Low Oil Prices: Sign of a Debt Bubble Collapse, Leading to the End of Oil Supply?
Posted on September 21, 2014 by Gail Tverberg
Oil and other commodity prices have recently been dropping. Is this good news, or bad? Gail Tverberg argues that falling commodity prices are bad news. She thinks it likely means that the debt bubble which has been holding up the world economy for a very long time–since World War II, at least–is failing to expand sufficiently. If the debt bubble collapses, we will be in huge difficulty.
Many people have the impression that falling oil prices mean that the cost of production is falling, and thus that the feared “peak oil” is far in the distance. This is not the correct interpretation…