Enough is enough - gas prices are scary low

[Jim Naseum]

The last reboot the world had was Colonization/Capitalism replacing Feudalism. I think there's only one logical next step.

[Jim Naseum]

I doubt most people even know how close we came to being thrown back to the stone age.

 

 

I saw this the other night: http://www.amazon.com/Too-Big-Fail-Paul-Giamatti/dp/B004EPYZDA

 

It was quite good. Very realistic and stocked by a dozen very solid actors. All the real persons had an actor that looked just like them. For example, Giamatti was Ben Bernanke.

[Paducah Home Theater]

In the last month West Virginia has had THOUSANDS of coal miners laid off.  It is about to be an economic catastrophe in our state.

Some of my friends here in Kentucky just got laid off, there was a bunch of them. My sister's boyfriend basically got sent on a mandatory unpaid vacation, he said there is an entire mountain of coal sitting on the ground that they can't do anything with, they were trying to stop digging to clear it out. Next thing I know there are big layoffs.

In my neck of the woods there had been a big issue with a coal-to-diesel plant in the past few years, which is feasible when oil is $120 a barrel and rising. You'd probably feel pretty stupid having built one of those then seeing the current prices.

[Bella]

Another thing to worry about. During the 2008 crisis the response by government was largely to bailout the banks. That didn't sit well with the citizens. So they are not likely to do that again. Ropes and pitchforks are a politicians biggest fear.

So in the next leg down it's likely they will try something else. If anyone can remember a few years back in Europe what they did to bail out a bank (in Cyprus I think but can't really remember)then was referred to as a 'bail-in.' Essentially using depositor monies to replenish the banks. It was a trial balloon. And it was successful.

It's now their policy and it's no secret: http://www.theguardian.com/business/2013/jun/27/eu-agrees-banks-bail-in-deal

The point being, this is likely to also be used in the U.S. when it becomes necessary. So if you are thinking your money is safe in a bank, you are mistaken.

Bail-ins is probably a tool they will use to save HSBC.

Notice in the sub-headline of the linked article it uses the word 'shareholder.' innocuous enough as most people do not consider themselves a shareholder in a bank unless they own stock. Terms of Art is what they are called. Then in the first paragraph it references their 'biggest' customers. Again, a Term of Art, as it is subjective to the whims of a government politician what is defined as a big customer. Could it include someone with $500 in an account. You bet it could.

Then in the third paragraph it states the program is intended to shield taxpayers from more bailouts. Well who is it then that deposits money into a bank if it isn't a taxpayer?

I just cannot believe people can read this garbage and think their best interests are being tended to.

Edited February 12, 2016 by Bella

[Jim Naseum]

I suspect that if the bail-in was used, it would only be deposits over the $125K FDIC insurance that would be grabbed. I can't see grabbing Ma and Pa's $4200 bucks. 

[Bella]

They'll grab as much as they have to. Right down to the last cent if it means avoiding a complete meltdown.

And if they have to go below the insured levels and people turn to the FDIC how much is in that account? Do you suppose enough to cover a whole country going broke? The program was designed to insure a bank here or there.

EDIT: Read this: https://www.fdic.gov/deposit/insurance/fund.html and let me know if you are sure they've got enough to handle wide-spread bank failures.

Keep in mind, the government is hunting down money. They aren't going to be interested in paying out FDIC insurance when they don't have any money to borrow or steal.

Sounds extreme I know. But we are in uncharted waters where anything is possible.

Edited February 12, 2016 by Bella

[RT FAN]

It is a very complex web of events that has lead the price of oil to be where it is today around $29 a barrel for WTI. Technological advancements allowed fracking & oil sands production to be economically feasible. New production of oil sources caused the price of oil to fall.

 

 Russia, a major energy producer is under economic sanctions for it's seizure of Crimea from the Ukraine. To make up for lost economic activity, they increase their production of oil to bring in hard currency to their economy, leading to lower oil prices.

 

 Venezuela, having mortgaged their economic future through ill advised socialist policies, is in desperate need of hard currency to repay their loans to China, so to meet the terms of their loans they need to increase production of oil, a heavier blend which needs further refinement, which costs money, which leads to lower oil prices. To support their current social programs and debt levels, Venezuela needs oil to be around $100 per barrel.

 

 Iran, having had their decades old economic sanctions finally lifted, is preparing to bring an ocean of oil into the international market, to raise currency for their depleted reserves and their military expenditures, which are considerable, given the various proxy wars in which they are engaged. Yemen, Iraq, Syria, etc. They need cash to improve their oil production infrastructure, as oddly enough Iran actually imports finished gasoline into the country.

 

 Saudi Arabia has vowed to not lose any market share to other Opec members or to other producers, i.e. Russia, or the U.S. By continuing to pump oil at their usual levels instead of cutting production, their usual M.O. to prevent price declines, they are maintaining market share while crushing oil production here in the U.S., where the B/E point is roughly $65 a barrel. They hurt the Russians, who are economic allies of their mortal enemy Iran, as well as drive down the value of Iran's oil holdings & production.

 

 China, the worlds largest consumer of raw materials in the world, including oil, had their economy contract, leading to lower demand for gas, oil, coal, steel etc. As less goods needed to be produced, either in the production of finished goods or in the accumulation of raw material, less oil is needed across the board, leading to lower prices.

 

 Then of course there are the various players, momentum traders, hedge funds, etc, who could see the perfect storm of lower oil prices forming and jumped on the band wagon, selling huge amounts of oil futures on all sorts of international exchanges, helping to force down the price of oil in all markets.

 

 A simplistic version of some of the events that have contributed to the current situation in the oil markets, economic output, employment, inflationary expectations, monetary policy, ............

 

 Have a nice weekend.

[Paducah Home Theater]

Just strange since a few years ago I was thinking about buying a Hyundai Elantra just to drive to work in so I could save gave money. I have spent $100 to fill up my truck before. Two of those a month and that's a car payment. Driving a big truck just isn't an issue right now. Curious as to how long it is going to be like this.

[MyOwn]

I'm enjoying the cheaper gas price. Paid a 1.40 a gallon yesterday, put 16 in and it was a bit over 22 Dollars. I'm not going to worry about "what If's" I have no control over what happens.

[Coytee]

Toasters are very complicated machines, probably still trying to get the bugs worked out.

 

Guess they have more work to do.  Ours had a bug....  I went to pull the tray out to clean it...  there was a dead bug in there with the toast and bagel crumbs.

[Coytee]

I told the wife several months ago that we're at war and don't realize it.  The nice folks in the middle east are waging oil war on us economically by flooding the markets.  I'm guessing one of their goals is to break the back of those fracking people and shut them down.

 

Though it might take 2-4 years....  I personally think this is nothing more than a deflation of a bubble....  once some of their goals are achieved, they will run oil right back up and we'll be moaning about the negative effect that is having on the economy.

[wvu80]

Again, you are thinking strictly from the view of an American. Do you think china or Russia or India or...almost anyplace else where the other 6.9 billion people of the world doesn't use coal?

 

The US is NOT the problem.  Look at China:

 

[oldtimer]

And look at the big bucks US corporations are making from that.

[homeskizzle]

The last reboot the world had was Colonization/Capitalism replacing Feudalism. I think there's only one logical next step.

 

I just hope it's not Skynet. 

[JJkizak]

 

The last reboot the world had was Colonization/Capitalism replacing Feudalism. I think there's only one logical next step.

 

I just hope it's not Skynet. 

 

 

Just saw a special on PBS about memory and they are beginning to control it, that is the memory in your brain. They won't need Skynet if your brain is under control.

JJK

[Jim Naseum]

Just strange since a few years ago I was thinking about buying a Hyundai Elantra just to drive to work in so I could save gave money. I have spent $100 to fill up my truck before. Two of those a month and that's a car payment. Driving a big truck just isn't an issue right now. Curious as to how long it is going to be like this.

 

I wouldn't count on more than 18 mos. 

 

Just take a look at the historical price chart. Full of peaks and valleys.

[Jeff Matthews]

There is no rational reason to inhibit progress.  Progress includes getting more for less (at least, to most people, that would be progress).  You can embrace progress or fear it.  Many fear it, and they have some decent, rational, yet short-term, reasons to do so, such as jobs. But "jobs" need to yield to progress.  They always have. The cotton gin replaced slaves.  Cassettes replaced 8-tracks, and CD's replaced cassettes.

 

Granted, this might not be a permanent form of progress in that it is likely a temporary phase, but nonetheless, I the only reason you ought to want to pay more for less is because you desire some form of inefficiency.

[Jim Naseum]

The guy who just list his good job, and can't pay his mortgage, and has three kids and a wife to care for, thinks differently than, "oh, well, it's just progress. That's cool."

And when that is 75,000 guys in an area, and the grocer suffers and the barber and the tire shop and hardware store, they don't all say with a smile, "No fear! It's just progress!,"

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[Jeff Matthews]

The guy who just list his good job, and can't pay his mortgage, and has three kids and a wife to care for, thinks differently than, "oh, well, it's just progress. That's cool."

And when that is 75,000 guys in an area, and the grocer suffers and the barber and the tire shop and hardware store, they don't all say with a smile, "No fear! It's just progress!,"

Sent from my SM-T330NU using Tapatalk

 

I realize pain and loss are very real and personal things, but I am not talking about that.  I am talking about progress.  Eventually, buggy-whip makers are going to have to come to grips with progress, the same as ferriers.  I never said it's easy, but one thing for certain is it is progress... and who really doesn't want progress?  Count me out of that group.

 

Edit:  The grand hypocrisy is often seen when the well-wishers want to see big companies like Microsoft take it on the chin.  They feel for the little guy, but not the little guy's employer.  Don't they realize the little guy depends on the health of the employer so he can get a paycheck and pay his mortgage?

Edited February 13, 2016 by Jeff Matthews

[Jim Naseum]

The guy who just list his good job, and can't pay his mortgage, and has three kids and a wife to care for, thinks differently than, "oh, well, it's just progress. That's cool."

And when that is 75,000 guys in an area, and the grocer suffers and the barber and the tire shop and hardware store, they don't all say with a smile, "No fear! It's just progress!,"

Sent from my SM-T330NU using Tapatalk

I realize pain and loss are very real and personal things, but I am not talking about that. I am talking about progress. Eventually, buggy-whip makers are going to have to come to grips with progress, the same as ferriers. I never said it's easy, but one thing for certain is it is progress... and who really doesn't want progress? Count me out of that group.

Edit: The grand hypocrisy is often seen when the well-wishers want to see big companies like Microsoft take it on the chin. They feel for the little guy, but not the little guy's employer. Don't they realize the little guy depends on the health of the employer so he can get a paycheck and pay his mortgage?

We're not always making progress just because time is passing or TVs get bigger. Stability and security are unspoken demands of most societies. To the extent that there is no job security, there is no progress.

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