The Peak Oil Myth

[ThatHawaiiGuy]

2009 - Year of all economic lows according to Saxo Bank predictions

http://www.ibtimes.com/articles/20081230/saxo-bank-predictions.htm

30 December 2008 @ 02:35 pm EST
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Saxo Bank has made a series of gloomy economic predictions for the year ahead.

Crude trading is predicted to hit as low as $25 per barrel. S&P 500 will fall 50% to 500. China's GDP growth will fall to zero. EURUSD will fall to 0.95. These are some of the more shocking predictions for the year ahead.

According to Saxo Chief Economist, David Karsbol, 2009 will be a turning point as things can't get much worse than what they already are.

Saxo Bank's Outrageous Claims for 2009:

1. There will be severe social unrest in Iran as lower oil prices mean that the government will not be able to uphold the supply of basic necessities.

2. Crude will trade at $25 as demand slows due to the worst global economic contraction since the great Depression.

3. S&P will hit 500 in 2009 because of falling earnings, vaporizing housing equity and increased cost of funds in the corporate sector.

4. The EU is likely to crack down on excessive government budget deficits in several member states, and Italy could live up to previous threats and leave the ERM completely.

5. The AUDJPY will drop to 40. The decline in the commodities markets will affect the Australian economy.

6. EURUSD will fall to 0.95 and then go to 1.30 as European bank balances are under tremendous pressure because of exposure to the faltering Eastern European markets and intra-European economic tensions.

7. Chinese GDP growth drops to zero. The export driven sectors in the Chinese economy will be hurt significantly by the free fall economic activity in the Global Trade and especially of the US.

8. Pre-In's First Out. Several of the Eastern European currencies currently pegged or semi-pegged to the EUR will be under increasing pressure due to capital outflows in 2009.

9. Reuters/ Jefferies CRB Index to drop to 30% to 150. The Commodity bubble is bursting, with speculative excesses so large they have skewed the demand and supply statistics.

10. 2009 will see the first Asian currencies to be pegged to CNY. Asian economies will increasingly look towards China to find new trade partners and scale down their hitherto US-centric agenda.