While oil prices flashing across traders’ terminals are at the lowest in a decade, in real terms the collapse is even deeper.
West Texas Intermediate futures, the U.S. benchmark, sank below $30 a barrel on Tuesday for the first time since 2003. Actual barrels of Saudi Arabian crude shipped to Asia are even cheaper, at $26 -- the lowest since early 2002 once inflation is factored in and near levels seen before the turn of the millennium.
Slumping prices are a critical signal that the boom in lending in China is “unwinding,” according to Adair Turner, chairman of the Institute for New Economic Thinking.
Slowing investment and construction in China, the world’s biggest energy user, is “sending an enormous deflationary impetus through to the world, and that is a significant part of what’s happening in this oil-price collapse,” Turner, former chairman of the U.K. Financial Services Authority, said in an interview with Bloomberg Television.
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2 comments:
OBVIOUSLY, between the Middle East and me, someone is making some great profits right now on a gallon of gas.
The next meeting of the Tea Party will be a significant factor for survival if our country fails . It appears that failure is coming , so I would suggest attending this meeting for survival technics.
Most of you really don't realize how bad things are , believe me it's going to get so bad you will think it's the end. This meeting isn't about politics , it's about you and your family. I don't know much about the Tea Party , but I do know a lot about survival and preparing for the worse. Just a suggestion to help you , I think it's in Ocean Pines . There are many people who I admire and respect that will be at this meeting , this knowledge is a must , get your heads out of the sand. Obama has failed our country and he is just waiting for the collapse.
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