Doc’s thoughts on the Coronavirus, Saudi-Russia Feud, and overall market fears
Doc is back with us and there is a lot to discuss. There is a perfect storm brewing for the bearish case across the board for investors. We chat about the Saudi-Russia fight to lower oil prices and how this is carrying through to a wide range of sectors and pretty much every equity.
Is not energy cost, on average, about 1/3 of the cost of production of gold and silver?
Cheaper Plastics ?
How do we know Doc does not have the Corona virus? Was he tested?
How do we know any of us do not have the Corona virus? You can have it for two weeks with no symptoms.
Doc it right about the pensions.
The gooobement pensions were already seriously underfunded when the market was at record highs and that’s assuming their unrealistic discount rate. CalPERS assumes 7%.
A deep and prolonged market will destroy these pensions. The politicians at the state and local level will try to bleed to taxpayers white to keep the ponzi gravy train rolling (they already are in Commiefornia) and when that doesn’t work plead to the feds to bail them out.
Like Tulsi said: Being Saudi Arabia’s Bitch is not America First.
How pathetic is it that after all these years the United States still doesn’t have a National Energy Policy.
Do you have a relative who was a professor of political science? I believe his name was Earl.
That would be my father and his name was Merle.
Minnesota Body Politic—Merle L. Kruschke
The person I am thinking of taught at university on the West Coast.
“Like Chickens Voting For Colonel Sanders” Classic Ebolan
John,
The energy policy for the US is to produce. We produce more than anyone under Trump. We are no longer a Soudi bitch.
Wake the f up.
Really Chartster. Go back in the way back clock Chartster and tell me the first thing President Trump did as President.
The question is not whether we produce or not, the question is whether the people employed in the oil patch can make a decent living.But of course you would not know anything about that. No Chartster you and I both have been Saudi Arabia’s Bitch since H. Kissinger made the deal with the devil.
Why do we as a Country tolerate the human rights abuses propagated by Saudi Arabia?
And while were at it , tell me how many people were prosecuted for aiding and abetting the 9/11 terrorists in the U.S. And don’t forget there still is an on going class action suit against Saudi Arabia by the families of the people that perished on 9/11.
I didn’t start this but I will end it.
Produce oil…………..do some history lessons……….
Soudi Bitch was by design…….go back and do a history lesson , Chartster you have been correct on so many fronts.. , starting with the Act of 1871……This is not being critical, this is just a thought ,….. you may be wrong on the OIL….not may but are wrong…..
Start with the history around 1900……and there was competition for oil….way back then.
We The People have been mislead for a llllllooooooooooonnnnnnnnngggggggggg TIME.
Hi Jerry:
I know The Chartster loves The Trump man, and I will concede he was the best choice. I really like the Donald’s quote”Your going to think anyways, you might as well think big”
With that being said, he is still beholden to Sheldon Adelson and the filth that is attached to him.Bin Salman gets away with Murder, with the U.S’s blessing.
But what the hec. Mitch McConnels Chinese wife’s dad made Ol Mitch the richest man in the U.S Senate.
Can you say FRAGILE MENTAL SNOWFLAKE
Hello, John………
Donald the Trumpster,………owes a lot of people……..I am holding in reserve..,
and plan to hold his feet to the fire……….
I want to see, ………the FED ENDED……and TERM LIMITS……
If, he does not END THE FED…….does not make any difference.
I seriously doubt Trump knows anything about the FAKE JEWS…….
Ditto on McConnel , No human trafficing there………hummmmmmmm
BINGO
John,
In the ‘oil patch’ there is a cost of doing business. They have to buy stuff (like guargum) to pump oil. And there are other ‘sweet crude plays’ that actually produce with a very low cost. I know, because I’m doing it!
There is profit on certain plays, even at 30 bucks a barrel. (True story most can’t understand).
Trump has given America energy independence. (fact)
I’m calling you out Chartster.
I want specifics and locations.
Chartster……….OIL FRACKING……..was started 10 yrs ago…….I think,,,,,way before TRUMP…..so, how has HE made us energy independent…….
I may have missed something……Just asking, what did I miss….. thanks….
What you missed Chartster is Russia and Saudi Arabia just made the price of West Texas Crude go to 31.22 a barrel.
I’m still waiting for the specifics.
Sometimes I wish Big Al would kick me off his site again.
made to make…….sorry
Do not worry John……OWL, only read half the comments…… 🙂
read to reads…….sorry, I guess I will never learn to proof read….lol
John,
Since you asked. And I’m not marketing or soliciting you. I only do the oil thing with friends and family.
If you wanted your own oil rig and an opportunity to be on a proven deposit, I could have you installed and pumping oil in 90 to 120 days, depending on the weather.
Louisiana and Oklahoma.
Chartster:
Back to the original topic:
Opec sets the price of oil. You are their Bitch.
Shale’s new reality: Almost all wells drilled Lose Money.
https://www.bloomberg.com/news/articles/2020-03-09/shale-s-new-reality-almost-all-wells-drilled-now-lose-money?srnd=premium
Lost Ball, Tall Grass?
Lost ball in high weeds………my father in law use to say that all the time….
I thought it was funny, never will forget it….. 🙂
LOL
Uh no, ‘fast ball, right past’.
Just for you, “OOTB”.
1 of 7.
Back to the original topic:
Opec sets the price of crude. You are their Bitch.
Shales new reality: Almost all wells drilled lose money.https://www.bloomberg.com/news/articles/2020-03-09/shale-s-new-reality-almost-all-wells-drilled-now-lose-money?srnd=premium
Furthermore there my friend, people like myself cannot afford to lease equipment.The oil patch has always been boom and bust.The lack of a National Energy Policy is a dammed disgrace.
I don’t care how much you pump.
President Trump cannot do anything different than other Presidents. This is a race to negative interest rates and a full blown catastrophe that will probably culminate in Nuclear War.
This has good profit at current crude prices. Low operating cost.
45 to 75 per barrel would be better (of course).
It’s “new technology”.
Chartster you still have failed to address the reality that the U S has no control of the price of Crude, and you my friend, until the United States adopts a comprehensive Energy Policy will remain Opec’s BITCH.No go get yourself a copy of the Quran and while your at it, you might as well find a little boy to play with.
And after you do that you might as well ask the “Queen” about Oil for Ships and 9/11
Lucky you are hiding behind that screen, boy..
Nobody’s hiding.You have no reply for being Opec’s Bitch.
I called Bullsh*t.
You must be a frickin fracker? I could have told you years ago y’all were cooked. Oh that’s right, I Did!
I get it about OPEC. So what, oil prices dropped. That’s a good thing for most people.
Anyway, you shouldn’t talk to people with such disrespect. If we were in person, I doubt you would talk to me like that.
And for the record, I am not blaming the current President.
That’s where your wrong. I call it like I see it , and I say it. Once I say it, it is up to you to do with it what ever you want.
I don’t “PLAY” anymore. It’s time to get real for the sake of our Children and GrandChildren.
Finally, Low oil prices delays the inevitable, which is the technology that takes us from fossil fuels to renewable energy. Actually in the long run the best thing would be for Crude prices to go to the roof.The money will always be printed and spent. The only question is, what will it be spent on.
My guess is Fragile Mental Snowflakes.
Chartster………thanks for the post………but,……time travel…..humm,
Acts 8:9
But there was a certain man, called Simon, which beforetime in the same city used sorcery, and bewitched the people of Samaria, giving out that himself was some great one:
Chartster……..thanks for the post……..I did enjoy the part on energy by Tesla…
We both know that BIG OIL is a scam……and has been…..as I stated …a Long time…
OOTB,
Yes, hmmm is right.
How can you explain Q being right all the time? How can you explain Trump being right all the time? How can you explain Julian A being right all the time? How does Julian A and John Trump look like the same person?
Uh yeah, hmmm
The Q posts were “over the top”!
I learned long ago that the control of oil and gold controls the money supply that controls the masses. It’s what all wars have been about. It’s 100% what all war is about.
Chartster……….here is a clue…..
KJV Dictionary Definition: sorcery
sorcery
SOR’CERY, n. Magic; enchantment; witchcraft; divination be the assistance of evil spirits, or the power of commanding evil spirits. Adder’s wisdom I have learn’d to fence my ears against the sorceries.
I want to see Trump……overcome the ALL SEEING EYE…….which has been around for centuries………MONEY CHANGERS………
Trump has put an end to the fed. It’s funny no one on this site actually realizes it yet.
Try looking into ‘how money is created’. If you understand that, you’d understand that Trump and the patriots have killed the fed.
Since, I do not see it……….all I see is MORE DEBT…..
Last week, I asked you for some info….concerning Nationalization of the FED……
THis might help , connecting the dots…….since, most do not see it…or afraid to
admit it……thanks….
Chartster, it’s one thing to choose Trump over the Ds but what you’re doing is flat out brain-dead. You’ve made Trump your Jim Jones.
Why was Trump all for wikileaks while campaigning but now says he doesn’t know anything about it and refuses to help Assange in any way? Why is it that Trump stupidly chooses to give the Fed cover by demanding that they wildly inflate (steal and redistribute)? The Fed was going to do that all along but now we have a “conservative” on the hook for it.
And why are YOU okay with Trump’s support of “red flag” laws which violate the 2nd and 4th Amendments?
There are a lot more “whys” and you’ve proven yourself unable to answer any of them intelligently.
The fact is, Trump doesn’t know much about much when it comes to doing the right thing monetarily, economically, or Constitutionally and has proven that he is no threat whatsoever to the real government and is in fact just another tool but gets away with it because millions just like you know even less and are drawn to carnival barkers and bullshit.
I bet you saw it live when Trump appeared on the WWE.
Since Kool-Aid drinkers have a hard time with nuance and dummies think in “all or nothing” terms, let me be clear that Trump is preferable to Bernie or Biden.
OOTB,
The fed keeping its doors open and handling day to day operations, but ‘not controlling’ monetary policy is them being nationalized. Already done!
Matthew,
I’m with you about the red flag laws, but that’s not done yet, and there could be some sort of resolution with it.
As for the rest of that garbage, you’re lost. You have no idea what you’re talking about.
Chartster, so what if it’s not done yet, he’s still FOR it you dope.
You’re going to have a massive hangover at the end of the next four years when reality forces you to sober up.
Chartster……..Publication………dated FEB 6, 2020……………
Nationalization? YOU say… “day to day operations, but ‘not controlling’ monetary policy is them being nationalized.”
THEN what is this……….
https://fas.org/sgp/crs/misc/RL30354.pdf
Monetary Policy and the Federal Reserve:
Current Policy and Conditions
Congress has delegated responsibility for monetary policy to the Federal Reserve (the Fed), the
nation’s central bank, but retains oversight responsibilities for ensuring that the Fed is adhering to
its statutory mandate of “maximum employment, stable prices, and moderate long-term interest
rates.” To meet its price stability mandate, the Fed has set a longer-run goal of 2% inflation.
Just asking…….
You can’t even see the good that he’s done in the last 3 years..?
Your cooked man. I don’t know what to tell ya (your cooked).
“WE THE PEOPLE.”……….need to stick together……….because until there are TERM LIMITS and THE FED is ENDED………..nothing is going to change, except the puppets in office.
Chartster……….Thanks again for posting………..I still have some questions…and will going forward……this is not over yet……….concerning the MONEY CHANGERS…
CIA, HILLY, BARR, MUELLER, ……..let’s see some jail time…..and not just the small fries.
Chartster, I know exactly what good he’s done but you are completely blind to the bad he’s done. Of course you’ve decided that anything he does is good since you don’t know anything.
What a blissful existence you’ve got along with tens of millions of others.
OOTB,
The money changers are done. We will see those announcements, probably the same time we see the arrests of high profile perps.
I hope soon, cause we all are sick of watching the paint dry. Even the conversations around public places are getting good. Joe Sixpack and Sally are starting to wake up.
If it was Hillary or Jeb, the Ponzi scheme and WWIII would be intact. And the swamp would be getting bigger.
With Trump, the swamp dries up.
Matthew,
I’m going to laugh my ass off when we go to the gold standard, the fed announcements happen, and the deep state people get taken down.
The reason why I’m gonna laugh my ass off is: you and Ron Paul are going to say Trump had nothing to do with it.
And “it” is coming. 😉
It…is coming…….Easter, and the Easter Bunny………
Gold standard……..means a lot of people are either going to get screwed, by an attempt like 1933……or be rich beyond belief…….
When JPM. Jamie is in JAIL……but, I expect him to be found like EPSTEIN…..DOA…
Cancer, and a weak heart……..either way, he has done the job….intended…..
Control the money of the people….SILVER…..jmo……..
Sorry Chartster but you’ll be crying your ass off instead. I guarantee it.
Btw, the fact that you think Trump has anything on Ron Paul in any way that is good shows what a miserable little fool you are. People like you are the reason the real power is never going anywhere. Ever.
Enjoy your life of servitude.
Donald Trimp is walking the walk. Ron Paul only talked the talk. Remember that junior.
And I hope to meet you some day at one of these conferences. You won’t get away with that smartass mouth. Guaranteed !
Ron Paul educated those who are capable of being educated while Trump just carries on exactly like any other politician (aside from his personal antics, of course). Ron Paul was railroaded by the machine that runs both parties and all of the media. A true constitutionalist will never be tolerated and Trump doesn’t come even slightly close to being one and neither do you. Trump, you and the rest of the neocons love debt, war, government intervention in all markets, bailouts and different rules for a special few etc, etc.
RP promotes liberty/free markets and the personal responsibility that comes with it while Trump and you love ruling others and shitting on individuals “for the greater good” just like anyone on the left.
As I’ve said many times, ignorance is the real root of evil and you demonstrate that fact in spades.
Let me clear something up for you. Ron Paul has always been controlled opposition. Go listen to the interview that Ebolan posted the other day. Ron Paul says (jokingly) ” they let me have a voice and say what I said until they pulled the plug”. He knew he would never win the office. He collected campaign funds and made millions. Now he has a tax exempt entity to spread more controlled opposition crap.
I say all that, and say that I was a huge supporter of him and do acknowledge him for getting a movement going. I voted for the man in 08.
Trump has exposed him for what he is. A shill.
Hell, the tyrannical government was probably keeping tabs of who the Ron Paul supporters were, so they’d be the first in fema camps.
If you had a couple of brain cells cooperating with each other, you’d know that RP is referring to the way things are, not the way they should be nor how he wants them to be. The media pulled the plug on him constantly while sheep like you didn’t catch on to what was going on. He knows who has all the power just like Trump knows but Trump will never tell it like it is. They don’t “pull the plug” on Trump because he’s a happy puppet that doesn’t say anything that his masters don’t want him to. He has never said ANYTHING to enlighten the sheep on matters that matter. He’s a Keynesian warmonger crony happily doing what he is told to line his masters’ pockets and further their power, just like those who came before him, Obama, Bush etc.
You’re a mind-boggling cartoon of a person if you can’t see that Trump is the unprincipled and frivolous player, not RP (who, btw, rejected the very lucrative congressional pension he had coming to him on the grounds that it would be immoral to take it).
One more thing, what kind of MORON would hold it against RP that he has a tax exempt entity? You know that RP thinks taxation is theft and immoral (it is) and that entity is not for profit so what’s the problem? Seriously, how stupid can you be?
Zero 501c-3 entities get the status of tax exempt, unless they play ball, say what the government wants, continue to be good corrupt lapdogs.
It’s not just Ron Paul. It’s the church, it’s corrupt foundations, it’s other shill entities as well.
I don’t expect you to understand that.
I’m not saying every 501c-3 is bad. But the ones talking politics are. They NEVER tell the truth.
If a 501c-3 that talks politics told the truth, they would loose the tax exempt status. DO YA GET IT?? ..duh..!
Ron Paul fits in that shill status. ..DUH…!
The problem with not knowing anything is you have to trust that your leaders are telling you the truth. That’s you and Trump along with most people on both sides. Thankfully, that is not the case with me and RP. If he says something stupid, I will know it or I will get to the bottom of it. I don’t accept anything to be the truth just because RP or anyone else says it.
The fact is, I like RP because he has a long record of doing and saying what is right. I may disagree on a detail here and there but his understanding of economics, money, politics and history is unparalleled among politicians including and especially Trump. A comparison would be beyond laughable.
I don’t follow RP these days but I still guarantee that you have not and will not catch him in a lie.
Trump, on the other hand, is so shallow that he liked his enemies and other dirtballs way too recently for a “smart” guy his age (Hillary is “wonderful” and Epstein “is a great guy”). He was a Democrat between 2001 and 2009 and changed his party affiliation many times in his life. He is obviously not guided by sound principles or concerns about right and wrong.
If you can’t catch RP in a lie, your thick as a brick. As in, ‘stupid’!
Give me an example, Dopey.
He said on the interview with Corbet, that the fed was coming to an end “because they don’t know what they are doing”. Not true, he’s lying. He knows the fed is coming to an end, but it’s because Donald Trump cut their ability to control monetary policy.
Ron Paul is lying to you and the rest of his peanut gallery.
BYW: if you ‘actually knew’ economics , you’d know the fed already Does Not control monetary policy. THE TREASURY DOES. ..duh..)
Your too busy listening to shills like RP.
I almost feel sorry for you Charster. But not quite. What a moron you are.
You’re way too dumb to respond to again. With reasoning skills like yours, absolutely anything is possible. Frickin SCARY stupid
A bear market…is like Walmart…it brings you everyday low prices…although when we get to the part where the dollar collapses the prices won’t be so low at Walmart…but that’s a ways off.
Good point Eddy:
That’s also the disconnect that people fail to understand about cheap Crude Oil prices.
The Oil Patch with a fair price provides well paying jobs and the companies that support them prosper as well.
Everybody loves cheap gas prices, but they have their blinders on as to everything else going up in price.
When Crude Prices do go back up, everything will still be just as expensive, including gas.
Did day trading on oil stocks today. Will buy them again in a next few days. Here’s my hit list.
MRO, OXY, RIG, HAL, SLB
Cali, I’m happy you waited on your purchases.
Thanks Doc. This morning spike in oil stocks was nothing more but short covering/dead cat bounce. I saw 4-5% gains and bailed them. I just read an article that oil stocks that makes DOW JONES have not been oversold like today since 1933. I can’t verify the veracity of that statement though but interesting fact nonetheless. I like RIG which I think will come down around a buck.
CaliJoe, that seems to fit with the gold-oil ratio hitting its highest level since 1933 which I mentioned last night.
Russia swiftly reacts to bloodbath in markets, says it’s ready for $25 oil
https://www.rt.com/business/482638-russia-oil-prices-fall/
From RT its gotta be propaganda. lol
Your comment is awaiting moderation.
interesting
I wonder what affect $25 oil will have on the alberta oil sands.
Russia swiftly reacts to bloodbath in markets, says it’s ready for $25 oil
@rt
b:
All last week RT was saying that the U>S and Russia were closer to Nuclear War than they have been in a long time.
They are no longer posting that headline.I was wondering when someone here at the KE Report was going to comment about it. When I went back to copy, it was gone.
John
Yes thats happening.
And yes, we are closer now to nuclear war than we ever have been including the Cuban crisis.
For example; The americans now consider a “first strike” reasonable and are positioning “tactical” nukes on Russias borders.
The nukes have been there a long time………
and been traded back and forth…..thur the CIA,
…….and been running the same operation since ….1947
Purchased a “tad” of the Russian stock market today and will add more in the future as it bottoms out.
Doc, what do you think about Novo resources NSRPF, Auryn resources AUG, and Klondike KDKGF? How low do you think gold and silver will go to in the deflation?
Pardu, with this downturn, I added a little to my novo resources. I’m just eyeing AUG since I believe they could move back toward $1.00 which would get me very interested. The odds are good that KDKGF challenges $12.
Pardu, I’m not that concerned about gold. Silver should continue to suck wind yet for awhile.I wouldn’t be surprised to see silver under pressure through the rest of this month and April. Silver might see the $16.00 handle again.
Doc, did you invest in a Russian AK-47 yet? Did you see SLB down under 13 this morning with a 16% dividend? So glad I sold my SLB@38 and my PSX@96 last summer and my COP@48 last week, and a third of my XOM@77 last fall. But I still have a lot of Shell, CVX, XOM, SU, DVN, and BP which got creamed today. BP and RDS.B are yielding over 10% now. Which do you prefer, Doc? DVN@8 might be the best bargain.
BB; I’m sharpening the knives to purchase both SLB and HAL. I’ve learned from experience that it often takes time after drops like these for the stocks to move back up. The good news is both stocks have some beautiful gaps down to fill in the future. I’ve always liked Devon and in the past their management. I haven’t kept up with them in the recent past since I felt technically they were in for a bath. The chart for BP tells me that the odds are good that they could move further down to about $20.50. Looking at some other charts, I think we have a chance to get these stocks a little lower. I can’t see the Saudis suddenly reversing their price moves. Also, the refineries shouldn’t exactly be busier since demand is down. You might want to look at the oil transport companies (e.q. NAT) since they’ve been throwing out dividends. You would think they would suffer with the rest of the oil sector but NAT was barely down. That’s because of supply of ships which are for the first time in years balanced due to less orders for them and large scrappage over the last 2 years.
Doc, I got burned once on NAT, so now I am twice shy. But I will look at it.
BP would yield 12.5% @20.5 Hard to believe, but if we go into a depression it could go much lower than that.
I am in no rush to buy any more oils. I am buying more vitamin C.
I’m quarantining myself for the next 2 years.
So the Dow just lost over 2000 points. This is unprecedented. Dow 23000 is upon us. 20000 could go soon. Forget correction, bear market is here now amongst the major global markets. What we are witnessing could be the start of the next financial meltdown that weve all remarked is waiting to happen fo so long. Early days still however.
Black Monday: Shades of October 19th, 1987
by @Goldfinger on 9 Mar 2020
“Black Monday was a Monday in October 1987 in which the S&P 500 fell 22% during a single trading session. There are many similarities between then and now, including the fact that markets were already extremely shaky heading into today’s trading session and news deteriorated further over the weekend.”
“At this point the words “perfect storm” are already overused, however, they are indeed apropos. I couldn’t think of a more perfect scenario to crush global markets than the one we are experiencing right now.”
https://ceo.ca/@goldfinger/black-monday-shades-of-october-19th-1987
I’ve learned over the years that, with rare exception, Doc has been a voice of reason and technical expertise. Well done and thank you for not contributing to the panic. Doc has learned from the past, and we benefit from his experience. Thank you gentlemen.
Added to my GTBDF @ US $4.14
Marty, thanks for bringing that up—-that’s a stock I missed completely and now it looks like I’ll be able to get into that one and some others that I’ve wanted to. I might wait a little longer on Great Bear.
A significant oil price drop is a boon to major importing countries. e.g. China.