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This Federal Policy Enabled the Fracking Industry’s $280 Billion Loss

This Federal Policy Enabled the Fracking Industry’s $280 Billion Loss thumbnail

Most people probably aren’t familiar with the acronym ZIRP. It stands for zero interest rate policy and is the policy that unintentionally created the American fracking bubble — just one of its many consequences.

And while most people may not know much (if anything) about ZIRP or the Federal Reserve (Fed), it is likely that they are aware of the impact this policy has on their own lives.

Do you have money in your checking account? Are you lucky enough to have savings? Have you noticed how you don’t make any interest on that money and haven’t for almost 10 years?

You can thank the Fed and ZIRP for that. One of the results of the Fed’s zero interest rate policy is that the average American saver ends up with close to zero interest on their money in the bank. This is one of the reasons that ZIRP is often described as a wealth transfer from American savers to debtors. Because the shale industry is deeply in debt, these companies directly benefit from this arrangement.

Below is a chart of rates for certificates of deposit (CD) since 1980 — historically a safe investment that gave people a decent return on their savings.

Data from Bankrate.com

Since 2010, if you put your money in a CD, you would not even be keeping up with inflation due to the low interest rate. That isn’t supposed to be how it works.

And as this next chart shows, historically that hasn’t been how it works. The graph below is the federal funds rate since 1950 (this is the interest rate that banks charge each other to lend excess cash overnight). It’s very clear that starting in 2008, the chart flatlined (due to ZIRP) and stayed that way for years — something that had not happened before.

Image: Federal Reserve Bank of St. Louis

When that graph flatlined after the 2008 financial crisis, Americans’ personal savings stopped earning any meaningful interest.

ZIRP Policy Designed to Re-inflate Housing Bubble

While ZIRP has been devastating to retirees and other savers who would like to earn some interest on their money in the bank, it did manage to effectively re-inflate the housing bubble. Because even though you couldn’t earn interest on your savings over the last decade, mortgage rates have been historically low.

These low rates have kept people buying homes and refinancing. The chart below shows how ZIRP resulted in record-low interest rates for the 30-year fixed mortgage.

Image: Federal Reserve Bank of St. Louis

Once again, stories are emerging about overheated housing markets because ZIRP has gone on for so long. When it comes to the housing market, ZIRP certainly worked to re-inflate the market … and create new housing bubbles.

In response, the Fed is raising rates and promises more increases in 2018 and 2019, which has also begun to raise mortgage rates.

Bill McBride runs the economics blog Calculated Risk. He is widely acknowledged as someone who predicted the housing bubble and recovery. McBride’s track record is acknowledged in the title of this Business Insider article from 2012: The Genius Who Invented Economics Blogging Reveals How He Got Everything Right And What’s Coming Next.

McBride told DeSmog that ZIRP certainly helped the housing market. “With regards to ZIRP, the Fed’s QE [quantitative easing] policy pushed down long rates and that helped the real estate market recover,” he said.

Quantitative easing was another Fed program that helped big banks and is a tool used when interest rates are already at zero and thus can no longer be lowered.

The problem with trying to re-inflate one market is it tends to re-inflate all markets. It would be hard to argue that the stock market hasn’t been re-inflated as well by this policy. It has been on an epic run while the policy was in place.

And ZIRP has been instrumental in creating the American shale oil and gas industry and funding its epic money-losing streak during that same time period.

ZIRP Fuels Massive Borrowing in Shale Industry

There are two main ways that ZIRP has fueled the shale industry. One is that — unlike the rest of us not making money on our savings — big companies and investors have been able to borrow large amounts of money at very low rates. This is commonly referred to as “free money” during the ZIRP era because if you are paying little-to-no interest on a loan it is effectively free. This relationship was first detailed on DeSmog in 2014.

How much “free money” are we talking about? According to Helen Thompson’s book Oil and the Western Economic Crisis, the numbers are big:

QE and ZIRP hugely increased the availability of credit to the energy sector. ZIRP allowed oil companies to borrow from banks at extremely low interest rates, with the worth of syndicated loans to the oil and gas sectors rising from $600 billion in 2006 to $1.6 trillion in 2014.”

Would you like to borrow a trillion dollars at extremely low interest rates? Sure you would. But you don’t get to — unlike the shale industry.

The second main way that ZIRP has funded the shale “revolution” is via the junk bond market. Junk bonds are bonds issued by companies — witih help from investment banks that get their cut — that have credit ratings below “investment grade.” To be an investment grade bond requires a certain level of confidence the company will pay back both the interest and principal on the bond “through good times and bad.”

Because there is a lower chance of a junk bond issuer being able to pay back interest and principal, those bonds reward investors with the promise of higher returns. If the company does well, the investors are paid well for their gamble. If not … they lose out because they invested in “junk.”

Just like the average person who is making no interest on savings, there are massive investment companies that need to provide clients with consistent returns.

There was a time when this was easy. Want a 4 percent return? Put it in a money market or CD rate that guarantees 4 percent. Done.

However, in a ZIRP environment, that isn’t an option. So investors must choose riskier assets like junk bonds to (hopefully) get a “traditional” return (aka yield), as junk bond investor Lawrence McDonald explained to CNBC:

“The market is thirsting for yield and the Fed is pushing people to do things like this. So big asset managers are reaching, reaching, reaching and companies know this and are issuing, issuing, issuing all this crap.”

“Crap.” Like junk bonds for shale oil companies that have never made money. But Wall Street keeps working with these companies to issue this “crap” and big asset managers keep buying it up, as Wolf Richter noted on Business Insider in 2015:

“Time and again, despite the collapsed prices of oil and gas, the players in the shale revolution have gotten more funding from Wall Street, whose ZIRP-blinded clients kept gobbling up the newly issued junk bonds, leveraged loans, and shares, taking on huge risks and hoping to make a little extra money in a Fed-laid minefield where all decent assets are way overpriced.”

ZIRP has been very, very good to the shale industry and Wall Street, as The Economist has noted:

Low interest rates make it easy for shale firms to borrow, and fee-hungry banks cheer on the spectacle.”

And it is a spectacle. While the shale industry has lost over a quarter trillion dollars, it has been rewarded for this behavior.

As DeSmog explained earlier in this Finances of Fracking series, Wall Street is happy to loan cash to money-losing fracking companies because banks and investment firms make their money by making loans or selling junk bonds and collecting the fees on those deals.

Because shale companies have never made a profit, they must keep doing what they have always done — that means borrowing more money to drill more wells, which have been costing more money than they make. If shale companies stopped borrowing, they would have to either drastically reduce the amount of oil being produced, or likely have to declare bankruptcy — as many shale companies have done.

Fed Raising Rates: Is This the Beginning of the End for Shale Financing?

Federal Reserve Building in D.C.

The Federal Reserve Building in Washington, D.C. Credit: AgnosticPreachersKid, CC BYSA 3.0

ZIRP is slowly ending. The Fed has raised rates and has promised to continue raising rates through 2019.

That isn’t good news for the shale industry that will now need to refinance all of its loans at higher rates. But as in all good bubbles — and despite the warning signs — the oil industry is brimming with optimism in 2018. And the Wall Street money keeps pouring in at record levels, with plenty of buyers still eager to snap up these junk bonds.

According to Bloomberg, “Junk-rated energy companies were able to fund a record $9.25 billion of issuance in January.”

But despite the record-setting pace of junk bonds for energy companies, plenty of people are now warning of the problem (or crisis) that the Fed raising interest rates will create for the junk bond market and the shale industry. The problem was summed up quite well by the sub-title of this Seeking Alpha article: “Fed tightening affects junk bond prices negatively.”

How negatively? Financial data company Pitchbook recently highlighted some of the risks based on information from the U.S. Treasury’s Office of Financial Research (OFR), which says that the financial risk of interest rate increases is at an all-time high. “Just a 1 percent rise in interest rates would result in $1.2 trillion in losses from the Barclays U.S. Aggregate Bond Index — with even larger losses when one includes ‘junk’ high-yield bonds,” reported Pitchbook.

A return to even the historically low federal fund rates in the 5 percent range — where they were just before the financial crisis of 2008 — would be devastating to the junk bond market and the shale industry — as well as all of the asset managers who currently own this junk.

Pitchbook notes that the OFR says “the risk of a turnaround in interest rates are now higher than the ‘bond massacre’ in 1994 that drove Orange County, California, into bankruptcy and ignited Mexico’s peso crisis.”

It’s important to keep in perspective that even major shale oil companies like Continental Resources haven’t been able to pay the interest on the money they already owe at these historically low rates, a point that holds true throughout the industry. Companies have been borrowing money to pay interest on the money they have already borrowed.

Full Speed Ahead … Towards a Wall of Debt and Higher Rates

The movie (and book) The Big Short features several investors who all saw the housing bubble for what it was and then bet against Wall Street and the bad debt that was fueling the housing bubble. They were right and eventually made billions. However, they spent years knowing they were right but watching the housing bubble continue.

Ivy Zelman, a housing-market analyst at Credit Suisse, was one of the people who identified the housing bubble early on, and she notes that while it was clear there was a problem, it wasn’t clear when the reckless financial behavior would end.

“It wasn’t that hard in hindsight to see it,” Zelman said. “It was very hard to know when it would stop.” This sentiment echoes the famous Wall Street axiom: “The market can stay irrational longer than you can stay solvent.”

Much like the housing bubble, the shale bubble has gone on much longer than expected (by some). Of course, that just means that the industry is in a lot more debt than in 2014 when people first started warning about this issue. If things go bad now, they will go much worse than in 2014.

In 2014, Ivan Sandrea, a research associate at the Oxford Institute for Energy Studies, posed this question:

Who can, or will want to, fund the drilling of millions of acres and hundreds of thousands of wells at an ongoing loss? The benevolence of the U.S. capital markets cannot last forever.”

While an industry that has never made money and is deep in debt cannot last, it can go on longer than expected. Just like the housing crisis did.

Even Wilbur Ross, currently the U.S. Secretary of Commerce, was warning about the shale debt problem in late 2015. He pointed to two specific problems: rising interest rates and the “wall” of debt coming due starting in 2018.

Ross told CNBC that companies were “running out of time” because “you have a wall of maturities starting in 2018, building up through 2021 [and] 2022.”

And here we are: in 2018 with rising interest rates and the shale industry piling on record levels of new debt via junk bonds while facing a wall of debt.

In January, William White, the Swiss-based head of the OECD’s review board and ex-chief economist for the Bank for International Settlements, commented in The Telegraph on the impacts of ZIRP and “free money.”

Nine years of emergency money has had a string of perverse effects and lured emerging markets into debt dependency,” White said.

Sounds like an accurate description of the last nine years of the shale industry. But that wasn’t all White had to say: “All the market indicators right now look very similar to what we saw before the Lehman crisis, but the lesson has somehow been forgotten.”

It looks like the shale industry and the investors who funded it are poised to re-learn those lessons. However, as we know, Wall Street will prosper no matter what happens.

The question that remains is who will pay to bail out Wall Street and the shale industry if the bubble pops?

If history is any indication, it will be the same U.S. taxpayers who haven’t been making interest on their savings for the last nine years.

DeSmog Blog



76 Comments on "This Federal Policy Enabled the Fracking Industry’s $280 Billion Loss"

  1. MASTERMIND on Wed, 23rd May 2018 7:53 pm 

    Madkat

    I have numerous peer reviewed scholarly studies to back up all of my arguments..You have zero evidence..Just a paranoid fantasy about how the worlds leaders want to turn the US into a third world country for no logical reason..You are an enemy of reason..

    Scientific American: Apocalypse Soon: Has Civilization Passed the Environmental Point of No Return?
    https://www.scientificamerican.com/article/apocalypse-soon-has-civilization-passed-the-environmental-point-of-no-return/

    Inside the new economic science of capitalism’s slow-burn energy collapse (Ahmed, 2017)
    https://medium.com/insurge-intelligence/the-new-economic-science-of-capitalisms-slow-burn-energy-collapse-d07344fab6be

    Peer Reviewed Study: Society Could Collapse In A Decade, Predicts Historian (Turchin, 2010)
    https://www.nature.com/articles/463608a

    NASA Peer Reviewed Study: Industrial Civilization is Headed for Irreversible Collapse (Motesharrei, 2014)
    http://www.sciencedirect.com/science/article/pii/S0921800914000615

    The Royal Society: Peer Reviewed Study, Now for the First Time A Global Collapse Appears Likely (Ehrlich, 2013)
    https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3574335/

    Peer Reviewed Study: Limits to Growth was Right. Research Shows We’re Nearing Global Collapse (Turner, 2014)
    http://sustainable.unimelb.edu.au/sites/default/files/docs/MSSI-ResearchPaper-4_Turner_2014.pdf

    Peer Reviewed Study: Financial System Supply-Chain Cross-Contagion: Global Systemic Collapse (Korowicz, 2012)
    http://www.feasta.org/wp-content/uploads/2012/06/Trade-Off1.pdf

  2. MASTERMIND on Wed, 23rd May 2018 8:10 pm 

    American ‘prepping’ culture influenced by media and government fears – Study

    https://www.eurekalert.org/pub_releases/2018-05/uok-ac052318.php

  3. MASTERMIND on Wed, 23rd May 2018 9:05 pm 

    Permian Growth Is Reaching Its Limits

    https://oilprice.com/Energy/Energy-General/Permian-Growth-Is-Reaching-Its-Limits.html

  4. MASTERMIND on Wed, 23rd May 2018 10:36 pm 

    “Deaths of despair” are surging in white America

    https://www.youtube.com/watch?v=56k4TCJvVZQ&feature=youtu.be

  5. MASTERMIND on Wed, 23rd May 2018 10:50 pm 

    Here we goooooooooo.

    Oil is about to spike and trigger a financial collapse just like it did in 2007. There will be no bailout or recovery this time.

  6. Cloggie on Wed, 23rd May 2018 11:58 pm 

    “Deaths of despair” are surging in white America

    Yep, down for the count.

    Need a more loving and caring owner than the current one.

    https://www.youtube.com/watch?v=6xMr_QwiZJw

    https://documents1940.wordpress.com/2017/09/27/paul-krugman-white-americans-are-losing-their-country/

    You have guns, millimind? You will need one soon:

    https://www.youtube.com/watch?v=Va6MAwexpnE

  7. Cloggie on Thu, 24th May 2018 12:08 am 

    Antius, the delusional MM should be ignored. His psychosis is getting really bad. He needs help, but thinks himself sane, intelligent and mature. Total delusion.

    He shouldn’t be ignored, but be under constant attack. He is not delusional or dumb, otherwise his tribe wouldn’t own America and the rest of the West. He doesn’t need help, he needs to be thrown out:

    https://documents1940.wordpress.com/2017/09/27/amsterdam-deportations/

    He and his rotten tribe, including the Khazars from Israel, need to be parked in Upstate New York, the future American version of the Pale of Settlement:

    https://en.wikipedia.org/wiki/Pale_of_Settlement

    They deserve an even harder treatment, but they can use their Jericho missiles as bargaining chips against Europe, so a little restraint is called for:

    https://en.wikipedia.org/wiki/Samson_Option

    https://en.wikipedia.org/wiki/Jericho_(missile)

  8. MASTERMIND on Thu, 24th May 2018 12:15 am 

    Clogg

    All your race is dying in America..But peckerwoods are the superior race with high I.q’s rite????

    LMMFAOOO!!!

  9. Go Speed Racer on Thu, 24th May 2018 5:39 am 

    Geeeeze Mastered Mind,
    That Professor Lady has so many
    frown lines, Michelin should take
    imprints of her forehead, and
    figure out a better tire tread using
    that pattern. She’s probably
    scared shitless she will lose her
    cushy college job and wind up in
    a breadline.

    No wonder she has so many frown lines.

    Yup, for death of middle class, it’s real.
    Lost a high school friend who stopped
    taking care of himself. Then got killed
    out on a roadway. He had gotten tired
    of working for $14 an hour at age 50.

    Too bad hideous ugly raisin
    prune, seizure bitch Hillary Clinton,
    is buddies with other old wrinkle
    bitch Nancy Pelosi.

    Together these 2 old wicked man-hating
    bitches, cackling and riding their brooms,
    have together destroyed
    the democrat party, putting it so low
    on the food chain that Trump can win
    the election.

    Indeed now Trump, after proving the worst
    President in history, will easily beat
    the pants off anybody the Democrats run.

    It’s because of those two wrinkled old
    raisin bitches, blathering their shit
    that “MS-13 gang members
    are people too”.

  10. Anonymouse1 on Thu, 24th May 2018 5:54 am 

    The exceptionalturd uses his sock to spam non-stop these days. Maybe the likes all the new-found attention he gets as ‘mushmind’. Of course, he learned from the best, his yiddish pal, clogg-berg.

    With all the time he spends posting his random spastic thoughts, as ‘mushmind’, its a safe bet he wont get that work on his outhouse done anytime soon, if ever.

  11. Davy on Thu, 24th May 2018 6:00 am 

    “Deaths of despair” are surging in white America”

    More extremist exaggerations. I am here in white America and it is not as bad as they hype and surely not much worse than other places. Maybe it was because 20 years ago white men were placed higher in the hierarchy of life’s privilege and now white men are more in the normal range. Let’s call it multipolar demographics.

  12. Davy on Thu, 24th May 2018 6:02 am 

    “With all the time he spends posting his random spastic thoughts, as ‘mushmind’, its a safe bet he wont get that work on his outhouse done anytime soon, if ever.”

    Weasel, he is your friend not mine. What is more telling is you two digitally look alike. You are both looser millennials with no job and still living with mom.

  13. Davy on Thu, 24th May 2018 6:05 am 

    “He shouldn’t be ignored, but be under constant attack. He is not delusional or dumb, otherwise his tribe wouldn’t own America and the rest of the West. He doesn’t need help, he needs to be thrown out:”

    Unfortunately mm is just another magnet for the board extremist who love to use his slimy comments as fodder to push their own agenda. Neder, you are another one that needs to be under constant attack.

  14. MASTERMIND on Thu, 24th May 2018 6:24 am 

    Davy

    I post scholarly sources..You are the extremist imbecile who post nonstop zerohedge..

  15. MASTERMIND on Thu, 24th May 2018 6:27 am 

    The ole peckerwoods with the high iq’s are dropping like flies..

    ‘Deaths of Despair’ Are Surging Among the White Working Class
    https://www.bloomberg.com/news/articles/2017-03-23/white-working-class-death-rate-to-be-elevated-for-a-generation

    More Americans Are Dying From Suicide, Drug Use And Diarrhea
    https://fivethirtyeight.com/features/more-americans-are-dying-from-suicide-drug-use-and-diarrhea/

    US life expectancy drops for second year in a row
    https://www.cnn.com/2017/12/21/health/us-life-expectancy-study/index.html

    Americans Are Retiring Later, Dying Sooner and Sicker In-Between
    https://www.bloomberg.com/news/articles/2017-10-23/americans-are-retiring-later-dying-sooner-and-sicker-in-between

    Report: Alcohol, Drug, Suicide Deaths Hit New High in America
    https://www.usnews.com/news/healthiest-communities/articles/2018-02-22/report-alcohol-drug-suicide-deaths-reach-new-high

  16. MASTERMIND on Thu, 24th May 2018 6:36 am 

    Tomi Lahren claims diners threw water on her, chanted profanities

    https://nypost.com/2018/05/23/tomi-lahren-claims-diners-threw-water-on-her-chanted-profanities/?utm_source=NYPTwitter&utm_campaign=SocialFlow&utm_medium=SocialFlow

    HAHA!! The inheritance class can dish it out but can’t take it..

  17. Davy on Thu, 24th May 2018 6:41 am 

    This is from Fox News. I am curious if this is more Russian disinformation or a real finding. If it is real this is a major headache for the Russians.

    “Russian military missile downed Malaysian Airlines jet in 2014, investigators say”
    https://tinyurl.com/y96qx5rq

    “A Buk missile from a Russian military unit brought down Malaysia Airlines Flight 17 over eastern Ukraine in 2014, a Dutch-led investigation revealed Thursday. The missile was from the Russian military’s 53rd anti-aircraft missile brigade based in the Russian city of Kursk, Wilbert Paulissen of the Dutch National Police said. Paulissen was speaking at a presentation of interim results of the long-running probe into the downing of MH17. The passenger jet was on its way from Amsterdam to Kuala Lumpur, Malaysia, when it was blown out of the sky over Ukraine on July 17, 2014. All 298 passengers and crew were killed. Paulissen had initially revealed in 2016 that communication intercepts showed that pro-Moscow rebels had called for deployment of the mobile surface-to-air weapon and reported its arrival on July 17, 2014, in rebel-controlled areas of eastern Ukraine. The Buk missile that downed MH17 was launched from farmland in the revel-held area of Pervomaiskiy, 3 miles from the Ukrainian town of Snizhne, the investigation found. The Associated Press previously reported that a tracked Buk M-1 launcher with four SA-11 surface-to-air missiles had been signed the same day in the town of Snizhne.”

  18. Davy on Thu, 24th May 2018 6:45 am 

    mm, you are a kid that has learned about his genitalia and his five fingers. You are a fraud and loud mouth. You are one of the worst commentator on here seeking personal attention without regards for the truth. Excessive posts and empty redundant references are your trademark. Show some restraint and moderation if you want respect. Better yet, get a friggin job and quit mooching off society.

  19. Antius on Thu, 24th May 2018 6:45 am 

    Copper and iron ore prices are sliding; bulk foods and energy are rising – though the rate of increase appears to be slowing.

    https://www.indexmundi.com/commodities/

    Industrial metal prices are a good proxy for upstream capital investment in hard industry, i.e. new infrastructure. Oil and food are short-term consumables that are consumed by the population, infrastructure and business arrangements (i.e. delivery of pre-existing goods) that we already have or are committed to. The sharp slide in coal price may be evidence that growth in global electricity production is slowing.

    I conclude that the global economy is slowing. My personal prediction is that $80 is probably close to being the peak for oil price in the current cycle. We will likely see a decline in price as the economy goes into recession. This will have severe implications for downstream supply, with a supply crunch inevitable in the early 2020s.

  20. fmr-paultard on Thu, 24th May 2018 6:52 am 

    ^mm^ listen to supertard. you lost, it’s time to move out of basement or take legal action against ur mom before she kicks u out too.

  21. MASTERMIND on Thu, 24th May 2018 7:25 am 

    Davy

    You are posting from faux news now..I didn’t think it could get worse than the hedge..but here we are..And you call me a child..And I have a job..I have had once since I was 13 years old..I am on a year long leave of absence..Which I have explained a million times..I only have a few months left though. but i use a computer at my job at work..So you wont eve silence the MM..

  22. MASTERMIND on Thu, 24th May 2018 7:32 am 

    Davy you are going to die of conflict or starvation within the next decade..Your daddy can’t buy you out of this one..You uneducated peackerwood..

    IEA Chief warns of world oil shortages by 2020 as discoveries fall to record lows
    https://www.wsj.com/articles/iea-says-global-oil-discoveries-at-record-low-in-2016-1493244000

    Saudi Arabia’s Energy Minister Warns of World Oil Shortages Ahead
    https://www.wsj.com/articles/saudi-minister-sees-end-of-oil-price-slump-1476870790

    Saudi Aramco chief warns of looming oil shortage
    https://www.ft.com/content/ed1e8102-212f-11e7-b7d3-163f5a7f229c

    Sleepwalking Into The Next Oil Crisis
    https://www.forbes.com/sites/rrapier/2018/03/23/is-the-world-sleepwalking-into-an-oil-crisis/#509edc8b44cf

    According to the German Army leaked study. When the oil shortages hit, Wall street will crash, the public will lose all faith/trust in their institutions, and the global economy and world governments will collapse..
    http://www.energybulletin.net/sites/default/files/Peak%20Oil_Study%20EN.pdf

  23. Cloggie on Fri, 25th May 2018 12:09 am 

    All your race is dying in America..But peckerwoods are the superior race with high I.q’s rite????

    LMMFAOOO!!!

    Laugh all you want millimind, but it were those white serfs of yours, operating in your tribe’s interest…

    https://documents1940.wordpress.com/2017/09/25/chamberlain-and-the-forrestal-diaries/

    …who brought you “the world”, well at least the most important part of it.

    The death of the white race in America…

    https://documents1940.wordpress.com/2018/05/21/european-america-is-over/

    …also means the death of your power position and the end of the “Jewish century” (20th century)

    https://www.amazon.com/Jewish-Century-Yuri-Slezkine-ebook/dp/B005646E32/ref=sr_1_1

    LMMFAOOO!!!

    Europe is moving towards populism, the natural born “fascists” that we are, leading eventually, in no small measure propelled by the seemingly unstoppable rise of China, towards a continental European confederation:

    https://documents1940.wordpress.com/2018/05/10/boreas-rising-paris-berlin-moscow/

    Once that confederation is in place, we’ll pick up the pieces of European America, or what’s left of it, and park them somewhere in that new construct.

    The death of Anglosphere automatically means the end of Anglo-Zionism, you dummy.

    You are called “millimind” here for a good reason.

    Now give us again your daily portion of pear-reviewed peak-oil baloney.

  24. MASTERMIND on Fri, 25th May 2018 12:26 am 

    IEA Chief warns of world oil shortages by 2020 as discoveries fall to record lows
    https://www.wsj.com/articles/iea-says-global-oil-discoveries-at-record-low-in-2016-1493244000

    Saudi Arabia’s Energy Minister Warns of World Oil Shortages Ahead
    https://www.wsj.com/articles/saudi-minister-sees-end-of-oil-price-slump-1476870790

    Saudi Aramco chief warns of looming oil shortage
    https://www.ft.com/content/ed1e8102-212f-11e7-b7d3-163f5a7f229c

    Sleepwalking Into The Next Oil Crisis
    https://www.forbes.com/sites/rrapier/2018/03/23/is-the-world-sleepwalking-into-an-oil-crisis/#509edc8b44cf

    According to the German Army leaked study. When the oil shortages hit, Wall street will crash, the public will lose all faith/trust in their institutions, and the global economy and world governments will collapse..
    http://www.energybulletin.net/sites/default/files/Peak%20Oil_Study%20EN.pdf

    Scientific American: Apocalypse Soon: Has Civilization Passed the Environmental Point of No Return?
    https://www.scientificamerican.com/article/apocalypse-soon-has-civilization-passed-the-environmental-point-of-no-return/

    Inside the new economic science of capitalism’s slow-burn energy collapse (Ahmed, 2017)
    https://medium.com/insurge-intelligence/the-new-economic-science-of-capitalisms-slow-burn-energy-collapse-d07344fab6be

    Peer Reviewed Study: Society Could Collapse In A Decade, Predicts Historian (Turchin, 2010)
    https://www.nature.com/articles/463608a

    NASA Peer Reviewed Study: Industrial Civilization is Headed for Irreversible Collapse (Motesharrei, 2014)
    http://www.sciencedirect.com/science/article/pii/S0921800914000615

    The Royal Society: Peer Reviewed Study, Now for the First Time A Global Collapse Appears Likely (Ehrlich, 2013)
    https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3574335/

    Peer Reviewed Study: Limits to Growth was Right. Research Shows We’re Nearing Global Collapse (Turner, 2014)
    http://sustainable.unimelb.edu.au/sites/default/files/docs/MSSI-ResearchPaper-4_Turner_2014.pdf

    Peer Reviewed Study: Financial System Supply-Chain Cross-Contagion: Global Systemic Collapse (Korowicz, 2012)
    http://www.feasta.org/wp-content/uploads/2012/06/Trade-Off1.pdf

  25. MASTERMIND on Fri, 25th May 2018 12:27 am 

    Sleepwalking Into The Next Oil Crisis
    https://www.forbes.com/sites/rrapier/2018/03/23/is-the-world-sleepwalking-into-an-oil-crisis/#509edc8b44cf

    According to the German Army leaked study. When the oil shortages hit, Wall street will crash, the public will lose all faith/trust in their institutions, and the global economy and world governments will collapse..
    http://www.energybulletin.net/sites/default/files/Peak%20Oil_Study%20EN.pdf

    Scientific American: Apocalypse Soon: Has Civilization Passed the Environmental Point of No Return?
    https://www.scientificamerican.com/article/apocalypse-soon-has-civilization-passed-the-environmental-point-of-no-return/

    Inside the new economic science of capitalism’s slow-burn energy collapse (Ahmed, 2017)
    https://medium.com/insurge-intelligence/the-new-economic-science-of-capitalisms-slow-burn-energy-collapse-d07344fab6be

    Peer Reviewed Study: Society Could Collapse In A Decade, Predicts Historian (Turchin, 2010)
    https://www.nature.com/articles/463608a

    NASA Peer Reviewed Study: Industrial Civilization is Headed for Irreversible Collapse (Motesharrei, 2014)
    http://www.sciencedirect.com/science/article/pii/S0921800914000615

    The Royal Society: Peer Reviewed Study, Now for the First Time A Global Collapse Appears Likely (Ehrlich, 2013)
    https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3574335/

    Peer Reviewed Study: Limits to Growth was Right. Research Shows We’re Nearing Global Collapse (Turner, 2014)
    http://sustainable.unimelb.edu.au/sites/default/files/docs/MSSI-ResearchPaper-4_Turner_2014.pdf

    Peer Reviewed Study: Financial System Supply-Chain Cross-Contagion: Global Systemic Collapse (Korowicz, 2012)
    http://www.feasta.org/wp-content/uploads/2012/06/Trade-Off1.pdf

  26. MASTERMIND on Fri, 25th May 2018 12:39 am 

    Deutsche Bank reportedly set to lay off 10,000 workers

    https://nypost.com/2018/05/23/deutsche-bank-reportedly-set-to-lay-off-10000-workers/

    Europe’s depression is only getting worse..And the more right wing populist keep wining..the more investors will keep pulling their money out..And things will keep spiraling downhill..

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