Oil Prices Fall, OPEC In Chaos, Derivative Markets In Hysteria

Goldman Sachs Loses Money So Gold Prices Fall | Culture of Life News

 

OPEC was from day one, a cartel.  Like all cartels, they made lots of money at first.  But over time, everyone under the sun began competing because prices were artificially high and this lead to the inevitable gluts and sudden price collapses.  The only tool to fix this for the Saudis and Texans was to generate wars against energy producers and boycotts like the one against Iran.  This has now failed utterly.  Also, rich bankers cooked up a stupid commodity futures scam called ‘derivatives’ which originally was only for wheat and corn, betting on the weather.  Now, it is everywhere and utterly toxic and extremely prone to create price bubbles and collapses.  This stupid market always goes rapidly to infinity and infinity is the bane of humans because it always ends with nothing instead of everything.

 

 

I have written extensively about all this and here are some past examples.  The present situation is due to the very same causes as past deflation events:  Infinite Money Kills Real Wealth | Culture of Life News

 

ΩΩInstead of a new model, all sorts of goofy tricks have been introduced to explain away this obvious proof that the universe is not expanding, it is collapsing.  Eventually the new model will emerge but only after enough astronomers literally die off so that younger upstarts can finally ask the proper questions (and thus, eventually answer them with new theories).

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ΩΩThis is happening in economic matters.  The Marxist/Capitalist model began to actively collapse with the triumph of communist rebellions which showed the weaknesses of Marxism.  The triumph of capitalism in Marxist countries has led to the collapse of capitalism in the non-communist countries and the only people able to figure out that capitalism has collapsed has been the new capitalist communists.

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ΩΩThe ideology about the Great Depression of the mid-20th century was, protectionism created this event.  So insidiously, the elites in the capitalist West worked nonstop to eliminate trade barriers and this was elegantly exploited by the new capitalist communists.  We then had a global banking collapse nearly identical to the one in 1930 and this proved that the ideology of ‘trade barriers create depressions’ to be false.

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ΩΩInstead of realizing free trade makes global banking collapses inevitable still isn’t the new ideology.  The old one which totally misreads how and why depressions happens continues unabated in power in our universities and our government.  Not one soul seems to have grasped that the economic model they are using is totally useless.  Worse than useless, actively destructive.

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Infinity=Death: Economics On The World Chess Board | Culture of Life News

 

The US merrily shipped most of our production and jobs overseas. We still do this, Obama has spent the last year going around the planet, making this even easier than before. The rich get richer and tax cuts and own Congress while the GOP screams about Obama not creating jobs. Well, the theory is, if we open up more trade, we get more jobs. After losing many millions of jobs with Free Trade, I would think someone would figure out, this is a stupid plan! But no, we had a ‘debate’ in the GOP last night and as always, they are more upset with gays kissing and teens getting abortions instead of appearing on Teen Mom with a baby in tow! Yup, anyways, INFLATION is now taking off in her usual leisurely way and has spread her gossamer wings to the rising winds of ZIRP interest rates to bankers. This is a problem, too, never discussed realistically.

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Dr. Krauss Struggles To Understand Infinity And Nothingness…And Fails | Culture of Life News

 

Finances and astronomy are hand in glove thinking: it is all about infinity and zero! Motion, time and space are given numbers and rules and humans then try to riddle out what the Sphinx is telling us: mortality. The excitement about where we are going and where is the center of the universe are real questions humans cannot answer since we really, emotionally think that we are the center of the universe if not our own galaxy or solar system.

 

 

 

Some people like to think that Goldman Sachs and other gnome operations love to have depressions.  They don’t, actually.  They love the bubbly.  They love lots of fizz.  They grimly hang on and enjoy cheaper prices in depressions but they are not happy with these, they want infinity, not sloshing along picking up pennies in the gutter.  Commodity markets are viewed as a desperate, last chance for money operation.  This is due to it being stubbornly physical.

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This is why the carbon CO2 trade business made them all hysterically happy.  It was an invisible gas!  And it was everywhere and nearly everything produces it!  Whoopee!   They even enthused that this could lead to infinite derivative deals.  Then, it got too cold, too many people got too angry about high energy taxes and it has fizzled badly.   So, back to buying gold and then trying to swindle someone down the line in desperate, dirty gold market deals.

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Goldman Sachs couldn’t manipulate this market nearly as well as they do say, the derivatives market.  They love derivatives, they hold their noses to do gold.  And now, they are out of the gold since they have no profits to park there, temporarily.  So gold drops like a rock.  Oil, on the other hand, depends on wars.  If we attack an oil producing nation like Iraq or Libya, the price of oil soars.  Now that these wars are winding down, it is back to preventing Iran from selling oil.   This pleases Saudi Arabia which is desperate for higher prices for oil.  And it pleases the big gnomes playing the oil futures markets.

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Alas, high oil prices=economic recession in the US.  So, I expect this to worsen, not get better any time soon.

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And so much for the past!  The price of oil finally reached its saturation moment when even the most marginal processes and systems were profitable and now it has collapsed and this is bringing lower energy costs which is in the whole, very good for most of us consumers but bad for energy producers like the US, Russia, Saudi Arabia, etc.  On the other hand, this makes manufacturing powers like CHINA and even Japan, better off!  Since the US has offshored its manufacturing and has relied on food and fuel exports, this will make things worse for our trade deficit.

Duh!  We used to be the world’s #1 manufacturing power.  All tossed into the crapper by the bankers and politicians who wanted cheap foreign labor and big profits with zero interaction with irritable workers going on strike for better wages.

 


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9 Comments

Filed under .money matters

9 responses to “Oil Prices Fall, OPEC In Chaos, Derivative Markets In Hysteria

  1. Moe

    Another energy producer whose currency is suffering is Canada: the Canadian dollar is down to 87 cent US.

  2. melponeme_k

    Casinos popping up all over now around the city.

    http://newyork.cbslocal.com/2014/12/08/controversial-nassau-county-mini-casino-months-away-from-becoming-a-reality/

    I feel as if we all live in “Pottersville” now. And I really hate that film “Its a Wonderful life”.

  3. Luke

    Yes, casinos are in and manufacturing out. How long can that last?
    About eight years ago I spoke to someone who was working on a casino in Detroit. Detroit is the worst ‘formerly good’ USA city.
    Perhaps the casino is to attract Canadians.

  4. Petruchio

    Iraq, Venezuela and I would assume Iran. These three countries have always been the “bad boys” of OPEC. Saudi Arabia runs OPEC and sets production quotas for OPEC members. Now, look at US foreign policy re which countries to invade and/or sanction. Is there a connection there? YES! It’s actually pretty shocking, imho, to see how closely linked oil company interests are to US foreign policy. And the media never discusses the obvious connection.

  5. e sutton

    @Luke,
    Atlantic City is folding up as we speak. I have family there. My brother owns a house he rents out there. I told him to put it on the market, yesterday, and price it low. The entire U.S. economy has been transformed into one giant derivatives game. Somewhere along the line we decided it was a good idea to hollow out our manufacturing base and become a 24/7 casino.
    @Pet,
    The entire world economy runs on oil. That and cheap credit. The good folks at the Automatic Earth have an excellent read on what’s going down today. One wonders if Kerry, during his negotiations with Saudi Arabia, decided to go for a two-fer by undercutting all the competition in the oil business with the added plus of wrecking Russia’s economy. Haiti is having demonstrations with many calling on Vladimir Putin for protection against the Zionist Americans and their pals. News you won’t see in the U.S. media. The deflationary signals are quite strong. It will be interesting to see who crawls out of this sh*t storm alive and dry.

  6. emsnews

    Putin is warning that WWIII will involve nukes flying over the North Pole, that other ‘we are doomed!’ site of all good liberals.

    The war over who owns the Arctic is rising as all the polar nations are staking out claims including the US.

    Why?

    GAS and OIL! The negotiations in South America were utterly unhinged.

  7. kenogami

    Luke wrote:

    “About eight years ago I spoke to someone who was working on a casino in Detroit. Detroit is the worst ‘formerly good’ USA city.
    Perhaps the casino is to attract Canadians.”
    =========================

    Ha Ha Ha! In Canada, we built casinos hoping to attract Americans.

  8. Tan Chee Hong

    Putin is a judo expert and China excels in the game Go. When Putin allowed the CBR to float the rouble, everyone expected it to drop, not rise. So why did he do it? I think he may have a secret deal with China to soak up all the roubles when the American banks sell the rouble short. They get rid of the useless dollars and accumulate roubles.

    The Americans did that to our Asian currencies in the past. So now the Americans have to deliver the roubles which they don’t have. China and Russia are two countries that have to make sure that BRICS survives.

    Let’s see what happens over the next few months when the US banks have to deliver the roubles.

  9. emsnews

    China just announced they support Putin.

    So Obama is going to make friends with…Castro! HAHAHA. About time that very stupid, quite illegal embargo of Cuba ends.

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