Posted on 12/25/2014 1:52:04 PM PST by SatinDoll
Quote from Golden Oxen (www.theautomaticearth.com/you-thought-the-saudis-were-kidding):
"My gut feeling is the Saudi’s have very little to do with all this."
"We are witnessing a world wide economic contraction that is accelerating in my opinion and all the jibber jabber and phoney numbers are mere noise that confuse the issue."
"The damage that has been done to the minds of the worlds middle class by all this talk of buy ins, pension cuts, negative interest rates etc as well as fears of job stability are never talked about but have taken a major toll on confidence."
"Expecting big trouble after the holidays."
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What the Saudi Royals are doing is destroying the U.S.A.'s ability to finance the access and pumping of petroleum and natural gas from shale sources. It is too expensive to extract, and can not compete with $20 a barrel petroleum from Saudi Arabian oil fields.
For the past 6 years there have been zero wait times to get in to Outback or Red Lobster. Now the wait can be 1 hour or more on a week night and forget about it on a Friday or Saturday unless you get there at 3 PM or after 8 PM!
And....what does that have to do with the coming economic collapse? In 1928 people never expected a depression was about to arrive.
And your prognostication with the restaurant test? GDP, price of gold and silver, and crude oil? I am interested in your theory.
No plan survives first contact with the enemy. That enemy is Iran. This OPEC move is a Saudi attack on Iran and Russia. Any damage done to US fracking is incidental. If Iran gets their nuke, their first move will be to shut down all Saudi oil exports, which must exit through the Striates of Hormuz and the Red Sea. They have an estimated 70,000 mines with which to do it. The Russians will help and the US will do nothing. Oil will cost whatever the Russians and Iran say it costs.
Gtreat version:https://www.youtube.com/watch?v=TrytKuC3Z_o
Well.. I wouldn't wait 30 seconds to eat at Red Lostser...good times or bad...
Now the wait can be 1 hour or more on a week night and forget about it on a Friday or Saturday unless you get there at 3 PM or after 8 PM!
I haven't experienced that at all...wait times are almost non-existent...
Guess it depends on what part of the country you are living...
I think the prices of the meals have gotten ridiculous and only those that can afford the extravaganza of a decent restaurant can afford to go...
Last time the wife and I went to Outback on Friday night a few weeks ago...no wait and $100.00 plus tab...
We used to eat out 2 or 3 times a month ...now it's once every few months
The Saudis were behind the attacks on 9/11. The government has a highly redacted report that details that fact.
The problem here is that most muslims hate the west and want to see it conquered. The only group they hate more is the House of Saud.
As for the price of oil, it is being driven by consumers. The idea that Russia and Iran can control the price by mining the Strait of Hormuz is too simple. The Saudis have already thought of it, and so they have pipelines to elsewhere. I foresee them even forging a temporary truce with Israel just to have an outlet to the sea.
The Soddies can play this game because their oil is the cheapest in the world to extract.
Drivel. Things are never as great as the optimists always say and things are neveras bad as people say they will get.
Funny how the article doesnt point out that demand for oil is still increasing...and it talks about T. Boone Pickens but It doesnt point out that he Is saying oil prices of $90-100 within 12 months. Probably too optimistic. Stupid articles like this help nothing.
Now do I beleive the 5% GDP number? No but do I believe our economy is growing? Yes. It is doing so because of all the great Americans getting up every day and going to work in spite of this governement.
Just wait till the Saudis start fracking.
No. They can play this game because of the cash reserve they have. The saudis far out spend what they recieve with oil at the current price, they do however have the money to sustain their spending for the time being. It is not sustainable though.
“Last time the wife and I went to Outback on Friday night a few weeks ago...no wait and $100.00 plus tab...”
Go to Texas Roadhouse instead. 1/3 the price, plus you get all the peanuts you can stomach. And the food is better.
Saudi Arabia is a country that consists of land floating on top of a lake of oil. It will be a long time in the future before they get into fracking ... :-) ...
It won’t stay that low for long ... and ... the article states that the shale oil can be turned on and off, as needed, and as prices climb and/or fluctuate.
“Although shale oil is relatively costly, production can be turned on and off much more easily – and cheaply – than from conventional oilfields. This means that shale prospectors should now be the “swing producers” in global oil markets instead of the Saudis.”
Saudi Arabia has a strong, but brittle government that could shatter at any moment. There are certain things the king simply can’t do without losing his right to rule (recall, he’s the keeper of Islam for the Sunnis.) Running a pipeline through Israel is high on that list. The king has invested heavily in taking down Assad and has failed. His reason was so they could run the pipeline through Syria. That failure is due to the Russians and the Iranians. When it comes to naked brutality, the Saudis are soft and the Iranians and the Russians are pros. If I had to call this one, I’d bet on the worse bad guys. (Recall, all we’ll do is send a strongly worded diplomatic note. We might even call them out of date and JV.)
They could probably sustain $20 a barrel of oil for 30 years ... but not forever, of course ... :-) ...
Just a little restructuring before the next ice age kicks in.
Remember that Obama and the dims lie about everything...including global warming.
>I foresee them even forging a temporary truce with Israel just to have an outlet to the sea.<
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They already have a TAP line, complete with pump stations, to the Mediterranean terminating at Lebanon. (TAP=Trans Arabian Pipeline)
With ISIS roaming around in that area, try to keep that pipeline from being blown up.
I see no downside.
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