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Middle Tennessee | While we have a surfeit of everything globally if I'm to believe Reuters--from iron ore to wheat to fuel--the energies are an obvious focus. Energies are weak because major producers won't cut production. Russia needs money for it's war with Saudi, Iran needs money for its war with Saudi, Saudi needs money for its war with Iran and Russia (I'm talking actual war here, not price war). The logic behind excess production is two-fold: the parties need money to finance their wars, and any production cutbacks would only benefit their foes via the free-rider dilemma.
When I think this through to its logical culmination, it seems highly likely we will see ports and export facilities attacked and bombed. John Kerry went to Turkey, and what did we get? A few days later Turkey shot down a Russian jet. I'm not predicting attacks on Gulf infrastructure, and I don't think I'm being paranoid. When the price war becomes unbearable for some party or another, the real war might just escalate. | |
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On The Bright Side...
