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!
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What was the name of the second one...the same?
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?
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.
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.
http://www.dispatch.com/content/stori...
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