Twas the Friday Before Christmas

ilene's picture

Twas the Friday Before Christmas

Courtesy of Phil of Phil's Stock World

Really guys! 

Don't we all have something better to do than watch the markets today?

Even the crooks at the NYMEX are going home at 1:30 pm, sacrificing an entire hour of losing money to us to be with their strippers. That's right we OWNED those people yesterday, hitting play after play on the oil Futures, all based on our very simple premise that if the crooks at the NYMEX want to pretend they want to buy a barrel of oil for $100 - we are very happy to promise to sell it to them! 

Over and over they pretend to want to buy oil at or near $100 and over and over, as soon as we (real people) start accepting their offers, they quickly dry up and retreat.  

This is how you beat the scam artists, call them at their game.  

At 3:00 am this morning, they jammed oil up to $100.23 and at 3:51, in Member Chat, we were able to jump in and short the oil Futures (/CL) at $100 and by 5:30 we were out at $99.60. That may not seem like a lot but, at $10 per penny per contract - it buys a lot of Egg McMuffins! 

As I'm writing (7:35 am), we caught another run up to $100 and already it's back to $99.66 on fake, Fake, FAKE trading. Yes, they are faking it.  ALL THE TIME. It's a SCAM - Oil trading is a scam, a lie, a con - and it's played on the American people every single day and no one does a thing to stop them.  

Screen shot 2011-12-23 at 1.17.21 PM
Do they REALLY want to have 252M barrels of oil delivered to Cushing, OK in February? No, of course not. Aside from the fact that Cushing can only physically handle, if it were empty (which it is not) 40M barrels a month - we are, in fact, EXPORTING oil products out of America as our usage of oil is down 10% from last year (see chart in yesterday's post).  DESPITE a 10% reduction in refiner output, which helps to create an artificial shortage by the US energy cartel so they can charge the American public much more for less - we still are at RECORD levels of oil and product storage in this country.  

So why do the NYMEX traders pretend to want to buy February (front-month) oil for $100 a barrel when December 2014 barrels are trading at $91.37?  Because the front-month pricing determines what US consumers pay at the pump and even if the traders take a $10 loss on 250M barrels ($2.5Bn), that is just a drop in the bucket compared to the relentless price gouging at the pumps committed by the Evil Corporations that employ those traders.  

Americans consume 11Bn gallons of gasoline a month along with 5Bn gallons of distillates and 7Bn gallons of other products. Last year (when we consumed 10% more), a gallon of gas was selling for $2.98 and now it's $3.23, up .25 - that may not seem like a big deal but multiply that by 23Bn gallons and you have $5.75Bn of excess profits (and that's giving them that $2.98 is "fair" in the first place) stolen from the American people EVERY MONTH. And don't worry about the oil cartel - they aren't losing $10 a barrel at the NYMEX, maybe a dollar or two on average but worth every penny of $500M to have an excuse to charge consumers an extra $5Bn each month, right?  

From The Asylum: The Renegades Who Hijacked the World's Oil Market:

The Asylum: The Renegades Who Hijacked the World's Oil Market

The underlying problem in the oil market and in the broader market in this country is that ordinary Americans are now seen as a resource to be exploited by those who are in power – by the wealthy and by those with political influence. We’re seeing Washington and Wall Street working so closely together that you really can’t tell the difference between them anymore. The figureheads of each like to go back and forth between both locations, picking jobs, then switching and going back again. The government officials we are trusting and paying to look out for Americans are using those positions to get really nice, high-paying jobs in private-sector places, including Wall Street, that are effectively being used as bribes. - Leah Goodman, The Asylum

Last night, the White House finally forced Boehner and his Congressional posse to extend the payroll tax cuts (and Boehner's quote: "Why not do the right thing for the American People, even though it's not exactly what we want" is sure to be the official Republican slogan for 2012!) of $140Bn and NO ONE denied that $140Bn is a lot of money yet NO ONE does anything about the $400Bn PER YEAR that consumers are now paying for oil ABOVE what they paid just 2 years ago.  

What's really sickening about being ripped off for $400Bn a year isn't just the 10,000,000 $40,000 jobs that $400Bn a year represents and it's not the $400Bn boost to consumer spending, not even counting the potential new wage earners, that would go to industries that actually do create jobs in this country - it's the fact that at least half of the $400Bn that the crooks at the NYMEX are stealing from us every year ($2,850 per tax-payer) is being sent overseas and tens of Billions of those dollars go to fund the very people who are killing our troops overseas as well as forcing us to spend countless hundreds of Billions of Dollars more to defend ourselves against people who buy our own weapons with our money to use them against us.  And then, THEN THEY USE THE WARS AS A REASON TO RAISE THE PRICE OF OIL - MADNESS!  

So Merry F'Ing Christmas to all the Corporate crooks and their pet politicians, who are selling this Nation and its once-proud people down the river to line their own pockets. Forcing people to overpay for necessities like food, fuel, housing and health care has created the largest wealth gap in recorded history for a developed nation.  Our Gini Score (income inequality) of 41 is certainly better than Botswana's 60 but a far cry from Canada or Japan's 25.  Even Bangladesh scores a 31 while our neighbors in the low 40s include China, Congo, Cambodia, Ghana, Morocco, Nigeria, Qatar and Mother Russia.  

Even Pakistan manages to score in the low 30s because, they may be poor, but the top 1% don't have all the money.  Our top 1% have 40% of the money - that's pretty bad - that IS NOT SHARING!  Isn't Christmas supposed to be all about sharing? Unfortunately, as sickening as these statistics are, they are getting worse. Our score of 41 was last officially measured in 2000 but the estimates are that things in the US have gotten 10% worse (or better if you are in the top 1%) since then and our score is now 45 - one of the 10 worst on Planet Earth!  

Or, if you are in the top 1% - one of the 10 best, right?  

Go ahead, ask any warlord in Zimbabwe (rank 50) or Congo (47) and they will tell you that NOTHING needs to change.  It's the greatest country in the world when you are the one at the top - just like America!  

Click here for more charts and graphics on America's plutocracyPrinceton political scientist Larry Bartels studied the voting behavior of US senators in the early '90s and discovered that they respond far more to the desires of high-income groups than to anyone else. By itself, that's not a surprise. He also found that Republicans don't respond at all to the desires of voters with modest incomes. Maybe that's not a surprise, either. But this should be: Bartels found that Democratic senators don't respond to the desires of these voters, either.  At all!

It doesn't take a multivariate correlation to conclude that these two things are tightly related: If politicians care almost exclusively about the concerns of the rich, it makes sense that over the past decades they've enacted policies that have ended up benefiting the rich. And if you're not rich yourself, this is a problem. First and foremost, it's an economic problem because it's siphoned vast sums of money from the pockets of most Americans into those of the ultrawealthy. At the same time, relentless concentration of wealth and power among the rich is deeply corrosive in a democracy, and this makes it a profoundly political problem as well.

Whoever loves money never has money enough; whoever loves wealth is never satisfied with his income. This too is meaningless. -  Ecclesiastes 5:10

Have a very Happy Holiday, 

- Phil

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steve from virginia's picture


It's a good thing Phil of Phil's Stock World was able to make $600 bucks or so every few minutes. He didn't have to dig any holes or install sheetrock over his head to do so.

Is America a great country or what?

The theory here is crude prices are manipulated higher causing wasteful Americans to 'suffer'. This is while billions of gallons are burned through every single day for what, exactly?

Meanwhile, the Chinese and Indians have started buying fuel using dollars they obtained by selling worthless junk to the same suffering Americans. They spend enough to push up the price, the Americans and Europeans have to borrow from themselves in order to keep bidding in competition with their suppliers of worthless junk.

Can anyone see the pattern? Money without work, consumption with any return, export of demand, borrowing to support all of the above.

Phil of Phil's Stock World insists the foregoing is a business plan that should be rewarded by way of lower prices for the one real good in question ... which is undervalued even when subject to 'manipulation'! Insane!

Instead of lower price, the good should be repriced 10x or 20x higher. Certainly, after 100 years a better use can be found for 'black gold' other than burning it up for nothing. At the current artificially low price only the vested and obsolete interests benefit -- car manufacturers, real estate speculators, highway construction, coffin makers.



Yen Cross's picture

 Some one give me a " Sovereign Downgrade" , next week!  SARC/ off

steveo's picture

Check out the Steveo 2012 Telescope Project, not just for Astro-freaks!
Really good Scope, I put up a video collage of moon shots, and some picture of Saturn and Jupiter.
Also, fully $1000 over budget, so any Christmas Kliks are appreciated!!

onlooker's picture

If one feels that the World is askew and desires to gain some control of their own lives, the control of Government is where to start. If the populace does not control the Government, there can be no control of anything.


It appears that visible/tangible financial markets/entities within the US are out of control and outside the arm of the law. London may be worse. Considering the oil trading may include not only the US and London, but Saudi, Kuwait,  Iraq, Iran, North Sea Countries, parts of Africa, parts of South America, Canada, Russia, China (with a couple of $s and no National reserves) and the rest, it is beyond my comprehension how that can be governed or controlled.   


The question of using up all our petroleum resources before we consume those of the rest of the World appears an apparent answer. We save our own to be the last man standing.


Of course drilling bans appear lame, but make sense for an oil savings account.


The one item that is not railed against is the destruction to US under water systems, aquifers/underground lakes. These are being destroyed by pollution from chemicals used to frack/break underground formations to release natural gas. Unlike destroying a forest, or a financial system, or lives, this is a total loss for thousands of years and critical water supply for the US.


IF you want to beat up the oil cartel, here is the place to start. Save America first, and do it now before we loose more of the most precious of commodities, WATER.

weyes1's picture

Merry Christmas everyone.

Santa is now a terrorist too.

ThisIsBob's picture

Hasn't it always been the case that just a few guys in the village end up owning most all the goats?

I am Jobe's picture

So Goat leasing might have a leasing market.

Never let a good crisis go to waste. - Who said it again?

I am Jobe's picture

USA is the shining light of the World when it comes to Oligarchy Rule and Corruption. F the politicians. Can i now have my all paid expense vacation on a private jet?

sun tzu's picture

Oil prices are the same in Asia and even higher in Europe. I guess they're the honest ones.

swani's picture

I've been talking to people about this for a long time. Oil is a commodity that should be treated like a utility because in the US, it's as necessary as water. We know the politicians that we elect to protect the people from price gouging and abuse, are just the front and the muscle for criminal cartels. People have to fight back and get off their grid as well as resist them in every way that we can. The best way to fight evil is to make energetic progress in the good. I am not a hippy, let's be clear. 

But this Christmas, I had my mom's Mercedes converted into a Lovecraft so she wouldn't give a penny to the Oil Industry. I used to make fun of my hippy friends in LA when they all started converting their cars to use vegetable oil because I wasn't about to get down with the environmental, vegan craze, trend du jour, but today, it's not about the environment, it's about resistance to the thieves, and that, I am down with 100%.

sun tzu's picture

Oil is a commodity that should be treated like a utility because in the US, it's as necessary as water. 


That would be fine if we produced all the oil we used. We don't import coal, NG, water, or wireless sprectrum. How is the government going to pass a law dictating oil prices to other countries? The only thing this would lead to is the government aka taxpayers buying oil from other countries at $100 and selling it to refiners at $50. Taxpayers get screwed again. 

11b40's picture change the futures law and stop trading by those not capable of providing or accepting physical delivery.  End of game.

JuicedGamma's picture

Phil I once enjoyed your writing. Now you've become Chris Mathews rolled into Glen Beck and your missive boring.
If you hate the oil oligarchy so much, why play their game. Go ahead invest in orphan homes or prison stocks, at least you'll be able to sleep at night instead of trading Nymex contracts into the dawn.

swani's picture

@Juiced Gamma

Investing is all fine and dandy, but you can't possibly enjoy getting fucked by the people that you elected? Or can you? You can't enjoy feeling powerless over what people are getting away with doing to your fellow man.

Even if people can afford to be raped at the pump, by Visa/Mastercard, or by JP Morgan taking their segregated funds, they can't possibly enjoy the feeling, or enjoy watching other less fortunate people suffer because of it.  

And if people don't like it, they have a responsibility as human beings to protest and resist injustice. 

Merry Christmas. 


toadold's picture

Historically speaking power both economic and political tends to become centralized and larger. Spain and France are examples. Then "power corrupts" and greed grows.  The thing is corruption rots not only the mores but also the intelligence and the powers that be start doing stupid things and the once powerful nation slides into status of "has beens" or suffers through a harsh revolution.  The "Manddate of Heaven" becomes the reign of Hell. In my more cynical moments I think the best thing that could happen would be war amongst the rats were they kill off enough of each other that the rest of us will have a chance to at least control the surviving rats, force them into hiding at least.

Harsh words to follow. 

Questan1913's picture

Really superb article that describes the criminality rampant in America.  Yes America, you are being ROBBED BLIND, it's not just your imagination.  But what can you do about it?  Stop tolerating it.

LongBallsShortBrains's picture

As zerogov would say 'quit paying taxes'.

AldousHuxley's picture

You can always do what people have done in history:

  1. fight for a revolution
  2. leave the motherland


Americans will find that #1 is not so feasible as they would have thought of a "democratic" "freedom loving" America they were brainwashed to believe.


Americans will also find that #2 is not so feasible because unlike "free market" America, they have  a very strict immigration policy favoring their own citizens for jobs and unless you are a citizen you can't own homes or land.


I guess #3 would be set yourself on fire.

AnAnonymous's picture

Americans will also find that #2 is not so feasible because unlike "free market" America, they have a very strict immigration policy favoring their own citizens for jobs and unless you are a citizen you can't own homes or land.


Made me laugh. Sure, sure.

That is it is how it is, really.

You do not need US citizenship in the US. And US citizens from US of A are not hired abroad on the sole merit of being US citizens from US of A because foreign countries have a policy favouring their own citizens.

prains's picture

Big oil wants a bigger war than Iraq and needs hungry unemployed serfs to fill the ranks,kill wages,jobs,prospect of job,voila! Motivated fighters, should take about 18 months to complete necessary reeducation without use of false flags.

non_anon's picture

a Christmas Carol

the ghost of Jekyll Island still haunts the land


Picture a party of the nation's greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily riding hundred of miles South, embarking on a mysterious launch, sneaking onto an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned, lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance. I am not romancing; I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written... The utmost secrecy was enjoined upon all. The public must not glean a hint of what was to be done. Senator Aldrich notified each one to go quietly into a private car of which the railroad had received orders to draw up on an unfrequented platform. Off the party set. New York's ubiquitous reporters had been foiled... Nelson (Aldrich) had confided to Henry, Frank, Paul and Piatt that he was to keep them locked up at Jekyll Island, out of the rest of the world, until they had evolved and compiled a scientific currency system for the United States, the real birth of the present Federal Reserve System, the plan done on Jekyll Island in the conference with Paul, Frank and Henry... Warburg is the link that binds the Aldrich system and the present system together. He more than any one man has made the system possible as a working reality.[

PulauHantu29's picture

Another year of record bank bonuses?

Dirtt's picture

I hit CRT-F to search for the word SOROS.

What returns to me is nothing but WHORE-OS

No one is saying the GOP is grand

But let's not pretend the DNC is bland.

Phil is solid at market perspective

But Phil takes it in the ass when it comes to irrespective.

jack stephan's picture

get this set for yourself for xmas

(talking about Vorenus) Mark Antony: He let Pompey go and you let him live?! The man should be made an example of.  

Caesar: Any other man, certainly. But those two, they found my stolen standard. Now they survive a wreck that drowned an army and find Pompey Magnus on a beach. They have powerful gods on their side, and I will not kill any man with friends of that sort.


Ned Zeppelin's picture

Cindy Lou Who is in the Witness Protection Program, the Grinch roams free, the LTRO is a dud, Italian 10 yr is back near 7%, the meltup crowd got their mini-Claus rally today as the S&P rose on no news, and the elves at the Fed are hard at work on toys for next year.  

I'm going to take your suggestion and tune out for the weekend.

Merry Christmas to all, and to all, a good night. 

Jumbotron's picture

Cindy Lou Who who wears a Dragon Tattoo.

Is going to kick some bankster ass,

And the Banksters all will cry Boo....Hoo.

Sunshine n Lollipops's picture

Boner's Freudian slip speaks volumes.

ebworthen's picture



"At the same time, relentless concentration of wealth and power among the rich is deeply corrosive in a democracy."


And it is not a Republicrat or Demican problem, but one of a Legislative and Judicial branch comprised primarily of equivocating attorneys that has allowed the rape of Lady Liberty and the Rule of Law.

Shame and damnation upon them, as wailing and the gnashing of teeth is the outcome for the guilty and much too many of the innocent in the end.

swani's picture

It's not just 'the rich'. There are plenty of wealthy people who are very ethical and would never steal the segregated funds of farmers and ranchers, that would never knowingly speculate with commodities that would drive the prices of food up and cause people to starve to death. Being wealthy and ethical are not mutually exclusive traits.

And it's the not just 'the rich' who are a problem here, the middle and lower classes that allow themselves to remain ignorant and opiated by shopping or watching brain killing reality shows with their free time, doing absolutely nothing, while they and their fellow man is being raped and pillaged by the government and their corporate handlers, are just as responsible for what is happening to them, as the people profiting hand over fist from this behaviour.  

There are no victims in this, only volunteers. 



rwe2late's picture

No "victims"? Only "volunteers"?

Equal guilt, equal responsibility of both abused and abuser, those who command armies and those ignored?

Assuredly, we, each of us, can be faulted for all we could have said, or could have done, and did not.

 But to assign equal blame to both victims and perpetrator, and also those who might have done something that may or may not have prevented the abuses, abuses likely concealed by the abuser? Latin America, for example, is full with the graves of those who unsuccessfully opposed dictators.

Obviously,  generalizations by class should not be construed as automatic blame or exoneration of each individual within a class for abuses of their fellow man. 

However, one need not be religious to appreciate the wisdom behind "It is harder for a rich man to enter heaven than for a camel to pass through the eye of a needle."

Widowmaker's picture

100% bullshit.

If you were even remotely correct things would be far better.

Pick anything, morality, ethics, principle, democracy, philosophy, the law, governance, war, foreign policy, poverty, disease, energy, the environment, housing, education, religion, generational succession, money itself, you name it.

Every single life is an abortion in the hands of the rich to be consumed and destroyed. The proof is absolute and all around you.

If that of which you assert were true, any of the above wouldn't be as they are - gutted and destroyed.

Sadly you have no proof, other than blaming the victim horseshit.

Case and point is the future decimated for those that don't even exist.

Xkwisetly Paneful's picture

No doubt!

Take the $12 trillion controlled by the top 1%,

divide it evenly or roughly $4000/hd,

and all envy is gone.

Really nothing better than a bunch of spoiled self entitled 10yos whining about their lot in life all the while living largely like royalty.

It is the best stuff on the entire internet, woe is me while I pound this out on a machine where for most of man's existence would have only been available to the wealthy.