America & friends were dealt a disadvantageous hand in the oil resource game. Our foes got the upper hand and we’ve fed their fat bellies ever since. But we aren’t utterly screwed… Innovation made it possible to sell resources that use to have no value. Leveraging this opportunity is essential in order to challenge our enemies in the energy markets.
The Saudi’s are scared of our ingenuity, and because their frivolous life-styles are completely dependent on the price of that thick black gooey shit under their feet they’re wiling to embrace economic warfare to defend it. They’ve successfully orchestrated lower oil prices to levels aimed at bankrupting our blossoming (and highly leveraged) industry.
To be honest, their strategy was ingenious, well timed, and caught everyone off guard. Kudos to the Kings of the desert & beheadings.
We must defend O&G for our national security. The industry has already moved the middle of our country into a recession. Luckily the east and west coasts are picking up the slack, growing at a steady 2-4% (perhaps benefiting a bit from lower oil)
We all should support a government equity investment into our own natural resources. The investment would immediately be label as a “bailout”, which the populous still believes was the wrong thing to do in 2008… this notion is fucking hilarious… Never mind that fact the public profited handsomely from bailing out the banks for a second and let me scare the hell out of you.
Here is an illustration of what would have happened without a bank bailout…
If the second congressional bailout vote failed… like the first one… the credit market would have frozen the next day.
Companies would be unable to access their credit facilities to make payroll. After realizing they are not getting paid, workers stop working.
A week later super markets run out of food. The food distribution network is shattered because truck drivers ran for the hills with shotguns in search of hidden caves.
Peanut butter and tuna fish become the most valuable items in north america. Goldbugs realize they’ve really just acquired a bunch of shiny rocks, roaming bands of pirates fight for control of areas rumored to still have tuna fish…
Either two things happen after that: cannibalism… or a Chinese invasion.
Ok, so now you know. Lets get back to this O&G bailout idea…
If the government properly conducted due diligence and defended only the best wells and reserves… meaning some companies should not get bailed out if their assets are garbage… regardless of political contributions (there will be scandals, I’m sure) tax payers would profit extremely well in 2-3 years. Oil will continue to have value until Americans, Germans, or some Asian country invents a better energy resource…. So if we just purchase our own assets at below market values we are just being savvy investors. Besides making money, a bailout of the Oil & Gas industry would take a recession completely off the table… GDP growth would rise to 4% and we’d enter into a golden age of wealth and prosperity.
If America really wanted to be nefarious…
Bail out O&G… OPEC gets tired of losing a fortune with low oil prices and cuts production… thinking it will raise prices… America one ups them and INCREASES production… catching OPEC by surprise and unprepared for their game of economic chicken lasting longer than calculated… America keeps production high and prices low until the middle east is in a deep economic recession… and we buy Dubai in foreclosure… Just an idea.
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Why not.The house of Saud is fucking us so
lets double fuck them.
I sort of agree with this. Anything to fuck the Saudi’s is probably a good idea. Bailing out debtors though, leaves a bad taste in my mouth. Credit is necessary but also inherently a bad idea because noone manages it well. So I’d let the debtors burn in a deflationary hell were it left up to me. Other than “our” debtors in Murica though. 😉
The govt should use this time to diversify our energy and find domestic solutions. Bailing out oil would only work when prices rebound otherwise it’s just feeding the banks directly.
If the Trumpster was serious about defending American interests he would call for an oil import tax at 50 bucks a barrel. That would seriously fuck over the Saudis and the other towel heads/ assorted miscreants.
Interesting thesis, but we are so tied to the hip with the Saudis, do you not think that this is happening with our governments approval?
Maybe the low oil prices are meant to bankrupt the “evil doers” that are left. Venezuela and Russia. We cant invade Russia so try to bankrupt them and hope for regime change. This will allow for Syria to lose support and then the pipeline goes from ME to Europe as planned boxing out the Russians. The US oil sector is just collateral damage from this. IN addition, the Saudis may be able to pick up the pieces at a discount given their reserves are going down and are questionable.
Just sayin …
HAHAHAHAH this world is seriously becoming fucking insane. You seriously think its a good idea to nationalize entire industries that are ridiculously levered and frankly not competitive at current prices? What should we nationalize next? How about banking? oh, whoops. or healthcare? my bad. I know, lets nationalize everything……thats the key to wealth creation after all. I mean why settle for the “golden age” of just 4% GDP. Lets fire this MoFo up and nationalize everything. Lets pay 100x sales too….that ought to stir some animal spirits. This Post-Keynsian and MMT shit is so ridiculous its funny.