Friday, December 12, 2014


Oil, black gold. But West Texas Intermediate crude (WTI) traded at $59.23 at 0800 GMT this morning.

This is a disaster for North Dakota, but they will do fine. Watch out, however, for Venezuela and Russia. Whatever is worse than a disaster will play out there, even if oil stops dropping.

Without some sort of intervention, and I have no idea what it could be, this will have a major negative impact on the US economy, but even worse for a lot of other economies. The worst part will  be the social unrest.

These types of shocks have, in the past, caused wars, depressions and social change. With interest rates near zero, there isn't much room for monetary help.

We will see.

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