THE SUDDEN COLLAPSE OF THE OIL AND GASOLINE COMMODITIES TESTS THE OXFORD QUESTION: WHAT IS THE TIME FRAME FOR ANY OTHER FUTURE COLLAPSES OF ASSETS? THE DEFLATIONARY ECONOMIC ENVIRONMENT WORKS ON A PREDICTABLE CALCULUS WHICH ALLOWS US TO PLAN FOR THE FINAL DEVALUATION OF THE STOCK MARKET. LET TAKE A LOOK AT THE DEFLATION SUBMARINE HISTORICAL FRAMEWORK:
1. THE REAL ESTATE ASSET COLLAPSE IN 2008 (HOME BUILDERS AND SUPPLIERS, ESPECIALLY COMMERCIAL REAL ESTATE AND MORTGAGE RATES.) SURPLUS SUPPLY OF 500,000 HOMES AND INVENTORY GLUT OF VACANT HOMES.
2. THE FINANCIAL MARKETS COLLAPSE 2007-2009 ( SEE CREDIT CARDS AND CONSUMER LENDERS) SURPLUS MONEY SUPPLY DUE TO FEDERAL RESERVE QUANTITATIVE EASING PROGRAM HAS CREATED SURPLUS MONEY IN THE FINANCIAL SYSTEM.
3. THE GENERAL ECONOMIC RECESSION COLLAPSE OF THE ECONOMY 2008-2012.
(BIG TICKET CONSUMER ITEMS) SURPLUS BIG TICKET ITEMS THAT HAS A GLUT IN THE MASS CONSUMER MARKET. CONSUMERS WANT SMALL LUXURIES.
4. THE GENERAL COLLAPSE OF ANTIQUES, ART, JEWELRY, AND OTHER TANGIBLES, 2009-2020.( RISE OF ESTATE AUCTION HOUSES AND CONSIGNMENT STORES OFFERING INCREDIBLE BARGAINS 10 CENTS ON THE DOLLAR!) SURPLUS OF COLLECTIBLES WITHOUT GROWING DEMAND.
4. THE GENERAL COMMODITY COLLAPSE OF 2011-2014. SURPLUS OF COMMODITIES WITH LACK OF WORLD WIDE DEMAND AND EXPORT MARKETS. EXPORT MARKET HAVE COLLAPSED DUE TO DEMAND AND PROTECTIONISM. THE COMPARATIVE ADVANTAGE HAS BEEN A POLITICAL FOOTBALL.
5. THE OIL AND GASOLINE COLLAPSE OF 2014-2015. (JUNK BOND SECURITIES ARE OVER-VALUED AND HAVE NO ECONOMIC SUPPORT VIA COMMODITIES.) SURPLUS OF OIL DUE TO AMERICAN SHALE AND OVERPRICED OIL CREATING DISEQUILIBRIUM FOR A YEAR.
6. THE OPEC COUNTRY COLLAPSE OF 2015-2016. SURPLUS OF GOVERNMENT OVERSPENDING AND BUDGET BASED ON $140.00 OIL.
7. THE WORLD WIDE DEFLATIONARY COLLAPSE OF 2015-2016 (JAPAN UNABLE TO STAGE AN EFFECTIVE COMEBACK; WHEREAS CHINA 10% GDP GROWTH AND OFFSHORE BANKING HAVE CREATED NEW MARKETS) SURPLUS OF JAPANESE MONEY, CREDIT, CURRENCY AND LACK OF GDP GROWTH -- NO DEMAND. CHINESE HAVE A DIFFERENT CALCULUS: DEMAND >SUPPLY FOR NEXT 10 YEARS! STEVE WYNN GAMBLING STRATEGY IS TO FOCUS ON HIGH END LUXURY USERS OF HIS WYNN PALACE AT A PRICE OF $ 9 BILLION. THE LAS VEGAS MARKET HAS COLLAPSED IN THE MIDDLE AND NOW IS GOING THROUGH CASINO REORGANIZATIONS, ACQUISITIONS, ALLIANCES AND BANKRUPCY. MDDLE AMERICA IS GAMBLING IN THEIR OWN STATE INDIAN CASINOS. ARIZONA HAS 23 INDIAN GAMING CASINOS AND ADDING A NEW CASINO IN 2016.
8. THE COLLAPSE OF COMMODITY BASED CURRENCIES 2015 -2016. THE OPEC COUNTRIES AND RUSSIA HAVE OVERPRICED CURRENCY SURPLUS BASED ON DEPRECIATING OIL ASSET.
9. THE STOCK MARKET COLLAPSE OF 2016-2017: SEE SCHILLER CAPE INDEX. SURPLUS OF OVER-PRICED STOCKS WHICH SELLERS WILL SELL FOR PROFIT AT HIGHER PRICES. THE OVERPRICED STOCKS ARE CREATING AN ECONOMIC BUBBLE. STOCKS NEED TO RETURN TO NEW EQUILIBRIUM PRICE BASED ON FACTS: SUPPLY > DEMAND! WHY ARE STOCKS GOING UP? THE INVERSE RELATIONSHIP BETWEEN DROPPING OIL PRICES AND STOCK PRICES. THE PRICES SHOULD GO UP 20% FOR NEXT YEAR!
THE DEFLATIONARY SUBMARINE CANNOT SINK THE FOLLOWING TARGETS:
1. THE USA HAS RECLAIMED ITS ROLE AS THE INVESTMENT FORTRESS OF THE WORLD WITH CERTAIN LIMITATIONS. THE DOLLAR IS THE CURRENCY OF WORLD -WIDE RESERVE. THE RISE OF AMERICAN ENERGY SECTOR WHICH SHOULD BE GIVEN CONGRESSIONAL SUBSIDIES TO COUNTERACT SAUDI LOW BALLING OF OIL MARKET.
2. ALL US TREASURY BONDS AND USA HIGH QUALITY BONDS. ALL USA GOVERNMENT ENTITLEMENT PROGRAMS, OBAMA CARE PROGRAMS, TRANSFER OF INCOME PROGRAMS, MASS SUPPORT OF SOCIAL SECURITY AND MEDICARE. THESE ARE CREATING INCOME STABILITY TO LARGE SECTORS OF THE AMERICAN CONSUMERS. THE BOOM GENERATION ARE LARGEST CONSUMER GROUP WITH HIGH ENTITLEMENT INCOMES THAT TRANSLATES INTO SALES AND INVESTMENTS. IF THE BOOMER DO AN ECONOMIC BOYCOTT OF COMPANIES OR INDUSTRIES THIS WOULD CREATE ECONOMIC VETO OF SELECTIVE PRIVATE COMPANIES. THE BOOMERS HAVE ONE LAST PROTEST LEFT AND CAN USE THIS WEAPON AGAINST ANTI-BOOMER ENTITLEMENT PROGRAMS.
3. STOCKS THAT HAVE HIGHER INCOME RETURNS AND INTEGRATION OF TECHNOLOGICAL INNOVATION COMPANIES. ALSO CONSUMER STAPLES AND HEALTH COMPANIES.
4. HIGHLY SELECTIVE REAL ESTATE HOMES, FACTORY HOUSING, RENTAL APARTMENTS.
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The deflationary submarine as opened up the energy field for 10 American states. These 10 states including Arizona will benefit from lower energy costs and increase the level of economic activity within the states. The fact that lower prices attracts new industry and new business for Arizona.
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