• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 days Does Toyota Know Something That We Don’t?
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 hours America should go after China but it should be done in a wise way.
  • 7 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 6 days China is using Chinese Names of Cities on their Border with Russia.
  • 7 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 7 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 6 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 7 days Putin and Xi Bet on the Global South
  • 7 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 8 days United States LNG Exports Reach Third Place
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs
How To Play The Nuclear Power Renaissance

How To Play The Nuclear Power Renaissance

A nuclear renaissance seems likely,…

Editorial Dept

Editorial Dept

More Info

Premium Content

A U.S. Default Is Unlikely, But So Is An Oil Rally

This week, as the deadline for reaching an agreement on raising the US debt limit approached, the ratings agency Fitch announced that they were placing the AAA debt rating of the United States government on “negative watch”. If you are new to trading and investing, and particularly if you live outside of the US, that news might surprise you. I mean why would any country, least of all the one whose currency and debt form the basis of the global financial system, put its credit rating at risk periodically by squabbling about partisan politics?

The ostensible treason makes perfect sense. Someone, at some point, has to be held accountable for government spending, and forcing Congress and the President to speak about it occasionally doesn’t seem like a bad thing. However, having a debt limit that must be renewed hasn’t exactly limited spending since it was introduced in 1917, and the US now owes a mind-boggling $31.8 trillion. The problem is that the debt ceiling negotiations have evolved into a kind of theater of the absurd with everyone playing roles, a lot of melodramatic posturing, and a tortured path to an inevitable conclusion.

We know all this because we have been here before, and more than once. In fact, it is a regular occurrence. So, why does it continue?

The answer is because, as crazy as it may seem, history indicates that the arguing and posturing will benefit both sides politically, and that is seen by them as more important…

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News