OIL CAPITULATION: SECOND THREAD (Now trading at $2.3/barrel)

#23
Money might lose value soon. Infact as soon as I saw this news I told my hubby to go food shopping, before the food shortages and riots begin.
All this because some Chinese decided to eat bat in Wuhan market.

Besides that, the U.S is facing a dilemma.

Should you stay at home because of corona or should people go back to work to prevent the mighty dollar from collapsing?

If people in the U.S don't go back to work to increase the demand for oil, and money loses value, more people will die than those who have died due to covid-19.

There will be utter chaos in the streets and people will go back to factory settings.

Either that, or World War III could happen very soon. It's very possible if things keep getting worse.

Damned if you do, damned if you don't.

This is a marathon and not a sprint.
 

bouss

Village Elder
#24
All this because some Chinese decided to eat bat in Wuhan market.

Besides that, the U.S is facing a dilemma.

Should you stay at home because of corona or should people go back to work to prevent the mighty dollar from collapsing?

If people in the U.S don't go back to work to increase the demand for oil, and money loses value, more people will die than those who have died due to covid-19.

There will be utter chaos in the streets and people will go back to factory settings.

Either that, or World War III could happen very soon. It's very possible if things keep getting worse.

Damned if you do, damned if you don't.

This is a marathon and not a sprint.
Not WWIII with Trump in the office. Jamaa ni lunatic
 

Purple

Moderator
Staff member
#25
All this because some Chinese decided to eat bat in Wuhan market.

Besides that, the U.S is facing a dilemma.

Should you stay at home because of corona or should people go back to work to prevent the mighty dollar from collapsing?

If people in the U.S don't go back to work to increase the demand for oil, and money loses value, more people will die than those who have died due to covid-19.

There will be utter chaos in the streets and people will go back to factory settings.

Either that, or World War III could happen very soon. It's very possible if things keep getting worse.

Damned if you do, damned if you don't.

This is a marathon and not a sprint.
It’s scary. I wish I could go back to kenya nikae na watu wetu. :confused:At least we always have sukuma in the farm na kuku, na unga ya ugali ni mob. Saa hii hata siwezi rudi. There are no planes and even if there were, the 14 day quarantine sounds like hell.
 
#28
The world is inching closer towards a full blown war. Soon, the inevitable will happen. Do you think China will be nuked?
The U.S will not just sit and watch its economy collapse while Russia, Saudi Arabia and China pop champagne.

China started this corona pandemic, then Russia and Saudi Arabia added wood to the fire causing this oil crisis.

Those 3 countries are in the same WhatsApp group.
 

Simiyu22

Village Sponsor
#31
All this because some Chinese decided to eat bat in Wuhan market.

Besides that, the U.S is facing a dilemma.

Should you stay at home because of corona or should people go back to work to prevent the mighty dollar from collapsing?


If people in the U.S don't go back to work to increase the demand for oil, and money loses value, more people will die than those who have died due to covid-19.
.
Dollar cannot collapse. In fact the dollar value will rise if the economy heads to distress. As happened in the Great Depression, the value of the dollar rose. You know why, people stopped spending. It led to deflation. Prices of goods fell. Dollar value rose.
 

Purple

Moderator
Staff member
#32
Nuked, doto ya mchana. The world has shifted from physical wars to biological war
You remember when the Japanese hit Pearl Harbor unannounced and America had to retaliate with Hiroshima/Nagasaki. I wouldn’t rule anything out, yet. Moreover there’s nothing China will do coz people all over the world are very angry at how covid has ruined their lives. If investigations reveal that China launched this virus as a biological weapon so much will change, very quickly.

“There were numerous historical precedents for the unannounced military action by Japan, but the lack of any formal warning, particularly while peace negotiations were still apparently ongoing, led President Franklin D. Roosevelt to proclaim December 7, 1941, "a date which will live in infamy". Because the attack happened without a declaration of war and without explicit warning, the attack on Pearl Harbor was later judged in the Tokyo Trials to be a war crime.[22][23]
https://en.m.wikipedia.org/wiki/Attack_on_Pearl_Harbor
 
#33
You remember when the Japanese hit Pearl Harbor unannounced and America had to retaliate with Hiroshima/Nagasaki. I wouldn’t rule anything out, yet. Moreover there’s nothing China will do coz people all over the world are very angry at how covid has ruined their lives. If investigations reveal that China launched this virus as a biological weapon so much will change, very quickly.

“There were numerous historical precedents for the unannounced military action by Japan, but the lack of any formal warning, particularly while peace negotiations were still apparently ongoing, led President Franklin D. Roosevelt to proclaim December 7, 1941, "a date which will live in infamy". Because the attack happened without a declaration of war and without explicit warning, the attack on Pearl Harbor was later judged in the Tokyo Trials to be a war crime.[22][23]
https://en.m.wikipedia.org/wiki/Attack_on_Pearl_Harbor
Hii ni ndoto. China will retaliate kama ghaseer.
 

Simiyu22

Village Sponsor
#34
You remember when the Japanese hit Pearl Harbor unannounced and America had to retaliate with Hiroshima/Nagasaki. I wouldn’t rule anything out, yet. Moreover there’s nothing China will do coz people all over the world are very angry at how covid has ruined their lives. If investigations reveal that China launched this virus as a biological weapon so much will change, very quickly.

“There were numerous historical precedents for the unannounced military action by Japan, but the lack of any formal warning, particularly while peace negotiations were still apparently ongoing, led President Franklin D. Roosevelt to proclaim December 7, 1941, "a date which will live in infamy". Because the attack happened without a declaration of war and without explicit warning, the attack on Pearl Harbor was later judged in the Tokyo Trials to be a war crime.[22][23]
https://en.m.wikipedia.org/wiki/Attack_on_Pearl_Harbor
Less than 3000 were killed in Pearl Harbor. Covid has killed 40,000 to date. I think though this is just a disease. A natural phenomenon. The only thing thy did wrong is eat bats and pangolins. And not warn anyone.
 
#35
Dollar cannot collapse. In fact the dollar value will rise if the economy heads to distress. As happened in the Great Depression, the value of the dollar rose. You know why, people stopped spending. It led to deflation. Prices of goods fell. Dollar value rose.
In case of a crisis/depression dollar will rise because investors will flee risky EM markets and into trusted safe haven that is the US markets. Remember most of the debt in the world is dollar denominated therefore companies and countries will try as much as possible to get dollars to pay their short term loans.
 
#36
Dollar cannot collapse. In fact the dollar value will rise if the economy heads to distress. As happened in the Great Depression, the value of the dollar rose. You know why, people stopped spending. It led to deflation. Prices of goods fell. Dollar value rose.
Never say never. We're living in strange times.

Oil is traded internationally using petro dollar. That's why the U.S declares war or sanctions on oil producing countries that don't accept the dollar to trade oil.


But if Saudi Arabia decides to ditch using the dollar to trade oil, the U.S dollar will lose its value significantly. The U.S dollar won't become useless, but it will take a very big hit. Does Saudi Arabia have the balls?

Now would be the perfect time for China and Russia to hoard gold and create an alternative system where the U.S dollar doesn't have much influence.

The rise of digital currency is also a problem for the dollar, but it will be a serious threat if countries like China and Russia start trading using digital currency.
 

Wanaruona

Village Elder
#37
Walaumbwa should be compelled to pay for this mess. We should put economic embargo and shut them off from trading with other countries. Tuone how far they will last.
 

Simiyu22

Village Sponsor
#38
Never say never. We're living in strange times.

Oil is traded internationally using petro dollar. That's why the U.S declares war or sanctions on oil producing countries that don't accept the dollar to trade oil.


But if Saudi Arabia decides to ditch using the dollar to trade oil, the U.S dollar will lose its value significantly. The U.S dollar won't become useless, but it will take a very big hit. Does Saudi Arabia have the balls?

Now would be the perfect time for China and Russia to hoard gold and create an alternative system where the U.S dollar doesn't have much influence.

The rise of digital currency is also a problem for the dollar, but it will be a serious threat if countries like China and Russia start trading using digital currency.
True that I should not say never. But remember something. Russia is in trouble. At $20 a barrel, they are making $1 per barrel. Their whole economy is about oil revenue to finance their military spending ( bloated payroll included including paying retired military personnel). Saudi cannot dream of walking away from being a US ally. The ruling Kingdom will be in trouble from their population. US turns a blind eye to oppression in a trade off for mid- east peace. Oil trading alone although significant accounts for a a small part of the dollar strength. There’s many more factors. Now if the Chinese start pulling their money from US debt, that might cause the dollar loose value. But what will be the reason to do so. And where will they take the money. They can’t just hold cash, that’s loosing to inflation. If you move money from the dollar and place it to gold, the value of gold rises rapidly. And it’s upside reduces. It becomes overvalued.
 

County34

Senior Villager
#39
But the Brent price is still over 20 USD per barrel,it's WTI i.e western Texas intermediate which has problem and which is used in America as opposed to the rest of the world,the problem is lack of storage and future contract settlement which has to be done physically with may contract expiring today 21st april 2020
 

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