william the wie
Gold Member
- Nov 18, 2009
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Most of the world imports much more energy than it exports. Energy is a material expense in every good and service.
Amount of energy in watts used also equates to GDP.
As the costs of goods and services decline with energy prices this will have deflationary effects in China, Japan and the Euro-Zone raising real interest rates.
As energy prices decline potential GDP-fixed charges (debt mostly) can climb until prices drop to where fixed charges cannot be covered.
Hysterical claims are made on both sides of this argument so I was wondering what the consensus figure is on what price per barrel will cause financial distress.
Amount of energy in watts used also equates to GDP.
As the costs of goods and services decline with energy prices this will have deflationary effects in China, Japan and the Euro-Zone raising real interest rates.
As energy prices decline potential GDP-fixed charges (debt mostly) can climb until prices drop to where fixed charges cannot be covered.
Hysterical claims are made on both sides of this argument so I was wondering what the consensus figure is on what price per barrel will cause financial distress.