Tuesday, July 5, 2022

"JP Morgan Contemplates $380 Oil - You Need To Contemplate No Gas, No Groceries, No Job and No Home"

"JP Morgan Contemplates $380 Oil - 
You Need To Contemplate No Gas, No Groceries, No Job and No Home"
by Stan Szymanski

"Bloomberg has reported that JP Morgan Sees ‘Stratospheric’ $380 Oil if US and European retributions prod Russia to exact punitory crude output cuts. The article goes on to state that because of the new found economic strength of Russia, Putins’ nation could afford to cut production as much as 5 million barrels a day. JP Morgan proposes that a cut of 3 million barrels/day could push oil to $190 a barrel. A cut of 5 million barrels may catapult crude to as much as $380.

The current United States administration and NATO want a war with Russia. Georgia Republican Representative Marjorie Taylor Greene urges the US to leave NATO to avoid a war with Russia. Will our government leaders listen to her? Very doubtful. What does $380 oil and war with Russia mean to we, the American people? If Russia were to cut oil production that would result in $380 oil, the purpose of that would be to weaken America before it was attacked.

$380 oil means $20+ per gallon diesel. $380 oil means $17+ per gallon gasoline. If gasoline is $17/gallon, will you be able to afford to drive to work? If you drive an SUV and it gets 17 MPG between city and highway driving and you have to drive 25 miles each way to work, that’s basically a use case of 3 gallons/day times $17 a gallon or a cost of $51/day just to gas up for the day. That is $1,000 per month just to drive back and forth to work. Add in maintenance and insurance and all of a sudden 50-75% of American will not be able to afford the cost of simply going to work. At that point, how will you make a living for your family? Better get a bicycle now, get into shape and hope it doesn’t snow in the winter (turn off sarcasm now). Additionally, if Russia cuts 5 million barrels of oil a day from the markets, will there even be any gas to be had in a land where the strategic petroleum reserve has been drawn down to 25 days?

If diesel is $20/gallon, will over the road truckers roll if it cost between $3,000 and $4,000 a day to fill up their rigs? I hardly think so. If semis don’t move, how will groceries-meat, milk, eggs, grains, bread and vegetables get to your supermarket? They won’t. If there are no groceries to buy, what will you do for food? Better learn how to make ‘sawdust sourdough’ like the inhabitants of St. Petersburg did during the siege of Leningrad during World War 2.

If you can’t afford to drive to your job, you will have no job. If you have no job, you will not be able to pay your bills. If you can’t pay your bills you will lose your home or apartment. If you lose your home you will be homeless.

Did you plant a garden? Are you thinking of another source of revenue that you can do from home? Do you have a ‘country cousin’ you can stay with when the major cities in this country erupt into violence when food riots are part of everyday life? Can you consider buying a piece of property in the country (that has a well) and putting a shed on it to have someplace to go to when even the suburbs become untenable and neighbors prey upon neighbors because there is no other option?

I don’t know what a war with Russia would exactly look like. But if America was in a weakened state it may be that Russia would nuke a few major US cities and strategic areas before we knew what hit us. You see, Russia has weapons known as ‘hypersonic’ missiles capable of deploying many warheads from one one missile that are too fast to intercept. The US does -not- have hypersonic missiles to currently compete with Russia and essentially, cannot defend against these high technology armaments. The US is working to catch up. But if you were the Russians, would you wait until your enemy caught up with your hi-tech, or would you punch them in the nose right now? The administration should listen to Represent Greene. But they won’t.

None of this adds up to anything good for the average American. $380 oil equates to no gas, no groceries, no job and no home for a lot of US citizens. Financial markets would be shredded except for the - physical - precious metals and commodities. Please carefully consider the ramifications of this potential scenario and do the best you can for your family. Now."

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