The Politicization of Asset Price Behavior

Understanding asset price behavior as it really works, not how it is taught in school

In today’s world, the politics of war is responsible for fundamentally inexplicable periods of downward price volatility among the world’s most important resources including oil, natural gas and precious metals. This is a view that no Western analyst would ever be willing to touch with a 30 meter pole as it would put them at great odds and disfavor with the Military Industrial Banking (MIB) complex, but in an upside down world in which the majority of the public does not understand concepts like this due to the Ruling Class’s war on truth and their creation of a perception that completely contradicts reality, especially in the realm of money, finance and investing, this is an article that is absolutely necessary to write.

I am going to discuss one of the least understood concepts in investing (maybe second only to the concept of risk, which I’ve discussed on this platform at great length in the past year), and this is the relationship between politics and asset price behavior. Specifically, I am going to speak of the price behavior of four assets that should be soaring at the current time in price, but are all struggling, but for one, specifically due to global politics and the Military Industrial Banking complex’s efforts to keep these asset prices suppressed to serve their goals of economic hegemony achieved by intimidation and war.

And for the one asset that has performed quite nicely this year despite an obvious desire of the MIB complex to drive this asset price lower, I’ll discuss the reasons why the MIB has failed in suppressing this asset price versus the ones with which it has achieved enormous success.  The exposition of the one asset price the MIB complex wishes to destroy in price but has failed to do so will also reveal the dirty game of politicizing asset price behavior that all intelligent investors must consider when making buying and divesting decisions in these asset classes.

At the current time, there are a number of asset classes for which all fundamental analysis, as explained in all business school classrooms and in all MBA programs worldwide, would forecast absolutely soaring prices at the current time. However, predictive price behavior as modeled in business school classrooms this year has not materialized. Why? As I’ve stated many times before on this platform, an academic business class “education” has near zero utility and one must understand, first and foremost, the direct relationship between asset price manipulation carried out by the Military Industrial Banking complex and asset price behavior.

Oil

And that brings me to the price of oil. In the past, I’ve mentioned that on my Patreon platform, I’ve had patrons leave for the specific stated reason that I discussed the influence of politics on asset price behavior far too much for their liking and that they didn’t care to learn anything about this relationship. Of course, my job is never to try to influence anyone’s opinion, and if they felt that way, certainly they are entitled to that opinion. But I know 100% that if I did not understand this relationship, that I could not have made calls on oil price behavior that have been completely on point this year, like this one, that kept my audience from falling victim to absurd big bank oil price predictions that were issued this summer. I also know that without understanding this relationship, it would be impossible to understand the relentless price suppression of precious metal asset prices for the large duration of this year and how to properly handle the low price points of these asset prices.

So, let’s talk about the fundamentals of oil. If we look at what is going on with the conflicts around the world and the fact that the Western Military Industrial Banking complex, if they continue down their current expansion of war around the world, is increasing the odds of a shut down of the Straits of Hormuz, then the logical conclusion from “fundamentals” a couple of months ago would have been to expect oil prices to continue a strong upward trajectory from the $95 per barrel price reached at the end of September.  If you’re unfamiliar with the Straits of Hormuz, it is the major oil artery in the entire world through which much of the world’s oil supply is shipped.

As of this past September, about 20.5M barrels of crude oil, condensate and oil products, as well as 20% of total global oil consumption, flow through the shipping lanes of the Straits of Hormuz every single day. In addition, Qatar, the world’s largest exporter of liquified natural gas (accounting for nearly 22% of all global LNG exports), ships 100% of its LNG exports through the Straits of Hormuz. For years, Iran has threatened to shut down the Straits of Hormuz in response to US sanctions imposed upon Iran that hurt is economy and more importantly, hurt its citizens, as economic sanctions never hurt the leaders of a nation as the Ruling Class has falsely taught us to believe, but truly inflict their most damage upon innocent civilians (as the purpose of economic sanctions is to stir up so much discontent upon the citizens whom they hurt, not a nation’s leaders, that the citizens rise up and overthrow the government leaders in the nations against whom the West imposes sanctions). But despite threatening to shut down the Straits of Hormuz in the past, Iran has never done so.

There are definitive reasons that I think, for the first time ever, Iran might carry out on such threats, which could easily send oil skyrocketing to