Shocking stat of the day:
The top 10% of US earners now reflect a record 49% of all consumer spending.
This percentage has risen +13 points over the last 30 years, marking a dramatic shift in spending power.
At the same time, the bottom 80% of earners represent just ~37% of total consumer expenditures, down -11 percentage points since 1995.
This means the top 10% account for a record 33% of US GDP, as personal consumer expenditures account for 68% of total economic output.
Meanwhile, the bottom 80% account for just 25% of the US economy.
Asset owners are the only winners in this economy.
There it is:
Natural gas prices are now down -6% just 15 minutes after futures opened for the first time since Maduro was captured.
And, oil prices are back below $57/barrel and nearing their lowest levels since 2021.
In just about ALL major escalations of geopolitical tensions with oil producing countries, energy prices typically RISE.
Why is it different this time?
Because the US taking control of Venezuela is set to bring MORE oil and natural gas supply to the market.
The market knows that this weekend's events will ultimately result in the opposite of a supply disruption.
The market is never wrong.
This is absolutely insane:
Venezuela currently has 303 billion barrels of crude oil reserves, which Trump says the US now controls.
Oil prices are trading at ~$57/barrel, making Venezuela's total reserves worth $17.3 TRILLION.
Even if the US sells this oil for HALF of the market rate, that's still $8.7 TRILLION.
In other words, in 12 hours, the US has gained control of oil reserves worth more than the entire GDP of ALL countries in the world, aside from the US and China.
That's 4 TIMES larger than the GDP of Japan.
Most people do not realize how much the world just changed.
Oil markets will react to this news for the first time on Sunday at 6 PM ET.
The next few days will be critical.
This time it will NOT be different
I've traded in six different decades
Every time there has been a supply and demand imbalance in commodity markets I've heard the phrase ...
"This time it's different."
It has never been different. Never will be.
So enjoy it now
#silver
Nov CPI released this am
- Core CPI YoY 2.6% vs 3.0%
- massive 0.40bp undershoot
Inflation falling like a rock🪨
Positive YE rally:
- equities $SPY $IWM $QQQ
- crypto Bitcoin and Ethereum $BTC $ETH