Why cant we just print a load more bank notes and share them out

[paulatky]

Except the majority of people will be feeding themselves and paying bills, not buying televisions. What a lazy trope, anyway. If the govt forces a population to be locked down, it has an moral obligation to ensure its citizens don't starve, and a practical duty to provide means for them to feed themselves lest blood be shed on the streets over the innate human need to sustain its own biological metabolic functions.

I'll say it again, if it comes to a global depression, unemployment at 20%+ in countries like the USA and the UK, money printing (borrowing) and helicopter payments are for the purpose of sustaining the fiat money system. Monetary policy is virtually exhausted. Never in history have interest rates been so low. A poster above said toilet paper could become currency. He joked, but there's a kernel of truth in that notion - that our currencies become meaningless. It'll cost a lot, and debt will skyrocket, and we might be looking at debt to GDP numbers similar to after the second world war or the end of the Napoleonic wars, but inaction under such severe circumstances could contract the economy to such a degree that debt to GDP is even higher still, and in that scenario a citizen's bailout would be more economically viable. It's possible lockdown could last a year or longer because the fundamental flaw in the lockdown strategy is that there's no exit-plan without a vaccine or herd immunity. There's only the hope that in the autumn rebound we'll be better prepared and be able to (hopefully) contain it a little bit better, should lockdown measures be lifted in the summer. There's no case study that exists for this climate. We're approaching uncharted territory.

My comment about bog paper being currency was not a joke !!!

I said there would need to be a new global currency could well be called bog roll currency

[Spike]

the crisis has been made worse by those pesky Russians producing more cheap oi lat a time when the whole world is using less. Goes completely against the laws of supply and demand and the day they dropped prices knocked 10% off the value of the FTSE and accelerated the economic chaos

[Spiral]

the crisis has been made worse by those pesky Russians producing more cheap oi lat a time when the whole world is using less. Goes completely against the laws of supply and demand and the day they dropped prices knocked 10% off the value of the FTSE and accelerated the economic chaos

China's reduced demand for oil due to coronavirus (tankers are being turned away by China) spurred Saudi Arabia to cut production to sustain its price, but Russia refused to limit supply, instead deciding to over-produce thus causing a price slump in an attempt to bankrupt the entire US shale oil fracking industry which is on the verge of bankruptcy, in retaliation for the US sanctions placed on companies building the Nord Stream pipeline between Russia and Germany - sanctions which were themselves a retaliation for Russia's support of Venezuelan oil production, if I'm not mistaken. Complex geopolitics at play. We're all just trampled under hoof by these bastards.

[KateR]

I think you're over simplifying the Shale play. There are tens of thousands of wells producing oil and gas, it costs very little to keep them running, yes profits are down on oil producing today but there is a demand for the downstream industries, power, refining, chemicals, pharmaceuticals etc.

The very small operators will go bankrupt because they have debt to service but the Trump package could help them through and also the bigger players will continue to gobble them up increasing acreage and money for the future.

Were it really hurts is in new wells being drilled and fracked, the cost is in the fracking and therefore the big drilling/fracking companies like Halliburton are really hurting, laid off 50% of the work force this week.

In the various shale basins there are over 100,000 wells already drilled ready for fracking, there will be very very little fracking ongoing in the next few months for sure, which is why service industries are really hurting. The big question is how long can Saudi/Russia & OPEC countries continue with Oil at these prices, I would have thought Russia will be really hurting and this was indeed the main topic of a call in I had this morning, O&G are the major money makers for Russia so they will have to balance what there doing.

Trump has also talked about high Tax on imported oil to also help the US O&G economy.

Totally agree with your complex geopolitics being in play at the last minute.

Spoke with people in Columbia an hour ago, in complete lockdown, but the O&G producing is considered essential so they are all still working along side water & power but all working on reduced crews. Scotland and UK will be hurting regarding revenues but in reality not much they can do about the world supply, a couple of platforms bringing annual shutdowns ahead to do while the low prices.

[IanMcL]

And it came to pass.

[BennyD]

The more you have of something, the more worthless it becomes.

Including Premier league points, just ask Liverpool!

[BennyD]

China's reduced demand for oil due to coronavirus (tankers are being turned away by China) spurred Saudi Arabia to cut production to sustain its price, but Russia refused to limit supply, instead deciding to over-produce thus causing a price slump in an attempt to bankrupt the entire US shale oil fracking industry which is on the verge of bankruptcy, in retaliation for the US sanctions placed on companies building the Nord Stream pipeline between Russia and Germany - sanctions which were themselves a retaliation for Russia's support of Venezuelan oil production, if I'm not mistaken. Complex geopolitics at play. We're all just trampled under hoof by these bastards.

Not entirely; I’ve just ordered 2500 litres of heating oil and it has gone down 15p/ltr since October. Happy days.

[AndrewJB]

I think this might actually be the government's best option right now. A lockdown is coming, and when it does they might as well put the free market on pause, pay out a living wage to everyone from money they create, and take command of the economy. Price controls, rationing where necessary, put into limbo debt repayments, mortgages, rent, etc. If everyone is paid enough to get by, nobody will need an income from property, just as nobody will have to work to pay rent. If in these circumstances the government creates the money, it won't lead to an inflationary spiral. Much more sensible than actually borrowing it. There will be real costs involved - food that has to be imported still has to be paid for - but the main cost (that of keeping everyone fed, warm, and watered) could be from the "money tree".