2020 Collapse

Discussion in 'Markets & Economies' started by TreasureHunter, Dec 8, 2019.

  1. Ag bullet

    Ag bullet Well-Known Member

    Joined:
    Dec 27, 2013
    Messages:
    1,582
    Likes Received:
    1,570
    Trophy Points:
    113
    Location:
    SE QLD
    have to say i agree with Peter Schiff on that video.
     
  2. TreasureHunter

    TreasureHunter Well-Known Member

    Joined:
    Oct 29, 2012
    Messages:
    4,499
    Likes Received:
    1,182
    Trophy Points:
    113
    Location:
    Treasure Island
    Great video about oil's crash, the collapse of economies by Mike Maloney:




    Venezuela's economy was based on oil. Once they could not sell their oil, their economy collapsed (not only because of that, but oil played the main role).

    Cheaper oil or impossibility to sell it (like due to lower demand), could lead to a cataclism.

    Could we end up like Venezuela due to the oil crisis?


    I'm very serious. It might not come directly, immediately, but this is a huge fallen brick.

    This can ruin the petrodollar, could demolish the Russian and Saudi economies, could put a brake to China's industry...
     
  3. TreasureHunter

    TreasureHunter Well-Known Member

    Joined:
    Oct 29, 2012
    Messages:
    4,499
    Likes Received:
    1,182
    Trophy Points:
    113
    Location:
    Treasure Island
    Peter Schiff: First Negative Interest Rates, Now Negative Oil Prices




    Peter Schiff comments on the oil price crash and why people shouldn't worry about gold's price. He argues that gold could still rise...
    Very interesting comments and strong arguments about the hard period that we're going through and what could come after this.
     
  4. alor

    alor Well-Known Member Silver Stacker

    Joined:
    Jun 16, 2011
    Messages:
    12,102
    Likes Received:
    3,877
    Trophy Points:
    113
    Last edited: Apr 26, 2020
    JohnnyBravo300 likes this.
  5. silverhair

    silverhair Well-Known Member

    Joined:
    Dec 9, 2019
    Messages:
    377
    Likes Received:
    467
    Trophy Points:
    63
    Location:
    Sydney
  6. alor

    alor Well-Known Member Silver Stacker

    Joined:
    Jun 16, 2011
    Messages:
    12,102
    Likes Received:
    3,877
    Trophy Points:
    113
    US is a net oil importer, its worth to look at oil exporters only
     
  7. crewy

    crewy Active Member

    Joined:
    Jul 18, 2011
    Messages:
    161
    Likes Received:
    78
    Trophy Points:
    28
    Location:
    Perth
    Saudi vs Russia vs US Shale oil war. Shale will be dead soon and a lot of creditors will come looking for payment from the over indebted fracking industry. Will hurt the banks too once they start going bankrupt. Good riddance to a shitty industry!
    Question will be who comes on top as oil prices will skyrocket once they’ve achieved their objective to reduce competition imo.
     
    JohnnyBravo300 likes this.
  8. JohnnyBravo300

    JohnnyBravo300 Well-Known Member Silver Stacker

    Joined:
    Mar 16, 2019
    Messages:
    3,553
    Likes Received:
    3,398
    Trophy Points:
    113
    Location:
    Colorado USA
    It's all being nationalized. The fed will own it all afterwards is the plan and Trump is handing it to them like a good little boy.
     
    Holdfast likes this.
  9. silverhair

    silverhair Well-Known Member

    Joined:
    Dec 9, 2019
    Messages:
    377
    Likes Received:
    467
    Trophy Points:
    63
    Location:
    Sydney

    No one has a lower production cost than the Saudis....their challenge is can they maintain social order in the mean time while they feel the pain from low prices.
     
    crewy likes this.
  10. crewy

    crewy Active Member

    Joined:
    Jul 18, 2011
    Messages:
    161
    Likes Received:
    78
    Trophy Points:
    28
    Location:
    Perth
    Yeah feel saudis will win but don’t think they expected such a drop in demand simultaneously with the production increase?! May backfire on them.
     
  11. alor

    alor Well-Known Member Silver Stacker

    Joined:
    Jun 16, 2011
    Messages:
    12,102
    Likes Received:
    3,877
    Trophy Points:
    113
  12. alor

    alor Well-Known Member Silver Stacker

    Joined:
    Jun 16, 2011
    Messages:
    12,102
    Likes Received:
    3,877
    Trophy Points:
    113
    those parties involved knew well, even the negative futures oil prices traded in the US markets

    example
    https://www.zerohedge.com/markets/g...ying-mortgage-bonds-days-feds-massive-bailout


    Goldman Was Furiously Buying Mortgage Bonds In The Days Before The Fed's Massive Bailout
    "We had no advance knowledge of any of the facilities the Fed announced and assumed risk when we bought securities from clients during this period."
     
    Last edited: Apr 26, 2020
  13. crewy

    crewy Active Member

    Joined:
    Jul 18, 2011
    Messages:
    161
    Likes Received:
    78
    Trophy Points:
    28
    Location:
    Perth
    Will be interesting to watch and see how oil prices coincide with gold price movements, ie if oil price starts to spike will this mean gold price increase imminent?
     
    Holdfast likes this.
  14. TreasureHunter

    TreasureHunter Well-Known Member

    Joined:
    Oct 29, 2012
    Messages:
    4,499
    Likes Received:
    1,182
    Trophy Points:
    113
    Location:
    Treasure Island
    Why do they keep producing oil if they don't have where to store it?

    They can's stop the machinery due to pressure?

    I can't determine whether this will lead to a fast death of the petrodollar or, whether Russia will go bust or, whether China and Germany are now going to thrive due to cheaper oil.

    I'm pretty sure that many oil producing countries will be economically hard-hit. Some could end up like Venezuela: Iran, Russia, Saudi Arabia, Iraq, UAE, Algeria, Nigeria... Nevertheless, they will be strongly affected... Norway?
     
  15. alor

    alor Well-Known Member Silver Stacker

    Joined:
    Jun 16, 2011
    Messages:
    12,102
    Likes Received:
    3,877
    Trophy Points:
    113
    brent crude 21.44
    wti crude oil 16.94

    first they could only sell oil for dollar
    now all those dollars could not be taken out
    can't blame them when they don't take dollars no more

    it was our dollar but its your problem, but now it is not your problem, but it ain't our dollar

    Russia in unlikely to go bust, since they converted their dollar to gold in huge portfolio diversification
    China still has the belt and road project and well and alive
    Europe is even more divided
     
  16. Holdfast

    Holdfast Well-Known Member Silver Stacker

    Joined:
    Oct 15, 2009
    Messages:
    4,625
    Likes Received:
    1,124
    Trophy Points:
    113
    Location:
    Australia
  17. TreasureHunter

    TreasureHunter Well-Known Member

    Joined:
    Oct 29, 2012
    Messages:
    4,499
    Likes Received:
    1,182
    Trophy Points:
    113
    Location:
    Treasure Island
    I am still in a dilemma regarding gold and dollar. One of them might go "to the gutter", but which one?

    Gold could keep rising as a hedge, but it could also fall (overbought, demand so high, they can't deliver, the demand for USD is higher than usual, despite easing...).

    Or the dollar could collapse (petrol crisis could implicate petrodollar collapse, Corona could ruin the US economy, the US is also making less money because of the high gold price, US allies in the Middle East going bust due to low oil price: Saudi Arabia, UAE...).

    Do we fool ourselves if we buy more gold or, do we fool ourselves with the US dollar?
     
  18. madaw1

    madaw1 Well-Known Member

    Joined:
    Dec 5, 2011
    Messages:
    2,166
    Likes Received:
    3,237
    Trophy Points:
    113
    Location:
    Great Western Country
    Gold was much,much longer before US dollar and I think will stay longer after dollar as well--should we worry?-no. We are waking now on fine line of probability in our life-everything can happen any minute ....
     
    JohnnyBravo300 likes this.
  19. TreasureHunter

    TreasureHunter Well-Known Member

    Joined:
    Oct 29, 2012
    Messages:
    4,499
    Likes Received:
    1,182
    Trophy Points:
    113
    Location:
    Treasure Island
    The biggest dilemma for the small man is how to profit from this crisis, while struggling to "stay afloat", at least.

    Stacking PM's by itself might bring some juice, but it might be worth also going into real estate/properties. Like: when gold's price spikes, you can sell your gold and buy a house, then rent it out once the economy starts to recover.
     
  20. JohnnyBravo300

    JohnnyBravo300 Well-Known Member Silver Stacker

    Joined:
    Mar 16, 2019
    Messages:
    3,553
    Likes Received:
    3,398
    Trophy Points:
    113
    Location:
    Colorado USA
    Real estate wouldnt be a good place to be right now. It's not liquid when things go to shit like this, but is a good chance to find some cheap deals if you're a buyer!
     

Share This Page