reply to post by xuenchen
I assume by the nature of the post you are putting forth the standard economics issue surrounding oil: Supply increases, prices drop; demand drops
prices may increase or may drop.
The problem with this thinking is that oil is only a freely traded commodity in the most vague sense. Oil is used to allow the Federal Reserve to
freely print fiat currency, which allows the US to build 1 trillion worth of killing machines a year AND have endless stimulus (stimulus = printing
fiat currency) WITHOUT inflation moving to the levels of Rome or pre-war Germany.
Oil, up until recently was ONLY sold in American Federal Reserve Debt Notes.
Oil Producing Countries, OPEC nations, are relatively POOR countries - all of them. There are rich families within the country, but the countries
themselves are fairly poor and have a lot of debt - there are only four countries world wide without debt.
Iraq and Iran were/are looking to sell oil in all currencies.
Unlimited printing of fiat currency = 1 billion dollars for a dozen eggs. Zimbabwe.
The Federal Reserve prints the fiat currency based on nothing more then the willingness of the taker of the debt notes to return them to the Fed with
more then the Fed prints. Now the last sentence is key to understanding why oil is not like rice. In order for someone to return 1000 bank notes when
the bank only printed up 100, they must; buy, steal, beg, borrow or sell something that will return the 1000 notes: but how can they steal 900 notes
that have never been printed?
So, where does this leave us. The US was taken completely off the gold standard in the 70's, which allowed the Fed to print freely. But, to avoid the
problem of rampant inflation, the US military and secret agents of the machine (see: "confessions of an economic hit-man") went to the OPEC
countries and said: Buy oil in only Federal Reserve Debt Notes and we'll let you live, deny our request and you'll all die.
Each time the Federal Reserve wants to print fiat currency to make tanks, bullets, or invade a country, they print them and manipulate the price of
oil to compensate for the increase in currency. This way, the American populace will not notice that their precious debt note is now worth less and
Relative ot the price of gold, oil has been consistent for years. The only way this is accomplished is by manipulation the value of the Federal
Reserve Debt Note.
So, in conclusion. The only thing keeping the US from looking EXACTLY like Zimbabwe is the high price of oil. Thank everyone that gas is as high as it
is, otherwise you'd be paying for your diet coke with a truck load of worthless scraps of paper with dead presidents on them.
Now, for further insight into how bad this cluster%^&$ actually is. The IMF loans debt notes via a special process called Special Drawing Rights. The
requirement to get worthless scraps of paper from them is that you have a basket full of stuff like gold, silver, copper, and............... FEDERAL
RESERVE DEBT NOTES. So, the oil system was not enough to keep the Fed in control of inflation, they instituted a deeper level of safety by making sure
that any country that wants to "borrow" debt notes must have a Vault of Dead Presidents as collateral. That's right, in order to borrow money, you
have to have a bank full of borrowed money!
Hopefully you now see, at least a little bit, that the price of oil, peak oil, "go green" and all the rest of the PR to demonize oil is all about
keeping the wool over the eyes of the populace with regard to Fiat Currency and the inherent worthlessness. People don't like to fight over oil, but
if they knew, I mean really knew, they were fighting over DEBT, not credit, but DEBT notes, they'd go mental.