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Oil For Thought...
This is an excerpt from Max Whitmore from Income Investing. Thought y'all might find it interesting.
Oil
Now, I want to turn to oil. I will be brief concerning my feelings about the oil situation. This entire run-up of oil prices is a very carefully planned event by the oil suppliers, the Middle East producers being most prominent. If you believe otherwise, you just do not understand markets.
Markets always like a “hot” stock. That will never change. But, it always, I repeat always, takes a “promoter” to get a “hot” stock hot. Promoters will spend money advertising, paying writers to “plug” a stock, buy their way onto radio and TV shows, or whatever it takes to get investors’ attention. Promoters will work with brokerage houses and individual brokers to promote their stock to investors and, if necessary, even bankroll the buying to move a stock higher.
But all this takes time, money, and lots of heavy duty coordination to accomplish. True, now and then a true rush to a stock is caused by a totally unique product like Xerox, Apple's iPod, and a few others I could name. But, that only happens a few times every decade. Most of the “hot” stocks out there make only the promoters and a few of the truly savvy speculators money. The average investors comes out poorer almost every time.
No, this oil move is a carefully orchestrated event. Huge money pools are financing the buying of the futures contracts to run up the prices. Giant power centers are making sure that no one gets “out of line” in this incredible fleecing of the non-petroleum countries.
The folks behind this push are the same ones that brought us the 1973-74 gas lines and changed the world’s financial power centers forever. Only this time the reason for the move by these folks is quite different.
The oil producers can see the handwriting on the wall. Oil will soon become just one of many power sources in the world. The so-called alternative fuel sources will force oil producers to reduce their price per barrel by a huge margin and for good in the next five to seven years. To “make hay while the sun shines” so to speak, the oil powers are using their huge money pools to run up prices that then translate into higher prices per barrel, even when nothing has changed, especially production costs.
Editor’s Note: Max Whitmore Shows You How to Profit From $100 Oil
All the talk of running out of oil is nonsense. If we want it bad enough, we could do what the Nazis did in WWII and just make it in chemical plants. Did you know that German scientists did just that over 50 years ago and maintained their entire war machine with synthetic fuel?
If you question this, just look at the diamond business. We can now make diamonds that are truly difficult to distinguish from the real thing and for very low cost. Yes, the diamond business is very worried.
No, this oil move is a careful plan to fleece the world of huge piles of money that will then be used to buy banks, insurance companies, food companies, almost any high grossing consumer goods company, regardless of its location in the world. Thus, when oil does fall from its throne, the income from these purchased businesses they own and control will replace the oil income. Who needs oil?
This fleecing is going on even as I write this article. Look in your local newspaper at the companies being bought. Where do you think the money is coming from? It is coming from “private investors” (who are their partners), banks (already partly-owned by oil powers) and other innocuously named private groups funded by the oil giants to disguise their oil-backed involvement.
Look, I don’t write this to condemn anybody. I just want the truth out there on the table. Maybe then somebody in authority will do something to bring a quicker end to this fleecing. Where are the politicians in all this? Where are all the regulators in all this? Surely the Commodity Futures Trading Commission (CFTC) has the power to cool down overheated markets. I used to trade commodities, and believe me, the CFTC can do just about anything they want to a market. Do any of you remember the Hunt Brothers’ attempt to corner a market in the 1980s? The politicians and regulators cut them off at the knees, as they say in my business. But, this time it is not two brothers doing the cornering, it is a multi-trillion-dollar combine that knows they have the power to hold back almost any action that will impede them. Money is power. A huge amount of money is huge power.
Well, that is all I have to say for today. I just wanted to put it in writing that 95 percent of what you hear about the dollar and oil is gibberish designed either to sell something or to bring influence to bear for political reasons. But, that has been going on for centuries and will never change. In this case, however, it is just that the stakes are far, far bigger.
Next time you hear the gibberish, just change the channel, turn the page, or change the subject to football or baseball or some friendly conversation topic. You will accomplish a much more productive outcome.
Oil
Now, I want to turn to oil. I will be brief concerning my feelings about the oil situation. This entire run-up of oil prices is a very carefully planned event by the oil suppliers, the Middle East producers being most prominent. If you believe otherwise, you just do not understand markets.
Markets always like a “hot” stock. That will never change. But, it always, I repeat always, takes a “promoter” to get a “hot” stock hot. Promoters will spend money advertising, paying writers to “plug” a stock, buy their way onto radio and TV shows, or whatever it takes to get investors’ attention. Promoters will work with brokerage houses and individual brokers to promote their stock to investors and, if necessary, even bankroll the buying to move a stock higher.
But all this takes time, money, and lots of heavy duty coordination to accomplish. True, now and then a true rush to a stock is caused by a totally unique product like Xerox, Apple's iPod, and a few others I could name. But, that only happens a few times every decade. Most of the “hot” stocks out there make only the promoters and a few of the truly savvy speculators money. The average investors comes out poorer almost every time.
No, this oil move is a carefully orchestrated event. Huge money pools are financing the buying of the futures contracts to run up the prices. Giant power centers are making sure that no one gets “out of line” in this incredible fleecing of the non-petroleum countries.
The folks behind this push are the same ones that brought us the 1973-74 gas lines and changed the world’s financial power centers forever. Only this time the reason for the move by these folks is quite different.
The oil producers can see the handwriting on the wall. Oil will soon become just one of many power sources in the world. The so-called alternative fuel sources will force oil producers to reduce their price per barrel by a huge margin and for good in the next five to seven years. To “make hay while the sun shines” so to speak, the oil powers are using their huge money pools to run up prices that then translate into higher prices per barrel, even when nothing has changed, especially production costs.
Editor’s Note: Max Whitmore Shows You How to Profit From $100 Oil
All the talk of running out of oil is nonsense. If we want it bad enough, we could do what the Nazis did in WWII and just make it in chemical plants. Did you know that German scientists did just that over 50 years ago and maintained their entire war machine with synthetic fuel?
If you question this, just look at the diamond business. We can now make diamonds that are truly difficult to distinguish from the real thing and for very low cost. Yes, the diamond business is very worried.
No, this oil move is a careful plan to fleece the world of huge piles of money that will then be used to buy banks, insurance companies, food companies, almost any high grossing consumer goods company, regardless of its location in the world. Thus, when oil does fall from its throne, the income from these purchased businesses they own and control will replace the oil income. Who needs oil?
This fleecing is going on even as I write this article. Look in your local newspaper at the companies being bought. Where do you think the money is coming from? It is coming from “private investors” (who are their partners), banks (already partly-owned by oil powers) and other innocuously named private groups funded by the oil giants to disguise their oil-backed involvement.
Look, I don’t write this to condemn anybody. I just want the truth out there on the table. Maybe then somebody in authority will do something to bring a quicker end to this fleecing. Where are the politicians in all this? Where are all the regulators in all this? Surely the Commodity Futures Trading Commission (CFTC) has the power to cool down overheated markets. I used to trade commodities, and believe me, the CFTC can do just about anything they want to a market. Do any of you remember the Hunt Brothers’ attempt to corner a market in the 1980s? The politicians and regulators cut them off at the knees, as they say in my business. But, this time it is not two brothers doing the cornering, it is a multi-trillion-dollar combine that knows they have the power to hold back almost any action that will impede them. Money is power. A huge amount of money is huge power.
Well, that is all I have to say for today. I just wanted to put it in writing that 95 percent of what you hear about the dollar and oil is gibberish designed either to sell something or to bring influence to bear for political reasons. But, that has been going on for centuries and will never change. In this case, however, it is just that the stakes are far, far bigger.
Next time you hear the gibberish, just change the channel, turn the page, or change the subject to football or baseball or some friendly conversation topic. You will accomplish a much more productive outcome.
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