Comments not related to oil or natural gas production in this thread please. Thanks.
2 thoughts to “Open Thread Non-Petroleum, May 3, 2025”
So stocks have erased all their so called Liberation Day losses. This is how detached stocks have become from fundamentals.
All that matters is that between now and June 13th there is a record amount of corporate stock buybacks on deck to be repurchased.
QE and interest rates don’t matter. There is no such thing as Fed liquidity. It’s all about the ability for companies to borrow and repurchase their own stocks. Commercial banks are providing this liquidity via loans. Which central banks aren’t capable of doing.
When you realize there is no real backstop to all this. And it all comes down to the willingness of commercial banks to continue creating new loans. Then and only then do you understand the precariousness and full gravity of the situation.
Better have a growing supply of energy or else loans become increasingly more difficult to repay.
And to make solar and wind a viable option. One thing and one thing only has to happen. Which is an ever increasing amount of solar and wind. Otherwise solar and wind can’t retire the debts within the economy.
Oh yeah and China’s production of EV’s is going to come to a grinding halt soon do to lack of copper availability to build them.
If oil production slows due to low prices. While we have bottlenecks that result in the restriction of implementing solar and wind. It’s going to be disastrous for those who have loaned all the money out into existence.
So stocks have erased all their so called Liberation Day losses. This is how detached stocks have become from fundamentals.
All that matters is that between now and June 13th there is a record amount of corporate stock buybacks on deck to be repurchased.
QE and interest rates don’t matter. There is no such thing as Fed liquidity. It’s all about the ability for companies to borrow and repurchase their own stocks. Commercial banks are providing this liquidity via loans. Which central banks aren’t capable of doing.
When you realize there is no real backstop to all this. And it all comes down to the willingness of commercial banks to continue creating new loans. Then and only then do you understand the precariousness and full gravity of the situation.
Better have a growing supply of energy or else loans become increasingly more difficult to repay.
And to make solar and wind a viable option. One thing and one thing only has to happen. Which is an ever increasing amount of solar and wind. Otherwise solar and wind can’t retire the debts within the economy.
Oh yeah and China’s production of EV’s is going to come to a grinding halt soon do to lack of copper availability to build them.
If oil production slows due to low prices. While we have bottlenecks that result in the restriction of implementing solar and wind. It’s going to be disastrous for those who have loaned all the money out into existence.
Global Food Price Index rises in April [red line] on higher cereal, dairy and meat prices. And tariffs will be inflationary for food?