Hong kong has the highest red meat consumption in the world at 1.5 lbs per person per day AND the longest average lifespan at 85 years.
Red meat is a superfood.
Oil has a high probability of heading towards 104 on this next leg.
The 4-hour chart is showing a broadening pattern, and the 5th reference point higher is now in play.
OIL ABOVE $120 WILL UNLEASH AN ENORMOUS SUPPLY OF GOVERNMENT BONDS.
Imagine oil suddenly moves to $120–$130.
Petrol prices rise.
Transport costs explode.
Food inflation returns.
Electricity, manufacturing and logistics become more expensive.
The public feels the pain immediately, and governments panic.
They cannot allow the full oil shock to directly hit households. It is politically impossible.
So they will announce fuel subsidies, tax relief, cash support, price caps and compensation packages.
People will believe the government has protected them.
But the pain was not removed.
It was simply transferred from the consumer’s pocket to the government’s balance sheet.
And governments are not going to cut welfare, defence, infrastructure or existing spending to pay for it.
They will borrow.
That means an enormous new wave of government bond issuance hitting the market while inflation is already moving higher.
This is the exact opposite of COVID.
During COVID, governments printed and borrowed money to stimulate collapsed demand.
This time, they will print and borrow money to protect individuals from the financial pain created by a supply shock.
That is far more dangerous.
More spending cannot produce more oil.
It will only increase deficits, weaken currencies and force bond markets to absorb even more sovereign debt.
Oil rises.
Governments subsidize.
Deficits explode.
Bond supply surges.
Long-term yields jump.
And once markets understand that governments are monetizing the pain of scarce commodities, gold will not react slowly.
Gold will move violently upward.
Because at that point, the market is no longer pricing only an oil shortage.
It is pricing the destruction of confidence in government bonds, fiat currencies and the ability of policymakers to control inflation.
It is now safe to say that we can add my July 3rd call to the mantelpiece of yet another pulchritudinous forecast made by the Great One. 🏆
To further add:
USOIL is likely to push above $100 and could even climb toward $150 .. if the war not only escalates but drags on for many months.
For your private perusal.
Enjoy.
She's beautiful.
Have a great weekend .
Until next week .
Yours truly
The Great Martis.⭐️