So a new post appeared on Breitbart today by Joel Pollak as an attempted response to Tucker Carlson questioning what are the benefits to America of an intervention in Syria.
Pollak has three points:
- The United States cannot allow Syria to fall into Iranian hands. If it does, Iran will extend its military influence into the Mediterranean, threatening American bases as well as American allies. It will also strengthen its emerging position as a regional power that threatens Israel and the Sunni Arab states.
- The U.S. has a strong interest in punishing the use of chemical weapons. Granted, that is an interest shared by the international community in general, but few nations other than the U.S. are capable of carrying out that punishment. If the U.S. fails to respond to the Syrian regime’s alleged use of chemical weapons, the use of such weapons will become more widespread, including by terrorists.
Kayfabe is in full effect this week when it comes to Syria and the alleged poison gas attack. Aside from the obviously hollywood-esque “kick the dog” move that gassing your own citizens would be, the major tip-off that Syria is just another opportunity to concentrate Middle-East tensions is both the Saudi and Russian hunger for higher oil prices. The U.S. needs them too, so Trump is ever-ready in his Andy Kaufman Heel routine to tweet out all kinds of market quaking rhetoric, and the Russians are ever ready to troll as they always troll.
Goldman Sachs, publicly speaking, is the Commanders Of The Obvious, piping up to say Oil would reach $72 a barrel on Thursday. This was well timed enough to make them look like geniuses (which admittedly they actually are), but the information was a bit late. It was already going up on Monday, with every indication that it would rally who knows how high.
The Guardian’s Jason Wilson penned a curious piece asking why the “alt-right” (whatever the hell that means anymore) is so anti-war while the “left” is so on board with intervention in Syria. The idea that someone so stupid is writing for the Guardian beggars belief. The left is motivated by secular morality, war is just for a just cause. The left will always be pro-war if they manage to talk themselves into righteous indignation over a “dictator” or “monster”, which is precisely what they allege Assad is.
This is all taking place while secondary actors, like the conveniently inept Houthi Rebels who keep firing pointlessly ineffective missiles at Saudi oil production properties. Oh, that’s not going to drive the price of oil up just like the Saudis revealed they wanted.
This rally in Oil is 100% driven by the geopolitics in question. For once though, the financial needs of multiple actors are being satisfied by a significant oil price rally. In fact, everyone is winning here. The US is winning, Saudi Arabia is winning, Russia is winning. All of OPEC is winning, on and btw, don’t forget PDVSA is having trouble, so it’s like double winning.
People always say the market is rigged. Yes, it is. That’s a good thing.
Before the open of trading, I’ve decided to collect up my thoughts on the sectors I’m investing in. Since I am currently heavily interested in the Energy/Oil sector, the topic today will be the Price of Oil and Oil related stocks.
The Summer of Driving
As you know, the summer time and vacations are upon us. People all over the US will be driving to Disney World, boating around the keys, and generally consuming more gas than normal. This is added on to the fact that jobless claims are lower than they’ve been in ages. People with jobs do something conspicuous at least 5 days per week: They drive to work. More people driving to work means more gas consumption.
The one thing that worries me is that Truck Driver’s as a demographic have shrunk a bit lately.
Nevertheless, it seems that with the summer months coming round the corner, a spike in Western consumption is likely.
My general strategy so far has been to invest in secondary industries. So if I think Oil will do very well, then I will always look for companies that support Oil extraction, transportation or sales. That doesn’t mean I won’t head into a direct producer/explorer, just that I tend to look at companies who’s future is looking up BECAUSE of a positive move in a sector. I guess you could call this “Directional Trading.”