{"id":37647,"date":"2018-09-11T19:02:45","date_gmt":"2018-09-12T00:02:45","guid":{"rendered":"http:\/\/olduvai.ca\/?p=37647"},"modified":"2018-09-11T19:02:45","modified_gmt":"2018-09-12T00:02:45","slug":"americas-oil-boom-is-a-fraud","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=37647","title":{"rendered":"America\u2019s Oil Boom Is a Fraud"},"content":{"rendered":"
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America\u2019s Oil Boom Is a Fraud<\/a><\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n
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PARIS \u2013 We promised to end the week with a bang!<\/p>\n

You\u2019ll recall that Fed policy always consists of the same three mistakes<\/a>\u2026 1) Keeping interest rates too low for too long, resulting in too much debt; 2) Raising interest rates to try to gently deflate the debt bubble; and 3) Cutting rates in a panic when stocks fall and the economy goes into recession.<\/p>\n

Well, here comes the Big Bang: Mistake #4 \u2013 rarely seen, but always regretted.<\/p>\n

Mistake #4 is what the feds do when their backs are to the wall\u2026 when they\u2019ve run out of Mistakes 1 through 3.<\/p>\n

It\u2019s a typical political trade-off. The future is sacrificed for the present. And the welfare of the public is tossed aside to buy money, power, and influence for the elite.<\/p>\n

Apocalypse Now!<\/strong><\/p>\n

Every debt expansion ends in a debt contraction. Stocks crash. Jobs are lost. The economy goes into reverse, correcting the mistakes of the previous boom.<\/p>\n

Investors see their money entombed. Householders await foreclosures. The authorities scream: Apocalypse Now!<\/p>\n

The more the feds falsify price signals in the boom, the more mistakes there are to correct. For example, this week, a report in The New York Times<\/em> described the big mistake in the shale oil boom.<\/p>\n

You\u2019ll recall that it turned America from a big importer of oil to a major exporter\u2026 and revived much of the heartland with big fracking projects in woebegone regions of Texas and North Dakota.<\/p>\n

The shale oil boom was even credited with having scuttled the oil market, which dropped from a high of around $130 a barrel in mid-2008 to under $30 in late 2016, thanks to so much new supply.<\/p>\n

But guess what? The whole boom was fake. It didn\u2019t add to wealth; it subtracted from it. Accumulated losses over the last five years tote to more than $200 billion, with $36 billion lost in the Bakken shale fields in North Dakota alone.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

America\u2019s Oil Boom Is a Fraud PARIS \u2013 We promised to end the week with a bang! You\u2019ll recall that Fed policy always consists of the same three mistakes\u2026 1) Keeping interest rates too low for too long, resulting in too much debt; 2) Raising interest rates to try to gently deflate the debt bubble; […]<\/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":[3],"tags":[6190,10519,3055,195,5260,1397,846],"class_list":["post-37647","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-bill-bonner","tag-bonner-and-partners","tag-cash-flow","tag-debt","tag-negative-cash-flow","tag-oil-boom","tag-us-shale-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37647","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=37647"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37647\/revisions"}],"predecessor-version":[{"id":37648,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37647\/revisions\/37648"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37647"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37647"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37647"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}