Maverick wrong on OIL, Gold, Markets as usual.......want the Oil truth ?

U

Ucan'tEatBonds

There is a reason I don't post often, at least not anymore.

I get my daily dose of Mainstream Media lies (explaining "why" things happen) just like all of you, everything from CNBC to Bloomberg to yahoo financials, yes I check them out too.

And then when I come to ET, I get to read Maverick's posts which are so brilliantly false that I just shake my head.

This guy is a FED apologists who denied QE pumped the market to infinity.
This guy denies that naked short selling depresses gold prices, even though banks are being punished for doing it, you can google it.

And now Maverick explains in his beautiful "expert" way that reason OIL prices are down is because Oil is overpriced.

Really Maverick ?? Really ?? I guess you are a true believer in free market where supply and demand establishes a natural and real price ?

I used to believe in that too, but not anymore.

Oil is down, because makers of US foreign policy have decided to destroy Russian economy which relies something like 70% on export of oil.

Because US government has influence over enough OPEC members, they can demand higher or lower supply and thus set the oil price to whatever they want.

The US government in the past wanted high oil price because it meant LOWER INFLATION at home because oil is bought internationally by Petro-Dollar, meaning in US currency.

The higher the price of oil, the more US dollars are needed to be held by countries across the world which meant FED could continue QE infinity without too high inflation at home.

Now that they decided to severely damage Russia, they crashed the price of oil.

This also means that they must have found a way to deal with inflation, FED voodoo and all. Probably why they stopped QE at least temporarily.

FED will one day realize you can't have your cake and eat it too. In fact, I am surprised those magicians at their FED Temple have managed to play the game so far without depression.

Food Stamp statistics speak otherwise though.
 
Your job as a trader and investor

is to follow the FED up and down

forget the 1980s - 1990s, those days are gone, today only manipulation exists by central banks/governments, and you are just in for the ride

if you are like me though, you will have plan B too, just in case FED priests at the Temple get confused and lost in their tricks
 
And Obama will go down as the greatest president of all time who produced 300% in the markets:D
However time square is running out of room for showing zeros on national debt clock, but who cares.
Something has to happen soon though.... be prepared.

ITS A FUGAISE!!!!!!!!!!!!!!!!!!!
 
If there was anything to brag about in that department, it would be above the national debt clock for sure.
Simple google reveals no such thing presently.
 
The simplest explanation for the drop in oil prices is production exceeding demand. In the current global oil market, supply is more elastic than demand. In other words, if you increase production, demand will not increase proportionally to absorb the additional production, and prices will fall until there are cuts in production. The production cuts we will see in coming months will come first, of course, where production costs are highest and margins are slim.
 
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piezoe said:
The simplest explanation for the drop in oil prices is production exceeding demand. In the current global oil market, supply is more elastic than demand. In other words, if you increase production, demand will not increase proportionally to absorb the additional production, and prices will fall until there are cuts in production. The production cuts we will see in coming months will come first, of course, where production costs are highest and margins are slim.
More...

LOL! Yeah, demand suddenly fell off a cliff in the last 4 weeks. No speculation at all.
 
Tsing Tao said:
LOL! Yeah, demand suddenly fell off a cliff in the last 4 weeks. No speculation at all.
More...
No. Read again what I wrote. I didn't say anything about demand changing suddenly. I implied the exact opposite. You can have demand changing far more slowly than supply! That's most likely, in my opinion, what happened, and it is the simplest explanation. Supply is more elastic than demand, so going forward expect supply to be cut back over coming months to first stabilize price and then gradually move it back up some.

And of course there is speculation in commodities. Speculation can be a factor in creating commodity bubbles ever since commodity futures began to be heavily traded by other than producers and users. Speculation is one of the factors that can lead to an oversupply. When all of the tanks at Cushing and all of the leased and docked single-hull tankers are filled to the brim you're going to have an over supply. In the present case, it seems the oversupply was caused more by overproduction brought on by prices favorable to producers..

In practice neither supply nor demand changes all that rapidly. Its market recognition that the situation relative to supply and demand has changed that can occur quite rapidly. This is the nature of markets.

images

World_Oil_Production.png
 
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Ucan'tEatBonds said:
Oil is down, because makers of US foreign policy have decided to destroy Russian economy which relies something like 70% on export of oil.

Because US government has influence over enough OPEC members, they can demand higher or lower supply and thus set the oil price to whatever they want.

.
More...

Ya, that's it. I was just about to post that, actually. Haven't seen that in media or print, but I'm sure Rickards is on top of that angle. Just the next stage of economic warfare against Russia.

Expensive energy is highly inflationary for the entire system. Not sure about the last point. Cheap oil allows for more QE, not less....
 
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