Wednesday, January 14, 2015

Enjoy the cheap gas prices while you can....

Unlike a lot of analysts, I don't believe that the price of oil will stay this low for any length of time.  There is too much in junk bonds and derivatives that will blow up if this continues.  Imagine all those companies that bought hedges in their prices and those bankers and financiers that issued those guarantees.  There is usually a time period when those come due -- and that is approaching very soon.

Unless I am wrong, those that are losing all this money will be doing what they have done throughout history.  They are going to protect themselves and pull every string they can to avoid a bloodbath...especially their own.  They are going to pull on the politicians, and they along with the defense contractors are going to push hard for them to 'do something'.

From my vantage point, there is only one solution for these powerful financial interests:  War.  

History has a nasty habit of repeating itself

Yep, my prediction is that there is going to be war again in the Middle East.  Specifically, I believe there is going to be some kind of false flag incident involving the Saudis.  Take them out and the market can return to its normal level - bankers and hedge funds are saved, the market will be saved,  and people will be making money again from overpriced oil.   War has always been the tool for failing economies of the countries in power.  So history will again repeat itself...

Sevenwind's sad prediction for 2015:  War again in the Middle East.  Its about oil, and was always about oil.   They say it will be about 'terrorists'  and 'extremists', but there always has to be some kind of cover for the real reason to go to war.  Sad but true, just like the unnecessary American blood that will likely flow in the dessert again.

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