Bill Bonner

About the Author Bill Bonner

Bill Bonner founded Agora Inc. in 1978. It has grown into one of the largest independent newsletter publishing companies in the world. Bill has also co-written two New York Times bestselling books, Financial Reckoning Day and Empire of Debt. He has written a daily financial column since 1999. His Diary of a Rogue Economist is your gateway to Bill’s decades of accrued knowledge about history, politics, society, finance and economics. Sometimes funny, sometimes frightening – but always entertaining and packed with useful insight, Diary of a Rogue Economist can help you make sense of the complex world we live in today. Editor's Note: If you enjoyed Bill’s article, sign up for the Diary of a Rogue Economist and get his special report, "The One Secret You Must Know to Be Successful". LINK: http://signup.bonnerandpartners.com/373617

Crude Oil is Getting Shellacked

By Chris Hunter

Crude oil is getting shellacked. Today’s chart shows that U.S. crude oil prices are close to taking out their March lows.

070815 DRE WTI

China is the big worry.

As Bill has been warning, Greece is peanuts compared to what’s going on in China.

The Shanghai stock market is down 32% since its June 12 peak. The crash has wiped out the equivalent of about six times Greece’s GDP in under a month.

This is starting to look a lot like the tech wreck that crushed the Nasdaq in 2000. Following that wipeout, the U.S. went into recession.

With underlying economic growth in China faltering, government stimulus failing to keep the stock market rally alive, and the equivalent of trillions of dollars being wiped off investors’ portfolios, a Chinese recession is now a real possibility.

That could spell a long and nasty bear market ahead for growth sensitive commodities such as crude oil.