Friday, February 24, 2012

Friday Charts: Domestic Banks Deposits - Oil - Debt - Money Supply

A wide variety of charts for your viewing pleasure.  From bank deposits to gas prices, here is the best of this week. 

We begin with the domestic bank deposits for Greece and Ireland. As money flees the country it makes it more difficult for banks to carry adequate reserves.  If Greece or Ireland were to leave the eurozone, funds inside their banks would be converted into a new currency and devalued significantly.  The "smart money" is moving their money out today in anticipation of this. This is a modern day electronic bank run (a preview of what is ahead for the United States).


Up next is a great chart from Chris Martensen, showing domestic oil production in America.  Chris summarizes that the US currently consumes between 8 - 10 million barrels of oil per day and the best case scenario for the Bakken oil shale is for production of 1 - 3 million barrels per day, far short of what our country needs for energy independence.


On a follow up graph, we have the national average gas price chart.  This is a "tax increase" on every American that will greatly impact the general economy and offset a large portion of any stimulus or tax reductions. 


Excellent graph from the Wall Street Journal showing the month over month change in new home prices in China.  In case you were wondering what this means?  Huge trouble.

The following is a look at America's current downturn in housing compared to those in the past.  We have already experienced the worst decline in history and there is more pain ahead.
The following shows the percentage of workers that have been out of work for over 52 weeks.  This is a structural issue and will take years to resolve.


There was a big pop this month in Gallup's poll, which forecasted the BLS unemployment exactly last month at 8.3%.  Does this mean trouble ahead for the coming BLS unemployment report?

The following is a great graph showing the top 7 countries in the world in terms of military expenditures.  It is impossible to even begin to describe the waste that takes place in the United States military budget.


The price of gasoline rising at the pump is due to a combination of Iran fears, supply/demand imbalances, and the recent flooding of additional currency by central banks into the global markets.  The following chart shows this explosion of global money supply (M2).  Central banks around the world continue to pump the banking system with fresh capital to try and offset the debt destruction taking place almost everywhere.  The ECB's next round of LTRO (which I will be discussing in detail soon) should send this chart surging higher.


Then we have a graph showing that America's per capita debt is now worse than all of the PIIGS nations in Europe.  Our sovereign debt crisis is rapidly approaching.

The following shows the world's worst offenders in terms of debt to GDP by looking at total debt that is owed by the country against the size of their economy.  As you can see, it is only a matter of time for the UK and Japan.  The only question is which country and currency the bond market will turn on first.

We finish with a simple chart showing that some investors have taken note of what is taking place around the world and are taking action.  The following shows the highest monthly sales for US silver eagle coins. January 2012 was very  close to the all time record high set last January.  As the American public begins to slowly move into precious metals these sales numbers will continue to surge.


Sources: Zero Hedge, MISH, The Big Picture, Wall Street Journal, Michael Panzner


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