Are Oil Prices Collapsing Because We Are In a Global RECESSION? It sure looks like it; as Western Governments destroy their DOMESTIC energy markets, OPEC+ closely monitors the USD price for their product – November 22, 2022,
I learned about the Green Agenda over a decade ago; I’m actually surprised how successful it’s been; at the time, I learned that members of OPEC nations were seeking ways in which they could ward off competition. People tend to forget Saudi Arabia was an early adapter of Solar energy; they’re actually one of the main reasons I learned about the LIMITATIONS of solar and wind.
I had initially fallen for the fraud that solar could replace fossil fuels, that was until I found out how many problems solar was having in the desert. The individuals who sold me on the pitch that desert land would help solar to replace fossil fuels disappeared when certain countries actually put THEORY into practice.
What I’m getting at here is that Saudi, as well as I, assume a few other OPEC countries, decades ago, knew about the LIMITATIONS of solar and wind. Still, it didn’t stop some of them from making sure those of us in the West thought a green energy revolution was possible. In case you’re not comprehending the economics of renewable energies, for the foreseeable future, renewable/green energies will be 100% reliant on government subsidies, meaning that if the government doesn’t use PROFITABLE fossil fuel companies to subsidize the renewable energies economy, the renewable energy economy will COLLAPSE.
I’ll remind the reader that Tesla Inc is still not profitable; Tesla’s profitability is still reliant on government subsidies, sure the market value of Tesla is fabulous because people PROJECT that in the future, Tesla will dominate the EV market with positive cashflow, but the numbers TODAY for Tesla Inc shows a company that without subsidies would be on the verge of BANKRUPTCY.
I believe Volkswagon is already surpassing Tesla; the current market valuation of Tesla reminds me of the cryptocurrency markets; although I like EVs and crypto, both have been priced into the future, with the assumption that profits are guaranteed, I look at the EV market the way I look at real estate, in many countries in the world, Zero Interest Rate Policy has led to a real estate boom, but most homes are still MONEY PITS, worse now than in the past, without access to cheap artificially low DEBT, most homeowners, real estate investors included would be declaring bankruptcy.
This faux economy, which is mostly the result of western GOVERNMENTS being able to borrow money at artificially low interest rates, has allowed western governments to engage in all sorts of MALINVESTING that a lot of VOTERS are on board with. Oddly enough, this is the perfect time to be a DICTATOR, or Authoritarian, because the CONFUSION all of this malinvesting causes makes common sense not so common.
The economy is clearly deflating, and OPEC+ is clearly monitoring the situation closely to find that SWEET spot for consumers to keep purchasing their product at the highest price possible. The obvious issue OPEC+ is monitoring is flooding the market with TOO much oil, which would lower the price and disrupt their power over the global economy.
Some people are assuming this is a Conservative or Liberal, Democrat or Republican problem; actually, it’s a malinvestment problem; regardless of what democratically elected government is in power, expect PUSHBACK from the other side, and because a large enough chunk of the public has bought into this green energy scam, GRIDLOCK now benefits OPEC.
In the United Kingdom, they have a Conservative government, or better I say GREEN Conservative government; austerity measures are not on the table in the U.K at the moment, and during periods of recession, that should equate to malinvestment as the people in charge find different ways to REDISTRIBUTE resources to entities that would otherwise be insolvent if they had to compete in a free market.
Obviously, democratic countries that bought into Left Wing politics are going to be worse off economically as Left Wing Politics revolves around the redistribution of resources from the productive to the unproductive, which also serves OPEC+. What I’m getting at here is that ENERGY malinvestment is becoming normalized, and this will allow OPEC to monopolize the energy markets for the foreseeable future.
You’d be wise to see the world as it is and not what you want it to be because if you don’t, you WILL find your investment portfolio in the Red, as all the malinvestments in the global economy start to get exposed.
Interesting times ahead!