Oil is the only real money……
No oil we starve. No oil we walk. No oil we kill everybody to get it. That’s what it’s all about. The oil producing people have declared war on us and have used our financial elites to stick it to us. Why else would gas prices go up in a depression?
Eventually the crooks in charge will get theirs and we begin to drill here. Until then expect samo samo. None of the political elites seem to be on our side. You sure can’t trust either party. So we hunker down in the twilight of our empire and wait.
America’s Commodity Crisis – 2010 Edition
Courtesy of Phil’s Stock World, by Phil
Commodities are a TAX. They are the worst kind of tax because they flatly (not progressively) charge every man woman and child in this country more money for the same food, fuel, shelter and clothing that they had to have last week in order to live. It doesn’t matter if those people are trying to save or trying to tighten their belts or trying to get out of debt – high commodity prices are a shake-down that rips money out of the pockets of the middle class and funnels it to the very, very small class of commodity producers, commodity speculators and the people who finance them and collect the fees.
Over 99% of the people in this country do not own mines or oil wells (and I’m not counting small farmers because they are literally raped by speculators and bankers, often leaving them worse-off than the consumers) or huge plantations and they do not buy futures contracts on margin with cash they borrow at prime plus 0.5% nor do they own tankers filled with 2M barrels of crude that they arbitrage along the crack spread, looking for an opportune moment to deliver their goods (hopefully during a crisis) at a maximum profit.
So 99% of the people in this country don’t even own a commodity ETF – they have no way to profit from high commodity prices and they need to eat, and they need to buy clothing and have shelter and they need fuel to heat or cool their homes and go from place to place. There is a word for people like that, at the bottom end of a transaction they have no control over – VICTIMS!