oildrop

It has been noted that over the last few months, the price of oil has dropped considerably. While motorists worldwide are happy at the prospect of commuting to work, or leisure at half the price, behind all of this, it could spark a terrifying geopolitical consequence, if the barrel drops to below $40.

Jeffrey Gundlach, an investor from the US said in a recent interview with the Swiss newspaper Finanz und Wirtschaft (FUW): “If oil falls to around $40 a barrel then I think the yield on ten year Treasury note is going to 1%. I hope it does not go to $40 because then something is very, very wrong with the world, not just the economy. The geopolitical consequences could be – to put it bluntly – terrifying. Large and rapid rises and falls in the price of crude oil have correlated oddly strongly with major geopolitical and economic crisis across the globe. Whether driven by problems for oil exporters or oil importers, the difference this time is that, thanks to central bank largesse, money flows faster than ever and everything is more tightly coupled with that flow.”

However the last time there was an activity like this especially with regards to oil fluctuation; it led to a global financial collapse in 2008. Michael Snyder reported in his journal that, “A junk bond implosion is usually a signal that a major stock market crash is on the way. So if you are looking for a “canary in the coal mine”, keep your eye on the performance of energy junk bonds. If they begin to collapse, that is a sign that all hell is about to break loose on Wall Street.”

Over the course of the last month, the sudden drop in the price of oil has been classed and documented as an engineered attack on the Russian economy, notably being led by both Saudi Arabia and the White House. Its aim is to bring about a revolution in Russia, including political disruption and upheaval. The sanctions the US and EU have put in place on Russia will become more crippling and severe over time, in the face of falling oil prices. This could then lead to direct consequences on US foreign policy and global war for dominance, as oil and gas giants make a mark on the global energy industry.

Akashic Times is the UK’s only online, fully independent not-for-profit newspaper that brings you real news from across the globe.

If you want to keep ahead of what is really going on in the world, subscribe to our newspaper via the subscribe button and join our Facebook & Twitter pages. Subscription is completely free ofcourse

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

(Spamcheck Enabled)