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DarkKnightNomeD

CITI SOUNDS ALARM: WORLD ECONOMY IN DEATH SPIRAL

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Front Headline on Drudge - Finally they are coming out and saying it.

CITI SOUNDS ALARM: WORLD ECONOMY IN DEATH SPIRAL

http://www.cnbc.com/2016/02/05/citi-world-economy-trapped-in-death-spiral.html

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The global economy seems trapped in a "death spiral" that could lead to further weakness in oil prices, recession and a serious equity bear market, Citi strategists have warned.

Some analysts — including those at Citi — have turned bearish on the world economy this year, following an equity rout in January and weaker economic data out of China and the U.S.

"The world appears to be trapped in a circular reference death spiral," Citi strategists led by Jonathan Stubbs said in a report on Thursday.

"Stronger U.S. dollar, weaker oil/commodity prices, weaker world trade/petrodollar liquidity, weaker EM (and global growth)... and repeat. Ad infinitum, this would lead to Oilmageddon, a 'significant and synchronized' global recession and a proper modern-day equity bear market."

Stubbs said that macro strategists at Citi forecast that the dollar would weaken in 2016 and that oil prices were likely bottoming, potentially providing some light at the end of the tunnel.

"The death spiral is in nobody's interest. Rational behavior, most likely, will prevail," he said in the report.

Crude oil prices have tumbled by around 70 percent since the middle of 2014, during which time the U.S. dollar has risen by around 20 percent against a basket of currencies.

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USDX is about 97, I guess the flight from other currencies? NIRP in Japan and coming soon to Canada. I suspect the fed will find they have no other direction go soon. There'll be a flight of capitol and where will it go? T-bills maybe. You can buy but you can't sell.

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Buckle up,  grow your gardens,  get your chickens.  Because shits about  to go up. 

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