Global Economy at Risk with Potential Iraq Government Overthrow
By: Tim McPartland,
June 11, 2014 11 pm
Investors need to be paying close attention to the unfolding events in Iraq as any sense of organized government crumbles and 3,500,000 barrels of daily oil production are at risk. At the risk of sounding selfish, while people are being slaughtered in Iraq, 3.5 million barrels of oil represents 5% of global production–we don’t have 1 or 2% of extra production available in the world–let alone 5%. A loss of 5% of daily production would send prices through the roof and resultantly likely plunge the globe into recession–again.
While we could go on a political tirade about many events, both domestically and globally, we are avoiding this urge as this site is not a political site, but events unfolding do affect us all in many ways–one of which is in investing.
Our true hope is that the Iraqi government troops will stop running from rebels and fight–our real thought is that the government will collapse in 60 days and the oil fields in the south will be at true risk.