And are they finally losing their grip?

CNN, CNBC, Bloomberg, FoxNews… one wonders… if this was 1929 would the psychology of the crash have happened?

Go read this link from Financial Sense.com:
http://www.financialsense.com/fsu/editorials/willie/2008/0702.html

Now the Intl Monetary Fund has decided to conduct an investigation into the financial management of the US banking system! This is totally unprecedented. The German journal Der Spiegel wrote that the IMF had informed US Federal Reserve chairman Ben Bernanke of its plans for a general examination of the US financial system. The IMF board of directors has ruled that a so-called Financial Sector Assessment Program is to be carried out in the United States. This, according to the German journal, “is nothing less than an X-ray of the entire US financial system… No Fed chief in US history has been forced to submit to the kind of humiliation that Ben Bernanke is facing.” For some reason, the entire story escaped the intrepid lapdog US press network system.

I just wanted to say Happy Canada Day! Didn’t get a chance to post yesterday, I was out at the Parade and then enjoying the sun with my daughter and 1yr old sun.

141 years never looked so good on a country!

Vive Le Canada!

So will today, June 22, 2008, be the day the world began to change?

Unless you’re living under a rock, you know that energy prices and anything associated with it (which i is everything) have been going through the roof.

You likely also know about the meeting today between Oil Consumers and Producers (or more precisely, “importers” and “exporters”) today in Jeddah, Saudi Arabia.

Basically, the consumers of the world are starting to freak out. Especially the United States as they have had the easiest energy road in the past 60 years and are feeling the deepest effects in terms of affect on the economy. (There are other countries where people are unable to eat because of the energy prices, but whatever, they just need to suck it up right? *gag*)

Anyway, the crux of the post is this.

Saudi Arabia has pledged to boost production to 12.5mbd by 2009.

GREAT! We’re SAVED!

But wait… as you can see here they promised that in 2005 and again last year.

And the result? Since 2004, production has remained flat at around 9.5mbd.

So what does that tell YOU? I know what it tells me… it tells me that they’re just blowing smoke and are telling everyone (you, me, “speculators”) what they want to hear to keep prices down and the pressure off them from their allies, and biggest customers, in the West.

Well. Today, after all the gnashing of teeth by Presidents, Prime Minsters, Energy Ministers and Secretaries… we get more of the same… nothing. And today, the message our Presidents and Prime Ministers and the MSM are taking home is “conserve”. “Turn the lights off”.

This is called the energy plateau, folks. Lets hope the inevitable decline isn’t too steep.

addendum: and it looks like oil markets are currently agreeing with this sentiment as they opened a few hours ago in Asia.

I presented the linked PowerPoint to Council on June 9. It went quite well, the response was good. There were some common misconceptions that the Councillors brought up around refining capacity and the role of Venezuelan leader Chavez, which are both common distractions, but not the root of the problem.

If you’d like to see the powerpoint presentation you can download it here, it includes my script/talk as well. Or you can view the Movie Here.

If you plan on using the presentation. Please do not use the first two slides with the old pictures of Port Alberni as they are the property of BC Archives and you need to contact them to gain their permission. (Which is actually a very easy process, credit to them).

Source

An interesting bit of perspective I stumbled upon tonight… from 1976, this is from the Hansard for a debate during the 31st session of Parliament at the BC Legislature in Victoria.

MR. WALLACE: Mr. Speaker, the issue is unquestionably complex. I think there are few subjects on which the public are more confused when we think back to the literal panic that occurred soon after the OPEC action and people were lining up at the gas pumps at 5 o’clock in the morning on the pretext that there would be a great, sudden shortage of supply. They are also confused that within two or three years the so-called experts in Canada can turn around…. In one voice they were telling us that there were enough reserves till the year 2010, and now we’re going to be out of them in 1980.

1 could go on and on reciting the recorded facts and figures which are causing the public to be confused, but I must say this: the Premier’s statement today does nothing to clarify some of the contradictions which are certainly existing in the minds of the citizens of this province and in the minds of many of the people who have to write the legislation.