Falling oil prices, the Iran deal, and Obama managing the decline of US
Do you remember when several of Obama's lackeys talked about managing the decline of the United States (and for that matter, Western civilization)?
Most of us remember what an odd deal the Obama administration made with the Iranians. Most people criticized the deal, but focused on the nuclear aspects. What most people didn't realize is that we also lifted economic sanctions on Iran, thereby increasing their GDP by 100-150 billion dollars per year. When is the lifting of those economic sanctions taking effect? TODAY. Is it any wonder that crude oil prices are going down precipitously?
What are the consequences of all this? A number of coal, shale-derived oil, shale-derived natural gas, biofuel, and solar energy companies (including those he propped up via cronyism) have either gone bankrupt or are about to do so, and the major oil companies have taken quite a hit. All of this is part of the management of the decline of the U.S.
Not coincidentally, a number of other countries are really taking a financial bath, too, as a result of Obama's meddling. Russia, Saudi Arabia, Libya, and a number of other Muslim countries are severely destabilized as a result of drastically lower oil prices. Some of these countries may actually be wanting to drive down oil prices to bankrupt competition, particularly from North Dakota. In 1982 plus or minus a year, the price of oil went from 50 dollars per barrel down to 8 to eliminate American competition, before coming back up gradually.
For those of you not personally involved with the energy business like I am, the net effect on you is lower energy costs, and therefore, significantly deflationary pressure overall. Many Gulchers, and most people in the U.S,. will like this outcome. But as for me, the Iran deal was consummated at MY expense!
Most of us remember what an odd deal the Obama administration made with the Iranians. Most people criticized the deal, but focused on the nuclear aspects. What most people didn't realize is that we also lifted economic sanctions on Iran, thereby increasing their GDP by 100-150 billion dollars per year. When is the lifting of those economic sanctions taking effect? TODAY. Is it any wonder that crude oil prices are going down precipitously?
What are the consequences of all this? A number of coal, shale-derived oil, shale-derived natural gas, biofuel, and solar energy companies (including those he propped up via cronyism) have either gone bankrupt or are about to do so, and the major oil companies have taken quite a hit. All of this is part of the management of the decline of the U.S.
Not coincidentally, a number of other countries are really taking a financial bath, too, as a result of Obama's meddling. Russia, Saudi Arabia, Libya, and a number of other Muslim countries are severely destabilized as a result of drastically lower oil prices. Some of these countries may actually be wanting to drive down oil prices to bankrupt competition, particularly from North Dakota. In 1982 plus or minus a year, the price of oil went from 50 dollars per barrel down to 8 to eliminate American competition, before coming back up gradually.
For those of you not personally involved with the energy business like I am, the net effect on you is lower energy costs, and therefore, significantly deflationary pressure overall. Many Gulchers, and most people in the U.S,. will like this outcome. But as for me, the Iran deal was consummated at MY expense!
I DO NOT support the lifting of sanctions on Iran. They cannot be trusted, and this will not change their corrupt government. Therefore, the sanction should have stayed.
Lower energy prices, unless controlled by government spending, are disruptive but good overall.
Too bad the fundamental change he is driving is not anything desirable.
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Iraq's oil production and sales were decimated in 2003 and in the intervening years haven't come anywhere near pre-2003 production levels. Libya's production was killed off during the 'Arab Spring' as well as Algeria and for the last three years, Syria. I think the largest driver in the drop of oil has been the drastic reduction of China's demand along with all of the Fed's free money since 2008 that went into the 'fracking' race here in the States and into Wall St in general. You'll note that as the Fed began tapering off of QE, the price of oil started going down. Many of the companies now facing bankruptcy and/or restructuring were built on inflated asset leveraging with that free Fed money. In a way, it brings to mind the Iris bulb bubble and bust of the Dutch, though the money wasn't being managed to the same extent.
The real problem we now face is the probable de-coupling of the dollar from oil and the drive towards the commodity basket currency to replace the petro-dollar of the last 60 or 70 years..The 150 billion return to Iran and the probable increase of their GDP is a rain drop in the barrel compared to what happens with China's continued return to the realities of economics and the IMF's breakup of the petro-dollar. In short, we're headed into a really steep drop off that we may never recover from.
The "Arab Spring" is a winter of discontent.
Repetition of intentional market manipulation will never make me immune to its effects. It will always give me pain because it will always be an affront to my liberty. That being said, you are correct in saying that it is a pain that will never get better.
First of all, the heating up of rhetoric between Saudi Arabia and Tehran creates a potential tinderbox. The lowering of the price of oil by the Saudis can be looked at as a way of deepening our commitment to defending Saudi oil in a region now very close to becoming (thanks to Obama and Kerry) a nuclear powder keg.
Obama, by accident or design, is helping create this glut of cheap oil has totally devastated our own self-dependency at a time when our military as well is being gutted. Throw on top of this pile of kindling the fact that our reliance is again growing precipitously on foreign oil that we soon will be at the mercies of the tyrants and miscreants of the world.
It seems this emerging situation is nothing short of being a dangerous Trojan horse, perhaps designed to help Obama (I.e., the Democrat Party)in the upcoming election and to hurt Americans who wish to preserve our independence, by relying on domestically produced energy.
Obama and his henchmen openly stated on numerous occasions that he/they will manage our decline by "taking America down a notch" and this might be a great way to do it. I for one am going to try to find companies that will only sell domestically produced oil.
you obviously do not realize that EVERYBODY is significantly affected by all of this. regardless of how cheap gas gets if people do not have jobs they can't buy it anyway.we have no choice at this time but to observe how things play out over the next 12 months of 0 in office. the congress as we know will in fact do nothing to stop his meddling because they have given up their actual reason and purpose for being elected to the congress. the potential for the situation to get worse is looming. it just depends upon how successful the new office holder is at convincing the congress of what positive changes/steps should be taken to initiate the righting of the ship. but for that we would need a person of intelligence and as far as i can see those vying for the position have very limited intelligence so we are in my opinion screwed.
's views are.
Trump says his mind, and will tell us if the emperor has no clothes. No political correctness there at all. We need that for 4 years to clean out washington.
As to what Trump can actually do, other than raise peoples' awareness of whats going on, is NOT a lot. He would hav to have congress in his pocket, which is unlikely. Cpngress will probably be divided along party lines, and if not- Congress is mostly socialist anyway.
I agree we need to remove political correctness but I'm not sure he will clean out DC. He sounds like he will run over anyone who gets in his way and the thing that concerns me the most is I have not once heard him say that he will fight to defend the Constitution. I believe the solution to most of our problems can be solved by someone the looks to the original intent of our Constitution and defends it as if their life depends on it.
It is reveled that the Martian Civilization is in managed decline and those that manage it, (as if it's their business) have empowered barbarians because they could be controlled. My ears stood up like a german shepard when I heard that.
I wondered, whom controls them? the answer was no one. No principals, no morals, no guidance...just makin it up as they go.
Sound familiar?
What was the name of the second one...the same?
And Yes...American crude plays a role here also.
Interesting to note, (and it somewhat vets out) It has been revealed that some old wells have more oil in them after being played out years ago. There has been a discussion about how this happened. It might seem that oil is not the result of decaying fossils. Hot debate on both sides.
http://www.dispatch.com/content/stori...
As for electing Trump, he is just too authoritarian for me. I do like his production, but I don't like his use of eminent domain.
With that being said, he has been able to take the steam out of the Conservative who are still in the race (I.e., Rand Paul, Ted Cruz, Ben Carson etc.). Could it be that he is either an Establishment or Democrat Trojan Horse? I wonder....
That is the 24 million dollar question. All I can see from his history is someone who doesn't care who he steps on to get what he wants.