Oil's big problem is that demand is sagging. The economy is in trouble. Jobs are in trouble.
Do you think scary war news helps businesses make decisions to hire more people? Do you think scary news makes holiday travelers want to travel the globe in gas-guzzling airplanes ?
Demand is the problem for oil. Demand is sagging.
Oil's not going sustainably higher unless you find a way to fix the sagging economy and increase demand for commodities.
With the approaching fiscal cliff, the coming spending cuts will further kill oil demand.
Oil is heading to the $70's then $60's and maybe even lower as the world descends toward recession.
Now excuse me while I cancel my world-wide airplane travel plans for this winter. I'll just stay home and listen to the radio and hang on tightly to whatever cash I have....
PS. I'm going to sell my gold and silver too because they are in trouble too. The US dollar just keeps rising while oil, gold and silver just keep sinking.
Sure...you can always wallpaper your house with the dollar. Research the Weimar Republic. Think of gold as that useless rock sitting outside. Just forget about it for now and keep it out of the banks. When they go to a 1 world currency, what do you think it will be backed with? That rock that you forgot about. Do it for your kids and their kids. It's real, like them.
"Research the Weimar Republic. "
Already have, makomarko. I wrote this, just over three years ago
"The Weimar Republic describes the period from late 1918 as WWI ends until mid 1932 when Franz von Papen becomes Chancellor, greasing the skids for Adolph Hitler to seize power 18 months later.
The Weimar Republic had broad public support when it came to power, so did the Obama administration.
The Weimar Republic started out as a socialist democratic republic. The Obama administration is made up primarily of socialist democrats
The ruling body in the Weimar Republic had a strong central President with powers to dissolve the government and rule with his cabinet in case of “emergency”. The power of the U.S. presidency is as strong as it has ever been and the Obama administration now has a secondary “cabinet” in place to push his socialist agenda forward.
As the Republic was forming in the days and months following WWI, one of the members of the German Communist Party, Eugen Levin ordered the seizing of luxury flats from their owners to be given to the homeless. He also ordered that factory owners would cede power to a council made up of owners and workers, similar to the relationship of unions and owners today; General Motors is a case in point.
In 1923, just four years on, the economy was already in trouble. France was looking to exert itself on Germany and took the opportunity of a missed payment of reparations due from the Treaty of Versailles to do so. The answer to every crisis during the period in Germany was to print more money. Hyperinflation resulted. That (the inflation) hasn’t occurred in this country … yet, but it is coming because the Federal government is following the Weimar example and printing money as a solution to every economic problem.
After the failure of the Munich Putsch (in which Hitler’s Nazi’s marched on Munich) and a year in jail to reassess, Hitler realized that he could not take the country by force … but he could by being elected. Now, the purpose here is not to draw Hitlerian parallels with Obama, so I’ll leave this one right there.
Under Chancellor Stresermann, the country, in appearance, began to recover from economic debacle. The period between 1923 and 1929 became one of economic growth and artistic development in Germany. But this economic development was mostly illusory. First it was based on the development of a new currency,. (The old currency became worthless) This economic “growth” was based on loans from America, not the development of thriving businesses in Germany. In the same way, America’s so-called recovery is based largely on loans from China. Stresermann spent a lot of the money on unemployment insurance, and what amounted to public housing.
The argument is not that stride for stride, the Weimar Republic was a mirror of 21st century United States, but there are similarities; parallels and there is much that can be learned from studying that period.
BTW, you will not find this information in Wikipedia or in the publications of Glen Beck or Rush Limbaugh, and Jeff Bryan did not contribute to this post."
"Oil's big problem is that demand is sagging. The economy is in trouble."
You are right. Middle east issues are a blip.
"I'm going to sell my gold and silver too because they are in trouble too. The US dollar just keeps rising while oil, gold and silver just keep sinking."
Mistake. Own hard "currency". Dollars are just paper.