$50 oil followed by dollar collapse - Is lindsey williams right?

[eric_cartman]

when lindsey williams said $50 oil back in early july when oil was about $140, it seemed impossible. but now we're at $75, and $50 doesn't seem too far off.

but he said you could take it to the bank. so i guess McCain will be our next president, and we'll experience a dollar collapse shortly after oil makes its way down to $50.

i started a blog, so go ahead and check out the things lindsey williams has been saying. i think he's right.

http://kilatel.blogspot.com/2008/10/50-oil-is-lindsey-williams-correct.html

 

[LiveFree79]

seems like his predictions are coming true.

 

[Brian4Liberty]

Remember the debate when it was $140?

"It's obviously a speculative bubble"
"No way, it's going to $200 and beyond!"

 

[jon_perez]

I don't get it. If you can pay for a barrel of oil with USD50, how in heck's name could that ever constitute as a collapse of the USD??!?

 

[slacker921]

McCain doesn't have to get elected for the dollar collapse prediction to take place. .. it'd make a nice hat trick though.

 

[Chester Copperpot]

I don't get it. If you can pay for a barrel of oil with USD50, how in heck's name could that ever constitute as a collapse of the USD??!?

well that doesnt per se.. But rather I think what Lindsey Williams is getting that is that IN SPITE of this remarked, supposed new glut of oil, that even witht he dollar being debased, there will be so much supply that OIL will be only $50/bbl.

Supposedly this is being done to collapse the Middle East.

 

[Brian4Liberty]

I don't get it. If you can pay for a barrel of oil with USD50, how in heck's name could that ever constitute as a collapse of the USD??!?

If the price of tulips dropped like a rock, would that mean that your currency was getting stronger?

 

[Smiley Gladhands]

Well he was wrong for the reasoning he gave. He said new oil fields would open in Russia and southeast asia, flooding the market with oil and causing the price to collapse.

The price drop was not due to any new oil fields, but instead the deleveraging of all financial markets and the extreme uncertainty regarding future global economic growth.

It's still possible he was truthfully repeating what he was told, but I don't consider the predictions to be accurate.

 

[Pericles]

Or, other currencies are collapsing faster than the dollar is collapsing.

 

[pinkmandy]

I think he's saying that if oil gets that low it will seriously affect the Middle East and they will retaliate by dumping the dollar.

One of the MSM shows (CNBC I think) just commented that we are paying 30 cents less for gas at the pump and expect another 70 cent decline over the next 6 months. Williams said the MSM will be letting us know it is going to happen.

 

[jon_perez]

If the price of tulips dropped like a rock, would that mean that your currency was getting stronger?

No, but with oil it certainly does... DUH.

 

[muh_roads]

well that doesnt per se.. But rather I think what Lindsey Williams is getting that is that IN SPITE of this remarked, supposed new glut of oil, that even witht he dollar being debased, there will be so much supply that OIL will be only $50/bbl.

Supposedly this is being done to collapse the Middle East.

It doesn't seem like a sound strategy until we have our homeland oil tapped first.

 

[jon_perez]

I think he's saying that if oil gets that low it will seriously affect the Middle East and they will retaliate by dumping the dollar.

Absurd reasoning.

If oil gets that low, they can just turn off the pumps.

 

[eric_cartman]

I don't get it. If you can pay for a barrel of oil with USD50, how in heck's name could that ever constitute as a collapse of the USD??!?

because $50 oil would bankrupt the middle east. especially if there is light sweet crude being pumped out of russia and Indonesia at a much cheaper cost.

so the middle east will go bankrupt, and will have to stop buying US treasury bonds. in addition to not buying any more T-bills, they will have to spend their US dollar reserves in order to fund government expenditures since their country will be virtually bankrupt. and when start dumping trillions of dollars onto the market, that will collapse the dollar.

 

[jon_perez]

well that doesnt per se.. But rather I think what Lindsey Williams is getting that is that IN SPITE of this remarked, supposed new glut of oil, that even witht he dollar being debased, there will be so much supply that OIL will be only $50/bbl.

Supposedly this is being done to collapse the Middle East.

Whatever. But if oil were at USD50 per barrel with money being printed all around sounds like heaven to me and not an apocalypse.

 

[pinkmandy]

Absurd reasoning.

If oil gets that low, they can just turn off the pumps.

Not my reasoning. His.

I guess we'll have to wait and see. I dismissed his predictions but admit now I'm starting to wonder.

 

[Brian4Liberty]

No, but with oil it certainly does... DUH.

Oil can never suffer from a bubble? How about gold? How about houses? Duh.

 

[jon_perez]

because $50 oil would bankrupt the middle east. especially if there is light sweet crude being pumped out of russia and Indonesia at a much cheaper cost.

so the middle east will go bankrupt, and will have to stop buying US treasury bonds. in addition to not buying any more T-bills, they will have to spend their US dollar reserves in order to fund government expenditures since their country will be virtually bankrupt. and when start dumping trillions of dollars onto the market, that will collapse the dollar.

In which case oil would shoot up to USD500 per barrel.

So really, Williams has no idea what he's yakking on about.

 

[muh_roads]

Absurd reasoning.

If oil gets that low, they can just turn off the pumps.

Even though you'd like 2,000 calories in a day, having only 200 calories to eat is better than having nothing at all. They wouldn't dare shut down.

 

[muh_roads]

In which case oil would shoot up to USD500 per barrel.

So really, Williams has no idea what he's yakking on about.

Actually $300+ per barrel was what he said the end game would be I think.