oil glut

What IF The EU Allied With China And Russia?

Posted on by Helena

What IF… as a result of Trump snubbing the EU they were to unite in a trade alliance with Russia and China as the Eastern Hemisphere Bloc?  The problem with the EU is their resources are slim and their reliance on Africa has diminished rapidly of late leaving them with – nothing.  Manufacturing is dismal as a result of the high cost of sub-standard oil they import from the US to ‘harm’ Russia.  The transportation cost is born by the EU.  Of course, that harm never really materialized against Russia, and instead destroyed the EU.

After Europe spent decades raping Africa, it never occurred to them that legitimizing trade might secure their future.  Booted from most African countries, France, Germany and the UK, the stalwarts, are feeling the most pain economically.  They have nowhere to go – except Russia and China. 

Germany’s top export are cars.  Trump’s tariffs nearly collapsed that market for Germany stagnating growth.  France’s major imports include aerospace equipment and mechanical equipment.  Their 2025 growth rate is hovering in the range of .7%.  Uk’s largest exports are cars and gas turbines and metals (gold and silver) mined in Ireland.  101 companies listed on the London Stock Exchange (LSE) — most of them British — have mining operations in 37 sub-Saharan African countries. They collectively control over $1 trillion worth of Africa’s most valuable resources.  Should these colonies stand tall and say enough – the UK economy would likely collapse.

The Barter System:  IF  Europe would rid itself of the European Commission and allow each country to act of its own accord, barter and trade would find a balance.  Venezuela and China traded via the barter system, a much cleaner method that evades credit or cash.  Russia and China utilize bartering to evade sanctions.  Pakistan, Colombia and Malaysia also utilize bartering as a more efficient venue.  In the event of a civil war, Americans would return to the bartering system in order to survive. 

Greenland:  Trump wants their resources.  Like Venezuela, Trump has their country on edge as he considers taking the country by force, or buying the citizens out.  Of course the obvious raises its spindly head and asks – where will Trump get the money?  Why Taxpayers – of COURSE!  The Minerals and other resources would be given to his friends who own mining companies.  These companies would sell on the open market and take 100% of the profits.

It is the same game as the Defense Industry all over again.  We pay taxes that are redistributed to Defense Industry Contracts while the companies profit from our Tax Dollars and taxpayers receive – NOTHING.  Technically, we should be the shareholders and profits redistributed back to us. 

What We Pay For – We Should Own!  The Government should only take a Middleman Finders Fee – maybe 2%.  This is why America is run more like a socialist/communist government than the illusion it purports as capitalist.  A Government controlled system such as Defense, Pharma, Charity, Welfare, NASA, etc… are the epitome of communism wrapped up in a false premise that told often enough as a perception becomes a fake reality.

Trump wants us to pay for Greenland – but own nothing.  And be happy.  Sound familiar? 

As Trump expects to have Taxpayers fund the bill for the oil companies in Venezuela, what happens when no one wants to buy from America?  When the spigot is turned off in Venezuela to upgrade and it takes 2 years or more – everyone will already have upgraded their imports elsewhere.  China was in Russia the very next day after Trump’s Venezuela collapse.   Russia will simply fill the void and Trump’s Big Beautiful Venezuela will have zero buyers.  The effect of a Pariah who doesn’t possess critical thinking skills.

China will never buy from American oil companies.  That train is in Siberia. 

Trump’s advisors are not economists.

FYI:  Year-to-date, the goods and services deficit increased $56.0 billion, or 7.7 percent, from the same period in 2024.  ~ US government database.  The Twitter Thumpers don’t read the reports…

OIL GLUT -Looking to Subsidize Pricing

Posted on by Helena

OIL – oil oil everywhere and nary a barrel to pare…glut

What happened to real supply and demand economics? It used to be the determinant of price, but subsidies, price fixing, and output fixing have changed that simplistic concept and created a completely false market. And we accept it – in fact we embrace it.

There is too much oil. Go figure. There is so much oil that a group of countries want to control global output so that the price will rise and economies that were/are dependent on oil can try and recoup the losses they have sustained. The price would be artificial – so the effect would be as well.  Right?

Subsidized farming. In the 1930’s the US government stepped into the farming industry to help farmers who may have been devastated by weather conditions out of their control. The aim was to protect the rural small farmer, but today that little act of kindness now costs taxpayers $20 billion annually. It got so out of hand that farmers were paid to NOT grow, were given water rations in drought struck California to NOT grow, and were rewarded for their NON – efforts and NON production. A lucrative business – doing nothing.

It reminds me of weather modification. Changing the natural course without knowing the consequences or the long term radicalization these actions will reap.  Artificially manipulating supple and demand  without considering the long term effects creates communism in a capitalist venue.

An economy bludgeoned by being too reliant on one commodity needs to realign its economy.  Hello?  When an individual puts all his money into one pocket and that pocket wears down and a hole develops as the material frays, do you put more money in the pocket, do you sew it up, or do you start putting the money in another pocket?

Seems like common sense, but we don’t operate on common sense, we operate on false and artificial logic.

Of course the people paying for the price fixing is always the consumer as the initial model becomes the agenda that is never repealed – as in farm subsidies, as in Obamacare. But isn’t ‘output fixing’ the same as ‘price fixing’ which is illegal?   One creates the other. Not to mention the fact that The People are not a part of this determination – as in voters. Our leaders have decided that we are just too stupid to get involved – as though we were all in elementary school while they are degreed scholars. Personally, I find that rather arrogant, and borderline dictatorial.

Instead, our wunderbar college graduates are deciding whether to eliminate gender bathrooms and deface property, and whiteout past presidents they deem racial, and hold protests for more safe places to cry – and other such obscenely ridiculous agendas. Perhaps they need to be educated on economies and economics – because soon – they will be our leaders. It is almost comical to imagine the next generation of leaders…if it wasn’t so scary.

I digress.

The Saudi economy is nearly 100% oil based accounting for 92%-95% of all revenues. Their biggest export partners include China, US, Japan, India and South Korea. Their economy is currently operating at a severe deficit and can not withstand this continuation. Their unemployment rate is high and their petroleum industry is nearly completely reliant on foreign workers because the few nationals that actually get a college degree aren’t qualified and feel working is beneath them…

Ultimately, the Saudi’s will do whatever the heck they want. They are the bully on the playground allowed to unilaterally bomb and destroy without consequence. Propping up the price of oil would only generate more revenue for them, and while they may be too short-sighted or daft to recognize this fact, allowing their economy to implode on itself given their lack of educated citizens, high unemployment (some figures estimate the number to be 30-50%), will only create a real market of supply and demand.

Realigning partnerships and realigning industries to match demand, would seem a better economic strategy. For example; with Europe being the target for terrorist attacks and with the massive influx of immigrants, where oh where can we find a place where tourism could prosper and business is open to investment….ummmm –

CHILE!

While Soros has busily bought up portions of Argentina and Brazil, he is ‘less invested’ in Chile.  Hotels are his investment of choice which would indicate 1)  tourism,  2) business conferences.

Oil?  While the tourism in Mecca is being sought for additional revenue, a mass exodus in European tourism could create new bubbles elsewhere.