Is Global Trade About To Collapse; And Where Are Oil Prices Headed?

T

thatguy

Active Member
Is Global Trade About To Collapse; And Where Are Oil Prices Headed?
http://www.zerohedge.com/news/guest-post-global-trade-about-collapse-and-where-are-oil-prices-headed
Oilprice.com: What are your longer term projections for oil prices say 3-5 years out?

Mish: I think it's a fool's game to make such projections. Most of the projections on the price of gold, silver and oil are ridiculous. They are designed to sell newsletters. The bigger the hype, the greater the sales. On occasion, I will make a call. For example, when crude hit $140+ in the summer of 2008, and others called for $200, I said oil prices would drop to the $45.00 - $50.00 range or so. Oil went to $35.
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Whip sawing oil prices are a result of peak oil stalling the world economy which crashes and demand crashes and oil price crashes the low oil price kick starts the economy again and back to the start. Could be good time for traders :)
Oilprice.com: What is the role of government in alternative energy sources?

Mish: The role of government should be to get the hell out of the way and let the free market work. If peak oil really is a problem (and I think it is), the free market will come up with a solution if left alone.

Instead, the government is trying to pick winners. Look at the results. President Obama backed solar panel manufacturer Solyndra and the DOE loan guarantee scheme blew sky high.

Our ethanol program is a total disaster. By government mandate, corn has been diverted to ethanol production smack in the midst of a drought. Corn is not an efficient way to produce ethanol, even if there was not a drought.

Governments seldom back winners. Instead, government bureaucrats back companies that contribute to their campaigns. This is worse than it looks because such activities deprives companies with real solutions a chance at funding.

We need to get government out of the energy business completely and let the free market work.

Oilprice.com: Sticking with the renewable energy theme, do you see them making a meaningful contribution to global energy production over the next 10 years?

Mish: Adding to my previous answer, government subsidies of unviable products and unviable ideas gets in the way of the free market actually producing viable products and viable ideas. Simply put, the more government interferes, the less likely we are going to see advances in the actual direction of a true solution.
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Good interview... am always double guessing my self in the inflation vs deflation debate
 
Energy = control

The government will never relinquish their hold on energy. They will impose tariffs, taxes, embargoes, start wars, confiscation, licensing, or nationalization. Its just too important a tool in controlling the masses for them to relinquish to the "free market" (nice euphemism for bankers)
 
sprite said:
Energy = control

The government blah blah nonsense conspiracy
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Yes.
No.
Government is only following orders. Surely Rhinheart alone is enough to clearly point this out. It was not the government that came first. It was the tycoons/magnates that came first. Before and after JPM. The Monopoly Board game is not based on the government.

I must be old.
 
Oil will actually go down and stabilise around 50-75 if deflation persists.

Global trade is not collapsing, just severely reduced due to reduced spending.

Australia is a great customer to china, usa and germany. Do you think they will make it harder for us to buy their product?
 
Water&Food said:
To answer title:
- Yes.
- Up.

205L Caltex Delo 400 Multi 15w40, and that is all you need to know. Shop around, under $900.

Send me the skid pallet when you finished as a thank you.
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Something I've noticed is that the retail price of engine oil has hardly changed over the years, e.g. a 4-litre pack of 10W-30 engine oil is $30; I'm pretty sure it cost about the same ten years ago. Petrol, on the other hand, has doubled in price.

Might be a different story when buying in bulk though?
 
Gold Kiwi, it changed. Dilution. ;)
Remember, there were less synthetics yesterday when compared to today. Lab Hydrocarbons. Additives added. Detergent added.

Propane is the only fuel that has an indefinite shelf life. Problem is storing the bulky cylinders.
LPG for vehicles (autogas) has Propane and Butane. Each State has different percentage regulations. W.A. seems best with 95%+ Propane to >5% Butane.
What you want is Propane, not Butane.
Another reason why rural towns are better, we don't have a great fleet of trucks delivering fuel, just the one tanker. I can tell you the gas sold for domestic bottles is the same gas sold for autogas. Propane 95%.
I'm not going to inform how you can fill up bottles legally, not the place.
Anyway, I don't recommend buying Propane from designated LPG Autogas pumps, even the bloody store clerks (attendants) do not know what is what. Only the truck drivers and store owners.

The linked engine oil above is a proven good all rounder.
I can tell you from personal experience, not only 4WD, but it is a fine substitute for Honda and Yamaha gensets too. Been keeping an eye on the gennies with thermometer. Slushes around fine. Doesn't go like water (re: viscosity).
 
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