Falling Oil Spells Boon for Most of Asias Economies
http://www.freerepublic.com/focus/f-news/3243569/posts
With oil at its lowest price in more than five years, governments in countries such as India and Indonesia can spend money on much-needed infrastructure and other growth projects without stoking inflation. Falling crude prices also give Chinas flagging economy a boost, allowing its central bankand others in the regionto ease rates even as a recovering U.S. looks to do the reverse, economists say.
Combined with loose monetary policy and a gradual recovery in global demand for goods and services, falling oil prices should help lift emerging Asias gross-domestic-product growth this year to 4.7% from an estimated 4.3% in 2014, according to Capital Economics, a consulting firm.
Who is to blame for the shaky economy we are in? Look no further than the government, and Dent contends, Whats happened is the government has created a bubble with all this low short- term interest rates and all this stimulus, and their only defense is to keep this bubble going. . . . We got the greatest bubble in debt in modern history by far. We have the greatest asset bubble across the world in real estate, commodities, stocks; everything is in a bubble. When these bubbles burst, the whole system comes down. They are doing everything to prevent it, but everything they do to prevent it from blowing up is making it worse. This is a game they cannot winmark my words, cannot win, and we are going to see a major crisis . . . especially over the next two years. These falling oil prices trigger these fracking firms. They have 20% of the junk bond high-yield debt in the United States, and thats all it takes to trigger another financial crisis, just like the subprime crisis back in 2008. All it takes is a trigger and the whole debt thing comes down.
http://usawatchdog.com/oil-price-plunge-trigger-for-next-global-crisis-harry-dent/