The United States just has it backwards (again). It is now planning to sell off millions of barrels of oil from its Strategic Petroleum Reserve just when oil prices are at rock-bottom levels ... see: Daily Caller Article. With the backing of Republican lawmakers, the Obummer administration plans to sell off 266 million barrels of oil starting in 2018 to help fund our bloated government. This is about 40% of these reserves, much of it bought at much higher prices when OPEC had turned down the spigot on this commodity and we were panicked.
Of course the signaling of this intention can do nothing but keep oil prices low ... just when this pressure on prices is savaging the oil industry in the United States. Donald Trump actually has it right on this count ... our government is stupid. Obviously we should be buying oil to put in this reserve when prices are low ... and selling it when prices are high. But no, we are doing just the opposite ... and helping to kill off a major domestic industry in the process.
Perhaps if Obummer or any of his lickspittles had just taken a course in free-market economics in college instead of Socialism 101?
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Of course, if you had the foresight to acquire gold and associated mining stocks, you would be smiling through all the financial turmoil.
I had bought Freeport MacMoran ... did't help (yet).
up 15% on the day 2/12/16 as of 11AM....
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