THINGS TO COME 20 NOV 2015

This post is a continuation of my articles on gas/oil prices & the global chess game that is going on. If we were to watch a grand master play, we might not comprehend the ramifications of his chess moves…even his high level opponents might not comprehend. Likewise, what we have going on are subplots in subplots within larger plots. The Illuminati’s global chess game is played with more than one side and is more complex than 3D chess.

THE POLITICS OF OIL. The World’s disinfo is that supply & demand determine oil/gas prices. In reality, a large set of factors are involved. Demand has not decreased this year as prices decreased. My posts have disclosed the meaning of a no. of moves impacting oil, for instance, why Obama made a nuclear deal with Iran,…it took the sanctions off of Iran and now they are in the oil market attempting to regain their market share. (By the way, U.S. Senate is entirely skeptical of the treaty w/ Iran.) Iranian oil will help keep oil prices down. Saudi Arabia since Nov. 2014 has been allowing oil prices to tumble. The direct victim of all these low oil prices is Russia, Venezuela and Algeria. (Low oil prices in 1986 directly contributed to the fall of the USSR.) But the low oil prices also impact the U.S.A. in a variety of ways.

THE EFFECT ON AMERICA. America spends perhaps $1.5 billion per day for oil. For the USA, the “price of oil” is really a term that refers specifically to the price of WTI (which is Texas Light Sweet Crude oil). Other kinds & grades have other prices. In mid-March, 2015 WTI was at $44/barrel and on Aug. 24, ’15 it was at a low of $38/barrel. North Dakota Bakken Shale oil, which is obtained by fracking, costs between $54-$79/barrel just to produce! So you can see why there has been a big American fracking bust with Marion & Dune Energy and others going bankrupt. 100,000 shale oil workers were laid off, with more to follow. Some of the more efficient hydraulic frackers will survive. And these bankruptcies also help Saudi Arabia. Their new American competition has just been seriously destroyed.

THE EFFECT ON SAUDI ARABIA. Saudi Arabia in the short term is also hurting by allowing their own oil prices to be so low, but they are gaining a number of benefits in the long run. They help their ally America out by damaging the Russian economy. They get lots of oil sold before the global environmental laws cut back on CO2 emissions. They help protect their future oil sales to America by shutting down America’s producers. But Saudi Arabia can only continue losing short term profits for long term benefits for so long. Up to now they are replacing their short falls in profits by reaching into their reserves of money, but they can only do this for so long. True they can borrow, but that may not work in the long run. The Saudi royalty need to spend large sums of money on defense and social programs to stay in power. So at some point, they will decide they have got the benefits of the low prices, and then they will let it rise. Every $10/barrel rise is said to equate to a .25 cent raise at the gas pump in the USA. Now how fast and how high will it rise?

THE EFFECT OF RISING PRICES. When the price for a barrel of oil rises…where will it stop? Because so many shale oil producers have been put out of business, and oil exploration has been cut back, when the prices go up (because less oil is sold by Saudi Arabia), then the prices will go up to a higher price than $3/gallon at the pump. It will take a while to get America’s fracking back on line. Saudi Arabia will make up for this current period of losses from low prices by the upcoming period of high prices. How high will American politicians allow it to go, before they and the Saudis rein the escalating prices back?? But there is another wild card that has been created—ISIS. Granted ISIS was a product of America, but it is like a zombie monster that will take on a life of its own. ISIS hates the immoral Saudi royalty, and is attempting to blow up one of their oil fields. If they do, then that will help oil prices go up. The price of oil makes up about a third of the price of food, due to production costs involving oil products, and transportation costs. A rise in oil prices will cause the price of food globally to go up. Ouch to those with fixed incomes! Now the Illum.’s script calls for chaos, especially the kind of chaos that looks natural. Like I say: plots & scripts within other plots & scripts. Yes, it would be nice if the prices were more stable, all this up & down movement wreaks havoc with economies around the world. Perhaps the amount of plant material used for biofuel will change. Brazil uses lots of sugar cane to make ethanol biofuel. In the U.S., maize (which is similar to corn) & corn are used to make biofuel. Rising prices will give Russia’s economy some relief.

BOTTOM LINE. The bottom line of this post is that at some point, oil & gas prices will rise. This will cause a rise in food & other product prices. The rising prices will seriously hurt the U.S., Chinese, & Japanese economies. It would be fallacious thinking to mistakenly believe that oil/gas prices will stay down. There may be large global reserves of oil, especially geologically produced oil in places like the Arctic Ocean, but the question is not how much is there, but what are the costs of obtaining it. You will see the prices rise, and when they do, it is possible in a worst case scenario, they could rise to $4/gallon at the pump. Another bottom line is this, the big oil companies of the Illuminati, and their politicians around the world, have some control mechanisms that have serious economic impacts. My friends, just thought you’d appreciate having a heads up on all this.

 

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