Oil is on a course to test its $42 lows from March, as I've said it would. And the way it's been falling lately, I wouldn't be surprised if it happens in the next couple of weeks.

There are several ramifications to this. In the long-term it will devastate the global economy as shrinking demand wipes out oil players and oil jobs around the world. But in the short-term it will affect the U.S. more, possibly more than any other country – striking a death blow to the fracking industry, specifically because it's become such a staple of our bubble economy and recovery.

Many are quick to think that since oil bounced back in recent months it will do so again. We did say it would bounce, and it did just that – bouncing back to $63, right in our target range of $62 to $74.

But I don't expect it to bounce for long this time around. And John Kilduff from Again Capital, who will be speaking at our Irrational Economic Summit in Vancouver September 10 to 12, shares our view.

That's because the world is quickly becoming a different place. The bubble euphoria investors have enjoyed since 2008 is showing several signs that it cannot continue.

And since the fracking industry is one of the highest cost producers and nothing more than a mirage created by QE economics, it might well be one of the triggers for what could become the greatest crash of our lifetime…

Fracking had been around for awhile before it really took off in the last decade. Its large upfront costs had made it impossible for it to become a leading player in the oil industry.

But the zero-interest rate policies launched by the Fed and other central banks suddenly caused junk bonds to drop to more affordable levels. Yields that were once 10% fell to 5.5%. So the frackers swooped in, jolting their industry forward like a shot of crack cocaine straight to the heart.

Along with the global economy, QE propped up the oil industry – lifting it off its 2008 low of $32 (which would've been much lower if QE hadn't come into the picture) to the early 2011 high of $115. Fracking could exist in that environment.