Oil, The Fed And The Ugly Truth About Capital Markets…”200 years ago we left Europe to found America, in part because our lives were under the thumb of oligarch’s whims, so is what is occurring now with central banks any different?”

Tuesday, April 28, 2015
By Paul Martin

By Leonard Brecken
OilPrice.com
Tue, 28 April 2015

As we as Americans wake up to more riots, one has to wonder if all is well with things. For six months now we have closely monitored the fundamentals of energy, witnessing an unprecedented amount of media distortions and trying to correct them one by one. The reality is that the fundamentals don’t matter as much in energy markets, and especially the bubble equity markets, which have long since decoupled from economic stats (unrigged that is) and earnings.

In any other time cries for recession would be very loud and markets would be correcting to reflect the realities of world debt levels and central banks run amuck. Not now and maybe not ever again. Instead we find ourselves as Americans held ransom to central banks worldwide and their actions, not fundaments, as we decide on where asset prices go.

The fundamentals do matter but their weighting on the impact on prices is greatly reduced. As it stands now, oil prices have a better chance of reaching $80 or better if investors and especially the media finally admit that we are and have been in recession for a very long time and that economic stats have been so distorted that it renders them moot. The perfect example is the differences between U3 and U6 unemployment as a case in point on the level of distortion that exists today.

The 1% in the know who have seen their wealth double, have played the Fed money printing game for years, as it has distorted asset prices to the extreme from $120 oil to bubbles in technology and biotech. It’s almost like seeing Rome burn before our very eyes as the mass looting continues. The underlying mechanisms that once drove asset prices are no more as white is black and black is white driven by a select few at central banks who, by the way, have been mandated to do such things by our government or by the people for that matter, in America and around the world.

The Rest…HERE

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