mred: ["But comments like this show more than a touch of arrogance, "]
Rest easy...the hyperbole is for (much needed) effect.
- someone had to do it (vbg)
Oil may be driven significantly higher than it is today.
But, it won't be because of Peak Oil.
And ultimately; more money will be made going forward in Oil & Energy stocks from understanding internal Chinese Economics and the Global Geopolitics of Oil....than all the BS of Peak Oil and trying to come up with some "New Paradigm" that explains why the Price of Oil has disconnected from it's real world underlying fundamentals.
Again; excess liquidity leading to speculation by any other name - remains; speculation.
...and PermaBulls who've been around for years should get "whacked upside the head" for not understanding some of the most basic fundamentals of the sector - like the myth's & fallacies that are being hyped surrounding Refining Capacity , Inventory Levels & Sour Crude etc.
The PermaBulls have failed to realize that Crude Oil has disconnected from the underlying fundamentals here of late but, not because of PEAK OIL...but, instead; because of the revaluation of the USD in which Oil is priced, added geopolitical risk premiums & sheer Speculation.
Sadly, in the near future - they will also fail to realize "why" Oil prices are going to disconnect even further from the Fundamentals (it won't be speculation this time)...and then ultimately - both the "when and the "why" - when it collapses further & faster in the next "Asian Contagion"...which will make the original "contagion" seem like a mere ripple.
China is already cracking...
Time is of essence for China.
It may take $65 Oil, it may take $80, even $100 Oil to turn China's Boom into a Bust.
If & when we see those levels...it will have nothing to do with PEAK OIL...and everything to do with utilizing Oil as a Weapon of Mass Economic Destruction in toppling the Chinese Economy; which will lead to the collapse of their Government & the ultimate emegence of a Free, Democratic and Capitalistic China - one that is no longer a threat to the status of the USA remaining the sole Global Super Power (the End Game).
We can not allow China to drive the price of Oil and Commodity's (exacerbated by speculators) to where it collapses the US Economy.
We also can not allow China to build the Economic & Militaristic means to threaten the status of the USA as the sole Global Super Power.
* Oil is fueling China's construction...but, Oil will also fuel China's destruction. *
Defense Spending was the Economic Weapon of Mass Destruction used in toppling the Soviet Economy & ultimately the Soviet Government.
Then - it was the "former" Soviet Union.
Today - it is China.
Yesterday - it was Defense Spending.
Today - it is Oil and Natural Resource spending.
Oil has not been trading upon it's underlying fundamentals.
Oil will not be trading upon it's underlying fundamentals.
Understanding "why" going forward - will lead you to the next & very important "when"...
- and it will have absolutely nothing to do with PEAK OIL and everything to do with GeoPolitic's and fighting modern War's Economically and not Militaristically.
I'll leave you with one last thought concerning Commodity's used as Weapons of War:
If Uranium can both be the ultimate Weapon of Mass "Destruction"...as when used in a Nuclear Weapon; but also a weapon of mass economic "Construction" - when used to generate nuclear power,electricity and Industrial Expansion.
- why can't Crude Oil - in which we usually think of, in terms of it's economic "constructive" abilities ...in powering automobiles, heating homes, building & operating industry....be also used as a weapon of mass economic "destruction" via it's price being driven to levels that individual economies can no longer sustain...leading to the ultimate collapse of not just underlying economies, but Governments as well ?
I'll repeat:
Yesterday - the Soviet Union
Today - China
tic' toc` |
