"As we know, cost curve shakeouts take longer and go deeper than anyone reckons on. It may only take a few months at $60 to begin to shut shale producers but the knock-on effects to debt markets will cause serious dyspepsia. That is going to cause some kind of junk bond lockup and losses driven back into the banking system. There will be a hit to US growth, the only question is how big? Possibly large if the bond market freeze really gets going. $2 trillion has been pumped into US shale gas in a breathtakingly short span of time"
[Source: Macrobusiness.com.au]
Are you aware of the percentage of jobs created in the US since the GFC that are directly or indirectly associated with the shale gas industry? ... thought not. I stand by my analysis that this will be deflationary and not what the Western Central Banks are wanting.
