Posted on 01/14/2015 5:41:59 PM PST by SkyPilot
If you were waiting for a “black swan event” to come along and devastate the global economy, you don’t have to wait any longer. As I write this, the price of U.S. oil is sitting at $45.76 a barrel. It has fallen by more than 60 dollars a barrel since June. There is only one other time in history when we have seen anything like this happen before. That was in 2008, just prior to the worst financial crisis since the Great Depression. But following the financial crisis of 2008, the price of oil rebounded fairly rapidly. As you will see below, there are very strong reasons to believe that it will not happen this time. And the longer the price of oil stays this low, the worse our problems are going to get. At a price of less than $50 a barrel, it is just a matter of time before we see a huge wave of energy company bankruptcies, massive job losses, a junk bond crash followed by a stock market crash, and a crisis in commodity derivatives unlike anything that we have ever seen before. So let’s hope that a very unlikely miracle happens and the price of oil rebounds substantially in the months ahead. Because if not, the price of oil is going to absolutely rip the global economy to shreds.
(Excerpt) Read more at seekingalpha.com ...
Indeed eliminate the gas tax, and close whole departments, like...DHHS and "Education".
I am a Christian, so I believe in God's plan. I believe He is allowing (and has allowed) incredible Satantic forces to take control of the world's monetary systems. The Central Banks dictate to governments, like ours, who are addicted to debt and "cheap" money.
‘Swiss Rolled?’ More like ‘Beotch Slapped!’
I don,t recall any economic booms immediately following a sharp rise in energy prices.
Being debt free does provide significant freedom.
The HORRORS!
Investments will be re-allocated to other financial areas where they are needed more than in the oil sector!
Free Market Horrors!
I’m not claiming it did.
But many keep claim cheap US gasoline will be a boom for the economy, ignoring the loss of direct and indirect jobs and equipment orders that drop off with oil industry.
There will be some offsetting gains. But I think history shows the total economy has never jumped before in this situation. The reality is there is more going on than just gasoline prices. The drop in price is partially driven by slowing economies that have job impacts at the same time. Copper is also at a 5 year low. Lumber prices are down. It isn’t just oil.
List of prices in 1973:
- Postage Stamp: $0.8
- Loaf of Bread: $0.25
- Gallon of Milk: $1.36
- McDonald's Hamburger: $0.25 (5 cents more for cheesburger)
- Ave New Car Price: $3,200
- Ave Household Income: $9,572
Myself, I am having a great time filling up for $20 bucks.
But I see how the investing and banking class is now panicking. They have made TRILLIONS over the last 6 years from rising energy prices.
A free resource from the earth that God provided to us.
As some have pointed out here, energy was one of the few industries that has actually flourished since 2008. And contrary to Obama and the Media, I believe we have been in an actual Depression since 2008, whose worst effects have been masked by massive mounting debt and Food Stamps.
His mantra? "There are no free lunches!"
Seriously, if low oil prices cause our economy to collapse, blame our government. Extraterritorial taxes and the heavy burden of high regulations will help ensure that there will be few high-paying jobs coming onshore to replace the lost energy jobs.
Dear low-info voters: for a country more like Venezuela, just keep on voting Democrat and GOP-e.
PING!
Expect to hear from Fr’s own ‘Derivatives are the best thing since sliced bread’ crowd. They will not take your sacrilege well!
Do I think the Saudis are trying to hurt the US oil industry? Sure. It is a threat to them.
I will. But we can also blame the Central Banks who are knee deep in all of this, and who will want their money back and won't take losses lying down. Trust me.
I remember some Free Republic threads circa 2006 or 2007 regarding the Real Estate market.
Some Freepers were sounding alarm bells, saying that the housing industry was a house of cards that could collapse, and take the mortgage, construction, and banking industry down with it, including crap that was bundled with the marginal and sold as AAA rated investments.
Those Freepers that were Real Estage Agents, contractors, or were flipping properties would rip your eyeballs out for posting such sacrilege as stating that they end game was near.
Yep. The Pinto and the Vega were the entry level cars, and sold (new) for $1999.99 where I was in ‘73.
I am so screwed.
I just read "Unbroken" and I was reminded of life in America during the Great Depression. People had it very tough back then, like my Dad. Families simply went without. Some kids had never eated in a restaurant in their lives before turning 21. Mothers patched clothing and sold wild flowers in the street to earn extra money.
Today, even our "poor" have 61" Plasma TVs, smart phones, central heating and air conditioning, a car, and a computer.
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