Charts: The S&P 500 has executed a death cross. Please go to the blog below this one to reference the significance of this chart formation.
Fundamentals: Advanced economies equal 60-70% of world GDP. As a group they are currently growing at about 0.7%. Economists call this "stall speed," which means that a global recession is likely. The only hope is for emerging market economies to start growing more strongly. They are held back by roaring inflation, which forces tight monetary conditions. The inflation is caused by the high price of oil, which is primarily caused by the Libya War. Despite all the bad economic news, oil went up today. It has to come down or we are royally screwed. This can only happen if the rebels win in Libya.
Long War: The CIA is publicly saying that it is introducing 2 more Predator drones into Libya. It would only say this if its footprint in Libya has grown so large that the mainstream media is on the verge of exposing this growing footprint.
CIA fingerprints are becoming more and more obvious in Libya. We are seeing supposedly untrained rebel fighters effectively calling in NATO air strikes. The rebels are acquiring NATO satellite data of Gaddafi's troop movements even though NATO is not giving them this information.
Gaddafi's capital city of Tripoli is surrounded by the rebel army. All supplies into Tripoli are cut off. The rebels would probably like to let Tripoli starve. But the world economy needs a bloody siege and relatively quick victory.
Gaddafi is in command of small numbers of elite troops who will fight to the death in an urban combat situation. It is very hard to take a city quickly under these conditions.
The US would throw more weight behind the offensive against Tripoli if Russia and China would look the other way. Team Obama has just cancelled the sale of 55 or so advanced F-16 fighters to Taiwan. This could be Team Obama being total wooses or it could be a bargain that allows China to ignore a very heavy CIA footprint in the Libya War.
The coming offensive in the Libya War is the most important event for the world economy anywhere on Earth. Forget the big Fed meeting in Jackson Hole. It means nothing. All eyes on Libya.
Friday, August 19, 2011
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