China shuts down its media re: China's ailing economy, oil falls from its August highs looking to settle at $78 a barrel. U.S. oil stockpiles have all but collapsed, as the Biden administration continues exporting oil. U.S. pump prices are at all time highs. Stagflation call for 2023 and 2024 remains.

 

As discussed in this post, China, akin to its COVID responses in 2020, is creating a media blackout regarding information relating to their ailing economy, which could be in very bad shape.  Either it enters a recession or is at the cusp of a full blown crash, either way the Chinese responses are very similar to how they shutdown communication lines, thus creating, at that time, more uncertainty about COVID-19.   While the rest of the world is dealing with sticky inflation, China is in deflation that offers a scenario that has not be seen in over forty years.  The 2008 global recession was mild, China was mostly untouched by the West's banking crisis and in fact assisted in a monetary sense of  Western government bailouts of banks and Wall Street.  This time, there will be no such luck.  Makes the situation very uncertain and dangerous.  

Oil has falling from it $84 August highs, now selling at $79 with support at $78.   This is all China.  The flipside, is U.S. oil stocks are plunging on the U.S. government mania of its oil exports, which doesn't make sense if the Biden administration wishes to contain energy inflation, as gasoline prices are a all time highs.

My call for 2023 and 2024 stagflation remains.