If you believe the recent surge in U.S. oil production suggests that good times are here once more, think again.
Collapsing oil prices are only the beginning as fossil fuels are turning into a historic relic, says Kenneth Ameduri, chief editor of Crush the Street. He discusses two commodities whose demand he expects to skyrocket as the world shifts to cleaner energy.
The world hasn’t really caught on yet, but OPEC is in serious trouble.
The majority of financial analysts at CNBC, Bloomberg or Fox Business have no clue just how bad the situation will become for the United States as its energy sector continues to DISINTIGRATE:
Is Copper Set Up to Become the “New Oil”?
Because its always and only about energy…
The Brent crude oil price has fallen from $115 in June to under $54 per barrel.
A lower oil price is where production costs make all the difference. For a long time, analysts have suggested that US production is substantially more expensive and therefore sensitive to oil prices.
This is where the rubber meets the road, as the coming months may reveal the extent of fragility, waste, or mismanagement within the oil industry — in the US and globally.
What is the reason for this prolonged and unforeseen event?
Who wins and who loses as it shakes out?
Astute investor, Jim Rogers has warned overnight in an interview with Tara Joseph of Reuters that “oil and gold will go much, much higher” due to “market panic” regarding Syria and the coming end of free money… “When this artificial sea of liquidity ends we’re gonna see panic in a lot of markets, including in the US, including in West developed markets. Have we seen panic, have we seen terror? Absolutely not. Not in any markets yet. We haven’t seen much of anything yet.“
Each passing day, the world gets closer to a total collapse of the global fiat monetary system. After the United States unilaterally terminated the convertibility of the U.S. Dollar to gold in 1971, the world has been settling trade on borrowed time. It was full faith in the dollar and U.S. Treasury market that allowed global trade to continue for 4 decades.
However, faith in the dollar is waning as debts, derivatives and dishonesty plague the financial system. Most analysts (including many in the precious metal camp) are wasting time debating over the mere symptoms and not the disease itself.
We must remember, debts are nothing more than “Energy IOU’s.” To pay back a debt, energy has to be burned so the market can generate goods and services. Thus, this allows for growth to continue which provides a surplus of wealth enabling the repayment of debts.
The problem the world is facing, is not the huge amount of derivatives or debts, but the availability and affordability of its future energy supply. Actually, the world has not been able to afford the energy that it has been consuming for quite some time now. Basically, the world (especially the U.S.) cannot not afford its way of life, so it has created a system of debts and derivatives to cover up and mask the problems.
The collapse of the dollar is already taking place. It has more to do with energy… than most realize.