hmmm, excerpt; Depression 2010! New Oil Shock Will Kill the American Recovery! Lies, damn lies, and the pledges of politicians.
Remember when Federal Reserve Chairman Bernanke and Treasury Secretary demanded $700 billion from Congress to "bail out" the U.S. economy?
They claimed without it, America would be in recession until 2009...
That unemployment would hit an "unimaginable" 8%.
That the stock market would drop another 15%.
That was in September of 2008.
By November 2009, official unemployment was up to 10%. But according to the government's own broadest measure of unemployment, some 17.5% of American workers are either without a job entirely or underemployed.
That's more than twice as much as the worst-case scenario just a year ago!
The stock marked had crashed more than 40% by March of 2009.
And economists no longer are talking "recession"... but Depression.
With a capital "D".
But the worst is yet to come... A huge new "hidden tax" is going to squeeze what's left of the American economy, starting in early 2010.
You see, oil prices are part of almost all goods and services in a mature economy. Every rise works like a huge direct tax increase on everything you pay for in the United States — or anywhere else in the world.
Crude oil prices have more than doubled from their 2009 lows.
But you haven't seen anything yet.
Because demand is going bonkers! Global demand had hit rock bottom last May... and is well on its way up again.
In fact, after falling about 10% during the first 5 months of 2009, current consumption is actually almost 5% higher than it was last year, before the first big crash!
According to a recent Reuters poll of oil analysts, oil demand in 2010 will rise sharply, mainly due to growth in Chinese and Indian oil consumption.
The "consensus" opinion is that oil demand will GROW by 1.3 million barrels per day (bpd).
At the same time, supply will increase by only 800,000 bpd.
The 500,000 bpd surplus of demand over supply is expected to drain 150 million barrels out of oil inventories by the end of 2010.
Can you imagine what this will do to prices?
Oil prices may jump above $100 by late 2010 or early 2011, according to a revised global energy forecast by Bank of America-Merrill Lynch.
Spike in demand! China is not only buying up commodities like crude oil to make use of its stash of depreciating dollars...
It's been using its huge export earnings to fuel domestic consumption.
But breakthroughs in imported technology know-how and dirt-cheap labor have combined to create one of the greatest drains on oil supplies in history:
Cars made by Indian and Chinese automobile makers that retail for $2,000!
Think about it...
Right now, not even 1 in 100 Chinese can afford a car. Same in India.
Demand for cars like the Tata Nano is so high, the company had to have a lottery for its prospective buyers: By May 2009, Tata Nano had received about 203,000 bookings for its models — but the company only has capacity to manufacture 50,000 cars!
China is already the world's largest new car market — bigger even than the United States!
No wonder that since 1993, Chinese oil imports have grown by 4.3 million barrels a day!
In this kind of market, there's only one way to balance supply and demand for crude oil:
Sharply higher prices! That's why we're looking for oil prices to rise all the way to between $100 to $125 by summer of 2010!
This means that all the traces of the economic "recovery" the politicians have trumpeted will be going straight down the can!
The Oil Shock of 2010 is going to unleash a second, even stronger wave of layoffs through the American economy. Millions more will lose their jobs — as the cost of goods goes through the roof!
There is no way you can avoid being hit by this.
J. Christoph Amberger. The name may sound familiar to you.
I've been around the block a couple of times... first as editor and publisher of the trailblazing Taipan Group... as the author of a bestselling trading book, Hot Trading Secrets... and then as the "celebrity talking head" of a financial video channel.
For the past two years, I've spearheaded a brand-new investing resource called http://TodaysFinancialNews.com and our premium investment research service, Hot Stock Confidential.
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