IT’S ALL FALLING APART: Big Banks Brace for Oil Loans To IMPLODE! Hyperinflation Has Arrived In Canada, France Declares State Of Economic Emergency
Firms on Wall Street helped bankroll America’s energy boom, financing very expensive drilling projects that ended up flooding the world with oil.
Now that the oil glut has caused prices to crash below $30 a barrel, turmoil is rippling through the energy industry and souring many of those loans. Dozens of oil companies have gone bankrupt and the ones that haven’t are feeling enough financial stress to slash spending and cut tens of thousands of jobs.
Three of America’s biggest banks warned last week that oil prices will continue to create headaches on Wall Street — especially if doomsday scenarios of $20 or even $10 oil play out.
The financial pain has gotten so great that now there’s murmurs of a bail out for the U.S. oil industry, though it’s clear any assistance would run into political opposition.
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Hyperinflation has arrived in Canada
It was just yesterday when we documented the continuing slide in the loonie, which is suffering mightily in the face of oil’s inexorable decline.
As regular readers are no doubt acutely aware, Canada is struggling through a dramatic economic adjustment, especially in Alberta, the heart of the country’s oil patch. Amid the ongoing crude carnage the province has seen soaring property crime, rising food bank usage and, sadly, elevated suicide rates, as Albertans struggle to comprehend how things up north could have gone south (so to speak) so quickly.
The plunging loonie “can only serve to worsen the death of the ‘Canadian Dream'” we said on Tuesday.
As it turns out, we were right.
The currency’s decline is having a pronounced effect on Canadians’ grocery bills.
As Bloomberg reminds us, Canada imports around 80% of its fresh fruits and vegetables. When the loonie slides, prices for those goods soar. “With lower-income households tending to spend a larger portion of income on food, this side effect of a soft currency brings them the most acute stress” Bloomberg continues.
Three bucks. For a cucumber. pic.twitter.com/xGkygxkxqB
— Steve Ladurantaye (@ladurantaye) January 12, 2016
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ECONOMIC COLLAPSE: France Declares State of Economic Emergency Oil Prices Set to Plunge
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Bill Holter from JS Mineset joins us to cover the unfolding global economic collapse. “This is it. We’re watching the meltdown. This is history being made.” Bill says.
Holter explains, “The Fed has lied themselves into a corner. They raised rates and here we are a month later, the system is imploding and they have no bullets left. They are going to have to do QE4, they are going to have to do negative interest rates.”
In one of the most shocking interviews we have ever done Bill concludes, “I believe this is it. The margin call, the meltdown, we’re watching it in real time… I guess the best way to look at where we are right now is, we’re standing at the gates of Hell.”897 views