Debt Rattle January 6 2015

[Raúl Ilargi Meijer]

DPC Unloading bananas, New Orleans 1903 • Oil Below $49 As Sector Faces Its ‘Hunger Games’ (CNBC) • Brent Falls Below $52 As Oil Hits New Five And A H
[See the full post at: Debt Rattle January 6 2015]

[V. Arnold]

An interesting exercise; scroll down only reading the headlines.
I find it gives the full flavor of the present insanity.
If you haven’t found your life boat, I’d suggest not waiting too long…
…and don’t worry about fancy, just make sure it floats…

[william]

With oil its a bankruptcy game. No producer can stop and restart on a whim. All producers are going to stretch everything until they are forced to quit. After that bankruptcy, and after that no more interest in fracting or difficult oil for some time.

The Greece thing is obvious. The EU never gets its money back. They can forgive debt and Greece stays in the EU or not forgive and Greece leaves.

My reasoning about the Greek debt is this: Greece has a debt that mathematically beyond them. Sure deflation can happen that devalue the debt but that is just another way of saying you aint getting paid.

So this is the deal Germany, France, and the rest of the EU you aint getting paid stiff upper lip. Secondly if the punishment is too great for Greece they will leave and probably end up better off but you will lose face internationally.

[SteveB]

Continuing on your reply to my first question from yesterday, Ilargi (thanks for that and the other response), I can imagine war posturing building up in the near term but not getting carried out before oil prices shoot up again in the latter part of the year to early 2016. Governments generally move slowly, which would point to war actions not starting until late 2016 or into 2017, on the tail end of the market crash and well into the deeper economic depression. Or do you see an individual leader with the power to act more quickly (rashly?) than that?

[Author]

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