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The American People Are Utterly Clueless About What Is Going To Happen As We Enter 2015

by Michael Snyder, The Economic Collapse Blog:

The American people are feeling really good right about now.  For example, Gallup’s economic confidence index has hit the highest level that we have seen since the last recession.  In addition, nearly half of all Americans believe that 2015 will be a better year than 2014 was, and only about 10 percent believe that it will be a worse year.  And a lot of people are generally feeling quite good about the people that have been leading our nation.  According to Gallup, once again this year Hillary Clinton is the most admired woman in America and Barack Obama is the most admired man in America.  I don’t know what that says about our nation, but it can’t be good.  Unfortunately, when things seem to be going well common sense tends to go out the window.  A couple days ago, the Guardian ran an article entitled “Goodbye to one of the best years in history“, and a whole lot of people out there are feeling really optimistic these days.  But should they be?

Sadly, what we are experiencing right now is so similar to what we witnessed in 2007 and early 2008.  The stock market had been on a great run, people were flipping houses like crazy and most people were convinced that the party would never end.

But then it did end – very painfully.

The signs of trouble were there, but most people chose to ignore them.

Sadly, the exact same thing is happening again.

On Monday, the price of oil hit a brand new five year low.  As I write this, U.S. oil is sitting at a price of $53.76 a barrel, which is nearly a 50 percent decline from the peak earlier this year.

There is only one other time in history when the price of oil has declined by more than 50 dollars a barrel in such a short time frame.  That was back in the middle of 2008, shortly before the worst stock market crash since the Great Depression.

Unless the price of oil starts really bouncing back, the U.S. economy is going to be hit really hard.

Since 2009, oil industry employment has risen by 50 percent.  And jobs in the oil industry pay quite well.  One figure that I saw put the average weekly wage at about 1700 dollars.

But now we aren’t going to be gaining those types of jobs.  Instead, we are going to rapidly start losing them.

Already, the oil rig count has dropped for three weeks in a row and is now at an 8 month low.  And as the oil industry suffers, all of the industries that it supports are also going to start feeling the pain.  In fact, Business Insider is reporting that Texas business executives are “freaked out” about what is happening…

Business executives in Texas are worried about the drop in oil prices.

On Monday, the Dallas Fed’s latest manufacturing survey showed that activity in Texas was slowing down.

The latest composite index came in at 4.1, widely missing expectations and down big from November’s reading. Expectations were for the index to come in at 9, down from 10.5 last month.

So while most Americans are feeling really good about the coming year, many of those with an inside view are becoming quite alarmed.  One Texas business executive went so far as to say that the stunning decline in oil prices was going to make things ugly … quickly.

Meanwhile, the 9 trillion dollar U.S. dollar carry trade is starting to unwind.

The following is an excerpt from a recent Zero Hedge article

Oil’s collapse is predicated by one major event: the explosion of the US Dollar carry trade. Worldwide, there is over $9 TRILLION in borrowed US Dollars that has been ploughed into risk assets.

Energy projects, particularly Oil Shale in the US, are one of the prime spots for this. But it is not the only one. Economies that are closely aligned with commodities (all of which are priced in US Dollars) are getting demolished too.

Just about everything will be hit as well. Most of the “recovery” of the last five years has been fueled by cheap borrowed Dollars. Now that the US Dollar has broken out of a multi-year range, you’re going to see more and more “risk assets” (read: projects or investments fueled by borrowed Dollars) blow up. Oil is just the beginning, not a  standalone story.

If things really pick up steam, there’s over $9 TRILLION worth of potential explosions waiting in the wings. Imagine if the entire economies of both Germany and Japan exploded and you’ve got a decent idea of the size of the potential impact on the financial system.

And that’s assuming NO increased leverage from derivative usage.

Ouch.

Read More @ theeconomiccollapseblog.com

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35 comments to The American People Are Utterly Clueless About What Is Going To Happen As We Enter 2015

  • Eric

    Utterly clueless!!! Those are probably the best 2 words in the english language to describe Americans.

    If oil falls below 50, and it probably will, I am waiting for this to pan out to see which way we’re going. If it gets back above 60, I’ll have more confidence. Until then, it appears cash is still king. Dollar index is now in the 90-93 range. Waiting for confirmation. Expecting a death blow to the Federal Reserve Note one of these days. Ironically, it will most likely come from the Federal Reserve.

    Paging Dr. Yellen. Dr Yellen to surgery. Your patient is dying and needs trillions of newly printed dollars to maintain life support badly. Of course the patient is already dead but don’t tell the sheeple that.

  • Gnostic

    I once had a women who appeared to be on psychotropic medication say she liked Hilary, she asked me what I thought? I said she is a tool of the zionist jews, perhaps a crypto-jew herself & belongs to the CFR, the woman scratched her head & walked away.

  • wafic

    If you ask me this makes perfect sense heading into 2015. With the so-called tapering in full effect, the USD is showing relative strength versus the other currencies. It needs to be high before QE4 kicks into gear to once again save the US economy. Then it can fall back down to the high 70’s, oil prices and commodities will once again kick into high gear, the stock market, after the correction, or maybe even a major correction, will start to climb back up after QE4 is announced thus propping up everything and maintaining what is in place for what seems like forever. Rinse, wash, repeat. Sadly, or maybe not sadly, because who knows what the alternative would really look like but unless the BRICs seriously challenge the West this is how the game will continue to play out. I for one, would love to see this phony economic system come to an end and let the chips fall where they may.

  • FreedomScribe

    Yellen is an impostor, secretly resurrected from an old Seinfeld episode: “I had a pony. I love my pony…”

    Jerry: “Why would anyone leave a pony country to come to a non-pony country? It doesn’t make any sense!”

    Nor does anything else these days.

  • Al

    I was walking the beach in NE Florida as I do every morning for health reasons. I met my next door neighbor fishing off the shore. We spoke briefly and with the biggest smile on his face he said “and the economy is getting better, fuel prices are going down”. I smiled and wished him a happy new year.
    He’s a nice man, so is his Wife, but they are both clueless and it is this clueless nature by the populace that keeps confidence in the trash fiat paper, believing the lies the government, financial institutions and lame stream media spew.
    Until people like that wake up, this can will be kicked and kicked down the road again.

    Oh, and by the way, polls (like voting) are rigged. I don’t know anyone who admires such sociopaths.

    • Eric

      Al,

      I don’t blame you for smiling and moving on, but I wish more people would take the time to explain what is really going on. We really need more people to start questioning everything and waking up to the extent that they are capable.

      I would have explained that it is not fuel prices going down so much as it is the dollar going up which is putting downward pressure on commodities (chiefly oil), along with OPEC’s decision not to cut supply, sanctions imposed on Russia, and lack of demand rather than an “oversupply.”

      And then explain how the dollar is not going up because it is getting stronger, but rather other currencies are getting weaker, i.e. Euro, Yen, Ruble.

      Ask him if he’s ever heard of zerohedge.com or sgtreport.

      As difficult and frustrating as it is to explain to the masses, we still should try when the opportunity presents itself. Especially with the ones around us. If they don’t prepare, they might be knocking on your door for help after its too late.

  • anon

    Human beings, in the 21st Century, are SO far removed from their ancestors, you can’t even begin to comprehend how far…

    Help plant 2,000 Second Generation Champion Coast Redwood Trees.

    (Trees inhale carbon, and exhale oxygen. Humans inhale oxygen, and exhale carbon. It’s a symbiotic relationship. Hint: It’s a SYMBIOTIC relationship).

    Ever heard of the “Tree of Life”? What has Mother Earth done for YOU, lately?

    (Maybe the real question is: What have YOU done for MOTHER EARTH, lately?)

    Big Trees. Big Impact. https://www.indiegogo.com/projects/big-trees-big-impact

    PLEASE SHARE THIS WITH EVERY YOUNG PERSON ON YOUR EMAIL CONTACT LIST. Thanks!

    Note: I simply CANNOT believe, that “Big Trees – Big Impact” has only gathered $21,000.00 on THIS campaign, with only 10 days to go. And, Americans spent BILLIONS (?) on Christmas, this year? People need to start re-examining their priorities! What the hell kind of planet are we going to leave behind (for future generations?)

    • anon

      “Pray,
      That life on Earth
      Survives government
      Power run amok.

      Resist ANY
      Ideology which seeks
      Power over voluntary
      Human activities.
      (Image of a dove with an olive branch)
      Our children’s lives
      Are at stake.

      Source: Comment, in the ‘comments’ section, here: http://www.orrazz.com/2014/12/revealed-whos-paying-for-all-of-signs.html

    • AK

      As noble as that may be, we have to first stop spraying chemicals into the atmosphere before we completely kill off our forests and humanity.

      • petedivine

        Noticed the chemtrails agents were on vacation today and on Christmas. Otherwise, I see them whenever we have the start to a beautiful sunny day. Their long symmetrical trails are sprayed right over my house. What I find rather interesting is how no one else wants to notice or care. I’ve finally gotten my wife to notice. She would rather not though.

        • Gnostic

          anon & AK,

          No offense but how about we first stop the murder of innocent people in foreign imperialist wars including over 1 million children under age 5 killed in Iraq, in addition the White Yazidi women of Iraq being raped today on a daily basis, & the child raping pedophiles Then we can get to other 2ndary issues, but the only way that can happen is we take down the bankers 1st.

          • Anon

            Gnostic (anon, here): Your point is well-taken. You are right in that AMERICANS need to take back this (US) government, and make it responsive to the demands of the people, rather than to the demands of Wall St. Banks, Oil Companies, Weapons Manufacturers, the Carlyle Group, Neo-Cons, PNAC, AIPAC and the CFR – perhaps then we could end these undeclared wars, and this never-ending “war on terror”. As far as “taking down” the Western International Central Bankers – I’ve been saying that ALL ALONG – in fact, it is priority #1 – to END THE FED – if we wish to make Congress responsive to We, the People (which they haven’t been, since about the time of Andrew Jackson). I wrote extensively about it in the comments section, here:

            GUEST POST: The Long, Abusive History of Money Power(Part 1)
            http://sgtreport.com/2014/12/guest-post-the-long-abusive-history-of-money-powerpart-1/

            All I am saying is: Human beings, like you and me, around the world, simply need to recognize that WE THE 99.99% ALREADY HAVE THE POWER. WE JUST NEED TO UTILIZE IT – BY MAKING DIFFERENT CHOICES. We can sit around all day long, and prognosticate about what is silver going to do – what is gold going to do – meanwhile there is a man in Michigan, attempting to plant 2,000 Second Generation Champion Coast Redwood Trees, and has been running a campaign, on Indiegogo, to raise a mere $100,000.00 by Jan. 8th, and he has only been able to collect $21,000.00 (THAT is a pathetic statement about AMERICANS. Sorry – it just is.) I’m NOT on board with the likes of Al Gore. I AM on-board with being more than a little concerned about what kind of planet we will be leaving behind for future generations. Sure, let’s regain control over Congress, and stop the never-ending undeclared wars, and the never-ending “war on terror” – ABSOLUTELY. Let’s TAKE DOWN THE BANKERS! ABSOLUTELY. There are also MANY, MANY additional things we can do, simultaneously, to bring about a better future. Maybe, in fact, if we were to get more people to raise their consciousness, and understand how important the health of this planet is, for the life which depends on it, for its continued existence, then, just maybe, we could bring about a shift in consciousness, that would fuel the greater AWAKENING that we are all apparently so concerned about, since we all have complained (incessantly) about the “sheeple”. What do human beings need to survive? 1) Air, 2) Water, 3) Food, 4) Clothing, 5) Shelter, etc. Notice what is #1? We’ve got to be equally concerned about somethings that are NOT purely financial in nature.

  • dan

    In general, most people do not want to face the truth…when told/explained as such , they smile,nod,or disagree and continue on with THEIR perceived knowledge of what they believe….stare and listen to the TV shows or news and you too may be won over to the ‘dark side’……where no ‘doom and gloom ‘ is allowed to be shown……imho

    • Anon

      dan – you just shared an excellent observation. Most of the “sheeple” definitely will stare at you blankly, when you start talking about TRUTH. It’s too “negative”. They’ve been thoroughly brain-washed, and don’t even realize it. They don’t think for themselves, yet they will tell you that they do, if you ask them. Their critical thinking skills just aren’t there, because they haven’t been using them, if they ever put forth the requisite effort to acquire them in the first place.

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