anindya banerjee

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    • Wed Sep 19th 02:57 AM | Rating: 0 0
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      The Oil Scam Driving Crude Over $80
      If i got you right, by barrels billed mean Open interest. Now it is a known fact that actual delivery volumes in futures market across the world is miniscule.Therefore, Nymex is no different. A futures market is place of price discovery and not a alternative to a physical market. It is fact that if 200 million barrels of deilvery is accepted then it shall create massive glut. However, at the same time, somebody has tohave to have that much oil to give delivery. I agree with you that monet flow is adding to prices but it has to eb understood what is causing that. Irresponsible spending behaviour from Governemnt and ultra-loose monetary policy from Central Banks, creating massive growth in money supply(inflation). Where shall the money go, they are moving into various asset clases in search of return and here oil is no different from the CDO that the money buys. Therefore, in order to prevent money from chasing oil ike this way , we have to seek government res-straint and discipline in Central Bank Community. Problem is inflation is like "frog in warm water episode": FROG ENJOYS THE WARMTH INITIALY AND BECOMES CAREFREE OF THE FACT THAT WATER SHALL SOON REACH BOLING POINT. Here the warmth is inflation and we are enjoiying as we see our investmenst grow in value and it we shall continue to do it as long as we do not realise how our purchasing power getting eroded. The day we recognise it, we shall react, Bonds hall collapse and asset classes shal, deflate.... so shall your OIL PRICE...
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