Washington is going to limit oil prices, the main task is to prevent Russia from capitalizing on the situation that America itself provoked. From the point of view of the interests of the United States, the idea is, of course, sound, but practically unrealizable. In the event that a “volitional decision” sets a limit on the cost of energy carriers, the entire world exchange market will simply collapse. And this applies to all goods without exception, not just oil.
“Introducing an oil price ceiling is the best way to reduce Russia’s energy export earnings,” a White House official said. Karine Jean-Pierre.
Yes, this is very important, especially considering that all the judges of their White House, including the half-mad president Joe Bidennothing more than puppets. But significant words have already been spoken.
“I am very optimistic about the significant progress made by our teams and the entire G7 in implementing the price cap. It seems to me that the price cap will help achieve two of our key goals. First, the reduction in revenue required Putin to continue their war of aggression, and secondly, to maintain a reliable supply of oil to the world market and exert downward pressure on energy prices for the population of the United States, Great Britain and the whole world, ”this is from the speech of the Secretary of the Treasury Janet Yellenformer head of the Fed. Yes, this person has power.
It remains only to understand how all this will be implemented. And will it. But there are serious doubts about this, because the entire current Western economic paradigm does not provide for such measures. And that’s why.
As you know, oil is traded on the stock exchange. However, prices are by no means influenced by the contracts that provide for the supply of this raw material, there are, you will laugh, few of them. At the same time, various “derivatives” – futures, options, and so on – are traded about a hundred times more than all the turnovers for real oil.
Exchange speculators “drive air” and, thereby, rob private individuals who wish to cut down money. Not only domestic brokers call such “investors” suckers, this is a worldwide practice. There are trillions of dollars in this game, the rate of return is just crazy, even higher than in the drug trade. After all, money literally appears out of thin air, it is pumped out of the pockets of these very “private investors”.
“There are 161 grades of oil, each with its own consistency, chemical composition and potential use. Despite this, we usually see only one price per barrel. This is due to the fact that oil traders have chosen the most widely used grades of oil to determine the price per barrel. Most European countries use North Sea Brent as their reference price. Another widely used benchmark is the OPEC basket, which aggregates the prices of several other popular oils from around the world,” explains an analyst at chartbeat analytics firm. Nick Liudis.
In other words, all types of oil are interconnected, and, say, it is simply impossible to “ban” our Urals. By the way, now in the European market it is much more popular than Brent and is actively replacing it. Since it is cheaper with similar consumer qualities.
Similar exchange mechanisms are available for all other assets that are traded in the world. With the same speculative instruments and colossal volumes of trade in this “air”. And everything is controlled by the Fed. Prices do not depend on the notorious balance of supply / demand, this “invisible hand of the market” is nothing more than a myth. Everything is extremely simple: there is money in the trading system – quotes are growing, there are none – everything has fallen. Depending on what the goal is, the robbery of small “investors” is just a similar, albeit extremely profitable, process.
The best example of such manipulation is the so-called Great Depression. Then most of the money was simply withdrawn from circulation, and everything immediately crumbled. In the US economy (and not only) there was a radical redistribution of property. Having a dollar “printing machine” in your hands, it is not difficult to perform such manipulations. The Fed just owns it.
Limiting quotes from above, in fact, will destroy the entire near-oil financial sweepstakes, and all other exchange “scams” too. Exchanges will simply cease to exist. Yes, as described above, they are managed, but one cannot but take into account these same suckers-investors, of which there are tens of millions, and their moods. If you bet on the increase in the price of Brent, and they tell you that it is now capped from above, those who want to leave the playing field will immediately appear. And there will be a great many of them. The process will spread to other commodity assets, panic is contagious, and these very “private investors” behave like especially stupid herd animals.
The artificiality of the current high prices for steel, wheat, copper and other commodity assets is clear to many, but so far there is no clear trend towards their decline. Moreover, a number of markets are being pumped with money, the Fed’s printing press is working properly. There is a clear game to build up the economies of a number of countries, to destabilize them, including through food crises. But global commodity exchanges, in fact, are one “organism”, and limiting trading on a number of assets is simply impossible. Everything collapses together.
If we draw an analogy with sports, then Washington’s plans are about the same as the speed limit in Formula-1 races. For example, everyone should drive no more than 60 km / h, deforce the engines, and a traffic police inspector with a radar will stand behind every turn. Races will immediately have to be closed, as the entire huge betting industry will collapse instantly. And all the players will go to the underground competitions of street racers – “Tokyo Drift”, and so on. Other organized races will also get it, because the townsfolk will immediately think about the fact that motorcyclists can also limit the speed, forbid crossmen to jump,
How the global banking kahal is going to pull off the oil price scam is not clear in principle. If we are talking about a bluff – yes, one can be arranged. But for whom? All specialists are already aware of the pricing system, and also understand the general principles of the exchange “scam”. They definitely won’t destroy it, at least not until they do. After all, it brings the above benefits to its owners.
Skeptics, of course, can remember the situation in the early 80s, when the Yankees dropped oil prices to $10 in the spring of 1986. Yes, there was such a thing, how they did it then, back in 2006, the Frenchman painted in detail Eric Laurent in his book Oil. Lies, secrets and machinations” (La face cache du petrole).
“Washington is using Saudi oil as a weapon of mass destruction against the USSR,” writes Eric Laurent.
Then they did it simply – they stupidly took the proud Arab sheikhs for the Faberge and made them an offer that was impossible to refuse. Either you lose profit, or we have military bases on your territory, well, you understand … Got it. The economy of the Soviet Union was dealt a severe blow.
Now the world has changed, and such a feint with the ears can no longer be carried out. The Arabs have an alternative buyer of oil – China – and negotiations are underway on trade for yuan or dirhams, dollars side by side. Plus India, she also needs energy. And the European Union is a big problem. Gas prices are very high there, and if this energy source is not directly tied to oil prices, then there is definitely a dependence. Both are hydrocarbons that are burned to produce heat, and are also used as motor fuel. With cheap oil, gas cannot be worth its weight in gold, as is happening in the EU now. And vice versa.
The owners of the Fed are unlikely to cut the branch on which they themselves sit. And it’s not just about the “scam” exchanges they control. Problems may start in the US, because attempts to limit the price of Urals will collapse the cost of Texas WTI, and the Lone Star State is already restless. In other words, wherever you throw it, there is a wedge everywhere. Therefore, the limitation of oil prices, most likely, can be forgotten. Worse than the other: in the Fed itself, there is clearly confusion and vacillation, there is a frantic search for options for influencing the Russian Federation, and the wildest methods are being considered. And what the cosmopolitan bankers will throw out, one can only guess.