Steve St. Angelo, SRSrocco Report

(MARCH 8, 2020 Late PM US EST)

It begins… the world is finally waking up to the massive economic and financial threat of this global contagion.  As reported by Zerohedge, the Middle East markets opened today to a bloodbath as many of the region’s stock indexes fell more than 5%, with Kuwait suspending trading after it’s market fell 10%.

According to the article, Market Bloodbath: Middle East Stocks Crater; Kuwait Halted; Aramco Below IPO; Dow Indicated Down 500; it looks like the global markets are going to experience more CARNAGE on Monday.  I wouldn’t be surprised to see the WTIC (West Texas Intermediate) fall into the $30s tomorrow.  If not on Monday, certainly some time this next week.

(image courtesy of The National)

On Friday, WTIC, the U.S. oil price, fell an astonishing 10% to $41.28.  So, we are only $1.29 from being in the $30s.  I don’t believe people still realize the gravity of the situation.  We can include the nitwit financial analysts on CNBC, etc.  I haven’t put that channel on for years, but have done so the past few days to see what sort of nonsense they were blabbering about.

Of course, most of the financial analysts are saying that once this “Global contagion” finally subsides, then the Dow Jones Index will be at new highs next year.  My reply to that would be…

LOLOL

My analysis of the current situation suggests that we haven’t BEGUN to see the CARNAGE in the markets.  I wouldn’t be surprised to see the overall markets down 50% by summer.  And my forecast of the oil price to reach the low $30s may turn out to be way too conservative.  In the zerohedge article link above, it stated the following:

And now oil will have a Saudi oil price war to deal with, prompting some to speculate that the price oil could drop into the high teens, if not lower.

Some analysts forecasting the possibilities that the oil price can move into the “HIGH TEENS?”  What would that do to the U.S. Shale Oil Industry? If oil falls to the $20s or even the high-teens, that will destroy a large part of the U.S. Shale Oil Industry in just a matter of months or quarters.

WARNING:  If You Haven’t Been Preparing For This Global Contagion, You Better Start

I haven’t been writing too many articles recently on my typical subject matter, because it’s not important right now.  I find it utterly hilarious to see many of the precious metals analysts only focusing on gold and silver.  The global contagion is is far worse than problems just with the monetary system or the precious metals.  However, it is important to own physical gold and silver now if you don’t have any.

I gather many of you have seen the images of Costco stores being wiped out of toilet paper, hand sanitizers, water, rice, etc.  This is just the FIRST STAGE.  I have seen some sources stating that due to the virus breakout in Seattle, many stores have empty shelves as people buy canned foods, packaged foods, cleaning supplies, etc. When we see a large percentage of stores across the United States will be a lot of empty shelves, then we have moved into the SECOND STAGE.

Here is an image from a Car & Driver article published yesterday about Seattle being a “Ghost Town.”

Do Americans actually believe that Seattle will be the only city in the United States that will be shut-down or in one form of quarantine or another?  Chris Martenson has been doing an excellent job with his daily video updates on the global contagion.  Please check out his youtube channel here for updates: Peak Prosperity Youtube Channel.

When Chris says that the “U.S. is in DEEP TROUBLE,” he’s correct. Our system is not prepared at all for this global contagion virus, and I believe, from looking at several different scenarios, the U.S. will be in serious trouble by the end of May. Of course, we are going to see more cities being quarantined or shut down over the next 6-8 weeks, but the stock markets and economy will be contracting at an alarming rate by that time.

If you haven’t purchased canned food, packaged food, cleaning supplies, etc, it’s a good idea that you start. If the Costco stores become too busy and crowded, try going to smaller grocery stores off the beaten path to build up your stocks.  Also, there are fewer people at smaller stores.  I purchased a lot of toilet paper and supplies at a Family Dollar at off hours when there weren’t too many people.  Sure, I may have paid a bit higher price for things, but I’d rather pay more and be away from large crowds.

My gut tells me that Americans won’t have more than 1-2 weeks to prepare before it gets really crazy.  Now, I am not saying you have two weeks to prepare, but it may take 2-3 weeks before a lot of the shelves at Grocery stores become empty and will take time to restock.

I will be providing more detailed updates over the next several weeks.

UPDATE:  6 PM Eastern Standard Time Sunday

Well, it looks like the Middle East Market selloff has impacted the WTIC, U.S. oil futures price in early trading.  We probably won’t see that large of a decline when the U.S. Markets open tomorrow morning, but WOW… how insane are these oil price moves??

Steve St. Angelo, SRSrocco Report

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 -- Published: Monday, 9 March 2020 | E-Mail  | Print  | Source: GoldSeek.com

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