06 January 2015

Drowning in Oil

15 Tevet 5775

If you are clueless and don't understand how economics works, like me, you might think, like I did, that low oil prices, record high stock market values and a very strong dollar currency (3.96 nis today) is indicative of a booming US economy. Well, you, as well as I, would be wrong. Oh, it's booming alright, but like an atom bomb...

“Oil is incredibly important right now. If oil falls to around $40 a barrel then I think the yield on ten year treasury note is going to 1%. I hope it does not go to $40 because then something is very, very wrong with the world, not just the economy. The geopolitical consequences could be – to put it bluntly – terrifying.“

(Read the whole thing: Oil Falls Below 50 As Global Financial Markets Begin To Unravel)


  1. If you want to get a good night's sleep, it's best not to know how economics works, because the major economies are violating many a principle of sound economic governance.

  2. Thanks, israel. I'll take your word for it. :-)

  3. "Gold and derivatives expert Rob Kirby thinks crashing oil prices are going to lead to a 2008 style financial meltdown. This is not a maybe–a market explosion is going to happen in 2015. Kirby contends, “Oh yes, without a doubt, it will. It must because the income crude oil sales generate are used to pay the interest on the debt."