Bring it on Goldman:The uncommon narrative
Just because an article comes with the headline, “Goldman Sach’s,” doesn’t mean that it requires no alternative critical reasoning. A company of such magnitude, influence and global presence that is aware of its social status, is surely not prone to give out an “objective” analytical opinion that will hurt its bottom line, and if that is not the case, then I suggest that they hire me for a fraction of the price to offload some common sense.
The analogy that populism is “for the people,” could also be applied to what Goldman Sach’s analyst who reported that an increase in the price of crude oil would be of benefit to major producers. According to the analyst, the effect will trickle down to the common man the same way that it did when over 1.2 million people lost their homes when the Central Bank’s decided to bail out their cronies.
This in turn will result in the increase in liquidity , greater asset prices and greater consumer confidence, so says the biggest commodity dealer in the world who’s got the most to gain. Such a strategy , is not uncommon amongst the elite. The aim is to influence, not inform. It’s no different than Trump saying he’s going to hit China head-on or Christine Lagarde saying that her team has a plan which is working. This is the same company that was close to 50% off their 2015 Q1 and even a larger margin of error for prior years.
It worked because the news hit all “credible” media outlets. An increase in price is surely to leave a smaller take home salary for the common man who earns a survival salary. This is shovel in the back of the head.
Here are some of the negative effects of higher oil prices:
1. Salaries don’t increase to offset the increase in prices. This has a knock effect on food, transportation , houses etc
2. It has a direct effect on business and makes business to start looking for alternative operations out of it country to hedge future effects including a rise in unemployment.
3. Less spending power by the common man means less consumption, increase savings which tends to slow down economic growth. Governments may then need to raise indirect taxes.
4. It discredits policy intentions to create liquidity by Central Banks.
5. The impact of rising impact oil prices doesn’t seem to go away.
Unless the message is to inform us that a recession is coming, I suggest that they remove the ban against common sense.