The United States Economy seems to be coming back, big time. Over the past 5 years, the level of stimulus that has been applied to reinvigorate the American economy has been incredible.
We have seen:
- Monetary Stimulus with incredibly low interest rates and massive Government Bond buying program which reached $85 Billion a month.
- Fiscal Stimulus with increased Government spending on social welfare programs and infrastructure.
And now we are seeing a new form of Fiscal Stimulus. The Government of United States has used its muscle to increase the domestic production of oil to a level not matched by any country in the world.
America’s oil is its piggy bank. It has long been understood by the US Government that the United States has great reserves of oil, which can be unlocked with some technological advances and great sacrifice to the environment. The full environmental impact of unlocking this oil is still not understood. The economic impact, however, soon will be. Continue reading →