US fracking oil boom will soon go bust

I explained in this post something very important: that the US lack of inflation-driven rising prices was due to rapid onset of production of something that we could export that would offset the continued debasement (at the documented rate of 6.5% per annum) of our fake, confidence based paper currency.  And that thing is oil.  On the back of fracking production we went from a huge net importer of oil to the world's 8th largest exporter.  It sounds great on its face but all it did was kick the inflation driven price increases down the road for two reasons:

1) all that new production was created using massive debt. Many hundreds of billions were spent like it was water only to create a resource with limited time production benefit.  Those who allowed this to happen always had access to the same model shown below.  They always knew they would get a rapid burst of production followed by an exponential collapse of that benefit. 

I did not make this up; it came from scientists who work in the oil industry.  And now the evidence is building that peak fracking is upon us.  And once those fracking wells go into collapse, the production that they brought over the last years will be gone but the debt that was used to implement them will live on.  And so going forward not only will we not have that production to offset our monetary debasement, we will also have to deal with the service of all that new debt.  How do you think they will pay for that?  Yup, they will print it up out of thin air just like they always do.

 This is not an opinion, just economics and math.  It cannot be escaped.  No amount of right headed leadership can fix it.  Eventually it will come home to roost.  Hope is not an intelligent strategy.




2) it sent economic signals to the markets that were in opposition to truth.  So a lot of bad decisions have been made given that rising prices were held back while the expansion of the money supply raged on. We will eventually go from "hey, prices are pretty stable for a long time" to "OMG, what's happening with the price of everything skyrocketing?".   The time of "Goldilocks inflation" is rapidly reaching an end and if you have any common sense whatsoever you will begin converting that fake paper money which you have worked so hard to acquire into G_d's money/constitutional money which is gold and silver bullion coins.

While nothing goes straight up or straight down, you absolutely cannot go bust holding gold and silver bullion coins.  But the odds are very high that the debt based paper assets that people think have value will in fact go bust at some point in the future because they are ALL dependent upon the fake, unbacked money supply whose value in trade depends 100% on the confidence of people who are getting quite tired of being conned. 

Gold and silver are not con games.  They are the original money, the only money, the true money.  Good luck with anything else.