THOSE COWBOYS ARE AT IT AGAIN
The sharp decline in the price of a barrel of oil last week was not the result of excess supply over demand. The world has been awash with oil for the last nine months. Consumption even in America has hit lows never seen in decades and the rest of the world has realized it too could live quite comfortably with less oil. I will never forget a year or two back, our former President, a former though very unsuccessful oil man himself proclaiming “America is addicted to oil!” While I understand Columbia’s and Mexico’s economies are based on America’s addiction to drugs, to use the word addiction in terms of oil consumption only fanned the flames for the cowboys at the Mercantile Exchanges in Chicago and New York, to take full advantage of the situation exactly as the Mexican and Columbia drug cartels have done with cocaine and marijuana. Bush made his comments when the price of oil was below $100.00 per barrel and in no time the price jumped 50%.
With the 2008 collapse of Wall Street by years end oil quickly found a new level just above $32.00 per barrel from over $120.00 three months earlier. Experts were telling us that due to a huge drop off in demand the price could go down in the New Year at least another third to just over $20.00. Without Bush to continue telling the world what addicts Americans were, the futures exchanges around the world were concerned Obama and his European counterparts were going to regulate the markets in such a way, the world would never again be held hostage to a bunch douche bags making money out of people’s misery.
But what happened? President Obama quickly listened to his many advisors (most of whom I reckon must be Republican “plants”, including that little weasel of a Treasury Secretary, Tim Geithner) because his earlier threats about cleaning up Wall Street, the banks and the futures markets really just ended up being exactly that- idle threats. Once the “non toxic” banks Goldman Sachs, Morgan Stanley and the futures traders realized it was basically back to business as usual, the first to jump in and go for “L” for leather catching up on lost time were the N.Y. Mercantile Exchange and their fellow brethren in London. Prices in all minerals three months ago started moving skywards.
Futures exchanges are nothing but “electronic casinos” and the players no different from poker playing Bret Maverick of Wild West 1800′s fame. David Hutton, CEO of supposedly credible London-based PVM Oil Associates, in public has recently become an outspoken critic of speculators. It was just a façade as it was one of his most revered traders who in two days last week was responsible for a hike in the price of crude rising over five bucks and at one point $2.50 in less than one hour. Since this was revealed the price of Brent Crude has fallen from $73.50 to a shade under $60.00. It is still being propped up by traders because their bets were along the same lines as the PVM cowboy.
Now when all this trading was going on in such a short space of time, at one point enough futures were bought in just one hour which if they were to be exercised, the volume was equal to twice the daily output of the world’s largest producer, Saudi Arabia! How ridiculous is that? The G 8 were meeting in Italy at about the same time as all this nonsense was taking place just a few hundred miles away in London, but did we hear anything from those “great” leaders? Not one word. Because they were more worried about arguing over the carbon footprint in year 2050! Hey, Barak, quite frankly I don’t give a hoot about 2050 mate, because I will be long dead and buried by then.
We need people in politics who want to serve and more importantly look after and protect the best interests of all rather than a greedy few. It appears at this point all those dirty low life bastards who caused this current economic mess will remain in business in perpetuity, the lot of them up to all the same old tricks that made them so wealthy at the expense of innocent hard working people around the globe. President Obama, I am looking to you to address these ills that have destroyed so much in such a short period of time and I expect some quick action from you instead of more talk. You did a great job of sinking General Motors so they will never rise again, now how about achieving the same deal with Wall Street, the banks and the commodity markets?
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