Bankers Declare War on Commodities: Opinion

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (Bullion Bulls Canada) -- Some may suggest that my choice of subject for this commentary is misplaced, given that the "reason" why the oil market plummeted yesterday was the big oil-dump of 60 million barrels by the International Energy Agency (IEA). My reply to that is that the response of all of the commodities markets to that news demonstrates conclusively that the bankers are attacking all commodities.

Furthermore, half of the 60 million barrels came from the U.S.'s "Strategic Reserve" -- and as we all know, no government serves the interests of the international banking cabal more slavishly than the U.S. government. Once we look at this development in detail, the motivations become completely transparent.

To begin with, yesterday's action by the IEA was a "fundamentals" based development in the oil market (even though totally artificial), in that it clearly changed the supply/demand parameters -- if only over a short-term basis. Thus, if our markets were free (or "open," or "rational," or any other synonym for "legitimate") then those markets would have responded in accordance with that change of fundamentals.

In the case of the commodities complex, for obvious reasons the fundamentals for the oil market (in terms of supply and demand) are completely inverse to the demand profiles of all other commodities (except for other energy commodities). Because oil remains the key component of our 21st century global economy, any increase in the price of oil functions exactly like a broad-based tax increase.

It raises the price of goods, lowers profit-margins for many/most businesses (which use significant amounts of oil), and reduces the purchasing power of consumers. In other words, it has a depressive effect on economies -- and by necessary implication, on commodities (the raw materials which fuel our economies). Conversely, when the price of oil falls, that dynamic reverses, and is very "stimulative" and bullish for commodities and the global economy.

This means the only rational response to the plunge in the price of oil for other commodities markets would have been for them all to rally sharply. The fact that commodities did not rally (but in fact moved sharply lower) indicates that it is in fact the bankers who were behind this assault on the oil market. This can be demonstrated in more than one way. To begin with, we must ask ourselves how/why commodities moved precisely opposite to the direction they should have moved -- and in complete lock-step with the price of oil? In partial terms, the answer is obvious: the market abominations known as "trading algorithms" now do virtually all of the "thinking" (lol) for the traders who dominate activity -- making the banksters nothing less than a real-life "Pied Piper" (and traders nothing but mindless rats). And as most of us already know, the banksters have programmed their trading algorithms (and traders) to have all commodities move 'in synch', despite the fact their supply/demand fundamentals are completely opposite.