All the Jobs in the Shale Oil Patch Are about To Go Down the Drain

The oil boom created by “fracking” is about to go bust because of the low price per barrel of oil. At the current price, it costs too much to get the oil out of the ground. Frackers borrowed too much money to set up their businesses, and needed to sell oil at significantly higher prices to make a profit. According to zerohedge.com, the bankruptcies have just begun:

“There are too many ugly balance sheets,” warns one energy industry analyst, adding simply that “the group is not positioned for this downturn.” While the mainstream media continues to chant the happy-clappy side of lower oil prices, spewing various ‘statistics’ about how the down-side of low oil prices is ‘contained’ and the huge colossal massive tax cut means ‘everything is awesome’ for America, the data – and now actions – do not bear this out. Macro data has done nothing but disappoint and now, we have the first casualty of the shale oil leverage debacle as WSJ reports, on Sunday, a private company that drills in Texas, WBH Energy LP, and its partners, filed for bankruptcy protection, saying a lender refused to advance more money. There are many more to come…

Zimbabwe Has No More Money–They Want Yours

Excerpted from Adam Clark Estes, Jan 29, 2013

There are cash-strapped governments and there are broke governments. And then there’s Zimbabwe, which, after paying last week’s government salaries, has just $217 left in the bank…Zimbabwe, the country that’s home to some of the world’s largest plutonium and diamond reserves, literally has the same financial standing as a 14-year-old girl after a really good birthday party. The country’s finance minister admitted, “Last week when we paid civil servants there was $217 [left] in government coffers.” and “The government finances are in paralysis state at the present moment. We are failing to meet our targets.”

. . . The economy started to come apart at the seams in 2000, when President Robert Mugabe seized the land of over 4,000 white-owned farmers, effectively dismantling the country’s agriculture industry. Over the course of the next decade, the country spiraled into an extended period of hyperinflation, the likes of which the world almost never sees. . .

It’s unclear how the Zimbabwean government is going to get itself out this fiscal mess, but whatever it does, it needs to do it quickly. . .The country obviously desperately needs a major change. “But action against corruption probably won’t come until the end of Mugabe’s reign, and a new constitution coming up for a referendum this spring — presuming the funds can be found — might set up the aging autocrat for another term in power,” writes Fernholz.

Until then, looking for quarters under the couch isn’t going to cut it, so Zimbabwe is doing the only thing it can do. “We will be approaching the international community,” Biti said. You’ll never guess who’s most likely to come to the rescue. Hint: They’re big fans of rare minerals.

Author: Adam Clark Estes

Sources
Zimbabwe has $217 in the bank: finance minister, AFP
Zimbabwe only has $217 in the bank, Tim Fernholz, Quartz

Fiscal Cliff 101

Illinois attempts to gather data on who is buying or selling precious metals. Why? Why does government collect data on anything–to find a way to control it.

Utah has passed a bill (HB 157) to provide for an alternative currency to the paper dollar, also known as “fiat money.” In Utah, gold and silver coins based on the market price of precious metals can be used to buy goods. This is the real money called for by our U. S. Constitution.

Is there a movement to return to the money of our constitution? Our founding fathers predicted the problems we are now experiencing in our economy–problems that are directly caused by our government using “fiat money,” paper dollars backed by nothing.

A preacher gives a very plain explanation of what has befallen the US dollar. He says plainly what economists, bankers, the Federal Reserve and the US Government have done to ruin the US dollar. Let he who has ears hear.

After listening, are you scratching your head? Maybe you have questions like this guy:

or this guy–Jim Cramer. You know him from CNBC’s Mad Money. According to Jim, the preacher from above is right:

So what’s an American to do?