How Long Before Oil Prices Recover?
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...never?
No seriously, I'm not joking.
Ya see, the world's ponzi scheme is unraveling. For good and all. China's faux economy is being exposed for what it is. And that was the world's main demand engine. Ghost cities. Ghost factories and companies that are not allowed to file bankruptcy is what all that's become. The drive down in oil prices we're designed to cause pain and bankruptcy. It's what we've come to.
Meanwhile back at the ranch, our government has paid bankrupt zombie banks to keep their doors open by giving them the keys to the Fed's printing presses. And then they turned those presses on and kept all the money for themselves so as to pay off all those bonds, derivatives and maturities that they've rolled over countless times before. On the upside we [font color=darkgreen]Greenies[/font] can take heart in the knowledge that the Key$tone $lime Project i$ very likely dead in it$ track$. So there's that.
Because this time there aren't any buyers for those loans and nobody's making them either. Already the small oilcatter's are laying off. And with ZIRP in place at the Fed (Janet Yellen's empty threats of interest rate hikes in the future, notwithstanding) there's not enough profit in it anymore unless some country goes bankrupt. And we've gotten all the easy ones.
Japan has tried to solve their debt problems by buying it. Yes, their own debt. And then they say, ''Hey you know what? That seemed to work! Let's do it again!!'' So they print more money and issuing more bonds and then they them buy those too. The sheer stupidity of it has kept them afloat because we've never been this way before. No one's ever been this crazy enough to try something as crackpot as this. No one knows what to do -- so they just keep doing this until someone (or something) makes them stop. And they just recently reelected Abe as confirmation that the entire nation is in denial. But then there's Fukushima, so we knew that.....
Anyway, so now the markets can't crash (at least on computer screens). They won't be allowed to. Because they're all being run by CRAY super computers and humans can't keep up. Haven't for some time now. So now computer algorithms written by apparent madmen run the country. And in their programming they're given one primary instruction: ''Keep the game going. No matter what. There are no rules anymore.''
- None. It's all smoke and mirrors.....
K&R
China's "Illusion Of Prosperity" Exposed: Forget Ghost Cities, Meet Ghost Factories