Date registered: Sep 2004
Vehicle: 83 Astral Silver 280 SL
Location: Planet Houston
Mentioned: 0 Post(s)
Quoted: 7 Post(s)
RE: Gasoline Futures market going berserk
Went up another 2 cents today, to $2.57 for cheap stuff. Futures markets say $3 in September, but those may be "irrational exurberance" bets.
I talked to an analyst friend of mine and he said some stuff that blew my mind. It seems the futures guys are extremely concerned that the Iraqi insurgency is becoming a threatening organized army, trained in counter-measures to US tactics, successful at evading us and waging guerilla war in the Middle East environment, that now the very real possibility this force could become active in Saudi Arabia is coming into the risk analysis. It has always been assumed that any threat to Saudi oil fields will be dealt with by the US Army. Guess what? The US Army sucks at protecting Iraqi oil fields! These insurgent guys have tribal connections that supercede the border. In other words, Bush may end up being responsible for training a terrorist army that cuts off ALL THE FRIGGIN GAS! If they start making moves in Saudi, the traders are going to go even more berserk than they are now! One scenario shows a 50% loss in value of US stock market equities if a successful attack on a single pipeline takes place in Saudi! We have shown the investment community that what was thought impossible, a tangible threat to the Saudi oilfieds that the US Army couldn't control, is entirely possible - so a whole new world of upward price pressures have emerged! Shabah, have you heard anything on these possibilities that you can communicate without fear of being tortured by the Whahab?
Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.
-President Barack Obama, 1st Inaugural address