Things are spinning out of control

… Richard Maybury in his newsletter Early Warning Report notes that “81% of all the world’s oil deposits” are in areas (which he calls “Chaostan”) that are always kicking up sand with each other, and that his best guess is that “the Third World War and the war economy will last at least two more decades.” He recommends that you load up on oil, gold, silver, platinum, defense industries, commodities and US rural real estate.

Along the same lines, Gary North of DailyReckoning.com writes “Six months ago, an analyst group made up of former top-level U.S. government officials calculated a global oil scenario. In this extremely likely scenario, just 3 minor disruptions in the already-strained world oil supply chain cause $150-a-barrel crude prices, a $5.32 pump price for gas, more than 2 million jobs lost, and a 28% drop in the S&P 500.”
Well, if oil is going to get more expensive, what about natural gas? Les H. writes that a guy named Dr. Jean LaHerrere has models that “suggest that in about 4 years the supply of natural gas will be about 1/3 to 1/4 of today’s supply.” Another guy named Matt Simmons “has done extensive analysis of similar data and expects a severe drop in natgas supply soon.” As an aside, we learn that “The Peak Oilers refer to this coming crisis as the ‘natural gas cliff event.’ “

Speaking of oil, Les H writes to say that “Dr. Colin Campbell has a Ph.D. in geology from Cambridge U points out that we now know the origin of oil. Ain’t from dead dinosaurs. There were two very warm periods in the planet’s history, one 140 million years ago and one 90 million years in which “huge marine algal mats grew and settled to the bottom of the ocean. Now, to make oil from dead algae, the algae must spend some time at least 7500 ft below sea level, but no more than 15,000 feet below sea level, to turn the residue into oil. Too deep, and it becomes natgas. Two shallow, and it is only oil shale.”

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