Global Markets on the BRINK of COLLAPSE! Why? Oil War!

Hey yo, what is going on viewers of the tuuuubee. If you are wondering where you are at in the
tuberverse, let me first introduce myself as Tyler, and you just set your sparkling
eyes upon the crypto channel that makes America proud, just like this news Anchor….you know
how we pronounce, it’s time for Chico Crypto! Well, it was a REKT city….yesterday, Monday
to open the markets, for almost every single asset out there. Financial assets, tech stocks, service industry
stocks, consumer goods, basic materials, utilities, shoot even healthcare took a massive hit yesterday. And, unlike predicted, the crypto markets,
took an extremely steep dive in which no altcoin was safe, over 10 percent 24 hour losses for
almost every coin. So what the freak is going on, why are we
collapsing in finance 1.0 and finance 2.0 aka the crypto markets? Well, let us begin with finance 1.0. If you watched my video yesterday, and then
my video posted a few months ago, I foresaw this coming. The similarities between the roaring 20s,
and the stock market surge of the 2010s was so uncanny, a great depression, a black swan,
part 2, in which America overshot and collapsed once again seemed more likely, rate cut by
rate cut. Well, the coronavirus has sped things up big
time, and accelerated the need to devalue the dollar even further. Federal Reserve slashed rates, after an emergency
meeting between the g7 and their central bank governors. As we can see, this was the first emergency
meeting since the 2008 financial crisis, and was the largest since then too, a 50 basis
point cut, Well, did it help? Pulling out the Dow, it did give a little
bounce on the 4th after the rate slash was announced, but by Friday of last week the
reality of the virus kept bringing the markets into the red…but nothing to make them fall
off a cliff. So what caused the markets to jump off a cliff? One word OILL! Pulling out the price of oil, it has fallen
by over 30 percent, to just above 30 dollars per barrel, levels not seen this low since
the 2016 oil crisis. What is this & what in the bajeezus happened? Well this was a deliberate attack against
the petrodollar, by countries, who have had to play into the United States game of gasolina
for almost 60 years now, since the 70s, when the US dollar, decided to officially drop
the gold standard, and become backed by transactions in OIL. Now, if you think I’m talking about the
US dollar, as the petrodollar being backed by OIL, you are wrong, the thing that gives
the US dollar most of its value and power in this world, is the fact that all transactions
for OIL, must be done and denominated in United States dollars. I dove into this in yesterday’s video, but
that nutty Nixon, shocked the world, by saying bye bye to gold backed dollars, and befriending
the saudi’s to create the standard that is the Petro Dollar today, setting the stage
for US dominance, as world’s became industrialized and the demand for oil surged. What happend to the price of oil now that
US dollars were the base currency? It went balls out ballistic, going from under
20 dollars per barrell in 1970 to over 100 by 1980. And now since this move by the US, all major
world conflicts, and events, have to do with OIL, and it’s price….and the market crash
yesterday…is no different. So what happened? Well our President tweeted, explaining it. “Saudi Arabia and Russia are arguing over
the price and flow of oil. That, and the Fake News, is the reason for
the market drop!” Yes two major oil producing countries, the
leader of the OPEC countries, Saudia Arabia and Russia are going head to head, over the
price of oil. Well Mr. Trumper mc stumper, is actually wrong,
as it’s not only just Saudia Arabia, like I said they are the leader of the OPEC countries. OPEC stands for organization of the petroleum
exporting countries, and it includes countries in South America, Africa, and the middle east. And OPEC, is going to get hit hard, stats
as of right now, put those countries losing over 500 million in revenues per day, with
many of the countries, losing money and not making breakeven with these critically low
prices. Now Saudia Arabia, can sustain the lower prices,
because they produce like hell & are pretty close with the United States, but other OPEC
countries are going to suffer and suffer big time, from this price war. So all of OPEC is one player, even though
the ties between them could blow up any second. Why? Well the next player is OPEC’s partner in
Petrodollar crime, the United States, as you can’t leave out this good ole US of A in
talks about OIL. We should more say Saudia Arabia’s ole partner
in crime, as the relationship between the Sauds and the USA go back from Nixon…to
Obama…even to Trumper touching a weird ole globe, with King Salman of Saudi Arabia. Which after this picutre, President trump
tweeted this…..Plenty of OIL So the dollar keeps its power by being best
of friends, with the number 1 oil producing nation and leader of OPEC. Well, the United States, has been playing
into the dangerous OIL game….when they released the power of the petrodollar in the 70s, oil
production fell off a cliff in the US, but since the 2008 financial crisis, oil production
in the US has gone into overdrive. Why? The growth of the US frackiing industry. Fracking technology, aka shale gas extraction,
is digging deep into the earth’s surface, and extracting out of fissures in the shale
layer of the crust. Well, we went LONG on fracking in 2010 and
the fracking boom took place in the US, well environmental concerns caused a bust in 2015….when
Obamer, decided to say hey no frekin fracking all willy nilly, well in 2017, Trump did away
with those rules…once again opening the door…and as we can see, from this graph,
oil production shook of the 2015 bust, and once again went into overdrive. But this is going to be our downfall my friends….as
these lower prices, will not be sustainable for the US fracking companies that have even
been struggling at prices before all of this. And guess what? These fracking companies are all highly in
debt, as Energy sector companies in the US are the biggest issuers of US junk bonds. This has been going on since the fracking
boom, a surge, which from 2005 to 2014, energy companies in the junk bond market grew by
10 percent, going from five percent to over 15 percent. Now junk bonds, are bonds that have a rating
of BB or below, indicating that they are at higher risk of default than “investment-grade”
issuers, rated BBB and above. Well since 2008, this junk bond market has
been blossoming, increasing by over 100 percent from 2008 to 2018 alone, and energy companies
make up a large percentage of this. And even before this OIL price war, this energy
junk market performed the worst in the high yeild junk index for 2019. And guess what? A ton of the investment in these crap companies,
is using leverage. Since 2008 leverage loans has increased by
100 percent as well, just like the junk market, going grom 600 billion to nearly 1.2 trillion
dollars as of 2019. And who are the leveraged loan losers, even
before this OIL crash? The oil, and fracking companies in the US..the
energy companies. We have a fracking house of cards here in
the US. The low oil prices will put massive pressure
on the revenues of the fracking companies. Buyers of the bonds, who played with leverage
will get liquidated, other will panic sell, and this will make the companies who had to
borrow, unable to satisfy interest and principal payments…..and if things get any worse,
and more sell off continues, many of these corporate bonds are maturing in the coming
years, meaning they can’t be restructed, aaannnddd bankruptcies will be happen. Which people are afraid of the ripple effects. If investors continue to pull cash from the
market, companies in other sectors could face higher borrowing costs and more financial
pressure. As traders pull money from high-yield bond
mutual funds and ETFs, those withdrawals force fund managers sell other bonds to fulfill
redemption requests…meaning the weak leg of the corporate debt house of cards could
cause a fullon collapse spreading into the banking sector, government sector and beyond. But there is one last player, we didn’t
dive into Russia, who is being portrayed as the instigator, the one who wouldn’t side
with the Saudi’s and agree to cut their oil production, keeping oil prices artificially
high. Yes, the meeting between Russia and Saudia
Arabia, was made for an agreement to happen, where Russia and the OPEC countries would
all agree to cut oil production due to the coronavirus, cutting global demand. Russia previously worked with and sided with
OPEC, but over the weekend, talks broke down. Russia said nope, we will keep production
at these levels, so the Saudi’s said we will too. Now this is supposed to hurt russia, as oil
is one of their biggest sources of global revenue. Roughly 35 percent of their Federal budget
comes from oil….the last time there was a global oil war of this scale was from 2014
to 2016 and Russia suffered greatly from it, one of the reasons they made a pact with OPEC
before the breakdown of talks over the weekend… But this time, it’s different, it seems
like Russia knew another oil price war would come…and they just needed to play there
cards right…this Bloomberg article put out in August of 2019, tells it like it is. Russia to Leapfrog Saudi in Wealth League
as Oil Power Shifts….Russia’s bank and cash reserves was just about to pass Saudia
Arabias, they didn’t have this back in 2016. What else has Russia been stockpiling besides
cash? GOLD…. Yes, Russia has been stockpiling gold too…..the
central bank has gone on a buying spree, with no slowdown, even today, is the biggest single
purchaser of gold month after month. And even before the outbreak of the coronavirus
their gold stash was worth over 100 billion dollars, with the recent gold surge that is
now worth 113 billion. Russia is prepared with a rainy day fund,
unlike last time, meaning, Oil prices will collapse. Oil producers are going to go bankrupt. & Government budgets are going to be drained
in oil-exporting countries. So what is going to happen to the asset, we
all hold so dear. BITCOIN? Well, it is getting trashed, while GOLD has
kept it’s cool….what the freak? I thought this was supposed to be an asset
not tied to finance 1.0? Well my friends….the attack on gold has
come, they aren’t letting it break 1700……as you can see, once it got to that level, obliteration
down….now, the US has a stockpile of GOLD, they need it to be worth something, or else
their stockpile goes poof! They can’t trash Gold like they trash BTC,
as the US government had explicitly stated that they do not care about BTC. We are coming to a peak, my friends, and in
my opinion we are at the fight you stage. They will do everything in their power, including
fueling the narrative, that crypto and BTC is just a shitier more speculative investment
than the stock market. Do not fall for it, this is the plan. I’m stickin with Plan B. Cheers viewers
I’ll see you next time!

100 thoughts on “Global Markets on the BRINK of COLLAPSE! Why? Oil War!

  1. ⏰ Time Stamps ⏰

    00:08 Intro-Making America Proud?

    00:37 Markets Get REKT on Monday

    01:04 Why Did This Collapse Coming??

    01:36 Federal Reserve Slash Rates. Did It Help?

    02:13 OIL Falls Off A Cliff!

    02:42 The Petro Dollar-Oil Transaction Backed

    03:23 Oil Price Drives World Events

    03:46 Trump Explains What Is Going On..

    04:23 OPEC About to Get Hit HARD

    04:49 The USA & Saudi Arabia

    05:26 USA Dives Into The Oil Producing Game!

    06:33 The Fracking House of Cards: Leveraged & Debt Ridden

    08:06 Pressure & Bankruptcies Are Coming. Maturing Bonds

    08:44 Russia In This Oil Price War

    09:47 Is Russia Prepared While Saudi Arabia Isn't?

    10:52 So BITCOIN…What Will Happen?

    11:33 The Fight You Stage…

    11:59 Outro

    💥Buy A Ledger & Keep Your Crypto Safe💥

    🔒Buy A Trezor & Keep Your Crypto Safer🔒

    👍Download The Brave Browser $BAT & Support Crypto!

    🔥Join The Chat On Telegram 🔥

    👉🏻Follow Me On Twitter

    👌👌Subscribe to The Chico Channel–

  2. Great content. This a major power play by Russia. They can get away with it because Trump is such a weak leader. His weak-minded zombie supporters think he is strong, but it is a facade that they have fallen for.
    Well played Putin, well played.

  3. I get it all i here is you dont want crypto but i know they are accumulating all they can well let's see what happens

  4. !!!!!!!!!!!!!TYLER you Got to see this
    It explains all the sjit with repo and sjit

  5. 💚🧡💙💛 The DiDi Mega DooDoo girl looks like Tyler with a wig. and I would DEFINITELY tap that hottie 💚🧡💙💛

  6. Crypto-currencies are a scam. I always enjoy other people in control of my money and charging me nearly $100 anytime I want to send any money to anyone and can only do it when they grant me permission and feel like being open for business. Being controlled and cheated by banks everyday is a good thing – that's why Bitcoin and ETH have no future. Banks are the best and will always act in the best interest of the public.

  7. Want to remind everyone to make a 'crypto will' in case you shake a hand and touch your nose and croak. Don't leave your loved ones in a Quadriga.

  8. Read some comments saying how finance 2.0 could be influenced by finance 1.0 also playing around in the crypto-sphere. Where they might be selling off their crypto holdings to pay for their losses etc. In theory the 1.0ers would get shaken out and then crypto might get back to the base players. Thoughts?

  9. Saudi Arabia and Russia are dumping cheap oil onto world markets with the sole purpose of crushing the US oil production. US oil industry will soon be toast. Sanctions will not help like they did with Iraq and Venezuela… US needs more than ever to move away from dependency on oil.

  10. Thanks, Chico! You're #1, brosefus. Did you also check out that there's 4 trillion dollars in BBB-rated corporate bonds that should be downgraded to junk bonds since the corporate asset values on which the bonds were issued have tanked? And pension funds don't hold junk bonds, so they will have to quickly sell them out of their portfolios? This over-rating of corporate bonds and sell off could be the next and most painful phase of the financial breakdown.

  11. The markets will take atleast a couple more "MegaDooDoos" before the halving then we will slingshot like a mofo just as long as the Corona Virus woes subside within the next couple of months..

  12. The petro dollar fell apart in 2001, when Iraq said screw Nixon's 30 year old deal and sold oil for euro's; hence we came a knocking on his front door in 2003.

    Russia is a one product propane GDP; but Russia and China have been buying gold, hand over fist the last few years.

    POTUS is and always has been a gold bug and; he encouraged Rep. Mooney to put up HR5404 and it has been stuck in the Financial Services Committee ever since, on March 22, 2018.

    However if it was to be passed through both houses and reach Trumps desk, he will sign it into law, and a fixed wieght of gold would be assigned once again to USD.

    That would drastically change the pieces and players on the board; and with one single pen stroke the entire national debt could be wiped out; with only a 1/2 basis point left to go; the Fed would have no mojo left and their charter would be rescinded with an EO and folded up under the Treasury Department.

    That is why the move is being made right now to task reorganize the secert service back into the Treasury Department from whence they came.

    It's all just some slight of hand while the sheep drool in their popcorn watching the D vs R shit show.

  13. If crypto becomes a major player.

    What happens with DAI being pegged to US Dollars?

    I like parking funds in Defi/ledger when I'm not trading.

    Will MakerDAO just change the peg from the dollar or some other plan?

  14. you're assuming the U.S. does HAVE gold. But their reserves haven't been audited. Do some digging around as to why that is, if you will.

  15. This channel has hands down some of the most detailed, thoughtful, and timely content on Youtube, in any genre. Well done dude, you will have earned that shave 😉

  16. Chico your so wonderful! I pray to Jesus for you every day and you should be president! I want to send you a customized Trumpy Bear that I decorated with glitter and a bouquet of precious flowers.

  17. Trump is the master of chaos, he ought to deport Rockefeller & seize his Estate to fix the Debt. Unfortunately the Rothschilds and Rockefellers CONTROL Donald Trump, they OWN him.

  18. Fracking was never economically viable. Its just the easy loans from banks to the industry made what should never have happened, happen… It was a PONZI scheme, and an environmental disaster of enormous proportions, all thanks to greed and the central banks that accommodate every and anything immoral to make illegitimate profit. The corporation heads that did all this plus the vampire banksters all belong in prison for life.

  19. Thank you for showing the chart and then explaining the narrative. How would you convince an oil and gas producer to offset their losses by purchasing bitcoin?

  20. It is unknown if the US Inc has any gold at all… My sense it was all either sold or stolen. They lie, lie, lie and lie again… If they were not committing a crime they would not know what to do with themselves.

  21. Chico.
    How many companies that rely on oil have been affected by the virus?
    …And how many of those companies arm the Saudi government?

  22. I wager to disagree about US holding gold. I believe they have squat. Who needs gold when you can rehypothecate the bejesus out of the gold the US is supposedly 'holding' for other countries. Remember Germany repatriating its gold? The US didnt have it no more so they gave the krouts a seven year IOU, the exact time it would take to mine.

  23. i heard on news that cost to produce 1 barrel of oil are, USA $40 +, Saudi $7 and USSR $4 so theres your answer,

  24. With his best strategies imbedded in the trading robot coupled with the perfect timing and identification of perfect trading opportunities Steve Hopman has being a pro in account management

  25. Great points made to bring some perspective. Also fascinating is to notice how long it stayed in a sideways price range. During that time a trader could make a good living buying the lows and selling the highs of that range, Now that the bitcoin is at its current level, it is advisable that we need to do is invest what we’re Holding and make more profit, So we don’t feel the loss in fall of price which we are experiencing now, I discovered a comment of someone giving Accolades to William Kale and also thanking him for helping him increase his Portfolio from having 4BTC to 12.5 BTC in a month, so I contacted him, Behold I have made 3.5Btc in 4 weeks with his working trading strategy, if you have lost so much during fall or want to increase your portfolio like me, Y'all can reach out to him through His Telegrm at @willkale77 and thank me later.

  26. I think the chinese are selling their BTC now in the midst of this devastating pandemic, and that’s why the price of crypto is plummeting.

  27. These vids are getting better and better – particularly liking the research and charts and graphs that back up the arguments – keep at the great content.

  28. Forget Nixon, credit goes to Henry Kissinger for the Petro dollar. See him center screen at 3:13 in this vid.

  29. I truly love this channel. Keep this awesome content going Chico! Doesn't really surprise me considering we've got this BS Corona virus going on as well. I'm sure the media is paid to manipulate everyone to panic so much about it. Crypto is here to stay, keep accumulating! I'm holding, and buying more #BLOCK in anticipation of the next bull run. Truly an amazing project with a great DEX.

  30. The chart for break even price is wrong and old.. that mean saudi arabia ia sellin in 20$ loss!! Is that even possible?

  31. Sorry for my noob question but why can't bonds be re-structured when close to their maturity period? Asking as bonds can many times have the option to postpone. Thx!

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