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  • The Global Oil Scam: 50 Times Bigger than Madoff [View article]
    Actually IMHO, there is always over reaction in this situation.

    First Point: Commodity futures can only be manipulated, but the effect on the actual commodity is limited. The spot price is always for delivery between the buyer and seller. The ulitmate price for oil is determined by supply and demand.

    Second Point: Price spikes in oil are going to occur because of inelastic supply and demand. Oil was the inelasticity example used in almost every economics textbook on the planet. About 15 yrs of low oil prices meant NO drilling for oil. Lets a look awhile kids, before saying there is none left in the house.

    When oil prices spike, every dry well on the planet gets something pumped into to it, to force more oil out. There's Sassoil that can turn coal into oil for as low as $35 a barrel. There is the Canadian Tar Sands at $35 to $70 with more oil than Saudia Arabia. I heard all this in the 70's and the 80's...........and yet we went back to a glut of oil both times?
    Nov 12 09:36 am |Rating: +5 -1 |Link to Comment
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