Fracking Fantasies

It's hard to believe fracking can be profitably under $100 for WTI not to mention the hazardous waste waster. It gives someone a wage and income to do this work, but the company has to go bust eventually. As the debts pile up at low interest rates and the fracking industry makes up more than 20% of all high yield debt, there are a lot of bankruptcies coming. The reason for this boom has to do with low interest rates and low interest rates are caused by the government buying most of its own debt, instead of letting too big to fail banks to fail. The dream is kept alive as world debt/gdp keeps going higher and higher, and in fact, with each new crisis the injections get bigger and bigger. Next decade, if not this decade, 10 year treasuries in USA will go negative and 30 year treasuries will go to almost 0%.

We are basically retracing Japan, so Japan is giving us a good look at another collapse in the stock market just like Japan then after that the US Dollar will tank like the Japan yen did recently, because USA will get too tired of trying to compete with a high dollar. But before that happens oil and natural gas will find a bottom in the next couple of months then go on an astronomical rise again after all the shale producers go bankrupt. Normally I would say we could have a few years of low oil prices to see whose naked when the tide goes out, but there are 7 billion people on the planet and will be 8 billion soon so the demand for energy is insatiable even if everyone is working from home. The fracking industry has 10 billion barrels to extract in USA, but US uses up half that in one year. In just 2 years it is all gone if that were the only source of oil. I am going long natural gas at $2.10 and long oil at $40 for the 6 or 9 month contracts. That's my prediction.

https://www.youtube.com/watch?v=Uti2niW2BRA