Saturday, August 15, 2009

Butane Price Spike Coming?

Goldman Sachs Tower in Jersey City, New JerseyA "Rolling Stone" article a few weeks ago exposed an international banking house, Goldman Sachs, and how they engineered the last dozen financial bubbles in the U.S., such as the Internet Bubble in 2000, the Housing Bubble in 2007, and last summer's gas price bubble, which earned them a mint, by the way.

There was no gas shortage last summer, so how did prices get so high?

By speculation alone.

It is said that each barrel of oil before it became gasoline was traded 27 times, all perpetuated by Goldman Sachs.

This summer, there is a rumor that the company plans on cornering the market on butane, which will cause alarm in the stoner community, but hardly anywhere else. Goldman needs to corner another market to survive, so they intend on doing a "soft corner" (such as against butane), but because they are so high profile right now, they must be careful how they stage it.

They are hedging that there will be a spike in stoners as states decriminalize marijuana in the coming years, thus a higher demand for butane. They see all 50 states decriminalizing marijuana one day, so they are well aware of what the stakes are. They are betting demand for butane skyrockets as millions of new people, potentially, have the opportunity to light up.

The future? As butane levels get low in households across America, there will undoubtedly be a drive to get people back to the basics, like going back to match sticks, but too many people got their fingers burned last time. Any such efforts could backfire.
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