Oil Prices Falling during a deflationary economy, but not by much, lack of supply? lack of productivity or is it this carbon credits scheme? – July 8, 2021,
So legendary investor Marin Katusa has made is his case clear regarding Carbon Credits, which in a nutshell is a global-socialist scheme to redistribute the wealth generated by fossil fuels into companies that apparently according to the global governments will solve climate change.
It’s a basically get-rich-quick scheme for people in the political classes and more and more lobby groups are obviously going to be formed, via the formation of this brand new global energy scam. All that aside, the energy companies can profit from this, but they’re going to have to change their behavior, and by changing their behavior it means energy prices are going to be more expensive.
We got a glimpse into what could be a new reality via the article below, so Brent crude oil futures and U.S. West Texas Intermediate futures both fell more than 0.6% on fears that the current output agreement could be to be abandoned after the collapse in major producers OPEC+ talks.
Yes, a 0.6% drop in oil prices prompted someone to write an article about weaker oil prices? What are my thoughts, if the government is going to reward the energy sector with corporate welfare for doing less physical work and more paperwork, well, it’s hard for me to imagine FIAT PRICE deflation in that environment?
With that said the global economy is clearly deflating, which means that central bankers are going to have to prop up the economy is more liquidity, I don’t know where that will come from, but a “Green New deal” variation would be a very wasteful way to keep the economy afloat. Anyone who tells you that the economy is inflating probably measures their wealth in fiat dollars.
The economy is deflating, which should mean the price of Oil should be going down, this move of course gives OPEC nations a lot of bargaining power to dictate terms or any energy agreement. Making matters worse and I don’t know if this is coincidental but Joe Biden is pulling out of Afghanistan
Biden to speak Thursday about Afghanistan amid swift U.S. pullout | reuters.com
People unaware; boneheaded moves like the one Joe Biden could make is one of the reasons why terrorism ran rampant during the Obama years. When Western Nations become energy dependent on the middle east it’s easier for radicals to get funding for terrorism. It wouldn’t surprise me if Islamic Terrorism starts to make headlines in a few months.
As a former environmentalist, as I’ve stated in other posts, I was shocked to find out that a lot of OPEC members were behind the push for Westerners to be forced to use Renewable energy. I use the term environmental Socialism because socialists like Hermann Scheer were the leaders for pushing renewable energies and even he didn’t want renewable energies to be centralized.
Well with these carbon credit schemes, renewable energies will be under central command, which basically equates to OPEC being able to do whatever it wants with the FIAT price of oil.
Interesting times ahead!