The story-line is that the oil price drop attributed to the Saudis but in reality, to me, global central bank choreographed and merely Saudi fronted in-name only (done under duress with the ISIS Damocles sword waiting to enforce such compliance). The story-line is also that this is part of a an anti-Putin action to bring Russia to heel. to me, this is all Hegelian Dialectic distraction and mass opinion herding. The oil price drop is all about the transitioning out of the Petrodollar regime and the onset of the SDR Global Financial regime, based upon a basket of currencies and backed by USD holdings, gold, oil and other commodities, But first, the atmospherics, in good Hegelian Dialectic fashion, has to be hopeless with cataclysmic outcomes anticipated on both sides --- this means real economic pain and yes, bloodshed too --- then the :synthesis will be welcomes. We are in that Hegelian Dialectic pre-synthesis stage. ************************* EXCERPTS Civeo is a thermometer into jobs in the oil and gas industry whose erstwhile boundless boom was funded to a large part by debt. It pushed the economy forward through big capital expenditures and massive job creation. Now capital expenditures are being cut with mindboggling speeds, and the job-creation machine has shifted into reverse. The effects will ripple through other industries. What Civeo is doing, other companies in the oil patch have already started to do, or will do soon: cutting capital expenditures not with a scalpel but with an axe while slashing headcount and other operating expenses. These companies gorged on debt during the greatest credit bubble in US history. The Fed encouraged them to. Investors closed their eyes and held their noses and handed them the money. Wall Street made sure they did. And now that debt sits on their shoulders and will have to be dealt with, even as the price of oil has plunged by half. It’s going to be very, very tough. wolfstreet/2014/12/30/oil-bust-contagion-hits-hedge-funds-supplier-layoffs-begin/ *************************
Posted on: Wed, 31 Dec 2014 14:42:15 +0000
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