Plunging commodities and rising US Dollar are signalling deflation, will ECB QE save the world with Chinese stimulus now? Can FED really raise the rates in this situation? Yesterday's run on Gold could show us the things to come. FED Open Mouth Committee can start to talk the US Dollar down now. Euro is weak enough already to hurt US corporations earnings. Triple blow from killed Shale Oil, slowing export and going down earnings from overseas will put FED in the corner. Strong dollar means deflation - the very thing they are fighting against now. Once dollar will reverse its parabolic rise we can have our day with gold. Gold above $1,350 will bring this story back on the mainstream investors' radar screens.
How low can oil go? What will happen at $20 dollar Oil? Will this crash trigger another financial crisis and Great Recession?
Oil is the wild card played last year on the backdrop of all Currency Wars. Now the Shale Oil related financing could bring the shock to the whole financial system again.
Just one more thing to get you started your own research. Is it one of the reasons why China is buying so much Gold now?
"Let's put some numbers and technical details of the "Shale Oil Revolution" into perspective. Please make no mistake: Currency Wars are moving fast into Energy Wars or, more precisely - Shale Oil Wars. The economic miracle in U.S is based on the cheap energy and strong US dollar will be killing it fast. The weaker US Dollar must come to save the Shale Oil now.We have the technology to change all this geopolitical picture ones and for all - Electric Cars and Elon Musk with Tesla Motors has demonstrated the power of lithium based power-trains. When finally will it be fully embraced, using this opportunity of the borrowed time of "Shale Oil revolution?"