...LOL...
It's always about the price of energy. It's just that it takes 6 months to 10 months to measure it depending on how fast it rises. But you can now add this trade war and tariffs to the list. You will be able to measure it in a big way by the mid of 2q 2019. Your just seeing some projections now. Nobody knows the depth of the impact and probably no idea for 6 months.
World economies slow or stop growth over $80 bl... were there...
But a new situation has emerged. A alliance of Saudi and Russian oil forces that tops anything the US can do in being top energy producer and having a influence on production/pricing.
It's called OPEC+
But, something else...
Trump has pissed off the Chinese, so now they will not buy our domestic oil.
That's sure to change the money game next election. Not sure what domestic oil produces will do to get back their $10bl loss. Surely not give money the the guy that helped that along.
Yes, the spread between WTI oil and Brent oil is around $10 a barrel and getting worse. Since Obama lifted the OIL Export restrictions in 2015,
(
https://www.investors.com/news/oil-e...eeds-obama-ok/)
it has helped better our trade imbalance with all the crap we get from china. I still did not like it. At least not until we are self sufficient oil producers. They blew smoke and mirrors on that by using the term 'North America' will be self-sufficient producers by 2020. And you bought it !
No matter what the politicians do, if the price of oil hits and maintains $90 bl, the US economy will collapse in less than a year while Russia's & Saudi's economy thrives. That's a lot more mess your tax dollars are going to have to serve those wars in the mid-east. And they are already staging their positions. And guess what... we will not likely be able to borrow from the Chinese to pay for it. You have lower tax collections from the tax breaks.
Hmmmm....
But that has the effect of oil demand dropping, but who will care about that if you can't get a loan from a bank ?
Does anyone see a similarity of 2006/07 ?
And it's not like nobody warned you.... you just would not listen to them 'cause the markets were going up !
Wall Street does not factor this stuff in until the shit hits the fan and it's to late to reverse course. Even 'if' the next congress does what it can to change things, you are in for slow growth for a couple of years as this trickles down. But you won't be able to measure it until well after the next congress takes it's seat.
YEP, Trump has played right into Putin's hands from the tearing up of that treaty with Iran and lowering those oil exports, to a trade tariffs that the RUSSIAN OLIGARCH's profit from by middle manning a bypass of them.
...LOL... GET THE LUBE AND PUCKER UP !