Tuesday, February 15, 2011

Paper oil Decouples

Paper oil has now officially decoupled from the price of real crude.  Brent is above $100 while West Texas Intermediate pulls back to $84.  Unbelievable price action, but anything is to be expected when the financial ship sinks into the current seas.

Paper is getting its just desserts.  It has no ability in finance when the chief officers, the US Treasurie and Federal Reserve, are bankrupt too.  IOUs and debt obligations are a thing of the past.  Collaterial will now dictate global trade.

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