative $37.63 — meaning traders are paying $37.63 to get someone to accept a delivery of a barrel of oil.
Oil-producing countries and companies are trying to reduce their output, but they can’t keep pace with the extremely rapid drop in global demand"
Now think of all of the ramifications that this will have on your life. You can do it... OK, I'll help you. Look soon for emergency maneuvers, for vast currency printing around the planet for wars and for "revolution" to happen. Because suddenly the income for many many governments around the world just vanished in one day!
Many governments around the world are run on oil revenues. Not to mention the enormous industry, the world's largest oil producers are the United States, Saudi Arabia, Russia, almost all middle eastern countries.... all of that went away yesterday. Many many trillions of dollars of bailouts!
Almost everywhere, massive pump job is going on. And the bailouts/nationalization of corporations are keeping this market, where it is - too high.
Why is there no inflation to be seen?
You should realize one thing: At this kind of market, where bots do all the trades, and economy (no money velocity) is almost dead...there is zero chance of inflation
Central banks can be printing all this cash without hyper-inflation as a result BECAUSE if cash is not moving through the economy, if it's just static, the central banks can go parabolic like they're doing now with zero chance of inflation
The real story with regard to inflation is gonna happen in the debt market. Right now again we're seeing rates drop. That means massive sell-off. When cash leaves the debt market it's gonna look for a place to go. So you got cash leaving the debt market, leaving the stock market. And it's gonna go to other assets. When cash is gonna start to move that's when we're all gonna pay the price for this this debt expansion by the new central banks