The Coming Crash Is Going To Wipe Out People - Chris Martenson

Chris Martenson, contends 2008 was just a warm up to a much bigger calamity.

Martenson says, "2008 was the shot across the bow, and that's when our credit experiment broke, and we have been doing everything possible to paper over it since. . . . When you take real stuff out of the ground, you grow food, you take oil out of the ground, you process ore into steel, and you manufacture real things--that's real wealth. The claims (such as stocks, bonds and currencies) have to be in proportion to the real wealth, and the claims have been growing and growing and growing for so long that they are way out of balance to the real stuff, and the real stuff isn't growing like it used to. You can see that in the GDP numbers for the U.S. or the world at large. Growth is slowing, slowing, slowing, and the claims are getting larger and larger.

$150-$200 Oil Could Seem Cheap!

So, what happens to oil prices if Iraqi oil is taken off the market because of war?
Martenson says, “If that goes away, oil prices are set at the margin. That 2.5 million barrels going off line brings us to $150 oil. If something worse happens, Saudi Arabia gets involved or the Strait of Hormuz gets closed down, then we’re talking about numbers like $200 a barrel, and that might even seem cheap. We don’t know how high oil could go if this turns into regional conflict. That is the risk, and it’s on the table now.”