Before I get into my rant for today, I have found some every interesting information about the oil and natural gas markets.\u00a0\u00a0 In addition to oil and gas info, the data includes information about gasoline, diesel, and heating oil supplies.\u00a0\u00a0 Every interesting information and summary reports by the United States Energy Information Agency, eig.gov.\u00a0\u00a0 You can find the link on our website under the major tab, \u201cWorld Oil Price Phenomenon.\u201d\u00a0\u00a0 Check it out.\u00a0\u00a0 As an example, you will see that in the five years from 2010 to 2014, the United States increased it\u2019s proved reserved from about 12 billion barrels of crude oil to 20 billion barrels.\u00a0\u00a0 The data for 2015 is not available.<\/p>\n
The year 2016 has certainly jumped off to a bumpy start.\u00a0 \u00a0The Dow Jones Industrial stock values have\u00a0\u00a0 fallen 1,000 basis points.\u00a0 The politics of the Middle East has gotten more tense.\u00a0\u00a0 Apple has announced it is cutting back on the production of the Iphone.\u00a0\u00a0 Gasoline prices have fallen to prices not seen in five or six years.\u00a0 All of this has developed since the Federal Reserve\u2019s FOMC decided to start raising the Fed Fund Rate in mid-December and indicated they intended to continue rate increases in 2016.\u00a0 The Redneck does not believe the rate increase caused these events, but the future of other rate increases may be affected by these events.\u00a0\u00a0 We will see as we move into 2016.<\/p>\n
Economist pundits on the television and radio financial shows report the unemployment rate is now below 5%.\u00a0\u00a0 Wow, great compared to 2009 when it approached 10%.\u00a0\u00a0 Others say not so good.\u00a0\u00a0 The jobs created are not high salary technology or industrial manufacturing jobs, but low paying service type jobs.\u00a0 While on a recent hunting trip, I conjured up a new Redneck analogy.\u00a0 I can remember when a good hamburger cost $1.00.\u00a0\u00a0 The minimum wage was $1.00.\u00a0\u00a0 Now a good hamburger costs at least $7.00.\u00a0\u00a0 The Federal minimum wage is $7.25.\u00a0 In 2005, when the minimum wage was $5.25 and good hamburger cost $5.25. \u00a0 Watch the price of hamburgers. \u00a0 It’s the new economic barometer. \u00a0CNBC aired an interview with the CEO of a restaurant chain.\u00a0\u00a0 See his views on raising the minimum wage at the link on our website under \u201cMiscellaneous.\u201d<\/p>\n
The Redneck will be watching several important elements of this complex world economy in the coming months.\u00a0\u00a0 One will be the world oil inventories and production. \u00a0Another will be the actions of the FOMC regarding future interest rate increases, and third will be world political actions.\u00a0\u00a0 All three will have significant influences on our individual financial wellbeing.\u00a0\u00a0 Oh, did I forget we will elect the next President of the United States?\u00a0\u00a0 We will hear promises upon promises from the candidates about what they will do for us.\u00a0 Will it be tax reductions, or new jobs, or smaller government, or fighting terrorism?\u00a0 Probably all of the above.\u00a0\u00a0 But, individually none of them can do any of it by themselves.<\/p>\n
When I was a young teenager I mowed lawns to make some spending money.\u00a0\u00a0 At the end of the summer I proudly announced to my Dad that I had accumulated over $50.00.\u00a0\u00a0 He told me I needed to put that money in the bank and invited me to come downtown to his office and we would go to the bank to open my first account.\u00a0 I met the bank president who invited me and Dad to have coffee down the street at the local caf\u00e9.\u00a0 Sitting around the table were several other local business men and soon the discussion was about the local economy.\u00a0\u00a0 The old bank president in a loud voice said, \u201dwhatever happens on the East and West coast will happen in Texas in about two years.\u00a0\u00a0 It doesn\u2019t matter if it economic fortune or failure, the length of women\u2019s dresses, or the width of a man\u2019s tie.\u201d\u00a0\u00a0 I would guess that today he would say whatever happens on the other 6 continents will happen in the US in the matter of hours, not years, as it relates to the financial markets.<\/p>\n
Stay vigilant my friends.\u00a0\u00a0 We are in for a rocky start to this new year.<\/p>\n
The Redneck.<\/p>\n","protected":false},"excerpt":{"rendered":"
Before I get into my rant for today, I have found some every interesting information about the oil and natural gas markets.\u00a0\u00a0 In addition to oil and gas info, the data includes information about gasoline, diesel, and heating oil supplies.\u00a0\u00a0 Every interesting information and summary reports by the United States … Continue reading