Big Oil shares capitulate to COVID19, and for some, it’s being interpreted as capitulating to the 2015 Paris agreement – October 2, 2020,
Because of the excessive money printing which should actually be called money borrowing, that governments have doing to prop up the global economy, news entities are having a hard time comprehending what DEFLATION is. Many of us on the Conservative Right, write extensively about minimum wages and government programs like social security which don’t allow for the deflation of the money supply.
COVID-19 in financial terms is actually a deflationary event, if various governments all over the world weren’t bailing out people and industry with borrowed money, this entire global economy would have crashed and more than likely, what would have happened during an economic crash is that people would look at COVID-19 for what it is and not this threat to human civilization that it’s being sold as.
Because s many people have been brainwashed to trust Politicians, the global economy has become increasingly harder to understand for people who feel that Austrian economics is a relic of the past. Make no mistake about it, the price of oil has retreated, but the reality of the situation is that the economy has crashed.
What hasn’t crashed yet are central bankers, the cashflow on central bankers cash flow statements will be the last to have a cash flow crisis, but the cash flow crisis in the Mainstreet economy has already arrived! The private sector is finding it increasingly more difficult to turn a profit and the Paris agreement is an added regulation and an additional cost for the private sector and this is something that modern Keyesian are not going to understand, has march forward with their Green New Deal!
So let’s imagine for a second that the world economy transitioned into a green economy gradually, which is what we all expected would happen, well the profitability model would be based on the market, but the government intervention of picking green winners and losers is going to be a challenge, to say the least because the government is throwing money at companies which already have bloated costs.
The entire global economy still revolves around oil and when the price of oil declines it’s deflationary, the wealth of effect of bank liquidity can’t hide the truth of the economy. In Canada, I think it’s like 3 million people are dependent on The Canada Emergency Response Benefit (CERB) right now and CERB or whatever it’s replacement is now, is in many ways paying people more money NOT to work than they’d make to work.
Now, I have to add that for some people CERB is a lot less money than they made prior to the pandemic. Why is this important? Because people were in debt prior to COVID-19, household debt is actually DEFLATIONARY eventually you have to pay that money you owe back.
Furthermore, we have mortgage deferrals, auto loan deferrals, and a whole lot of other deferrals which all lead to deflation. Now, obviously, we all know that the debasement of currency is coming, the problem with debasing currency right NOW, goes back to the size of government.
This is the part of the story a lot of people are missing, I see forced austerity or full-blown financial communism coming to the West if the public doesn’t realize the problem a lot of world leaders caused. The handling of the Coronavirus was done all wrong.
In business, you do targeting, so if one group of people are susceptible to death under COVID-19, those people get the most resources thrown at them, those would be the people, the business would say, ‘be careful about covid-19, because it’s killing the elderly’.
Because we’re under a fiat money system, the government said, we’re going to shut down the economy, wait for a cure and hand out free cash, well the oil price signal which is only a big deal because of government regulations is screaming that the economy has already crashed!
The price of oil is not a big deal, the only problem with lower-priced oil is the companies in debt and most of these debts oil companies are in revolve around the size of government. Deflation is really a fire sale, deflation isn’t a bad thing, the only bad thing in society is that our children aren’t taught financial education in school.
Robert Kiyosaki made his entire platform on financial education and that’s why he’s been so influential to the Western World. Everything that is happening around the globe is very easy to interpret from a financial perspective, the problem is that we have a lot of globalists running the world and for those of you unfamiliar with the globalist, they hate deflation because, under a gold standard, it was common for a rich business tycoon to go bankrupt.
Bailouts are normal now? Why because socialists in order to push their communist agendas don’t want people to learn financial education in schools and globalists have now mered with labour unions! Labour unions in case people haven’t been paying attention or global now, most unions are run by communists!
In Canada, our labour unions push for a Green new deal, wich similar to the “new deal” led to the great depression. Now, during the great depression in the United States, it was deflationary, well, it’s deflationary now, the difference being that governments an central banks this time around aren’t burdened with a gold standard.
So deflation will be covered with borrowed money and I’m telling people, once that breaking point for the private sector happens, to where most companies can’t turn a profit, watch out! I’ve often said oil standard is better than a gold standard could ever be!
Big Oil shares capitulate to COVID, lower carbon doubts | reuters.com
Interesting times ahead!