Tuesday, January 13, 2015

Greed reaps it's own reward

If one decides to charge ever increasing amounts for a product, because you have cornered the supply market, and have decided you can get very rich, then life is good, but only for a while.  When a new source opens that you cannot control, then you have to sell more and more for less just to break even.   It will finally dawn on you that life will never be like it was in the good old cartel days.  The world is awash in oil and gas.  The Saudis and others have to sell a lot cheap otherwise the world will keep on buying from American frackers.   How low will it go for how long? No one knows.

Oil Prices Continue to Fall

It's dumb to have an economy and political order that depends on one thing--oil.

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