By Gregory Mannarino, TradersChoice.net
The single most important asset to the global markets is crude oil. PERIOD.
Wall Street investment banks have trillions in leveraged dollars invested (“betting”) the price of crude oil will remain high. Crude oil fuels Wall Street and the stock market. The entire energy and financial sectors of the market depend on the price of crude oil being high. The mechanism of keeping the price of crude oil high, by any means necessary, is a main driver of the global markets.
Today, the price action of crude oil has no bearing on reality, and, like everything else, is rigged.
Over the weekend, another false flag event occurred: a major oil pipeline “fell victim” to a cyberattack. I foretold that an event like this would happen several weeks ago after crude fell several dollars a barrel. Whenever I see the price of crude oil fall, alarm bells go off in my head telling me to look out for another false flag event that will push crude oil higher. The price of crude will be kept artificially propped up by ANY AND ALL means necessary. Perhaps an oil refinery fire, a bombing, a supply chain disruption, a missile attack… or the latest, a cyberattack. More false flags are going to occur more frequently.
The mechanism of propping up the price of crude oil goes beyond the stock market. The rising cost of energy is going to be used, and it already is being used, as a scapegoat for inflation. It is the same game they always play: Look HERE! Do Not look there.
The headlines will be: “The Skyrocketing Cost of Energy is Causing Inflation.” Moreover, they will attempt to sell the story that “inflation is only temporary.” As always, just as they are supposed to, the weak-minded/dumbed down will buy the fake narrative. They always do.
In the last year, the Federal Reserve’s balance sheet has ballooned by 118 percent. Again, this is no secret to anyone who follows my articles in the Trends Journal.
Years ago, I began explaining that the Fed was going to “Go Hyper-Nuclear” regarding debt issuance and acquisition, effectively creating an inflation-creation machine. It is this mechanism that is causing the current rising state of inflation in America. And, again, people are not supposed to know that, so the “rising cost of energy” will be blamed.
Closing out last week, the U.S. suffered its largest miss in history regarding jobs creation, One million new jobs were expected, but we got less than 300,000. Net, the U.S. economy is still losing millions of jobs each month, with unemployment claims averaging over 500,000 weekly.
Moving forward, the Federal Reserve will be increasing its asset purchases, despite reports to the contrary, and they will also be increasing their currency creation. Both of these mechanisms are dollar-purchasing power negative, henceforth, more inflation – by design.
Understanding the mechanisms in place, it is clear that we can expect the price of crude oil to rise, and this will hit the economy hard, as countless products are made with crude oil. As I mentioned, look for more false flag events as well to occur.
The effect on the stock market is simple: HIGHER.
