Oil posted its worst day of the year on Friday, tumbling to the lowest level in more than two months as the new Covid-19 strain sparked fears about a demand slowdown just as supply increases.
The leg lower came amid a broad sell-off in the market with the Dow dropping more than 900 points. The World Health Organization warned Thursday of a new Covid variant detected in South Africa. It could be more resistant to vaccines thanks to its mutations, although the WHO said further investigation is needed.
We originally outlined the new COVID-19 variant along with the international motives of the science community for delivering it HERE. Previously the new worrisome, 10 spike, vaccine resistant variant was called “The B.1.1.529 variant“. However, those types of names do not work well for larger fear narrative distribution. As a result, the international scientific community has given it the name “Omicron“. Perhaps the “Merry Christmas” variant would be culturally insensitive.
Globally, and not coincidentally –politically– the greatest challenge to those in power is a massive rise in direct inflation. What is the quickest way to eliminate the political risks due to inflation? Shut down demand….. lock down the economies… turn the values closed on economic activity, and then watch oil prices plummet.
As the science is told, Omicron originated in South Africa, Botswana, Zimbabwe, Namibia, Lesotho, Eswatini, Mozambique and Malawi. Government officials around the world have responded to the Omicron variant by banning travel from those countries. The U.K and Australia kicked off the latest round of fear porn with their travel bans. Subsequently, fellow EU nations Austria, France, Italy, the Netherlands and Malta all announced imminent entry bans to all travelers who’ve entered South Africa and surrounding nations in the past two weeks.
In North America, Canada will be “banning the entry of foreign nationals…that have traveled through southern Africa in the last 14 days,” due to the new coronavirus variant Omicron, Health Minister Jean-Yves Duclos said at a news conference Friday. (link) And right on cue the Biden administration joins the effort:
WHITE HOUSE – “This morning I was briefed by my chief medical advisor, Dr. Tony Fauci, and the members of our COVID response team, about the Omicron variant, which is spreading through Southern Africa. As a precautionary measure until we have more information, I am ordering additional air travel restrictions from South Africa and seven other countries. These new restrictions will take effect on November 29. As we move forward, we will continue to be guided by what the science and my medical team advises.” (more)
As if on cue, this happens:
The discovery of a new Covid-19 variant sent oil plummeting 13% on Friday, as investors feared a wave of new government restrictions and slower economic growth.
US crude finished the day at a two-month low of $68.15 a barrel, down 13.1% from Wednesday’s close. It was the worst day for oil since April 27, 2020, when Covid was spreading rapidly in the US. (link)
Under this type of economic manipulation using science, the U.S. federal government -and the multinational governments as a whole- recapture control of inflation.
As you know, the monetary policy to maintain an economic system beneficial to Wall Street and the multinational investment class means they need to keep interest rates low even as they print more money vis-a-vis the Build Back Better spending operation. {Go Deep} The primary way to control inflation is for central banks (U.S. Fed) to stop purchasing their own debt and/or raise interest rates. However, that approach would be against the interests of the multinational elites and international finance system (World Economic Forum agenda).
If you are a member of the political elite and worried about the electoral backlash from massively rising prices hitting your citizenry….. Another way to stop inflation is to shut down economic demand.
How do you shut down global economic demand….Omicron !!
See how that works?
As a result, we enter the 2022 mid-term election under a scenario where a new variant of COVID, Omicron, is now the reason for government rules (Vaxx, Vaxx, Vaxx), a slowed economy and a contraction of demand. Omicron becomes a justification and excuse for lowered economic expectations.
Simultaneously, inflation is artificially paused by using Omicron as a pressure valve, and the central bankers don’t have to worry about negative consequences to the multinational corporations who give them instructions.
Under this strategy, the electorate can be duped into reinstalling political ideologues, elites and communists. And guess what? The U.S. Energy Secretary doesn’t need to know what the price of a barrel of oil costs.
Don’t blame me, we just see this COVID variant stuff for what it is….useful.
This ain’t their first rodeo.
It’s not clear yet whether the mutations make this variant more infectious or whether it causes more severe illness, but researchers say the high number of mutations to the “spike proteins” — the focus of a body’s immune response — may make it more able to get past the body’s defenses. (link)
