Monday, April 20, 2020

A Very Short Post.

I am still in awe from many people who still exercise illusions that manipulating, OK, printing, currency, makes any difference--other than hyperinflation down the road, of course--for real economy in a sense that tangibles, allegedly, do not matter. Well, actually they do matter and "free market" delusion is taking a horrendous beating these last weeks. Judge for yourself:
As I already stated many times before--I am not oil industry specialist, but I sure as hell, as do most people, understand the difference appearing between costs and prices. Fair, non-manipulated that is, prices. I understand desperation of a title in Oilprice's article: 
But can we really cut the BS and speak in broadsides? Where did they see "free markets"? What kind of a unicorn is this thing. A white board abstract taught in useless "economics" programs in universities? There are NO "free markets", there never was, only geopolitics, geoeconomics and bottom line. Bottom line now is that Saudis do not like US shale oil, Russians also do not like it. The rest are fantasies by journos from the US "economics" house of smoke and mirrors who have to now live with the reality of not just 2 million (or whatever was announced after OPEC++ meeting) bpds cuts but, it seems, more like... drum roll... half of US whole oil industry output. 

Of course, there is this way of printing a shitload of USD to "support" the industry but one cannot cheat economic laws which are supported by empirical evidence--you print more money, you begin to turn into Zimbabwe, simple as that. That is, unless you force the world to absorb your hyperinflation. Good luck doing it today, very few takers are out there, if not to count economically "soft" and poor third world. Or as FT notes: 
My question is, are they even capable to answer the main question of who the REAL zombie is. I know who and it is easily found in NYC at Wall Street. Good luck killing it, before it kills you.  

The May contract for U.S. West Texas intermediate crude oil (CL=F), which expires on Tuesday, dropped 93.5% to $1.19 per barrel as of 1:34 p.m. ET Monday, hitting a record low. The June contract for the commodity (CLM20.NYM) dropped 12.23% to $21.97 per barrel.

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