Falling Oil Prices Put Producers Between a Rock and a Hard Place

[Tha Sircus]

Nah pm's is an abbreviation for precious metal thats my fault i should have typed it out

 

[Tha Sircus]

the hell are you talking about? Isn't this pm shyt digital currency? Why would you just not buy gold if you believe in it?

Nah pm's is an abbreviation for precious metal thats my fault i should have typed it out

 

[☑︎#VoteDemocrat]

this nikka is posting Cato institute points

 

[Ghost_In_A_Shell]

this nikka is posting Cato institute points

I just discovered who founded that "think tank". wow...............

 

[Tha Sircus]

this nikka is posting Cato institute points

I didnt even know what this was.......but i am a libertarian

 

[DEAD7]

this nikka is posting Cato institute points

and?
Do you have an objection to the article? if so state it.

 

[Ghost_In_A_Shell]

QE is ending. There is no inflation. Basically the US is going to stop printing dollars.

so the supply of dollars is falling. Meaning the USD is appreciating.

oil is priced in US Dollars. Oil prices historically move in the opposite direction of the US dollar.

.....we are fukked, aren't we?

October 13, 2014 10:45AM
Falling Oil Prices Put Producers Between a Rock and a Hard Place
By Steve H. Hanke

Over the last few months, the price of Brent crude oil lost over 20% of its value, dropping below $90 just yesterday and hitting its lowest level in over two years. In consequence, oil producers will no longer be able to rely on oil revenues to pay their bills. The fiscal break-even price – a metric that determines the price per barrel of oil required for a nation to balance its budget at current levels of production – puts the problem into perspective.
Using data from Bloomberg and Deutsche Bank, I prepared a chart showing the break-even prices for the world’s major oil producers and the price on Brent crude. Over the past six months, Brent crude fell far below the break-even price for eleven of the top oil producers in the world; Iran, Venezuela, Nigeria, and even Saudi Arabia can no longer finance their governments’ largess through oil revenues.

The combination of oil markets flying into a perfect storm and excessive government spending puts most of the world’s oil producers between a rock and a hard place, where they will stay for some time.

Okay, now lets not act like the government did not cut back on public school funding by 8 billion and along with pulling other Austerity measures...The rich/ there economist are just trying to cover there asses for all of the bullshyt fear that they spread on the supposed 'looming inflation'.

I call bullshyt ,big time.

 

[Poitier]