| | | Industrial metals blast off as energy crisis drags down supply
OPEC+ to world: "Failures to plan on your part... do not constitute an emergency on our part."
Oil and gas have "paused" a bit this week... with oil holding well over $80...
Oddly, the oil shares continue to trade up and down with every minor change in oil prices... when the reality is that the higher prices being sustained now have not yet been fully priced into the shares.
Commodity producers are now being FORCED to get wise to the long running market manipulation of commodities being used in subsidizing the industrials... as the ongoing price suppression efforts make it increasingly uneconomic to bother with producing the metals. When the returns produced are insufficient to enable paying for the power used to operate the mines... mining grinds to a halt...
I don't see that changing any time soon... The central planners gross mismanagement of the energy markets... guarantees that there WILL NOT be "more"... of anything... without prices rising sufficiently to enable larger PROFITS from mining... since investment WILL NOT flow into deliberately disadvantaged unprofitable investments... when everyone clearly sees that disadvantage being imposed...
Inflation... is proving to be the instance of "the tide going out"... that let's you see clearly enough who is naked and who is not... when the bias in perception is removed...
Commodities will continue to gain in relative value... over the next three to five years minimum... more likely to be a trend holding over the next five to eight years now... and that will not change, rather than grow into even more of a problem... if they opt to "pull the plug on the markets" rather than accept the reality of the still growing impacts of their failure...
If another market crash takes commodity prices down, now... the impact will be to both make the shortages more acute in the short term as miners quit mining... while ensuring the already extant extreme in under-investment is sustained... That event would further delay the long term work required in the development of supply... even preventing the ability to sustain supply sufficient to meet current demand... much less meet the need for large growth in the supply as needed to enable the EV's and the green tech solutions they expect to make, somehow, without ever enabling production of the materials needed to make them...
It shouldn't be that much of a surprise: central planning ALWAYS delivers exactly this result... seen now in parallel instances in supply chains and in energy... now rapidly approaching in metals, with other minerals and basic materials related products soon to follow... and, then... given impacts in energy, minerals, and supply chains... the impacts will likely also combine to begin to impact food availability...
And, each and all of these impacts are NOT likely to prove to be transitory... any more than inflation will...
The globalist Nazi's... have thoroughly broken the global economy...
Don't expect them to admit it...
And, don't expect there will be any functional fixes for it coming... until they are deposed from power...
|
|
