France drops its super tax on millionaires

[TGregg]

The price of oil is falling because there was a huge amount of speculative activity in the price of oil, and that speculative activity is reversing. Speculative activity, I might add, that was fueled by the cheap money policy of the Fed. As the market begins to price in the fact that the era of cheap money (in the US) is over, and that the US dollar is potentially at the end of more than a decade of printing, commodities will all begin to come down (and many already have).

Unless you believe someone found oil on Uranus or that 1 billion cars suddenly were taken off the road, or other fundamental explanation to let us know why oil is suddenly far more available than it was a month and a half ago.

Some movement might also be a supply side issue. Maybe OPEC is drilling up a storm to drop prices for various reasons, ranging from a big FY to Russia to a big FY to the shale boys over here in North America. Or maybe cheap renewable energy is on the horizon.

 

[Ricter]

The price of oil is falling because there was a huge amount of speculative activity in the price of oil, and that speculative activity is reversing. Speculative activity, I might add, that was fueled by the cheap money policy of the Fed. As the market begins to price in the fact that the era of cheap money (in the US) is over, and that the US dollar is potentially at the end of more than a decade of printing, commodities will all begin to come down (and many already have).

Unless you believe someone found oil on Uranus or that 1 billion cars suddenly were taken off the road, or other fundamental explanation to let us know why oil is suddenly far more available than it was a month and a half ago.

 

[Scataphagos]

"... maybe cheap renewable energy is on the horizon.

Doubt that.

Alternative energies have been much more expensive/unit than fossil fuels all along. Not likely something just gonna drop out of the sky and make they really cheap.

 

[TGregg]

Doubt that.

Alternative energies have been much more expensive/unit than fossil fuels all along. Not likely something just gonna drop out of the sky and make they really cheap.

You have to wonder about that. The big fans of renewable energy (liberals) are *not* fans of cheap energy. One libtard stated:

"In fact, giving society cheap, abundant energy at this point would be the moral equivalent of giving an idiot child a machine gun."

Cheap energy allows people to GTFO of cities and away from collective big government. Not saying it *is* just around the corner, but if it was the left would fight it.

 

[Scataphagos]

You have to wonder about that. The big fans of renewable energy (liberals) are *not* fans of cheap energy. One libtard stated:

"In fact, giving society cheap, abundant energy at this point would be the moral equivalent of giving an idiot child a machine gun."

Cheap energy allows people to GTFO of cities and away from collective big government. Not saying it *is* just around the corner, but if it was the left would fight it.

Of course. Cheap energy gives the hoi polloi alternatives. The Left doesn't want anybody to have alternatives to anything except what Leftists dictate. (You know, like Odumbocare and our public education system debacles.)

Few Americans understand just how evil and corrosive Leftism really is. Let's not forget, Stalin's and Hitler's regimes were the epitome of Leftism.

Personally, I'm of the view that Odumbo is just as bad as Stalin and Hitler.. he just hasn't hand the time and same free hand to wreak as much devastation, but he's "doing his best".

 

[Tsing Tao]

First, if you're going to attempt to use the supply/demand argument for oil, you need to go back a bit more than 6 years. You might find the 1995-2009 chart a bit inconsistent with what you posted above. Overlay the price of crude on that chart and you'll see how inconsistent it is.

Second, the price of oil not six months ago was in the $90s. Your chart data now isn't all that different from six months ago, and to say what little difference there is represents a 50% drop in the price of crude is, well...asinine. Not to mention the stock "spike" in 1Q12 on your chart coinciding with the cycle high in crude prices ($110~ where incidentally supply and demand also diverged). If anything, that chart adds weight to my point about speculation.

Just curious, but what is the source of that data? Whose chart is it?

 

[jem]

I give credit to ricter... out of the lefties here he is the only one who makes others give thoughtful replies and not just anti troll comments. In other words I sometimes learn things when he is involved in the thread.

 

[Ricter]

At any rate, the good news is that the price of oil will not rise much ever again, so long as the Fed is not "printing money".

; )


(thanks, jem)

 

[Tsing Tao]

At any rate, the good news is that the price of oil will not rise much ever again, so long as the Fed is not "printing money".

No one said that except you. IFF (meaning If and only If) the market ever returns to a natural equilibrium devoid of central planning and manipulation, and the forces of supply and demand are the only things acting upon oil prices (there will always be some tiny amount of speculation, of course) then oil prices could rise on shocks, supply constraints, or eventually on the shortage of overall oil left.

But you'd rather be snarky.

 

[Ricter]

No one said that except you. IFF (meaning If and only If) the market ever returns to a natural equilibrium devoid of central planning and manipulation, and the forces of supply and demand are the only things acting upon oil prices (there will always be some tiny amount of speculation, of course) then oil prices could rise on shocks, supply constraints, or eventually on the shortage of overall oil left.

But you'd rather be snarky.

Oil prices will recover, despite the failure of a fantasy, "natural market" without central banking to appear. And it won't be because the Fed started "printing money" again.