{"id":3017,"date":"2014-12-15T07:55:13","date_gmt":"2014-12-15T12:55:13","guid":{"rendered":"http:\/\/olduvai.ca\/?p=3017"},"modified":"2014-12-15T07:55:13","modified_gmt":"2014-12-15T12:55:13","slug":"oils-crash-is-the-canary-in-the-coal-mine-for-a-9-trillion-crisis-zero-hedge","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=3017","title":{"rendered":"Oil’s Crash Is the Canary In the Coal-Mine for a $9 TRILLION CRISIS | Zero Hedge"},"content":{"rendered":"

Oil’s Crash Is the Canary In the Coal-Mine for a $9 TRILLION CRISIS | Zero Hedge<\/a>.<\/p>\n

The Oil story is being misinterpreted by many investors.<\/p>\n

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When it comes to Oil, OPEC matters, as does Oil Shale, production cuts, geopolitical risk, etc. However, the reality is that all of these are\u00a0minor\u00a0<\/em>issues against the MAIN STORY:\u00a0the $9 TRILLION US Dollar carry trade.<\/strong><\/p>\n

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Drilling for Oil, producing Oil, transporting Oil\u2026 all of these are\u00a0extremely<\/em>\u00a0expensive processes. Which means\u2026 unless you have hundreds of millions (if not billions) of Dollars in cash lying around\u2026 you\u2019re going to have to\u00a0borrow<\/span><\/strong>\u00a0money.<\/p>\n

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Borrowing US Dollars is the equivalent of\u00a0shorting<\/span><\/strong>\u00a0the US DOLLAR. If the US Dollar rallies, then your debt becomes more and more expensive to finance on a relative basis.<\/p>\n

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There is a lot of talk of the \u201cDeath of the Petrodollar,\u201d but for now, Oil is priced in US Dollars. In this scheme, a US Dollar rally is Oil negative.<\/p>\n

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Here\u2019s the US Dollar:<\/p>\n

<\/p>\n

…click on the above link to read the rest of the article…<\/span><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Oil’s Crash Is the Canary In the Coal-Mine for a $9 TRILLION CRISIS | Zero Hedge. The Oil story is being misinterpreted by many investors. When it comes to Oil, OPEC matters, as does Oil Shale, production cuts, geopolitical risk, etc. However, the reality is that all of these are\u00a0minor\u00a0issues against the MAIN STORY:\u00a0the $9 […]<\/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":[1930,1775,1929,600],"class_list":["post-3017","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-marginal-oil-production","tag-oil-price-collapse","tag-oil-shale","tag-opec"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3017","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=3017"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3017\/revisions"}],"predecessor-version":[{"id":3018,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3017\/revisions\/3018"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}