fire sale 2 of 4

FIRE SALE? 2

*
note: Malthusian Survivalist Newsletter #6 is already on sale, it has been on sale for like, practically a week, and you have yet to buy it?  What is wrong with you? CLICK HERE NOWWWWW!
*
We just covered current retail practices which negate the possibility of fire sales.  Will anything change so that the dynamics differ?  Again, no.  We can look forward to more inflation, especially once the Petro-Dollar takes a few more hits.  Unemployment will continue to increase.  Purchasing power to continue to dip.  Even if oil prices stay down, transportation costs will increase so even less inventory will be on hand.  In short, this ain’t your daddy’s economy and our consumer based economy is on the way out ( to be replaced by die-off and subsistence farming ).  Consumerism was nothing more than a profit and employment substitution for an industrial economy and since we were consuming petroleum ( in the form of plastics, energy to form silicone and energy to extract the last of the diffuse ores ), once oil started to contract in supply, so does our economy.  If we were still running factories the same would have happened ( now, look at China.  Global demand destruction is idling factory production.  Do you see fire sales?  Of course not.  Every mark-up in the food chain is razor thin and everyone is financed to the max.  There isn’t any discounts in price if you would be selling below cost ) as they are also energy dependent.  Factories, retailers, they are all at the same petro teat which is drying up.

*

( fracking oil was at most a 50% boost in our production.  From five million barrels a day to seven and a half.  We were importing 20 a day, then down to 18 after the ‘08 crash.  18 minus our production, which is continental conventional-Texas and Oklahoma production, stripper wells in California [ which used to be our #2 producer, but that was almost a hundred years ago ] and everything else in the lower 48- AND Alaska [ which is so far down in production from its peak there was danger to the actual pipeline from lack of volume ], AND Gulf Of Mexico deep well production AND fracking all combined was STILL leaving the need to import 60% of our daily petroleum use.  Yet, globally, over half of the producers are in decline and most producing nations are seeing more domestic production going to a growing population which means less for export.  AND, global production has already peaked and started to decline, if we take delivered BTU’s rather than total production- 70 mbpd, verses the reported 85.  Prior to Peak 2005, we were at 75 mbpd globally.   If you go by net energy, the figures are even worse ).

*

Our PetroDollar monopoly, getting Saudi Arabia to only accept US Dollars for oil, which at the time pressured OPEC to do the same, is clearly on its last legs.  More and more countries are trading for Anything Other than Dollars ( AOD’s, my cute twist on IUD’s ).  Countries we can’t invade to send a message to the others to tow the line, like China and Russia.  It worked in Iraq, except then it didn’t work as instead of being fearful everyone started to fixate on getting out of the US orbit.  The US drove most countries into the eastern axis, giving Chinese and Russian the geopolitical power they didn’t have yet.  We shot ourselves in the foot, an easy thing to do when you run a country for profit rather than power ( such as when you piss away your petroleum on suburbs and vacations and bankers growth.  Russia still has enough reserves to ensure military security, despite pissing a lot of it away for operating capital.  They pissed away a lot less.  Even their version of Vietnam used far less resources than our long distance failed war ).  The Petro-dollar is doomed, and that is baked into the cake.  Timing is the only question.  Without the world subsidizing our economy by holding Treasuries ( which are used for petrol purchases, NOT as investment bonds ), inflation is going to get a lot worse.  Even if you were to see fire sales, as improbable as that is, your stashed dollars for such an event will be inflated away to nothing.

More Next Article

END

Please support Bison by buying through the Amazon ad graphics at the top of the page.  IF YOU DON’T SEE THE AD, DISABLE AD BLOCK ( go to the Ad Blocker while on my page and scroll down the menu to “disable this site” ). You can purchase anything, not just the linked item. Enter Amazon through my item link and then go to whatever other item you desire. As long as you don’t leave Amazon until after the order is placed, I get credit for your purchase.  For those that can’t get the ads because they are blocked by your software, just PayPal me occasionally or buy me something from my Amazon Wish List once a year. Or, buy the monthly magazine.  Pay your author-no one works for free.  I’m nice enough to publish for mere Book Money, so do your part.

*  My monthly newsletter: search at Amazon under Kindle “Malthusian Survivalist Newsletter”.  * 
*Contact Information*  Links To Others*  Land In Elko*  Lord Bison* my bio & biblio*   my web site is www.bisonprepper.com
*My books: http://bisonprepper.blogspot.com/2015/04/my-book-links.html
* By the by, all my writing is copyrighted. For the obtuse out there