Axioms of the Global Economic Order

Axioms of the Global Economic Order
September 01, 2004

Another big surprise for the bears will be when oil prices continue lower in coming months, as the oil price has already peaked (as predicted in my August 11 commentary, “Is Oil Running Out of Gas?”). This has been another of they lynchpin arguments for a major global recession/depression.
They never tire of talking of “Peak Oil.” (If by “peak” oil they mean the oil price uptrend has peaked, then I fully agree!) Unfortunately for them, the bears have been the victims of a skillful propaganda campaign by some behind-the-scenes interest (probably short sellers who wanted to increase the downside potential in oil by getting everyone to expect a sustained long-term uptrend in the oil price). There is no “Peak Oil”! The world is positively swimming in the stuff, as perpetual oil wells have been discovered in Mexico. There are also numerous capped and untapped oil and gas wells throughout North America and elsewhere. The recent high oil and gas prices were partly a function of temporary supply disruptions (along with a high degree of market manipulation) stemming from the late war in Iraq. But aside from these temporary supply disruptions that occur from time to time, here is one reason why natural resource prices in general will remain at reasonable levels in coming years: the Elites will continue to steal resources from Third World countries, thus keeping supplies high and prices relatively low.

Well Mr. Droke, your If by “peak” oil they mean the oil price uptrend has peaked, then I fully agree! didn’t come true now did it?

http://futures.fxstreet.com/Futures/content/100300/content.asp?menu=review&dia=192004

WEEKLY COMMENTARY
Wednesday, September 1, 2004 7:57 GMT
Weekly Report
By Clif Droke
http://www.clifdroke.com