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$100 Trillion Up in Smoke | Thoughts from the Frontline Investment Newsletter | Mauldin Economics

$100 Trillion Up in Smoke | Thoughts from the Frontline Investment Newsletter | Mauldin Economics

If energy powers the world, then whoever owns that energy must have power over the world. That’s certainly been the case for the last century or two. Ownership of our primary energy source, crude oil, is what made billionaires of John D. Rockefeller, H.L. Hunt, and assorted Middle Eastern kings, emirs, and sheikhs.

Oil in the ground is wealth only on paper – you may own that oil, but it earns you nothing until you recover and sell it. Yet paper wealth is still wealth. It goes on your balance sheet as an asset that you can sell. You can use it as collateral to borrow cash and buy other assets.

Source: $100 Trillion Up in Smoke | Thoughts from the Frontline Investment Newsletter | Mauldin Economics