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Thread: this should be the end of commodities speculation

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    Banned Melonie's Avatar
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    Default this should be the end of commodities speculation

    from a professional investors BBS ...

    (snip)A friend works in the credit department at Suncor. He used to work at Fitch and got hired from Suncor to deal with customer ratings, credit, etc.

    He told me this week that Suncor is now accepting cash only from some big customers such as UBS. He says if it gets bad enough their only customers they might accept credit from could be the Exxon's and Imperial Oil's of the world. '(snip)

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    Senior Member Butrcup98's Avatar
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    Default Re: this should be the end of commodities speculation

    That's thoroughly depressing. It reminds me of a book I read. I can't remember the name of it, but people were burning money because it wasn't worth any more than kindle.

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    Banned Melonie's Avatar
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    Default Re: this should be the end of commodities speculation

    ^^^ that's actually a work of NON-FICTION ! The Weimar bundesbank chose to print up mountains of Reichsmarks in the 1920 and early 30's in order to 'pay off' Germany's unserviceable levels of WW1 debt. Eventually the currency was devalued to the point where the BTU value of the Reichsmark note's paper was worth more than the amount of wood / coal / gas that those Reichsmarks could purchase !

    Mike Shedlock explored this potential future analogy about a year ago ...

    see

    ... of course, back then, the idea of the US treasury being given the authority to print up $700 billion dollars out of 'thin air' in an attempt to 'pay off' unserviceable levels of US mortgage and consumer debt was inconceivable !


    But back to the main point ... there are now 'behind the scenes' changes taking place in business to business transaction terms that strongly imply that the banking crisis situation is going to get a lot worse in the near future. Especially because of the recent 'globalization' of supply chains, this now means that America's businesses are heavily dependent on a string of dominoes. And if any one of those dominoes falls over a chain reaction of collapse could happen. As with the Suncor Energy example I posted, all it would take is one 'major' customer purchasing a whole lot of product on credit and then defaulting on payment to place Suncor in a position of not being able to pay its employees ... not being able to pay its 'rent' on oil rigs etc.

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