Actually this is pretty much expected. As world GDP continues to fall, less and less energy is going to be demanded, and the prices will come down. This of course has the effect of
1) wiping out producers that rely on the higher prices, probably forcing them to sell their assets
2) boosts what remains of the current economy for some time., kicking the can.
3) pretty much HAS to happen with the dollar index at 92 and climbing. A stronger ( relative to the other crap fiat representing other even crappier economies) dollar means that oil becomes more unaffordable ( unless you are the one printing the dollars)
I wouldn't be surprised if we aren't seeing some naked shorts in the oil industry as well, but it could simply be a glut based on the fact that the world is demanding less energy. However it looks like direct economic warfare with Russia ( and therefore with the BRICS nations) to me. This is a deleiberate attempt to destroy the Russian economy IMO.
Could it spur real growth in America?.. yeah, maybe, but dollar index at 92? (everything is awesome!) With the money printing we are doing? That pretty much just means that the other world economies ( you know the ones that produce the crap we buy) must be entering near full collapse. Or the dollar index is as phony as the other metrics.
So maybe this will spur some investment at home. Maybe it will slow deficit growth for a while. Hell maybe it gives us time to limp along another 20 years. In the end it fails, because math. We know that. The last quarter GDP growth was 5% - they would need to sustain that for the next 8-10 years to overcome the math at this point - and that is assuming NO REAL GROWTH in government spending
But as low prices takes out some producers and forces others out of production , this will rise again to some degree, but like gold, it will probably be artificially repressed, to try and extend and pretend this fiasco just a little longer. Whatever. I will keep earning my fiat, keep expanding my own production capacity, and if they give me the time, pay off the mortgage. In the end, this falls apart. I am glad of more time to prepare for that