BACKDOC 1/23/15

[idplzr]

Backdoc Friday Morning Post – “LONG TRAIN RUNNING” emailed to D.R.

 

“LONG TRAIN RUNNING”

 

THE NEW GOLD STANDARD, “IRAQI BLACK GOLD”!!!

AS WE SEE ARTICLES TALKING ABOUT SUPPLY AND DEMAND WE ARE BEGINNING TO UNDERSTAND WHAT THE NEW NORMAL WILL BE. IRAQ WILL SOON BE THE NUMBER 1 PRODUCER IN THE WORLD, AND SINCE THEY HAVE THE LOWEST EXTRACTION COSTS, THEY WILL ESSENTIALLY BE ABLE TO CONTROL THE PRICE PER BARREL.

THE PROBLEM IS, IT WILL BE UGLY GETTING TO THAT POINT SINCE SUPPLY IS STILL RISING AND DEMAND IS FALLING! THIS ENCOURAGES A WORSE CASE SCENARIO FOR A FINANCIAL CRISIS TO OCCUR !

THIS SCENARIO NOT ONLY ENCOURAGES LOW OR LOWER OIL PRICES TO COME BUT A FINANCIAL CRISIS BEGINNING TO TAKE SHAPE!

AS PRICES FALL, THERE WILL BE MORE AND MORE PRESSURE ON FINANCIAL INSTITUTIONS. INVESTORS LOOK FOR A SAFE RETURN ON THEIR MONEY SO THEY WILL TURN TO THE BOND MARKETS FOR YEILD AS THEY HAVE BEEN DOING. THE PROBLEM IS THE YEILDS ARE DRYING UP AS THEY RETURN LESS AND LESS TO THE BOND HOLDERS. SOME BONDS AS IN JAPAN NOW HAVE A ZERO RETURN FOR 5 YEARS!

 

 

 

 

 

 

WE SEE AS IN THE CASE OF THE SWISS OFFERING A NEGATIVE RETURN ON YOUR SAVINGS IN THEIR BANKS OF 1 PERCENT I BELIEVE. YOU PAY THE BANK TO HOLD YOUR MONEY! SERIOUSLY?

 

AISO IN TURN THE CENTRAL BANKS ARE CUTTING INTEREST RATES TO SPUR GROWTH BUT THAT IS NOT WORKING ANY MORE AS WE HAVE SEEN ALREADY IN THE U.S., JAPAN, AND NOW THE E.U.!

JOBLESS CLAIMS ARE NOW BEGINNING TO RISE AS DEMAND BEGINS FALL! JUST WHEN BANKS SHOULD BE RAISING INTEREST RATES, THE E.U. IS CUTTING ALONG WITH SOME OTHER COUNTRIES.

SO HERE IS THE PROBLEM IN THE MAKING, YOU HAVE THE SWISS AND THE U.S. ON A PATH OF RAISING CURRENCY VALUE WHILE THE E.U., JAPAN, AND CHINA ARE LOWERING CURRENCY VALUE TO BECOME MORE COMPETITIVE AND SPUR GROWTH. THE PROBLEM IS IT’S NO LONGER WORKING ANYMORE!

THIS IS LIKE TWO TRAINS RUNNING TOWARD EACH OTHER DOWN THE SAME TRACK AT 70 MPH. IT REMINDS ME OF THE SONG “LONG TRAIN RUNNING” BY THE DOOBIE BROTHERS. EVEN WHEN THEY SEE EACH OTHER THEY WILL NOT BE ABLE TO STOP IN TIME!

THERE IS A CRISIS COMING AS GOLD REMAINS ELEVATED ALONG WITH AN OVERPRICED STOCK MARKET! HOW DO I KNOW THAT? GLAD YOU ASKED! BECAUSE THE NEW NORMAL IN SETTING VALUE HAS CHANGED! STAY WITH ME NOW!

SINCE COUNTRIES ARE VALUED BY ALL ASSETS IN THE GROUND, ABOVE GROUND, GDP. ECT. WE ARE NOW FORCED TO ACCEPT BLACK GOLD AS THE NEW VARIABLE IN THE MIX OF THESE ASSETS! THIS IS SHIFT FROM THE PAST WHERE GOLD DETERMINED THE VALUE OF A COUNTRYS’ WEALTH!

WE ARE JUST NOW IN THE EARLY STAGES OF THIS CONCEPT TAKING HOLD AS WE SEE A BATTLE FOR PRICE ON THE BLACK GOLD! AND THE WINNER IS ? THE ONE THAT HAS THE LOWEST EXTRACTION COST! BINGO! IRAQ! THE WORLD WILL PAINFULLY FIGURE THAT OUT LATER WHEN IT’S TOO LATE! DON’T LET THE DOOR HIT YA WHERE THE LORD SPLIT YA !! BAAA HAAA

SO NOW THAT WE HAVE THAT CONCEPT BEHIND US YOU WILL UNDERSTAND WHY THE LOWER OIL GOES, THE HIGHER THE DOLLAR GOES, BECAUSE THEY ARE INVERSE TO EACH OTHER SINCE THEY ARE BOTH CURRENCIES! HANG WITH ME NOW!

SINCE IRAQ WILL CONTROL THE WORLD MARKET ON OIL AS THEY REACH DOMINANT PRODUCTION LEVELS THEY ESSENTIALLY WILL CONTROL THE PRICE!

IF IRAQ ALLOWS THE PRICE TO GET TOO HIGH THE U.S. CAN KICK IN PRODUCTION TO DROP IT! SO ESSENTIALLY IRAQ CONTROLLING BRENT CRUDE PRICES AND THE U.S. AND CANADA CONTROLLING WTI CRUDE PRICES!

HERE IS THE IMPORTANT THING TO GRASP IMO, SINCE IRAQ IS NOT USING AN INTERNATIONALLY RECOGNIZED CURRENCY AT THE MOMENT. THE DOLLAR IS INVERSELY CORRELATED TO THE PRICE OF BLACK GOLD!

THE LOWER CRUDE GOES THE HIGHER THE DOLLAR GOES!

IT’S NO SURPRISE TO ME THAT WE SEE THE ROYAL MINT BEGIN TO SELL GOLD HERE AFTER 47 YEARS, SINCE IT IS OVERVALUED COMPARED TO THE DOLLAR! DOLLARS WILL CONTINUE TO RISE AS THIS DEFLATION TRAIN PICKS UP SPEED TO COLLISION!

UNFORTUNATELY, THE MARKETS WILL TAKE TIME TO FIGURE THIS PROBLEM OUT. IRAQ WILL NOT BACK DOWN UNTIL THEY ARE THE NUMBER ONE PRODUCER, WHILE MOST OF THE FRACKERS WILL COME OFF LINE AS WILL OTHER HIGH COST PRODUCERS. THE AIRLINE STOCKS LOVE THIS ENVIRONMENT BECAUSE THEY ARE FLYING HIGH WITH LOWER FUEL COSTS! HEE HEE LOL SORRY, COULD HELP MY SELF ON THAT ONE!

DEMAND AND SUPPLY WILL EVENTUALLY GET SORTED OUT BUT WHEN IT DOES THE LANDSCAPE WILL BE DIFFERENT THAN IT IS NOW!

THERE WILL BE FINANCIAL BLOWUPS! AND CARNAGE IN THE COMING DAYS! THE STOCK MARKETS WILL ALSO BLOW UP SINCE THEY ARE DIRECTLY RELATED TO THE VALUE OF THE DOLLAR AS WELL AS SUPPLY AND DEMAND!

THE STOCK MARKET HAS TWO PROBLEMS, DEMAND IS FALLING AND THE DOLLAR IS DEFLATING! PRICE WILL HAVE TO BE REDISCOVERED SOON!

 

 

 

 

 

 

 

LOOK FOR THESE TWO TRAINS TO PICK UP STEAM TOWARD A COLLISION!

 

IN THE SONG, THEY TALK ABOUT THE ILLINOIS CENTRAL, AND THE SOUTHERN CENTRAL BREAK. SINCE I’M FROM ILLINOIS I ASSURE YOU, I’LL BE ON THE SOUTHERN CENTRAL BREAK POST RI! LOL

DON’T LOOK AT THESE WORDS AS NEGATIVE OR SCARY, THIS IS SIMPLY ADJUSTMENTS NEEDED FOR A NEW FINANCIAL LANDSCAPE THAT IS COMING! SOME COUNTRIES ARE GOING TO BE HURT WORSE THAN OTHERS! COMPANIES AND INDIVIDUALS WILL BE HURT AS WELL UNLESS THEY ARE PREPARED!

THE CONCEPT OF “FINANCIAL SOCIALISM”, AS IN THE EURO MAY SIMPLY BE AN OUTDATED NOTION BASED ON THE WAY THE IMF VALUES COUNTRIES CURRENCIES NOW! ONLY TIME WILL TELL DESPITE WHAT COUNTRIES SAY NOW. WE WILL SEE WHEN THE CRISIS GETS WORSE!

I LOOK FOR GROWTH TO BE DEFINED BY REAL COMPETITION IN THE NEAR FUTURE! THE GRAVY TRAIN DAYS FOR SOME COUNTRIES MAY BE COMING TO AN END! THE SHARE THE WEALTH CONCEPT SIMPLY BRINGS ALL DOWN AS WE SAW IN THE OLD SOVIET UNION!

THE CONCEPT OF VALUE IS BEING REDEFINED BY THE US DOLLAR AND IRAQI BLACK GOLD! THESE TWO ARE AT TRUE PARITY IN THE NEW NORMAL!

THE ECONOMY TRAIN WILL “KEEP ON MOVING”, JUST LIKE IN THE SONG. THE ONLY QUESTION IS, WHERE WILL YOU BE WHEN YOU GET OFF ?

8@8, DOC

IMO

[stealthwarrior]

Sorry bro but most if not all of that is BS.Iraq will NEVER control the price of oil and the United States is the number 1 oil producer in the world.Saudi Arabia is second.

[billio0]

Thanks idplzr for the post.

 

I thoroughly enjoy what BACKDOC has to say. I couldn't care less if it is correct or not; I just like reading it.

 

Since it is merely one opinion among many, at least it has originality that is sorely missing from the usual Guru-poo-poo.

 

Billio0

[gymrat76541]

Is no one paying attention to what OPEC is doing; flooding the oil market and driving down the cost?

 

They are attempting to drive our American oil businesses out of business! AND having much success too!

 

Iraq is the main problem for OPEC and they attempted to use ISIS to cause mayhem but the world rallied and shot that plan to hell.

 

OPEC learned this business plan from Wal-Mart. Come in with the lowest prices; crush the small companies out-of-business, then raise the prices back up!