Ok, I’ve been watching the Markets today. They are up. Oil is up a couple bucks or better. What’s confusing is the fact that just yesterday, a story was published about OPEC setting new production records. A couple weeks ago, the announcement was made that producers in the U.S. were bringing wells back on line and re-instating laid off employees by the thousands. Yet, also just yesterday, a story was published concerning the glut in the capacity. Gasoline and oil are either at maximum storage capacity, or fast approaching that status.
The first of the year saw oil hit $26. Because of a glutted storage situation. Nothing has changed. So what’s up with the abrupt rise in price?
The only explanation here is artificial price and market manipulation. Somebody is messing with the market valuations. It may very well be a good thing. But bad at the same time. Venezuela, Russia, OPEC, and the United States, need the prices inflated to sustain their respective economies. Venezuela is in current total melt down. OPEC is barely hanging on. Russia is in a bad economic position here, as well. The U.S. is doing good because of the ability to manipulate markets. The stock markets are over valued by about 60%, give or take. Also having lost over 200,000 oil jobs since the first of the year. The jobs report for last month was roughly 255,000 being added. Unemployment is claimed to be about 5% now.
What I can’t make heads or tails out of is the fact that our industries are hurting bad. The banks are in distress. We are not doing nearly as well as the market masters would have you believe.
It’s coming up on election time. So, there’s that. Keep everything going until after the elections, then let the markets go into a 70% correction and try to recover from it in the next couple of quarters after that. It all comes down to how skilled the players are at running the games. It will require some fancy footwork to pull it off. One misstep and it’s game over. We have been due for a massive correction for about a decade or so now. The ’08 fiasco was a test run I think. Problem is, they have nothing to back up a failed move here. We are bankrupt and when financial instruments start defaulting and the default swaps come due to the tune of 420 Trillion Dollars, it Bugs Bunny’s That’s All Folks.
Nobody has the cash to bail out the banks again. The banks don’t have the cash to fund the credit default swaps on all the shorts that have been purchased. …
So…here we go…buckle up and get ready for the ride