A question for anyone who wants to answer: Do you know how the oil price is set?
I bet you don't. You think it's from genuine supply and demand fundamentals? How does that jive with recent admissions that basically every market is manipulated? Wouldn't oil, being one of the most important markets, be heavily manipulated?
As far as I understand it, the Exchange Stabilization Fund sets prices. This is basically the Fed, or whatever entity you want to call it, you know, the western banking cabal that controls the printing press and therefore every western (and thus global, for the time being) market.
They historically wanted to suppress oil price to paint a rosy picture of abundance and to help western consumers blossum and grow like flowers drinking nectar (oh wait, flowers produce nectar, bees drink it). They did this by printing up zillions of dollars and injecting them into the right places in derivatives etc. to drive the oil price down. But they couldn't just do this by itself or we'd have oil shortages as producers go bankrupt. So they also printed up zillions and injected them where they helped the oil producers "produce" without going bankrupt (the US tight oil ponzi schemes talked about so much lately). They also printed up zillions of dollars to help western debt serf slaves consume more oil (the easy credit / bond bubble of the last 30 years). This is all in the name of making the economy better.
So if they can make the oil price whatever they want, for a certain length of time at least, it seems pretty pedantic to me to be pointing after the fact and saying, "well you said she said!". And no one should go on record saying, "oil or gold price will never reach $XX dollars again!". Because anything is possible.
As far as I understand it this is how prices are set in the global markets. If someone has more insight into this then please let me know…
One thing I can guarantee though is that these low prices are not sustainable; they are an anomaly. And I also firmly believe that there is not a chance of a snowball in Hell that these price drops are all a result of some mysterious global economic crash triggering a bunch of asset deflation… where is all the deflation in other markets? Does anyone other than The Automatic Earth honestly believe that the bankers could lose control of the oil market like this, especially since so much of the marginal producers will go bankrupt and if anything, oil price has been too low even at $90 ?!?!?
Here is my hypothesis: the gold supplies have almost run out. This is consistent with Rob Kirby's insistence that the real gold price for tonnage in Asia is $2000. Anyone think the elite bankers don't know this, if true?!?!? And they are just going to sit back and say, "Oh well, I guess it will run out and we'll see what happens"???
No way, they are taking steps to maintain what power they can. Intentionally crashing this market like this is being done of purpose; to what end, I'm not sure. I'd guess because they want to buy up all the remaining oil assets on the cheap, just like I'm sure they have filled up their own private Fort Knox's with physical on the cheap as a result of their own price smashings.
They have started the controlled crash of the global economy, and I think it will get progressively less controllable as it progresses.