{"id":2886,"date":"2014-12-12T08:13:20","date_gmt":"2014-12-12T13:13:20","guid":{"rendered":"http:\/\/olduvai.ca\/?p=2886"},"modified":"2014-12-12T08:13:20","modified_gmt":"2014-12-12T13:13:20","slug":"charles-hugh-smith-the-financialized-oil-dominoes-are-toppling","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=2886","title":{"rendered":"charles hugh smith-The Financialized-Oil Dominoes Are Toppling"},"content":{"rendered":"<p><a href=\"http:\/\/www.oftwominds.com\/blogdec14\/oil-dominoes12-14.html\">charles hugh smith-The Financialized-Oil Dominoes Are Toppling<\/a>.<\/p>\n<p><span class=\"Apple-style-span\" style=\"color: #404040; font-family: Verdana; font-size: small; line-height: normal;\"><i>The drop in oil revenues has triggered a self-reinforcing feedback dynamic.<\/i><\/span><\/p>\n<p><b>Oil is not just something that is refined into fuel&#8211;it is capital, collateral, debt and risk.<\/b>\u00a0In other words, it is intrinsically\u00a0<i>financial<\/i>. As I noted in\u00a0<a href=\"http:\/\/www.oftwominds.com\/blogdec14\/financialized-oil12-14.html\" target=\"resource\">The Oil-Drenched Black Swan, Part 2: The Financialization of Oil<\/a>, oil has been financialized to the point that few outside the industry understand the dominoes that are currently toppling.<\/p>\n<p><b>Let&#8217;s start with the obvious fact that the impact of lower oil is financial, political and geopolitical.<\/b>\u00a0Lower oil revenues are negatively impacting:<\/p>\n<p>1. Oil-exporters\u2019 revenues<\/p>\n<p>2. Monetary policy of central banks<\/p>\n<p>3. Trade flows<\/p>\n<p>4. Global financial markets<\/p>\n<p>Lower revenues are pressuring oil-dependent governments such as Russia, Venezuela and Iran, and destabilizing the geopolitical order as weakened oil exporters sink into recession and political turmoil.<\/p>\n<p><!-- [if gte mso 9]><xml>\n <w:WordDocument>\n  <w:Zoom>0<\/w:Zoom>\n  <w:DisplayHorizontalDrawingGridEvery>0<\/w:DisplayHorizontalDrawingGridEvery>\n  <w:DisplayVerticalDrawingGridEvery>0<\/w:DisplayVerticalDrawingGridEvery>\n  <w:UseMarginsForDrawingGridOrigin\/>\n <\/w:WordDocument>\n<\/xml><![endif]--> <!--StartFragment--><\/p>\n<p class=\"MsoNormal\"><span style=\"font-size: 13.0pt; font-family: LucidaGrande; color: #282828;\">&#8230;click on the above link to read the rest of the article&#8230;<\/span><\/p>\n<p><!--EndFragment--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>charles hugh smith-The Financialized-Oil Dominoes Are Toppling. The drop in oil revenues has triggered a self-reinforcing feedback dynamic. Oil is not just something that is refined into fuel&#8211;it is capital, collateral, debt and risk.\u00a0In other words, it is intrinsically\u00a0financial. As I noted in\u00a0The Oil-Drenched Black Swan, Part 2: The Financialization of Oil, oil has been [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[124,1573,1775,1862],"class_list":["post-2886","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-central-banks","tag-financialization","tag-oil-price-collapse","tag-oil-revenues"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2886"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2886\/revisions"}],"predecessor-version":[{"id":2887,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2886\/revisions\/2887"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}