well friends, you’re probably thinking to yourself, ‘this luke guy clearly has no idea what he’s talking about…commodity prices are tumbling and looks like the banks are going to make a rebound.’
well, i may have no idea what i’m talking about, but at least i know a scam when i see one. lets review a few things just so we’re all on the same page.
1. bankers try to make money
2. you have the money they need
3. in order to make money for themselves they must take yours.
4. thusly, wall street is a sales organization hell bent on separating you from your money.
okay…that said, lets look at what’s going on. in econ 201 you learn market stimulants take 6-18 months to have effect. to those who’s job it is to be one step ahead, this gives them plenty of time to take care of their business. however, most americans only get the reports of what happened, not what is going to happen.
so do any of you actually think the inflated oil price was the true story and concern of the bankers this summer? no. it was a classic, ‘watch the baby’ scenario. while the general population was watching a fluctuating and easily manipulated price index, those in the know were putting together plans to combat the inevitable.
bankers and economists knew the banking industry was about to fail. need proof? look back to the amazingly complex and intricate plans which came to fruition in a matter of hours after failures of note to include, leman, freddy and fanny and merril.
how is it possible that the government and a private organization can put together a package requiring hundreds of pages of legalese, board approval and government sanctions in a matter of hours? answer, they didn’t. these plans were in the works for months.
so while you were duped into watching oil prices, the real issue was the complete collapse of the financial sector. feel bested? i do. because what did they get you to do? that’s right, buy banking and oil stocks. why, when your friendly financial advisor is acting in ‘your best interest’ would they have you buy manipulated stocks? simple, so they could come out smelling like roses and again, separate you from your money.
what was the plan you might ask? simple. they were exiting their positions in the financial sector while pushing oil prices higher. they got out while the getting was good in corporate banks and set themselves up for a two fold windfall of profits in commodities.
this is easier done then you might think. they pushed up oil prices by creating a buying frenzy. press releases were sent to cnbc, fox business and the like talking about shortages and never ending price surges. the minions simply followed. wall street bought in initially then watched as scared investors jumped aboard. prices sky rocketed.
but this was only phase one. this was the distracter to allow for their money making potential. did they make money on the raise, probably, but not like they did on the fall. by waiting till they had exited their financial positions, those in the know then began to short sell oil, or bet on the price falling. its an easy bet when you are the one who drives the price.
its almost like being the star quarterback betting his team will lose…he holds the key. call it cheating…most people call it investing, you be the judge.
so the real profits for these bankers is coming in the short selling of oil futures which the continually push lower. why? well, they make money on the way down as the general populace says, ‘oil was over inflated, and I need to get out.’
this is exactly wrong. they are pushing the price lower in order to buy back in at a lower price! if you knew you could sell a car for 50 grand, and then re-buy it at 10 grand, wouldn’t you do it?!? of course.
the fact of the matter is, oil has hit peak production. General Zenatti, in his weekly financial report has reiterated despite increased drilling and finds, we have been able to produce more than 85-86 million barrels of oil per day. peak oil was reached years ago according to many geologists. more proof to the dwindling oil supply is the heaviness and sulfur levels of currently drawn oil.
sweet crude, as its called, is getting harder and harder to pull out of the ground as new finds are in increasingly colder and deeper places. the cost to actually get the oil out is increasing while the supply is staying the same. moreover, india and china are using more and more oil at startlingly increasing rate.
what does that sound like? higher demand + lower supply = higher prices. but that’s not what is happening. banks are pushing prices lower so they can buy at lower prices.
so then, how can we benefit from this? it is time to start your oil and commodity buying. begin averaging down. don’t spend all your money today as prices will continue to fall. there are great deals on the things that are guaranteed to make you money, i.e. gold and oil. but don’t try to time the market.
starting buying small, but regularly for the next few months as these prices continue to be pushed lower by the banks. let them do the hard work and you reap the benefits.
here are two etfs to look at:
IAU – gold
IEO – oil
