Spot on @Ericsson.70% of US GDP is from consumption financed by debt.Thats a HORRIBLE WAY to run an economy.US is like that neighbor you know that has a Range Rover Sports parked in his villa,goes to vacation all the time but finances his expenditure by borrowing and pays old loans by acquiring new loans for the repayments.You assume the neighbor is rich and powerful yet behind the scenes its all debt financed and people keep lending to this neighbor thinking if he is so rich he can pay his debts.US is history's largest debtor nation also running world's largest trade and budget deficits.It was not always so.In the pre 1970s era,US was the world's manufacturing hub and world's largest creditor nation with sound money not being printed recklessely.

Some estimates put US total debt load that includes government,corporate,household debt at a whooping 2000% of GDP.A ridiculously large figure.One wonders why you should hold USD and US bonds for such a country but as I said,if you assume that flamboyant debt ridden neighbor of yours is rich enough,you keep lending to him but eventually that ponzi will unravel

WTI OIL PRICE DROPS 40% IN ONE DAY



Latest round of sharp selling comes as uncertainty mounts around storage for excess oil. Demand for crude has plummeted since the coronavirus outbreak has frozen activity worldwide.

Now WTI struggles to stay just above 10 USD support.If it dips below 10 USD another major sell off could ensue.

US shale oil frackers just getting decimated.Mass bankruptcies are inevitable if these low prices continue as frackers junk bonds implode

Not to worry,Fed will print more trillions to buy shale oil junk bonds that are bogus.

Yeah Brent holding up far better with only a 7% drop with its futures trading at approx 26 USD.The Brent/WTI spread is insane.

This steep WTI drop is for May futures contracts and contracts further out have much higher prices.The May futures contracts expire tomorrow and the steep drop in these contracts reflects traders scrambling to exit long positions that would require them to take physical delivery of crude amid dwindling storage space.

This is the nonsense that happens when traders speculations in futures markets drives the price of the underlying asset.Speculation determines price not fundamentals like production cost,supply/demand dynamics.Happens alot also in gold markets

Gosh saw even 0.99 USD.UTTERLY NONSENSICAL these futures markets.Possibly once these May futures expire tomorrow the mother of all rallies will happen.Lets see if history is made and oil hits 0 USD which is beyond ridiculous.How can futures be used as a mechanism to price markets?

HISTORY HAS BEEN MADE.WTI OIL PRICE HITS ZERO!!!!!BEYOND INSANITY

I have seen many ludicrous things in Western markets like central banks buying stocks,corporate and government bonds,negative yielding bonds but WTI oil price at ZERO takes the crown for sheer lunacy