YOUR MONEY

Media Market Shills – oil, gas and the Real Future

Anyone who has read my blob before under this tab heading knows I consider most Bull market analysts, all 680News radio business reports, and many newspaper business sections simply shills hawking fool’s gold, soaring stock prices and priming the average investor’s gambling bug to jump into the market and get rich – or – dirt poor – on their biased advice.

Reality and probability play less and less in their ‘advice’ as a rumour or some data out of China or anything affecting oil supplies and shipments suddenly turns the stock market world upside down. Their goal is not to ensure your future wealth and retirement funds, but to ramp up stock broker and financial investment FEES and COMMISSIONS!

NB: Contrary to common belief, no stockbroker committed suicide by jumping out of a skyscraper in October 1929, because they were all too busy and too elated with so much trade volume (and commissions) that it looked like an early Christmas-bonus time!!!

Yes, slowing export growth in China and less Chinese demand for raw materials is the future and will affect commodity prices and such businesses, but this should not be surprising. 

The Great Recession (which is now 6 year on and still running, and which historians will re-label as a 10+ year DEPRESSION) has reduced European and North American demand for Chinese cheap goods but that is not the main factor.  10% or higher Chinese industrial growth is no longer viable because no country can keep on growing and growing forever – especially at 10% or higher a year. 

And China is now a ‘first world’ nation (the second largest economy in the world) with skyscrapers and super-trains and super-highways, and has wisely realized the future is as a ‘consumer economy’ – with its well over a billion ‘customers’.

As for the price of oil, it should be falling,  just like natural gas, because so much of it – and clean natural gas – is being discovered and pumped out all over the world. North American pipelines are filled and even trains are being converted to move these gifts of Gaia. At pipe and rail costs of from $3 to $13 a barrel U.S., and supply outrunning demand in North America for the next decade or more, there is no justification for West Texas crude being anywhere above US $85 a barrel let alone the current run up past US $100!!

In 2011, according to the Saudi OPEC representative, , the Canadian tar sands were the most expensive source of crude on the planet and, according to his insider information, was profitable at US$70 a barrel!!!!   And fracking is cheaper!!!!

Again, as a Saudi royal family member stated this week, U.S. oil and gas production is threatening  the OPEC cartel pricing and endangers Saudi Arabia’s economy and society – which depends  95% on oil revenues!

So, expect abundant worldwide oil and gas leading to lower prices at the pump and your home furnace very, very soon; and anyone who relies on super-inflated prices for these commodities is looking at bankruptcy!! 

Also say goodbye to Wind Power – that economic fiasco – and even high cost solar power.

Put simply, the future and bounty of the earth, the gifts of Gaia to mankind, are all underground; not in the distant Sun and not the unreliable whims of the wind.