Q1 Energy Earnings Shocker: Then And Now

Not everyone is enjoying low crude oil prices, the oil patch in particular.

http://www.zerohedge.com/news/2015-02-02/q1-energy-earnings-shocker-then-and-now

Who The US Imports Crude Oil From

http://www.zerohedge.com/news/2013-09-04/who-us-imports-crude-oil

Turk - Something Shocking Has Occurred In The Gold Market

I tweeted this back in June 3, 2013:

Anybody else notice 10-year Treasury yields have climbed from 1.7 to 2.1%? Um, that's not supposed to happen with QE. Fed losing control?
— Gregory Nguyen (@dakyne) June 4, 2013

Since then, 10-year Treasury yields have reached as high as 2.74%. 

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/8_Turk_-_Something_Shocking_Has_Occurred_In_The_Gold_Market.html

Yet the Fed continues to purchase more government debt, as its balance sheet last week reaching another new record high with total assets of $3.49 trillion.  The Fed is not tightening monetary policy, so why are interest rates rising even though the economy is weak and the Fed continues to purchase debt for its QE program?

I think there is only one logical answer, Eric:  Interest rates are rising because of QE.  We have reached a tipping point, meaning that QE can no longer keep interest rates from rising.  The market is now focusing on the dark-side of QE, which is the inflationary consequences of all this money printing.

Rising interest rates with QE ongoing means that we have reached the stage where the Fed has now lost control.  This result was inevitable because market forces always beat central planners and its groupies in the end.  Only the timing of this event could not be predicted.

Since the bailout of the financial system in the autumn of 2008, and the launch of QE in March 2009, desperate central planners had been hoping their crazy theories which try to create wealth by printing money would work.  But those theories never had a chance.  All one had to do was read monetary history to see that these schemes have always failed.

The key point is that the market is now responding to this central planning foolishness.  Capital is protecting itself by demanding higher interest rates, and as interest rates climb, the fallout will be immense.  This brings me to the second key event taking place:  Even the LBMA website now shows that gold is in backwardation.  The gold forward rate out to three months is negative.

Crude Over $100

http://www.zerohedge.com/news/crude-over-100

U.S. Exempts Japan, 10 EU Nations From Iran Oil Sanctions

It looks like the US has had to back off on its ban of countries buying oil from Iran.  Gee, how would the US like it if our "allies" banned us from buying oil from Venezuela and Saudi Arabia?  After gas prices soar to $20/gallon?  Threatening your trading partners to not buy oil is like telling them they can no longer breathe. Enter this in the Failed Threats bin. 

http://www.bloomberg.com/news/2012-03-20/u-s-exempts-11-nations-from-iran-oil-sanctions-on-banking.html

‘SWIFT’ Reaction: Iran May Block Oil Exports

http://www.israelnationalnews.com/News/News.aspx/153853#.T2Z6QNXmOgl

Brent At $126 As Israel Security Cabinet Votes 8 To 6 To Attack Iran

Well, here we go:  first, the trade and foreign currency sanctions against Iran.  Now, Israel's intention for a preemptive attack on Iran.  I wonder how India, China, and Russia feel about all this, given Iran supplies them with oil.

http://www.zerohedge.com/news/brent-126-israel-cabinet-votes-8-6-attack-iran

Rule - $150 to $170 Oil, Gold, Fraud & Dangerous Times

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/3/13_Rule_-_%24150_to_%24170_Oil%2C_Gold%2C_Fraud_%26_Dangerous_Times.html

As WTI Passes $105, Guardian Says Iran "Military Action Likely", Would Send Crude Soaring

Please don't insult us preppers and confess you didn't see this coming.  You were warned--multiple times.


http://www.zerohedge.com/news/wti-passes-105-guardian-says-military-action-likely-would-send-crude-soaring

SocGen Lays It Out: "EU Iran Embargo: Brent $125-150. Straits Of Hormuz Shut: $150-200"

http://www.zerohedge.com/news/socgen-lays-it-out-eu-iran-embargo-brent-125-150-straits-hormuz-shut-150-200

$99 Oil For 11/11/11

http://www.zerohedge.com/news/99-oil-111111

Gaddafi gold-for-oil, dollar-doom plans behind Libya 'mission'?

http://www.youtube.com/watch?feature=player_embedded&v=GuqZfaj34nc

http://www.goldstockbull.com/articles/libya-invasion-gaddafi-plan-gold-dinar/ 

Thanks to Larry for finding this article and video.

Hawaii Average Premium Gas Hits $4.708, As Nationwide Pump Prices Jump By 30 Cents In A Month

I think Obama and his Working Group better bone up on Econ 101 before blaming "speculators" for soaring gas prices.  Instead, they should focus on Blackhawk Ben Bernanke.

http://www.zerohedge.com/article/hawaii-average-premium-gas-price-hits-4708-nationwide-pump-prices-jump-30-cents-month

Obama, Holder Declare War On Oil Traders, "Speculators"

Like clockwork, Obama decides to target the "speculators" for the surge in oil prices.  See my prediction in an earlier blog <click here>.  Let us not blame the Chinese for cutting off oil exports.  Let us not blame the middle eastern and north African (MENA) civil unrest.  Let us not blame peak oil and the fact that while we may not be running out of oil, we're running out of cheap oil.  Let us not blame US energy "policy" which bans offshore and land drilling.  And last but not least, let us not blame Ben Bernanke's inflationary monetary policies causing aforementioned social unrest.  Let's just blame the speculators.

See you at $200 a barrel crude oil. 

http://www.zerohedge.com/article/obama-holder-declare-war-oil-traders-speculators

Did The World’s Largest Futures Exchange Enable $200 Oil?

Another nail in the coffin of USDollar hegemony.  The answer to the question is "yes."

http://www.zerohedge.com/article/guest-post-did-world%E2%80%99s-largest-futures-exchange-enable-200-oil

Since most countries rely on oil imports, they are forced to maintain large stockpiles of dollars ^2,3,4 in order to continue imports. ⁵ This creates a consistent demand for US dollars and upwards pressure on the US dollar’s value, regardless of economic conditions in the United States.  This in turn allegedly allows the US government to issue currency below cost of currency production (seignorage) and bonds at lower interest rates than they otherwise would be able to.⁶ As a result the U.S. government can run higher budget deficits at a more sustainable level than can most other countries.  A stronger US dollar also means that goods imported into the United States are relatively cheap.  It appears to be to the US’ advantage to maintain US dollar hegemony.⁷

If the denomination of oil sales changes to another currency, such as the euro, many countries would sell dollars and cause the banks to shift their reserves, as they would no longer need dollars to buy oil. ⁸ Forty years of petrodollars would start to get flushed from central bank reserves.  This shift in petrocurrency reserve status would lower the volume and velocity of US dollar recycling and thus weaken the dollar relative to the Euro.  The EU would accrue the same benefits from Euro-denominated oil sales that the US.

Rain or Shine, Oil Prices Headed Higher: Faber

http://www.cnbc.com/id/41961949

Nomura Predicts $220 Oil If Just Libya, Algeria Cut Output

http://www.zerohedge.com/article/nomura-predicts-220-oil-if-just-libya-algeria-cut-output

Oil Goes Berserk In Electronic Trading As WTI Passes $98

Considering markets in the US were closed due to President's Day, a lot of fireworks sure occurred in overseas markets.  Kaboom!

http://www.zerohedge.com/article/oil-goes-berserk-electronic-trading-wti-passes-98

India, Iran mull over gold-for-oil for now

What does the anti-gold crowd have to say now?  Do they still believe gold is a "barbaric relic"?  Do they still not believe gold is money--in fact, the soundest form of money?

http://economictimes.indiatimes.com/news/news-by-industry/energy/oil--gas/india-iran-mull-over-gold-for-oil-for-now/articleshow/7238760.cms

NEW DELHI: India is determined to ensure steady crude oil supplies from Iran and is even considering settling payments with gold in the short term before the two countries agree on a mutually accepted currency and a bank to clear the transactions. 

Another official said India could settle crude oil import transaction using gold in the short term, while efforts to resolve the deadlock continue. An Indian delegation, including officials from ministries of external affairs, finance and petroleum, will visit Tehran next week to thrash out the payment issue, officials said.

India to drop US buck in Iran oil dealing

http://english.ruvr.ru/2011/01/01/38523281.html