Posted on 05/22/2008 5:51:24 AM PDT by wildbill
A lot of people are in denial about anything they don’t want to hear. I was on the receiving end of quite a bit of vitriol on a thread yesterday for daring to suggest that we won’t be able to rely on oil much longer and we should stop fighting the inevitable.
The rules need to be changed so Banks can’t use Deposits to speculate.
The rules need to be changed so that only investors that have facilities to take delivery of the commodity can bid.
These speculators include fund managers for large unions and government agencies. Basically the derivative investors that lost their shirts during the Sub Prime crash. We are talking about the complete failure of the National US financial system and our National government. The House of Cards is very shaky right now. We all knew The People would end up bailing these 'investors out'. We just perhaps did not know how.
This profiteering is not just fattening their wallets using our money — which is bad enough and worthy of harsh punishment. It’s emboldening and enriching the people that would kill us. And that my friends is treason.
The demand is dropping as people stop driving and companies fold. Their profits may not even be an issue here, but I am just speculating. Perhaps this is how we get cooperation to neutralize the Iranian threat ? Who knows.
It’s difficult to compare Housing/real estate and other commodities with the World energy market.
The biggest driving force is fact that China, India and many formerly third-world countries have greatly industrialized. The World demand for oil has nearly doubled in just a short while.
There is not much of a bubble here at all. Maybe a few dollars as the market fluctuates, but in the long run, it will double again in the near future.
From our own standpoint, we have to import refined distillates because we do not have the capacity to meet our own demand. Now that the rest of the World is starting to pass us economically, we will see even more demand that will sustain the current prices and even drive them higher.
Costs of trading with those countries will also go up because the energy costs went up for those foreign traders.
Believe me, there is no bubble, only foam on the water.
I bought two quarts of motor oil. I expect to retire on the profits!
I’ve given up on waiting for the increase to supply or the decrease in demand to bring down the price.
We cannot afford (as a family) to do nothing.
We traded in our Fords for Toyotas already.
We’ve cut down on driving - but even that isn’t helping us now.
I’m doing grocery shopping at Aldi’s and Sam’s (buying bulk).
I am not a green thumb, but we recently bought a book on square foot gardening and will give that a try this summer.
Our next step is to figure out the best alternative to our oil fuled furnace - which is only 7 yrs. old.
We’d like to figure out a way to keep the furnace, but power it with a different source.
We also live on top of a very windy hill with enough land for wind power - but in NY the cost of implementing wind energy is out of our reach.
~~~~~Hopefully, they will run out of places to put the oil.~~~~~
According to some people, Iran has a plan to flood the market with cheap oil...The purpose being to destroy the U.S. economy...And some say that’s the real reason we are at the doorstep of war with Iran...
This guy has some interesting information...
http://www.youtube.com/watch?v=NbakN7SLdbk&feature=related
Pinging you for your take on this. I’m as surprised as anyone about the fact that Iran is storing its supply in tankers offshore due to being out of land-based storage.
I was aware we, the US, had decreased our consumption (116 B brls per day?) than in the past, but was unaware of the ‘over-supply’ inferred in this article.
“At least we have a robust supply albeit at an outrageous price.
About 6 months of President O’Bammy and a filibuster proof congress and we’ll be back to 55 mph and gas lines.”
I wrote about what I believe the ‘rats will do to “bring down prices” yesterday in this post:
http://www.freerepublic.com/focus/news/2019195/posts?page=117#117
- John
Since when has cheap oil ever been the downfall of our economy?
It looks pretty certain that 4 dollar oil is doing a pretty good job of it though.
Could somebody please tell me WHO these speculators are and WHY nobody in talking about them?
Some people (who don’t understand money) think that flooding the market with cheap oil would ruin our economy. They’re generally the sameones that belong to the 9/11 truther camp.
Look into a thing called a wood pellet stove.
Only about 23% of all oil investments are from private speculators. That has very little impact on the market as a whole. The culprit is huge industrial expansion going in China and India, which together host a third of the World’s population.
And the idea of alternative energy ever effecting the price, that is still decades away, if at all.
Money speculators? There’s a ton of them. Look up a list of people who invest in, and then ruined, the Russian ecnomy after the fall of the USSR. Soros and his cronies. They make money off devaluing the currency of nations.
“This is not anything new and it will not help ease oil prices,” said Ehsan ul-Haq, head of research at JBC Energy in Vienna, Austria. “The oil futures market is very strong, but the physical markets are not so strong.”
http://www.freerepublic.com/focus/f-news/2005158/posts
Note the key sentence: “The oil futures market is very strong, but the physical markets are not so strong.”
I’m not sure I follow you. Are you saying that China and India are taking part in the oil futures market? Or the fact that they’re growing so much right now is leading to greater demand, thus raising the price? If the latter is the case this would be in direct conflict with what the article is saying about Saudi Arabia and Iran have vast surpluses of stored oil. I’m confused.
It would appear that speculation may be a bigger contributing factor than you acknowledge.
If you’re correct, to me it’s almost like they’re indirectly declaring war on our country. If their goal is a profit with the added consequece of destroying our economy, they should be treated as foreign invaders and dealt with accordingly. :-)
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