THE GREAT RECESION

Oil production is the key of what happened some years ago and continues involving in currently economic issues since
them. That is because world oil productivity have done top in 2005. Before that, overall economy has been growing
constantly due to the increase of the use of oil. The biggest expansion happened after Second World War from 1950 to
1980, which is called The green revolution. Why?
Because the performance of harvest had been multiplicand
exponentially at the same time that fertilizers, insect-killers and
motor engineering was developed and spread. After that, the
poverty was reduced at levels not seen in known history, and a
new class of citizens appeared, the medium class. Most of
them, whose origins are from poverty saw they can afford to
consume a lot of new things which had been made massively at
very low prices because of the abundance of oil.
But, unlucky the gold egg chicken somehow seemed to finish.
During the 70s United States wells production started to decline
and continued with the first oil crisis. They saw that Arabic and
Persian countries were good sources of oil, specially Arabia,
where was the biggest oil deposit in the world (with the size of
Euskadi country). So, the nation started to struggle his satellites
to obtain the needed oil to continue the miracle growth. This led
to Yom Kipur war with the result of the control of those countries (excepts Persian mayor countries, whose were near
URSS). The great growth continues until 80s. Since that decade the growth continued but more slowly and financial
system was developed. The market started to have financial crisis, each 7-8 years because of the overexpectation on
growth. The debt system was developed too, with the idea to help companies and people with the expectation on future
growth, or to say more clearly, bring future money, to grow now . To made it real in the 70s, American Nixon
president derogated Bretton Woods and the gold was separated from dlar so, since then, they have to power to make as
many money as they think the economy needs.
More or less, everything seemed to go well, but something happened in 20s. For the first time in history, oil
productivity declined, and the long history started. Oil price rocketed because of the new situation and it rose to a level
over the demand afford which is near 108$. Due to that, world economy collapsed, oil price declined and central banks
started a race to print money until today. And we are now living it. Debts rose exponentially, bankruptcies and rescues
has multiplicand and no one see the end to this. Until 2014.
The oil price has increased because the costs of extraction increased to, because of two factors: There are less and more
difficult to access wells and on the other hand, the energy and usefulness of that oil is worse. This forced to put oil a
higher prices, but here was the death tramp. Prices tried to across the 108$ at 3 times but in all causes economy suffers
(for example at 2011s European Crisis) and prices declined, but always was a floor which was the price of extraction,
until August of 2014. This floor line across the demand upper limit at 108$. So, there were 2 logical alternatives, prices
went to hell or to sky. And that was what happened, prices started to decline in row and now at January 20th are at 26$
more or less. What continues after that, it is easy to imagine but rather difficult to assume.

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