Back in '97 Japan's economy imploded, causes were traced to crony capitalism and selling the ETF (where commodities are sold on paper) Nikkei sold 100 bbl of oil for every one they actually owned. Came time to deliver and there was nothing there.
Now, flash fwd to 2014. We see a massive drop in crude, WTI sub $50 today in US$. And that's the point. In US$. In any other currency, though I don't know it, it's just a theory, crude is as much as it was 6 months ago. US$ is the only compass we have.
But then look at the USDX for the last year
As crude drops, the USDX rises. Why?
Because crude isn't on sale the US$ is, and they're selling paper. everyone is surging into the US$ to buy crude but all they'll get is a piece of paper that says they bought crude.