A very fascinating report on how the futures/derivates markets has played a huge role over the last 2-years in the current price of oil.
About 60% of its value comes purely from speculative unregulated trading markets and very little to do with supply/demand/refinery constraints.

http://atimes.com/atimes/Global_Economy/JE06Dj07.html

actually lets go further.

Behind all of this is the sneaky hands of Hedge Funds and Investment Banks like Goldman Sachs who are very clever at moving money from one bubble (housing) to another (commodities)... They plow the money in --- hype it up -- short the market -- and before you know it are already moving money into the next thing.

Contrarian signal: If Goldman Sachs are saying that Oil will hit $150 / $200 -- that means they are already getting ready to short the market.

I see that Israel tweaked the crude futures market this morning with a statement that war with Iran was inevitable. Man, this is such a gas.

BOOOOOM!

Up goes the market and the Cneney's hunting buddies make millions.

BOOOOM!

There it goes again. Who made money that day?

It's just a game. Iran shouts BOOOOM then they make money off their bets for the day.

Then you find out that Ahmadinejad and Cheney's office are coordinating things. "Highest levels" or something like that.

EVIL IS BORING.

Hello DK!

I dont think the current oil prices are entirely driven by future's speculators. For every car on the roads in India some ten years ago there are 10 now. Slightly less is the case with tractors. Then there is all round industrial development in general. The crude oil thus should be 7-10 times more than five years ago. Now make your own calculations and decide. I think crude oil around 2002-2003 was US$20. So now it should be around $140-200.

Harb

Sorry, at the end of the first line there should be five years instead of ten years.

Hi harb,

While not disputing the fact that India is using far more oil then it did 5 years ago, I still fail to understand it when people say the principal reason for the rise in oil prices is increased consumption by India and China.

From what I have read Indian oil consumption is around 3 to 5% of the total, China's about 10% and the US around 25%. If these figures are true, I don't see how India and China have primarily created such a huge increase. The cause of this surge continues remains a mystery to me.

Regards
Dara

Dara,

I think mine was just off-the-cuff (or was it under-the nose lol)remark. If your numbers are right then the reason of rate increase of oil could indeed be elsewhere.

May be it is like shares. So long as smart money buys/collects shares they are kept low priced. But when they have collected enough then every purchase by the others results in hige price increases. Eventually the smart money offloads those shares at hefty premiums to the later buyers. I hope I am more near the truth now. If still not, pl forgive, I am not expert in this area.

Harb

Harb, I agree. This thing is being driven entire by speculation. Everyone's paying close attention to bad news and ignoring the good.

However, it's WHAT the speculators are doing that is appalling. These financial titans are using governments to tweak the market to satisfy outcomes favorable to their particular position for that day.

It's really the language of death.

When Jesus was in the desert and taken to the high mountain to be tempted by Satan, he was offered rulership over the entire world in return for his acquiescence. What's disconcerting is that Jesus never questioned the legitimacy of Satan's offer. He never disagreed with Satan's station. The offer was substantive, Satan's entitlement entire.

The "world" can be interpreted as "the system of things". It's what we've built that's exploitative, separating, pocked with greed. We are in fact the face of evil when we walk with trepidation, terrified of death.

In Tibetan buddhism, there's a common expression: what you give away, you don't have to lose.

Sharing gifts you've just acquired from someone, wisdom or love or generosity and giving them away as quickly as possible to someone else is a way to unravel the impossible knot of karma. A means to secure the peace with such ease.

I think we badly misunderstand death, and this is at the root of the entire dilemma. If we understood this important transition--if we contemplated our dependent origination and the temporariness of our egos--the bad dream could not take hold of us, and those who rule over "the system of things" couldn't command us to falter and hoard.

I believe these were the things that Martin Luther King, Gandhi, Tutu, Robert Kennedy have tried to convey.

Hi again Harb,

Thanks for your reply and when you say " I am not expert in this area" I want to say, I am so relieved to know that I have company. Im even worse than you, thats why I ask stupid questions.

I know very little about how the oil economy runs but I know even less about the share maket, yet I invest. Thank my luck for a good consultant, I hope he actually is good or is there no such thing? Where is Navin? :)

Regards
Dara

Dear DK,

I agree that the root is cause is probably supply and demand which is related to production capacity rather than the actual oil supply. There are many contributing factors including greed, gambling (speculation) and general ego tendencies. However one of these other factors that could be more dominant may actually be that investors not sure where to put their money are looking for something tangible. Of course I could direct investors to something tangible to invest in and will be putting something formal together, a joint venture.

As a result of the fiat currency bubble no one is sure what any currency is worth other than how much food it can buy today, next week who knows?

The truth about oil and gold is their price ratio is the same; oil and gold have not really increased in price for many years. The value of the world’s fiat currency is in question because of poor management and not having the proper information technology and liquid data flow needed to support and manage such a system.

I have seen some encouraging signs, glimmers of light, signs of consciousness evolving, and propagation of some truths. Yet they are just glimmers, and I still see plenty of fictions being tossed about and a “clinging” to the old consciousness way and their wealth. While some players have embraced change and evolution many others still resist.

The divine plan is unfolding perfectly and I happen to be in on it. If one's plan is not unfolding perfectly then it must not be in alignment with the divine plan. If one needs help getting in aligned with it then get in touch and or pay close attention.

A little more than a year ago Apr 4th 07, in response on , to Deepak’s thread “A Remedy for Fear” [Click My Name] I wrote:

You see for my Final Magic Act I will make the world's currencies disappear before your very eyes, for they are all based on perception. Do not "fear" there will be something new to replace them but be wise in where you place your wealth and where you derive it.

For in the blink of an eye there will be dissemination of intelligence and I shall make it gone and you will not have what was earned through illusion and upon a foundation of ignorance.