Letters to the Editor
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Peak Oil, or Peak Fiat Currency
While crude oil prices are rising nominally, in real terms they continue to decline. Against a backdrop of central banks manipulating their currency, causing monetary inflation, and falling commodity prices, while deflation takes hold in real terms, the tendency is to withhold supply. Oil grows more dear, which is a better word than cheap, while the money continues to expand. Hyperinflation is just around the corner, why sell your product at deflationary fire sale prices.
In one recent month the producers went net long in Copper, which is almost unheard of. Producers short the commodity to protect themselves from a drop in prices, but futures contracts contain the right to delivery. Even if the price falls, you keep your own product.
Peak oil is a huge fraud, prepetrated for reasons of national self interest, against the cunning and self interested Central Bankers of the major industrial countries. One huge fraud deserves another. At the extreme Americans can expect another oil embargo, who says history doesn't repeat itself. Only history tells us that was OPEC's way of playing politics with oil, when logic tells us that oil should be a bit more scarce, and the price should be rising not only in nominal terms, but in real terms as well.