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4 Money Problems That Obama Can't Fix
So, as OIL/Energy prices began to rise from themid-$100, a massive drain on American Wealth began - From all acroos America, money began to flow form the American People's pocket books into the hands of Big Oil and on to the OPEC countries, all eager to foster this 'shift' of our Natinal Treasury. Add to this the drain of American Tax Dollars from domestic infrastructure projects, dollars that would re-cycle in our economy, to financing the Wars, and it is no wonder we woke up to the current credit crisis we find ourselves in today. Really flamed further this year with the explosion of Commodity Prices, led by the motley group of our 'top WS Firms" and furthered hyped by our favorite financial media org, and it is no wonder we have a sagging economy.
With mounting SS Debt, Fed Debt and a massive Foreign Exchange burden, the good ol' USA finds itself with a sinking dollar, which only serves to feed the problems stated above.
It all begin with OIL, POWER (as expressd by war) and Greed - and the only way any of this gets resolved is for those who have been directing this onslaught of insanity are no longer in power or allowed to raom freely across all the commodity exchanges around the globe, unchecked and unfettered.
G
Oil Markets, Speculators, and Vitol Group's Controlling Stake
What was not mentioned, is what might have been their positions also at the same time on the ICE and on the OTC, nor any swaps they might have holding. Granted, I am 'speculating' as I don't know for sure what amounts they had, but it stands to reason that a player this size would be involved in more than just one of the trading exchanges.
However, the more interesting part of the CFTC's action is that they picked a foreign firm to rat out and offer up to Congress, the media and the American Public just to insure us that they are officially doing their job. They have so far, it appears, turned a blind eye to the two firm's that have been controlling I believe even larger percentages. The glorious American WS firms of GS and MS, who are on the 'advisory board' (of the CFTC) that is suppose to be looking into this matter.
Knowing that these two firms positions were huge, and while they might look clean on the NYMEX, if you add their entire Oil Commodity holdings all together -swaps, OTC, ICE, NYMEX and live inventories for 'investment purchases' (?) - I wonder what they were as recently as June? I think that they have been controlling something in the neighborhood of 25-30%, each, of the world's oil by way of futures and other holdings and positions along with management of client's holdings. Geez, how could prices rise so dramatically and so decoupled from REAL S/D Fundas under such circumstances? [Note: don't say, yes but look at the recent decline. Listen, the decline was due to some hedge/pension fund managers coming to their senses and getting out starting in mid-June as they saw the damage being done...but there is still a lot of spec passive long money keeping the oil and gas market it propped up at present at $115. Oil truly should be in @ $80 at present with the current geo, weather and dollar situations.]
How many of you noticed how the fair headed wonders seemed so awfully determined last week to spark another oil price rally. They pushed the traders, CNBC and the 'rest of the herd' to bid up the price of oil back towards the $149 mark in the next few weeks by placing some action lead off by their 're-iteration' of their previous "analyst's reports" (second time since the drop got underway, an indication that not BELEIVED!)...Kind of makes you think that they just might have some futures coming due in Oct. or Dec., that they placed in April, May or June in the range of $150 that they are in great need of getting covered....
BTW, Congress is not however kooled down on this matter...they are in recess. The Republicans, led by the WH gang, in an effort to protect the aforementioned firms from the ravages of REAL CFTC scrutiny, hurried to tie the new Commodity Act to the Energy Policy Debate in a effort to stall its passage. Wonder why, the ACT, in and of itself is a good thing to protect us all. Head that GS was running through the offices of Congress lobbying very heavily in June and early July so as to try and stop the bill. They sure did get CNBC to back away from being forthright in its look/see/comments on the Commodity Act. Shamefully, they, being Republican Front Men for “Big Business”, chose to downplay it.
Was the Rep. linkage/stalling maneuver an attempt to protect these advisory board members? Was the fact that the CFTC put out that stupid "interim Report" a ruse to through off some members of Congress and the American Public.
Hmmm!!
Oil: Slippery Road Ahead
When the traders and funds realize that anything over $90, even in the midst of geo-tensions and a mystery tropical storm that is dead on the Atlantic side of Fla. but still lives vividly in the minds of traders as if it had already hit LA. after crossing land 3 times, we might see sanity return and the debate about s/d fundas being out of sync as being untrue.
I am so amazed at the blatant naivety of most of these players....and how they are now, once again trying to pull the IVs out of the goose that we finally rushed to the hospital in July...thought there was some hope...Hmm, maybe not!
Y
Will Global Events Keep Oil Above $100?
One thing though, we have yet to get the titans of WS, who are intent on cornering the markets and manipulating trades between 5 trading facilites - juxtapositioning thier trades in manners that, if they were under a single regulatory body's full scrutiny, would be ruled illegal.
Certainly, this and the 'herd instinct' generating analyst reports they quickly proffer at each turn in the priceline, have got to fall in the realms of pricing manipulation, especially when you lean on the main financial media outlet to trumpet your higly speculative statements. Absolutely, this will insure the 'self-fulfilling prophecy syndrome' that you are trying so desparately to create cos' those Nov. futures contracts at $147 you own have got to get covered along with those swaps with similar dates approach - or, you will lose your shirts and pants too!
Yep, we are half there to below $100 oil.
We shall see.
Y
Where Does Oil Go from Here?
China and India, as well as most o fthe world have begun driving less...China will adding more new car/truck units so their demand for oil will stay in an upward trend, just not as robust...and thier growth estimares by our energy agnecies is based on more vehicles like we drive as opposed to the more energy efficient that they are purchasing.
The oil bulls are stilling lurking, having come back out from hidding, since the CFTC is in thier pocket and the Rep. Congress thinks that Com. Spec. is a myth. - See David Cho's article in Aug. 21 Wash. Post. - Specs control 70% of the market - mostly in the hands of 4 to 5 big groups...Only when Congress gets back and the heat is turned back up on them will we see the retreat to where Oil should slip jsut below $100 - this against an actual production cost of $75/barrel and against the fact that we still pull, or can pull, 1 million more barrels per day out of the ground than we are using - this is good for two more years....but, alas, the analysts and specs tell us that there is a potential for Atlantic based hurricanes to corss Fla. 3 times on its way to LA/TX gulf waters...give me a break, please. Thus, acording to Trader Ric Carbone and Sharon Apperson of CNBC we should talk each other into believing this is a good "possibiltiy' and we should raise oil some more. When will the insanity end and the spotlight move on so that real energy traders can once again trade and jump when Putin or Goldman Sachs tells them to...
Y
Are Oily Characters Behind Crude's Price Move?
GT
Are Oily Characters Behind Crude's Price Move?
Oil should never have crossed the $85 mark this year...and would not have if GS, MS JPM BB and the Bush/iran/Putin juggernaut had not wanted it to do see...
Pls. wake up.
GT
Forget $100 a Barrel - Oil Will Plummet to $30
This way, they control it, on balance, in the world. They don't won't the new oil sourcees to supplant them and their revenue streams.
2) India and China's actually demand, while appearing robust statistically, are, in the aggregate, not large numbers. 13 million cars in China to 200 plus million cars in the US. If they average 6% car growth and we cut back driving several % points per annum over the next 4 years...the difference in actaully consumption (demand) is liking looking at the statistical weight of a watermelon to that of a grapefruit...
3)- Therefore, when the new discoveries, and there are more annoucements coming soon....are here in the next 4 to 5 years...there will be plenty of supply ofr a good sustained period..
4)- The biggest consumer of OIL, the most dangerous consumer of OIL, and the real culprit behing the high prices whihc were not connected to TRUE S/D Fundamental Facts - is the dark army of Goldman Slacks, MS, JPM and BBank. Once they are 'Reeled IN' and not allowed to 'consume oil (futures)'...prices will stay steady and in balance for years..
BEWARE -- they have purchased an interest in the new Dubai Exchange so that they might once again run up prices - as they will be out of the range of the lame CFTC and US Government.
Greg
$200 Oil: Before Decade's End, Not Year's
China's car growth means that their Oil use will equal outs by 2020? That is stretch...but, we are assuming that they will only grow going forward using gas guzzlers and inefficient means of production...let's see, we have 5k 'green engineers' in training in the US and they have 200,000...Hmmm...They are quit a wise group in many ways and with a central government that can dictate policy...they will be able to 'implement' green technologies and energy conservation at stunning rates with significant success...Oil will stay in teh $80 range for two years and move up $10 per every two years, unless the Shills who just bought into the Dubai Oil Exchange are not preventive from doing so and if Iran doesn't burp too strongly..
G
Is the Commodities Bull Market Over?
However, get ready, the bad boyes of WS jsut bought inot the new Dubai Oil Futres Exchange - now they can begin to 'manipulate' beyond the reach of the CFTC shortly....
Round II begins early next year.
G
Oil: Does Supply and Demand Still Apply?
The After Hours Oil Scam
we need a large overhaul of how this country and "Bush/Cheney/Kudl... Goldielocks Economy works -oops, I mean destorys our way of life...
G
The Oil Speculator Myth
Simply put, there has been a huge infusion of dollars into oil futures...by large Institutionals and CIFs...a factor of 13x Non-Commercials to Commercials at present....any way you slice it up - "Inflation --- is when they are Too Many Dollars Chasing Too Few Goods and Services"....and we have too many dollars chaisng too few Options Futures Contracts...
as to the shorts...these are the "FUND MANAGERS" GS, JPM, MS, etc. who are covering their own in-house positions...(Why does GS now have facitilies to take in oil...?? Hmmm...)
Many things are contributing...it is the WS Firms mentioned above WHO NOW OWN The OIL MARKET....wake up!
G
Speculators Continue to Drive Oil Higher at Risk of Global Recession
YG
Speculators Continue to Drive Oil Higher at Risk of Global Recession
And you don't think the CIFs with a billion worth of contracts sin the last year or so, driven by the greedy fund mangers at Goldman Sachs, JP Morgan, MS and MF Global, with their "analyst reports" are not the reason for the high price of oil, and other commodities...well, dream on...
YG