The Criticality Draws Near
It's been an amazing journey this last year. I have to give it the White House and the Federal Reserve. They've done an amazing job of keeping their wealth through the power of the printing presses, while the rest of the economy continues to swirl around in the bowl. Heck'of a job Larry Summers! (And friends)
The following graph is provided, courtesy of William Tamblyn.
William pointed out an error in my post.
I had originally posted that the the revision was downwards, in fact they are repeatedly revising it upwards.
I'm curious if this trend will hold. Usually the EIA numbers are optimistic. They make downward revisions, but take their time getting them out. Why the rush to make upward revisions?
I'm still suspicious. Our system is so screwed that I don't know what information can be trusted. And the EIA has never been a trustworthy source for recent data.
I continued the rest with that misreading of his analysis.
If we couple this with the explosive growth in the economics and fraud in the financial industry, we can see that we have a perfect storm brewing.
If you haven't read it, I highly recommend you read, 'Matt Taibbi: Courts Helping Banks Screw Over Homeowners'. It details the extent of the crime and fraud that has become the court system in Florida's new Rocket Dockets. In these new dockets, the judge's job is to get homeowners thrown at out at the fastest pace possible. And as Matt details, very often there is no cause to throw them out. The banks have just been sloppy in keeping track of payments and documentation.
The reason for foreclosing on homeowners that have kept up with their payments, is that the banks are drowning deep under fathoms of red ink. They've been committing fraud and have amassed a nuclear powder keg of liabilities that they will never be able to cover. All the government can do to keep the massive fraud from putting the rotting undead corpses of the banks in their graves, is to help them commit more frauds, in a great Ponzi scheme of ever increasing frauds.
Make no mistake with the $billions in free Fed money still flowing like great rivers into the major banks, they still have a great deal of power over their pawns in the seats of power in our governments. There is likely to more ways that they can think of to steal more money. But as the world economy continues to contract at the street level, the money flows and the great black holes of unquenchable debt from fraud, are in a collision course.
When the world oil supply begins to drop again at the pace it did in 2001, all hell will break loose. A trigger event will occur and the world of finance will see a dramatic state change.
I still believe that the early part of next year will see another massive bailout of the banks. If that is coupled with a downturn in world oil production (likely I think), then 2011 is going to be a very exciting year.
Followup, William Tamblyn just sent me this snippet from the EIA site...
Notice: The Energy Information Administration is discontinuing the publication of the International Petroleum Monthly in its current format. The December, 2010 issue will be the last one to be available as a separate publication. Beginning with the January, 2011 issue, you may access the data in this report, as well as energy data for all fuels for over 200 countries, on our International Energy Statistics website . If you have any questions, please contact the National Energy Information Center at 202-586-8800 or firstname.lastname@example.org.
The EIA stopped publishing timely data in 2001, and did not publish any indication of the downturn that followed until the severe dip in oil production was over.
I believe it's safe to conclude that the EIA is doing this again, because oil production is taking a dive. And further, they know it will last a while.