Since the mid-70’s Crude Oil has taken on a form far beyond that of simple commodity. It has become a metering rod, a tool of political-economic influence closely controlled by a global-elite and easily dispersed or manipulated with a wink and a nod. An alternate currency, if you will, easily convertible into or leveraged by any currency you wish to target or transport.
Over the last 15 years the world has become highly fractured and non-responsive to manipulative inputs that had previously proven to be effective. Russia stubbornly refuses to collapse under the weight of Western Sanctions, Saudi Arabia is keenly aware that in order to continue milking its cash-cow it must protect the influence of OPEC as a key oil producer/market-maker and for this reason they’ve decided to continue flooding the global market.
Profitable at plus $60/barrel global prices, the U.S. energy sector responded and quickly became far more productive than ever expected. If these few examples weren’t enough to throw a wrench into the wheel, Iran is re-entering the global marketplace. Coincidentally, I might add, the Chinese-Economic-Juggernaut is, as has always been the case, proving a far more volatile (economically & politically) playground than the western-financial cabal had planned for. A bit ironic don’t you think, particularly with energy costs at 20-30 year lows (inflation adjusted). Point being with an economy (China) one would expect cheap energy to be an economic booster.
And so, now you have both a massive oil & gas energy infrastructure online and capable of impressive production levels added with an already existing and equally massive out-of-the ground inventory pushing to a market. Speculators who would otherwise drive energy markets easily toward 200% of true-market value now face a market difficult to manipulate along with an energy demand nowhere near the level required to consume available supply/output.
The consequence of this is a completely fatigued market place suffering from having been exhausted by years of manipulation and has now moved strictly to self-preservation mode. Economic realities have caught-up not at all dissimilar to the political atmosphere here in the U.S.; the public is simply not responding to the interests of the Global Elite and its Power Structure.
One other irony: I’m near certain that the American public is largely unaware of both the influences at work and their ability to suspend them. Either way, the lower cost of energy in a normal un-manipulated marketplace would be a cause for domestic economic expansion which leads me to my final point. The reason the U.S. Economy is non-plus-responsive is simply due to the fact that the there is little to no industrial or productive economic capacity (here in the U.S.) in existence that would otherwise benefit from low energy costs.
Anyone who understands organic economic principals knows this is true; you need only look at three key economic indicators to prove the point:
(1) Real-Wage Unemployment (or Labor Participation Rate).
(2) Domestic Investment in Productive Capacity.
(3) Velocity of money
Each of which illustrate a economic environment completely void of any kinetic force.
For the U.S. to economically recover, a complete revision of economic practices must occur. For an economy to be durable it must serve the interests of its Demand-Source without which, despite what Bernie Sanders and most in Government and Institutional Economists may claim, it cannot support itself, period. Folks really should be asking themselves this question: What do you see on the horizon that represents the equivalent (at the minimum) of the Industrial Revolution? Robotics/Technology? Let’s hope not; can you envision a world with 80% unemployment? What would a wage-base or standard of living appear or how would humans assimilate into a synthetic non-human mecca such as this? I assure you it will not be particularly promising.
As is the case with our invasive government and political regime at hand, only when the people are willing to pursue an answer to the obvious problems will the answers become apparent; until then you’ll become increasingly dependent on a deeply flawed illusion. Even if you choose to bury your head in the sand remember this; you still have to breathe.
Curtis C. Greco, Founder
