International Oil

THE GREAT INTERNATIONAL OIL BUBBLE REVISITED AND UPDATE

First Published On 

Friday, December 19, 2014

I took a stab at what was to happen when the priced of oil began to drop. It was purely speculation. Russia was not in Syria. It was still purely Syrian Civil War with the emergence of ISIS. So I made the following predictions and although some was wrong, a year later we can see what did happen . And then see what the future holds.

  It's about time something like this happened. And do you know who made this move? Saudi Arabia. Efforts to fight ISIS somehow, and I don't know why yet,probably ISIS sells Iraqi oil to finance itself, includes producing more oil is their weapon.Having said that, Big oil companies can't complain about all the money they are losing because The Obama Administration as well as the rest of the government has nothing to do with the price of oil. The only fallback is that China is going to own Russia with more economic ties and military cooperation. China's economy must be screamingly high as reflected at Wall St which no longer is the thermometer for the U.S. economy. When Wall St does good, so goes China. 

I GIVE THIS PART A B+ Oil was the weapon from Saudi's and not only was it a weapon against ISIS. It also attacks Russia, and Iran.

  But when the stock market screams because of a temporary oil bubble, and China's economy is a huge part of the bubble, the burst of the bubble hurts our country and China. I don't know too much about economics but I know that if an economy grows artificially and at a super fast rate, the have a term that use to describe it something like red hot burn out. With it's huge population and a few years of super prosperity China's population are going to get used to things being great. So when this false prosperity, which all the manufactures enjoy in the form of cheap oil energy, then they are going to end up in the streets with a huge uprising. I don't thing a HUGE Chinese economic slowdown will be felt here too much as it did last time in our Great Recession.

B+ The Stock Market Hit Record Highs in 2015. But there was no Chinese burn out. The oil glut isn't as temporary as I though.Although the uprising are still to come in China.And false prosperity is happening as countries we deal with adjust their economies to the cheap oil Example is the raising of interest rates in the US because of the performance of the economy. But the adjustment was made because of cheap oil!.But now it is much clearer when and what will happen when the Bubble Bursts. The rest of the original post was consequences of the burst.