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Falling oil prices, the Iran deal, and Obama managing the decline of US

Posted by $ jbrenner 10 years, 1 month ago to Economics
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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!


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  • Posted by fosterj717 10 years, 1 month ago in reply to this comment.
    He told us right from the get-go that he was going to all but destroy us and make us into a third world country by "taking us down a peg".
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  • Posted by fosterj717 10 years, 1 month ago
    Things with this administration are never as they seem. As the writer said, what is transpiring, while great for the consumer on the surface holds some very dangerous "unintended" consequences.

    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.
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  • Posted by wiggys 10 years, 1 month ago
    jbrenner,

    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.
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  • Posted by $ 10 years, 1 month ago in reply to this comment.
    I will innovate when there is once again reward for my innovation. I am on strike.

    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.
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  • Posted by Ben_C 10 years, 1 month ago
    Yes, New Orleans and Louisiana are hurting but Detroit and the auto industry benefit from lower gas prices as does the airline industry - so it is a trade off. A destabilized world fits right into Obama's agenda for a fundamental change. He needs a crisis to be able to step in and offer his "hope." Communism is alive and well.
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  • Posted by $ 10 years, 1 month ago in reply to this comment.
    You are on the right track, edweaver. The real question is which country (countries?) has the nerve to temporarily lose money until its competition is bankrupt. I used to make money betting on gasoline prices going up from February to May every year. Iran's reentry into the oil market is enough of a step change that I am unsure of when to call a bottom on oil prices.
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  • Posted by freedomforall 10 years, 1 month ago
    The rest of the US population will have to wait for the 40% drop in the USD (when the petro dollar connection ends) to realize they have been shafted again.
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  • Posted by edweaver 10 years, 1 month ago
    Great info JB. This has been a topic of conversation in the media that I listen to. They seem to think this may not be a good thing since many of the countries that will be punished by this are very volatile. I would include the US as well. If our financial condition deteriorates farther, I think we will see much more unrest especially in large cities. There is talk that this could trigger another world war and history has a track record to prove that. Since you are somewhat of an insider in the oil market do you have more thoughts on where $20 oil could lead?
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  • Posted by Technocracy 10 years, 1 month ago
    He promised fundamental change...the only campaign promise he kept.

    Too bad the fundamental change he is driving is not anything desirable.
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