You may recall I spent a lot of time debunking the "weak dollar causes the high price of oil" hypothesis.
According to this hypothesis, the stronger dollar should be the cause, not the effect, of falling oil prices. For an economic planner, any business person, this is a BIG difference. It makes you have to chase the momentum to hedge the input prices. Don't do that! It's a trap...a liquidity trap!
The only reason markets are moving up or down is solely because of the movement of an overconsolidated (an illegitimate) capital. It is not the operation of a legitimate free market. The beneficiary is the consolidated capital.
Now that the big hoax on what drives the value of a barrel of oil and the massive consolidation of the wealth occurred (victims including small businesses that now can't borrow to survive due to the liquidity crisis), we get the real story on the retrace as we experience the weak dollar recovery heading into the November election.
Now is the time to mix some truth with the lies to give your game some credibility. It's nothing but a cheap con game. The only reason it was successful is because it had the force and legitimacy of government authority.
Time for that to change!
Obama 2008!
British Petroleum announced it will invest $90 million in ethanol producer, Verinium (VRNM).
BP's chief executive recently confirmed the peak-oil price is a fraud, driven mostly by speculative demand and confirmed by recent market technicals.
This latest announcement is just more confirmation of the null hypothesis on peak oil.
The probability that energy alternatives will suffer a destruction of its alternative value is all but certain. That is the way a consolidated market works--by creating value, deflating it (depreciating its value) and consolidating it.
BP is correctly anticipating a subsidy for ethanol to support its alternative value and the probability that big oil will be discouraged from consolidating that value to ensure a competitive pluralism on the price and the quantity. So BP has gone ahead and given the support the alternative needs as oil compresses the oversold value and pressures the alternatives. BP will benefit both from the government support and getting in cheap.
The little noticed cause and benefit is the pragmatic skill of Mr. Barack Obama. His announcement of his energy plan right at the point of inflexion where the speculative demand for oil is being reversed has given the reversal extra momentum to kill the value of the probable subsidy, benefiting YOU, the consumer, NOW without spending a dime public or private. Pretty damn slick!
I want more of that!
Give me a surplus of Obama!
Support Obama financially and with your vote. It will be an investment with the very highest return for everybody!
Obama 2008!
The story is that TS Edoardo is not disruptive and Obam's comments on releasing oil from the SPR.
These are short-term reasons for a predicted massive sell-off despite the official story you've been getting that the peak oil price is due to long term scarcity. If that were true, today's massive compression should not have happened (the volume would not be there to drive a $4 drop).
As far as competence of the presidential candidates, Obama is very astute. He knows the peak oil hypothesis is flimsy at best and realizes that it will respond to a short term signal, like reduction of the SPR, favorable to the consumer needing short-term relief. Delivered!
Very smart! Very astute! Even better... he's behavimg in a highly effective, pragmatic way, and he's not even chief executive yet.
He's proving highly effective and he's just getting started!
Obama 2008!!
Very best wishes.
According to the monopolist that peaks the price on a scarce commodity, the price is a wake-up call to substitute. The monopolist is doing you a favor by exploiting you.
I love that one!
Never mind that there is plenty of oil. Investment in recovery has not been sufficient to meet current demand but, rather, is being used to bid the peak price.
Never mind, as well, that the capital to invest the substitute is consolidated and invested on the substitute at a rate to peak the price and exploit you all the same.
Nice try though.
Very best wishes.
This is why the investment is not made in adding oil supply or E&R, because it is not profitable.
http://apnews.myway.com/article/20080629/D91JTORG0.html
Like I said, not investing in exploration and recovery nulls the peak oil hypothesis.
Supplies are adequate. Your income is not!! That's what's wrong with it.
Retribute the value!
Very best wishes.
I don't think so!
Vote Obama 2008!
It's time to invest you, not divest you!
It's time we have what should be!
Very best wishes.
Hedge fund managers, a "class" of people that are receiving favorable tax treatment for their work and do not pay a penny of payroll taxes, defining an elite status, are hard at work applying the risk premium for you to pay for food and fuel, and to raise the capital to consolidate your bankrupted assets.
For neo-conservatives, supply-side economics is investing to add your supply to theirs.
This is the promise of trickle-down economics. It is the promise of voting for John McCain.
Vote Obama 2008!
Very best wishes.
Price manipulation is not legal. In order to legally manipulate commodities prices it is necessary to create the cause of political events to effect the price.
OPEC claims the peak price of oil is speculative. The evidence is overwhelming that it is, and OPEC revenues participate in the inequitable bid that drives the momentum on the peak price.
The manipulators, a small group of supra-sovereign elits with money to burn (with a high risk tolerance), have access to the highest levels of decisional processes of power to effect the necessary political events. The cause of the events is a fraud. The event is the "effect" of the political influence. Thus, the upward momentum on the risk premium, on the price, is a fraud.
Iran has no intention of risking its supply of oil to market. It is entirely dependant on it. Disruption is too risky for the current ruling regime to keep its power.
That extra risk premium that you will be paying for food and fuel in the next few weeks, if not months, is unnecessary and a fraud.
Get the neo-conservatives out!
What we need is risk reduction, not a false causation that requires elite risk management and you paying them to do it with a premium price.
Barack Obama has the diplomatic skill and understanding necessary to reduce the risk and the premium you are paying for it.
Vote for Barack Obama and access yourself to power!
Very best wishes.
The quantity of oil futures contracts for non-delivery (speculation) is over 70%. The contract is largely not being utilized by users of the commoditiy to hedge, or disinflate, the price to the consumer. No. Rather, the contract is being used to inflate the cost to the consumer and deflate our economy.
This is not peak oil. This is peak overconsolidated capital driving the price of oil up and our economy into the ground.
How can we believe the peak-oil hypothesis if there is no investment in its confirmation. You can't find your lost keys if you don't invest the time looking for them; or is it your keys are lost because you didn't invest the time looking for them? Where's the credibility here?
It's the same scenario with housing prices. Loans were fraudulently made to bogus occupants and based on bogus income data. In other words, the value of the homes was speculative, making it look to buyers that the peak price of a home was fundamental when it fraudulently was not. Any homebuyer was victim of this fraud. This is a big-time billion dollar fraud! The frauds are the real estate brokers, developers, and lenders. They need to go to jail for collusion in knowing and willing fraud, not subsidized with a bailout of any sort!
Join the coalition for Obama and reverse this trend.
Very best wishes.
tags: speculative demand,peak oil,credit crisis
BP Says No Peak Oil
British Petroleum has officially denied that the recent multiple in energy prices indicates peak oil (the point at which demand exceeds global reserves).
Reserves are adequate for at least the next forty years according to BP.
The retributive value on the price is overaccumulated, overbought, and just like the commodity price, the retributive value must be compressed, or distributed.
BP is leading the way to sell this market off as it has become extremely overbought because the fundamentals are not really there to support the price. The price is politically determined, and the retributive value will be politically managed with the cyclical compression of the price (the technicals).
However, the sell off will be falsely attributed to Bernanke's price signal for compression by raising the interest rate. Price signaling is otherwise a collusively criminal act in the marketplace that results from illegal consolidation of capital and markets.
Oil companies forsee impending enforcement of antitrust laws so they are selling their vertically integrated assests like gasoline retail in which the liability is extensive and clearly obvious. It is not a divestment of a declining margin. The margin is very good for integrated oil. They are divesting the potential criminal liability.
Prosecute the criminals!
Build the coalition for Obama!
Very best wishes.
tags: market technicals,peak oil,retributive value,political-economic fundamental indicators
Oil inventories are "surprisingly" down and you just made a ton of speculative money on your futures options.
The previously reported reduction in worldwide oil demand did not result in a rise in inventories. Could that possibly be because supply is not being added and the existing supply being inequitably bidded up against a declining demand?
I can't believe the futures markets would be used to exploit good American households. That is just too base and vile to be true. Who could possibly be so unconscionably abusive? It surely must be unintentional. It just has to be the result of some fundamental natural law. Right?
If the latest inventory data is a surprise, just exactly where do the technicals have credibility? The technical data has credibility only if you are the one determining it.
The entire process is in a command mode. It is not a free market. The data is just whatever elite technocrats recruited, paid and promoted by a global supra-sovereign elite say it is. It can be a lie, it can be the truth. The price cannot be verified because it is global--too big--and the mechanism for its free determination is not in operation. It is being commanded. It is whatever the commanders say it is at any particular time to make a profit at your expense, and the process is so indirect that both the abuser and the abused can maintain a false sense of propriety and legitimacy.
It's time for a verifiable truth in the marketplace.
Build the coalition for Obama!
Very best wishes.
tags: peak oil,technical anakysis,free market economics,election 2008
Clear Indicator of Speculative Demand
The clearest indicator of energy prices being driven by speculative demand rather than market fundamentals is that the price moves up on both good and bad news.
Market sector professionals recognize the indicator clearly present and have anticipated it for a long time.
The reason the causal factors are significant is because it indicates a corrective measure for the distorted effect on the economy--deflation with rising prices, or stagflation. The market legitimacy is for supply to be added but is not. The argument is, of course, peak oil and not a lack of fundamental free market mechanics.
The truth, however, is the peak oil condition is due to a lack of free market fundamentals in operation which, of course, clearly indicates the needed corrective measure--a more fundamentally pluralistic market model.
Make sure the fundamentals are in place in priority, and all the ornaments of prospertity and a peaceful coexistence naturally appear.
The dollar valuation and the price of oil being inversely related is a forex phenomenology. The statistical relationship is all but nonexistent. The psychological relationship is however very strong in a relationship of self-fulfilled prophecy. Achieve free market fundamentals and this relationship tends to be none.
In all cases, a more fundamentally pluralistic market model is in order. We are working on that very well with the possibility of a new political coalition to replace the old neo-conservative regime and its elitist operational model.
Yes we can!
Build the coaltion for Obama!
Very best wishes.
tags
free market economics,pluralism,peak oil,speculative demand,technical indicators,practical organizational models,predictive organizational modeling
Indonesia is leaving OPEC because its production quotas, exploration and recovery targets are so low it cannot meet its own needs.
That means Indonesia will leave the cartel and add supply to the market. In other words, pluralism has been added to the marketplace. The result will be increased supply. Read More »
As fuel prices continue to peak, even more offensive is the fact that the demand destruction being suffered to add supply, your sacrifice to the high price, is just being accumulated as a financial benefit to people that consider themselves unworthy of sacrifice.
Supply is not being added, it is being deprived. It is a politics of deprivation that needs to be redirected, retributed, to the perpetrators of this false supply-side, neo-conservative, trickle-down economic hoax.
These are people that truly believe they should profit from your deprivation. The more you suffer, the more they benefit.
WE are ALL worthy of the sacrifice a scarce supply commands. The inequality of income that results is not anything a moral intelligence cannot adequately compensate for by equitably sharing the burden of sacrifice and reinvestment a free market demands and satisifies.
The illusion to be suffered here is not "the freedom" in the marketplace, it is the conceit to believe it can be taken away, accumulated and redistributed. It cannot! It can only be violated and retributed.
Vote Democratic!
Very best wishes.
George Bush pleads with OPEC to increase supply. It countered with little-to-no excess capacity due to peak demand.
The demand increase has been anticipated for literally a decade. In many cases, political economists warned of an increased demand and an organized restraint of supply over 30 years ago.
Are these captains of industry really that stupid that a 10-30 year learning curve is not long enough to organize and finance the means of supply? Read More »
Peak oil prices, the so-called "new asset class," like gold or silver.
This is the oldest trick in the book to inflate prices by creating a demand that is "argued" to be a flight to quality.
The "peak" component both on the supply side and the speculative demand side is a phenomenology. It is just a reality of perception. Read More »
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