Submitted by QTR's Fringe Finance
This is going to be a short thread that should have been a series of Tweets today, but I thought I would take the time to write it out because I found it concerning enough.
Today, two headlines crossed the wire that instantly had me thinking that there’s a better chance today that the U.S. may go to war with Russia than there was yesterday. I wanted to run them down for my readers and get the opinion of my subscribers only in the comments as well.
The first piece of news was the headline that President Biden has decided to refill the very same Strategic Petroleum Reserve (SPR) that he depleted just days ago. Biden literally committed with 30 other countries to releasing 60 million barrels of oil back in March. Oil was about at the same price then as it is now.
Aside from being an asinine idea to begin with (the original release did nothing but prove that Biden was panicked about oil prices and the announcing of an intention to refill it at the same price will only cause the market to bid up oil), it simply doesn’t make much sense. We were shuffling oil in and out of the SPR because prices were rising - but isn’t the point to buy low and sell high?
It doesn’t make sense unless you consider the idea that Biden may actually need the oil. The point of the SPR to begin with is to make sure we have reserves in case supply is interrupted. It’s been reported that the 60 million barrels of new oil could come in “future years”, meaning a couple things: (1) war may not be imminent, but making sure our reserves are stocked has, for some reason, urgently come back into focus and (2) the market will have plenty of time to run up the price in anticipation of the government stepping in and destroying the offer. This means the government would be forced to pay more with newly printed money. This is literally how inflation in markets happens and is made worse by the fact that they are telegraphing the move.
The second piece of news that has me thinking we are preparing for war is...(READ THIS FULL ARTICLE AND PARTICIPATE IN THE DISCUSSION HERE).