TRUTH: Yet, because the top extractors are collecting less does not mean total output has not grown. Each year, a record amount of oil gets pumped from the earth.

Bonner writes: "As for oil itself, there is only so much available."

TRUTH: Bill Bonner knows where all oil exists inside every part of the earth? Get real.

Bonner writes: "and many experts believe the maximum annual extraction level – Peak Oil – is coming up soon."

TRUTH: Which experts? What are their names? What is their track record regarding the claims they make?

Many weak-minded men suffer from false beliefs accepted as obedience to authority and experts. Is Bill Bonner one of these weak-minded men or is he a paid shill for those seeking obedient weak-minded men?

----

Oil and money are commodities, one in the earth -- oil -- and the other made by man -- (paper) money.

Men swap commodities. Some call this swap an exchange. In truth, men swap rights, one right for another right. With oil and money, men swap the right of owning oil for the right of owning money).

All swaps must have one commodity exchanged for another. When one thing gets calculated in terms of another, we call this a ratio. The result of the ratio, we call it a value. When we use money as the denominator, we give another name to the word value -- PRICE.

The ratio of one commodity (oil) to another (money) expresses a value, which we call a price (of oil).

A rise in price means a change in the ratio has happened calculated at one time from being calculated at another time.

Only two ways can achieve a price rise:

[1] the denominator (money) rising quicker than the numerator (oil)
[2] the numerator (oil) falling quicker than the denominator Money)

Each year, a RECORD AMOUNT of oil gets pumped. Thus, the numerator in our ratio of oil to money is rising.

However, since the price (the value) of the ratio is rising, only one cause can be true -- a RISE IN MONEY quicker than a rise in oil output.

Sellers sell to the highest bidder. When folks have more money bidding for a near fixed amount of oil (slightly growing in amount year-to-year), prices rise.

Those folks whose income of money is flat or falling lose Buying Power. Since most folks have falling income, they cannot buy oil and oil-derived products as before.

Too much money (a commodity) chasing too few goods (other commodities) -- it is an age old story that happens when the lack of Credit Opportunties exist to swap money down now for future money.

There isn't a global oil shortage. There's a GLOBAL GLUT of MONEY.

What caused the Global Glut of Money?

Money is the highest form of Credit and Credit is another word for Debt. Credit and Debt are other names for Capital.

As credit (=debt, =capital) grows for bad products that nobody wants, a collapse of trust follows. Deals get broken and folks walk away paying on debt. Yet, the money created for this debt stays in the pockets of some folks.

It is the default on credit (=debt, =capital) that causes problems. This increases money at a rate quicker than credit for good products, good invention.

When credit (debt) defaults rise, the paper money and coins issued go into the pockets of winners. These winners begin to bid up prices on existing things, typically commodities of energy, metals, food.

Why? Simply, these winners cannot find worthy investments to make, which would turn their notes and coins into capital paying a return.