$40 Oil Could Prove to be "Terrifying"

If you are like me, it's a breath of fresh air to drive by the local gas station and see $1.95 per gallon gas.  This is the result of oil prices going down by 50% in the past 6 months.  So if we feel good about cheap gas....doesn't everyone feel good about it?

Not so fast.....

Question: The crash in the oil market is already causing jitters in the financial markets around the globe. What is your take on that?

Gundlach: Oil is incredibly important right now. If oil falls to around $40 a barrel then I think the yield on ten year treasury note is going to 1%. I hope it does not go to $40 because then something is very, very wrong with the world, not just the economy. The geopolitical consequences could be – to put it bluntly-terrifying.

Large and rapid rises and falls in the price of crude oil have correlated oddly strongly with major geopolitical and economic crisis across the globe. Whether driven by problems for oil exporters or oil importers, the 'difference this time' is that, thanks to central bank largesse, money flows faster than ever and everything is more tightly coupled with that flow.

Here;  http://www.zerohedge.com/news/2015-01-05/jeff-gundlach-if-oil-drops-40-geopolitical-consequences-could-be-terrifying

So when oil prices fall or rise precipitously, the chart in the article shows that the movement is almost ALWAYS followed by some type of major crisis.

As we have been saying...do you really think that Russia or Iran is just going to sit by and watch all their oil profits, which drive their budgets, simply whittle away?  Or might they end up feeling cornered by events that they can't control...and decide to strike out at someone THEY feel is responsible for their pain?

As the guy says in the article above...."I hope it does not go to $40 because then something is very, very wrong with the world, not just the economy. The geopolitical consequences could be – to put it bluntly-terrifying."

Today oil is below $50....so is it possible we are heading for something "terrifying"?

Let's continue to thank The Lord that our treasures are eternally secure in heaven...because we KNOW that the world is heading toward a terrifying event that the Bible calls THE GREAT TRIBULATION.

Thank you Jesus that those of us who have put our trust in you will not be here to witness the truly terrifying events that are yet to unfold.