Mike Twain
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Capital is starting to flow to the last safe haven. Which is just where Uncle Sam and the Wall Street banksters want it to go.
This is when the BRICS learn what the working class of UseYa found out the hard way. Fresh meat for the financial vultures and if a few million get killed along the way….well, you can’t make an omelet without breaking some eggs.In the panic of 1893 (https://en.wikipedia.org/wiki/Panic_of_1893) followed by the crash of 1894 the country and world went through many of the same problems we are experiencing today. Luckily, JP Morgan and The Rothschild family were able to step in and save the US government (at great lucrative profits for themselves). Later it was found that the large banks had conspired to raise rates and when debtors couldn’t repay the loans to foreclose. In this way they managed to acquire vast amounts of property and business for small amounts. The plan worked well then and it is right on track to work well now. When the smoke clears they should own almost every oil field in North America. By the way, Goldman Sachs was in fine form over 100 years ago also. When the debt defaults the money supply contracts rapidly. Only the Federal Reserve Notes that are in your possession will be accepted as legal tender.
Goldman-Sachs and the Chicago-Alton Railroad. How many investors were robbed in that scheme. First time GS was indicted if my memory serves. Did you pick that picture just because, Ilargi?
‘We owe, we owe, so we got to sell the oil, ya know’ Does everybody think the Saudis are debt free? They can sell oil down to zero if they want, but they still got to cover the monthlies, just like the shalers. Raul and Nicole got it right, but nobody can call the exact moment of the turn. Not even the great and powerful Marty Armstrong. I’m still going with early rather than one day late.
By the way, in Bosnia the government was still proclaiming good times just 72 hours before the SHTF. Read a little Selco before you take your next happy pill.About 30 years ago during the first embargo small drillers saturated the midwest looking anywhere for some oil to drill (Illinois, Indiana, etc.). Places that don’t ring any bells when you commonly think of oil fields. But times change and all the wells were turned off and the drillers went elsewhere as these wells didn’t produce at a very fast rate.
As these last few weeks I have driven through many of these former places I have noticed more and more of these pumps working again. And why not? The only cost in them is the electricity needed to run the pump and the trucks needed to make the stops and pick up the oil. The cost of oil from these wells is effectively zero.
As I read articles posted by very intelligent people I find myself somewhat confused. We, the people, are the counter parties to all this malinvestment. Congress and the too big to fail banks shifted all the risk to the public sector in the last budget stopgap. The oil business smaller players will be absorbed and/or nationalized just as was General Motors, Bear Stearns, Lehman, Countrywide, etc. The beat goes on.
This isn’t some grand plan of market manipulation it’s just simple grab and growl
So I will remind everyone. In USA the oil industry is as much or more subsidized than corn, wheat, soybeans, sugar or tobacco. That would be you and me, fellow taxpayers, We will insure that oil is profitable down to whatever, because we are on the hook for the note.If you think JP, Citi, BOA, your congressman, your pension fund and your local banks and credit unions, not to mention all these big corps with ‘cash on the sidelines’ (Apple, Berkshire, etc) don’t have their fingers in the shale pie…then you haven’t looked far enough down the rabbit hole yet, Alice. It won’t be the oil men who are crying when they can’t make their payments, but the counter parties will get to learn how to sell used drilling equipment into no market but scrap. As they say ‘there will be blood’.
In America it has always been our God given right to ride around in cars.
When the snowstorm from Hades hit a few weeks ago, the Buffalo Bills offered $10 an hour and free tickets to all who would come and shovel snow….they cancelled the game after seeing the turnout.
The reality of all this is that the only weapon the ‘little guy’ has is to stop spending. Maybe us ‘stoopid’ people are starting to figure this out. The solution to all the government and corporate con games is to stay home and watch the show.
Any economy based on how much stuff people buy is headed for saturation. As Charles Payne said on Varney & Co. the other day, he owns nine televisions….wtf? Read Robert Prechter’s story about being paid in Jaguar sedans.
This is a bad time to be in debt and motivated by spending. Us old-timers don’t care about zero interest or inflation and deflation. Our new motto is: ‘Keep your head down and your mouth shut’. The cops aren’t after black people, they are after assets. The king’s tax collectors are on the prowl. Don’t see Geraldo or O’Reilly talking about that do you?Please don’t be too hard on ol Huck. As a true friend he never failed, tho it was his want to see life from a fairly pragmatic point of view.
That said, it would seem important to value the relationship between life as we know it and a Dutch auction. As I sit here, a short walk from the mighty Mississippi, it occurs that so much of what we all say and feel is lost in the vagaries of terms. Animals don’t use money. In the wild, somehow they survive. Animals don’t fight wars, but a lot of killing goes on. In any discussion the three terms 1) humans 2) money 3) war can’t be separated. They are intertwined like dna. Any examination of economics that leaves one or two of these necessaries out is purely academic (unrealistic).
In America we have learned to outsource war and money (the Civil War taught us that much).
Money doesn’t change! The number of buyers at the dutch auction changes.
War (the killing) doesn’t change! The theater of operations and technical armaments change.
Humans don’t change! Any in depth study of history will show the common themes: Murder, mayhem, rape, pillage, rinse and repeat.
When it becomes apparent (as it is for Ilargi, Nicole and others) that this isn’t a game (We are playing for keeps) you can begin to see how far down the rabbit hole we have yet to climb. My grandparents had a good life in downtown St.Louis in 1926. New car, nice place. In 1934 they lived in a shack on the bank of a small creek in North Missouri when my grandmother gave birth to my father. It wasn’t the end of the world. As my grandmother said ‘they never went hungry’. More than many could say. As Bob Duvall’s charachter said in ‘Second Hand Lions’ “you could just learn to do without”.
From a former car man’s perspective, I watch the bubble being blow in subprime auto lending. At $40,000 per vehicle it only takes a few cars to equal a mortgage, but from the financial wizard’s perspective it equates to shorter length of term and much easier to repossess (all the good without the problems inherent in mortgage bubbles) Watch the government and big banks next push to ‘nationalize’ the banking business (steal the assets of small banks). Yeah, a ‘single payer’ system for banking, if you will. A ‘New Deal’ if you will, a’la FDR.
