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12 May 2011


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William R. Cumming

Japan cancelled orders for 15 new nuclear power stations. Going green? Geothermal?


The Fed has decided, for now, to end QE2 in June and not initiate QE3 although they are doing a stealth QE 2 1/2 by reinvesting proceeds of maturing securities, MBS prepayments, interest etc ... so the free money given to the banks to stimulate their wallets err I mean The Economy is temporarily being dialed down (until the economy starts to slow down again at which time QE3 will be reinitiated and crude oil will spike up again)

My take on it .. of course there are other factors (MENA politics), strength of economy, US domestic politics/fiscal policy..etc

William R. Cumming

Japan just announced it intends to reduce by 15% total electric consumption for an indefinite period. Such an announcement by the USA would totally collapse the world oil market IMO.


American interest rates have now been at zero for a long time.

The dollar is the reserve currency, and oil is priced in dollars.

It is a miracle that oil does not cost $1,000 per barrel. Look at gold.

You are absolutely right, in other words.

Long term? Ah, what is the long term? What is the answer to that question? Next year? A decade from now? IMHO it is the day after Obama is re-elected.


Saw this headline this morning: Exxon Mobil CEO Says Big Oil Needs $21 Billion in U.S. Aid


This is an interesting twist to the sister of oil -- natural gas. Seems that the fracking they've been doing has upset the methane beds and let them loose into the underground aqua-furs. So when one goes for a drink of water at their tap, they not only get water but they get water with a kick.

Fracking Linked to Flammable Drinking Water

William R. Cumming

Personally believe water resources will run out long before their availability to produce energy.

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