The Super La Nina and the Coming Winter
This La Nina appears to be special, at least so far. It is well on its way to being the strongest of these events since the super La Nina of 1955-1956. During that powerful La Nina that lasted two years, the global average temperature fell
nearly one degree Fahrenheit from 1953 to 1956.
The current La Nina is coming on stronger than any in decades. The world is demanding more and more energy to fuel growth even in hard economic times. This winter may test the world energy supplier’s ability to provide it. The resulting increase in demand could produce a spike in energy costs. This could bring more hardship to people who are suffering through this long and deep recession. It remains to be seen if this La Nina equals or exceeds the super La
Nina of 1955/56. Right now El Nino’s colder sister is on the fast track to generate more temperature extremes and a very cold winter in some parts of the world.
Tony Robbins Economic Warning
Editors Note: This is my synapsis of two videos put out by Tony Robbins.
Mr. Robbins has had the ability to work with many financial experts over the years. With that relationship has come the benefit of their foresight into financial situations many of us do not have. Robbins this past August put out a 25 minute message of economic warning. Listed below are warning signs he feels are important enough for one toconsider when evaluating their positions where their money is involved.
1 Record unemployment. Average unemployment is about 35.2 weeks or 8.75 months.
2 Consumer confidence is lowest since fall 2008 and 9-11.
3 Demand for credit is shrinking by the largest percent in 60 years. People have/are paying back more than borrowed right now by 200%.
4 Real estate: lowest rates ever, 4.5%, banks selling more than builders. 68% drop in new mortgages since 2005.
5 Banks: People not borrowing.
6 Businesses not spending
7 Fed has interest rates low, but people are not borrowing.
We are in a credit detox
Evaluate your stock positions, expects major retracement.
Dollar at Risk of Becoming ‘Toxic Waste’: Charts
“If the (dollar index) takes out the low that was made roughly a year ago I really think that will not only encourage more sales, it will cause a little bit of minor panic,” Griffiths said. “A year ago it was deemed too cheap, if it goes any lower than that it’s actually become toxic waste.”
Typically the major stock markets see a seasonal decline in September, but this year the month saw the markets rise strongly.
The seasonal upswing should add to any positive momentum being generated by expectations of further monetary easing from the Federal Reserve, Griffiths said.
Willem Buiter: The US Must Prepare For Savage Austerity
In an interview with Tom Keene yesterday, Citi strategist Willem Buiter, alongside Howard Davies chairman of the London School of Economics, said that “savage austerity” is in the US’ future. “The only question was really the timing and the composition.”
Too bad that even the possibility of actual austerity in the US would result with riots so severe it will make the ongoing economic freeze in France seem like the peak of Chinese economic growth.