How can our own private oil
companies compete with the Saudi state run oil companies? The Saudis have predicted this decline for
months now, so who is running this decline in the price per barrel. Who owns
the most oil owns the world, and the Saudi empire cannot and will not be
affected by the digital generated commodities prices, they will make revenue
regardless. Could it be such a large
manipulation in oil price? America’s grand schemes to keep Putin up at
night, or keep Iran on its
toes, disable Venezuela? I do not think this was Americas plan,
yes I see the pros in low oil; we can fund our overwhelming service
economy. Americans are huge consumers,
when those numbers drop right before Christmas people are not spending, instead
they are saving. This can take a toll on the US more than low oil prices will. The
FED has stated that a lower income would provoke more spending. The benefits of the low oil price is primarily
for the EU, China and most
of East Asia, not the US
or Putin. I wonder if the FED and The
Powers That Be thought this one through.
In 2005 we saw a need for oil at
about 7 million barrels a day, it is estimated that that number will be above 9
million by 2015. With oil need higher
than ever, many companies took out massive loans in this expectation and hope
oil will again be over $100 a barrel as previously. The US production was in full force
before the ultra steep decline in price per barrel. The lower prices have made it impossible to
expand production, and have put the bids on the energy index far into the red;
in fact, the energy market has been one of the worst sectors on the index. In October when people were saying how $88 a
barrel was at an all time low, and the seasonal need for oil would boost cost
and not to worry. The analysts at OPEC
were extremely wrong this time, since as of today it stands at $63.56 and
heading lower. It seems that oil is
falling at an astronomical rate as low as it has been since 2010 after the last
crash. It seems people forgot it was as low as $35 in 2008-2009 and we are
still in the $60 range, is this decline a indicator of what’s yet to come.
Not to mention that energy sector on the index makes up the second
largest high yield bond market for investors and with oil rates dropping and
the energy sector performing badly it has many of those investors pulling out
leaving the banks to cover the high liquidity its causing. The selling of the banks high-yield debt
exchange traded funds “junk bonds” overall banks may not be able to sell off
the bonds to break even. The sizable
share decline could push the high yield market down lower leaving investors
looking for a new investment.
We are living in a massively over-leveraged
economy, how can we achieve sustainable economic growth with this extreme debt
the monetary system has created. The fiat
and crypto currency and any digital form of decimal points have created a need
to hold on, and seek out a safe hold for our investments. What was once seen as a smart move for a
working citizens to invest in a bank or IRA even SSI is now a total nightmare.
Deceiving people and lies seem to make more money that honor and truth, and if
we are talking about the big bucks, we are taking heavy manipulation .It seems
nothing is sacred anymore and it all comes with a price tag attached, we have
police and government that we all once trusted breaking us down and pushing us
further into a hole we cant climb out of.
46,000,000 individuals have been on food stamps for 37 straight months. They say unemployment is at an all time low
but they only count people that are filing for the first time. For many investors, looking at the numbers
and graphs it would seem that the US is growing steadily and things
are A-OK. Things couldn’t be further from the truth and its about time to make
some real money. Don’t just follow the trend, the information can be
overwhelming and takes more time than many people can invest into a profitable strategy.
I continue to gain in trading metals as well as fourteen different currency
trades weekly.
