I saw something interesting on the Communism Channel (CNBC) last week.
The Fed Funds Rate is currently 0%, but only insiders may borrow at that rate. Due to a deflationary depression/recession, the price of oil has crashed substantially from 2008 highs. High inflation is practically guaranteed over the next year, and the price of oil should start skyrocketing again soon.
Some bankers and hedge fund managers are exploiting the situation. They are buying old oil tankers, filling them with oil, and parking them in a dock until the price of oil starts going up again. The traders are borrowing at 0% to buy oil, and waiting for inflation. In times of hyperinflation, borrowing to buy tangible assets is very lucrative.
The traders/communists were saying "What a lucrative trade! Borrowing at 0% and buying oil! What a genius trade!" They pointed out that the average person could not get in on this arbitrage opportunity. Only insiders with billions of dollars in capital may make this trade.
This is one example of insiders looting and pillaging via the Federal Reserve. When you soon pay $5+/gallon for gasoline, some of that money will be going to profits for these traders. The only way to prevent insiders from stealing from you via money supply inflation is to use sound money (gold or silver).
Tuesday, January 13, 2009
Insiders Exploit Cheap Oil Prices
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2 comments:
I have thought about this at work. I could get a bunch of people to invest in an old oil tanker, fill it, hold it and sell it than split the profits with everyone invested. Sure we can't barrow at 0%, But we could consolidate our investments and purchase oil as a shared investment.
We would just have to work together.
Fritz
Actually, At work we came up with a plan to buy the rights of an old used up oil well.It should be near the coast and close to a port that could off load an oil tanker. Than buy a bunch of sweet crude oil at the current low cost. Fill the dry well with our oil. Than sell it when we thought the price was right.
I think its doable, but we were just having fun with the idea. Actually It was my idea, and I couldn't find any potential investors, and I don't have any money to invest anyway.
If I did I would buy silver or gold or both!!
Fritz
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