How To Blow Up OPEC In 3 Easy Steps
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October 13, 2014 at 9:18 pm #15858Raúl Ilargi MeijerKeymaster
Edwin Rosskam Service station on Connecticut Ave., Washington DC Sep 1940 It’s easily been longer than I care to remember that I first wrote it was on
[See the full post at: How To Blow Up OPEC In 3 Easy Steps]October 13, 2014 at 10:48 pm #15860rapierParticipantThe Saudi king is all but dead and who is making the decisions is obscure. It’s hard to say if the rather tattered Saudi US partnership is all that strong in any case. Even if it is they don’t really know what they are doing. For every possible plus the oil price drop carries are an equal amount of negatives. As in plus for consumers vs disaster in the fracking and dilbit land. Then there is deflation of assets values which puts pressure on the vulnerable financial markets.
Not that our great strategic thinkers think in the very largest terms but burning as much oil as possible now only makes the future worse, and that worse future closer. That’s a pretty high price to pay for kicking Vlad the Impailer, as I think he is referred to now. It is hard to conceive that our great thinkers are on board with it all. Whatever any of them think they are doing you can figure it’s the wrong thing.
I keep coming back to the decrepit monarchy. Osama didn’t have the balls, the means, or his heart in bringing it down. The new generation does. At least the first two anyway.
October 14, 2014 at 12:44 am #15863ProfessorlocknloadParticipantCould be the Fed’s rate hike jawboning has been intended to cause a “Lock rates in now, while they are still cheap” spending spurt. What with housing flattening and spending going south again.
Why they would blow up the remnants of what artificial Econ activity remains at this point, along with their own “Balance sheet” is hard to figure.
Of course, in the end, a fully nationalized economic system is doomed anyway. And we still haven’t gone through the Neo New Deal and cash for cars, houses, old shoes and broken down TV’s yet. Shovel ready on steroids is still in the wings.
But, who knows, maybe they read this and got religion ‘er sumpin’ ?
Oh, not to mention War in a couple dozen more places like Nigeria, Iran and Ferguson.
October 14, 2014 at 1:04 am #15865palloyParticipantIt is a mistake to say Saudi Arabia is just the “Royal” family. The Saud clan do all the dirty work of international relations with the Infidel, OPEC, finance, armaments, etc. But the Wahhab clan run all the religious side – they are the Keepers of the Holy Shrines (Mecca and Medina), run the Hajj, issue fatwas, and run the madrassas from which emerge the Sharia judges and lawyers and jihadists.
It is the Wahhabs that created ISIS, and the Sauds are scared of them, because ISIS (aka the Caliphate) can never rest until they control all the Holy Shrines. The Saud-Wahhab alliance is MUCH stronger than the Saud-US alliance, and the Sauds are rapidly losing room to manoeuvre.
I’m sure the Sauds understand that price cuts will hurt all producers, but their real target is likely to be whoever is increasing their expensive output – the US. Why should Saudi Arabia continue to act as the swing producer, when the US continues to overproduce?
October 14, 2014 at 3:17 am #15868John DayParticipantHere is the best fit I’ve seen for the high transmission rate of Ebola virus in medical settings where there is good contact isolation, but not respiratory isolation.
It does not rely on blaming the nurse.
In the last 3 days of life the exponential growth of Ebola virus in people oozing blood from every opening has created trillions of little virions, which are small enough to be easily airborne under the right conditions.
https://www.zerohedge.com/news/2014-10-13/cidrap-we-believe-there-scientific-evidence-ebola-has-potential-be-airborneOctober 14, 2014 at 3:44 pm #15878John DayParticipantYves Smith looks at the Saudi oil weapon in another good article 10/14/14.
https://www.nakedcapitalism.com/2014/10/saudis-deploy-the-oil-price-weapon-against-syria-iran-russia-and-the-us.htmlOctober 14, 2014 at 4:18 pm #15879ProfessorlocknloadParticipantA wildcard in all this oil glut talk is war. Wars run on oil, and they can consume excess capacity in short order. Matter of fact, they consume ALL excess manufacturing and industrial capacity, as well as solidify allegiance to political power in the process. This is why war is vital to the continuance of the State power structure.
Book it!
As for OPEC, it will go the way of all cartels eventually. Certainly, in time of war, it will yield to western “national interests.”
October 14, 2014 at 6:32 pm #15884venuspluto67ParticipantRapier hits the nail right on the head in mentioning how the nosediving price of oil could negatively affect the fracking bubble. Here’s the thing about the fracking bubble, though: The real money isn’t being made in the production of oil but rather the finance-ponzi erected on the structure of trading land-leases for fracking. This means that bubble is a lot more vulnerable to being popped than most people realize, and the popping will be a lot uglier than nastier than almost anyone realizes. It could take down the whole US economy with it. You would think the geniuses at the NSA, the CIA, and the Department of State would realize this, but we’ve become such a nation of suckers and yahoos that they probably believe all that horseradish about fracking being an energy independence miracle. If only they had any idea just how quickly oil-shale formations stop being highly productive, not to mention how lousy shale oil’s EROEI is compared to conventional oil!
And I suspect the reason for the impending rate hike is the same as their reason for ending QEverlasting: Such financial gimmickry can’t be continued forever without serious consequences of one kind or another asserting themselves, and they’ve probably read their tea-leaves and see such consequences on the horizon.
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