by Reverse Engineer, Doomstead Diner
Transcript: Greetings Doomfans, and welcome to another edition of the Frostbite Falls Daily Rant, here on the Doomstead Diner.
It's been a couple of weeks since I recorded my original Oil Crash Rant, and a ton of action has gone down in the interim, so it's time for an Update!
Audio Length: 00:09:43
First off, when I recorded the original rant, Oil had only “crashed” from the $90 range into the $70s. This broke through the Triangle of Doom pattern Steve from Economic Undertow has been tracking since October of 2012, a clear indicator that a breaking point finally was reached on the consumption end of the Oil economy, and consumers globally were no longer able to meet the price needed by the Oil extractors to drill it up.
In the intervening time, Oil has crashed further into the $50 range, and it keeps dropping. The question is How Low Can it Go, and why does it keep dropping so precipitously? Is this the Saudis doing, pruposely selling Oil at low prices to put the local Amerikan Frackers outta Biz? Is this a Master Plan of FSoA State Department Neo-Cons to sink Vlad the Impaler over in Mother Russia? Is it a Plan by the Illuminati pulling the strings at Da Fed to collapse the Global economy by cutting off Quantitative Easing and Cheap money for Banksters?
Just about all these theories have been floated as explanations by the MSM, along with numerous Bloggers and Russophiles approaching this question from the Geopolitical CONSEQUENCES end of the price collapse. Indeed it is true that the Saudis are trying to capitalize on the price collapse and position themselves best to weather the storm, but by no means do the Saudis WANT to be selling their Oil so relatively cheap compared to recent pricing, like anybody else in the biz of selling something, they want to make the most PROFIT they can from it. Selling at a discount rate doesn't do that, and you only do it if you are forced into it.
Similarly, while Neo-Cons are gleeful that Vlad the Impaler over in Mother Russia is suffering from these prices and the Ruble is crashing as a result, these are the same folks who promoted the idea of Drill, Baby, Drill for Fracking here in the FSoA and the “energy independence” that would result from that. Or so they said anyhow. Result however of crashing Oil Prices is that the whole “Fracking Revolution” is rapidly unwinding, the Junk Bonds issued out by Wall Street to fund it are rapidly going worthless, and precisely whose balance sheet will blow up first here is about the only major question left in the near term.
