Commodity bust shaking up governments

During the commodity demand supercycle 2001-08 (and temporary speculative rebound on QE 2010-11) commodity companies, economies and their financiers were riding the global capital escalator up. That came to an abrupt halt in 2011. Now we have the great unwind as prices mean revert and the politicians and business leaders who were previously thought heroes in the boom phase, are tossed out on their ears. Canadians vote next on October 19.

Former Cabinet Minister Malcolm Turnbull will become Australia’s sixth prime minister in eight years after defeating Tony Abbott in a ballot of Liberal Party lawmakers on Monday. Citigroup Chief Economist Willem Buiter speaks on “Bloomberg Surveillance. Here is a direct video link.

Also see, Oil price increase will not come fast enough to save Alberta: “There’s simply not enough cash flow to support current levels of debt.”

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