• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 hours Oil prices going Up? NO!
  • 1 day Could Venezuela become a net oil importer?
  • 6 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 2 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 25 mins Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 4 hours Could oil demand collapse rapidly? Yup, sure could.
  • 1 day Gazprom Exports to EU Hit Record
  • 48 mins Oil prices going down
  • 1 day EU Leaders Set To Prolong Russia Sanctions Again
  • 1 day Why is permian oil "locked in" when refineries abound?
  • 1 day Oil Buyers Club
  • 2 days Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 1 hour Saudi Arabia turns to solar
  • 1 day EVs Could Help Coal Demand
  • 2 days China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 19 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
Alt Text

How To Spot Top E&P Stocks In 2018

As sentiment in oil markets…

Alt Text

Green Bonds Are A Huge Boost For Renewables

The growing popularity of ‘green…

Alt Text

Yieldcos Are Back And Better Than Ever

Yieldcos have had a rocky…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

What Will Cause the Next Crisis?

It's not going to be another Lehman.

A failure of a bank or major corporation won't cut it anymore. Governments globally have shown they're willing to step in and bail out private enterprise to any tune.

Last year, it looked like another crisis might arise with the failure of a government. But the Greek crisis back in May showed that governments are also willing to step in and bail out other governments.

So what should we be looking for as a potential trigger to another financial crisis?

It's going to be something at the government level. Something that makes governments unable to intervene and create new money in order to bail out trouble spots in the private sector.

There's a few ways this could happen.

Bond markets. If investors stop buying a nation's sovereign debt, it could impede the ability of that government to create new money. But so far this isn't happening. Investors bought $2.4 trillion in American bonds this past fiscal year, more than paying the U.S. deficit.

It could be public outcry. If the people rally hard enough against profligate government spending, they might be able to handcuff their leaders. The U.S. Tea Party movement is one sign of this happening. Although it's unclear yet whether this group will have any material effects on government spending.

Maybe currencies will be the brake. Theoretically, the more a nation prints cash, the more the value of its money will fall. The loss of spending power should eventually force an end to money creation.

Except that the world's largest economies are printing and devaluing in tandem. Meaning that major currencies are staying roughly equal, relative to each other.

But here's a new one that just emerged yesterday: perhaps monetary tampering will be halted by international peer pressure.

Such a move was suggested by World Bank president Robert Zoellick in a Financial Times article. Among other things, Zoellick writes that the global economy should move back to a gold standard. And that major nations should "agree to forego currency intervention, except in rare circumstances agreed to by others."

A gold standard would hamstring governments in printing new money. So would a system where monetary interventions need to be approved by a world vote.

Such a system would open the door for insolvent banks and corporations to once again fail in the good old-fashioned way.

Could such a system come to pass? Currencies and global trade are already becoming a heated issue in many parts of the world. Just look at the renewed pressure on China to re-value the renminbi.

If things get rough enough, world leaders might be forced to sit down and negotiate something like Zoellick suggests. If you're wondering what's ahead for global finance, this is an area to keep watching for signs.

By. Dave Forest of Notela Resources




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News