If you thought Spain got whipped when they voted out Aznar and replaced him with that pussy Zapatero after Islamic terrorists bombed the trains, just watch how we react to our current problems in the oil market.
I guarantee you, they're trying to squeeze us to vote for Obama for President.
Read this (from Reuters):
Oil spike to last through 2008: OPEC president
Monday March 10, 4:47 am ET
ALGIERS (Reuters) - Oil prices will stay at current high levels for the rest of this year due to speculation and geopolitical tensions, Algerian state media on Monday reported OPEC President Chakib Khelil as saying.
Prices could retreat in 2009 with a recovery of the U.S. dollar in foreign exchange markets following the election of a new U.S. president, and as fundamentals reassert themselves as major market forces, he was reported as saying by government newspaper El Moudjahid and state news agency APS.
"Just like the current surge in oil markets, the (world economic) crisis, will last until the end of the year," he was quoted as saying by El Moudjahid.
"The oil market will stay above $100 during the current financial year, according to the assessment of Mr Khelil," APS said in a report on his remarks to Algerian reporters on Sunday.
It was not immediately clear which fiscal year APS was referring to.
Khelil, who is also Algerian Energy and Mines Minister, said the factors driving the market at present included "speculation, geopolitical tensions, particularly due to the Iranian nuclear affair and the crisis between Venezuela and ExxonMobil," APS reported.
The world economy could get some help with the arrival of a new U.S. president, and possibly a new economic policy, "and with this new situation it is very probable that the dollar will start to recover and thus permit a readjustment of the (oil) market," El Moudjahid quoted him as saying.
This sounds like it could be plausible, right? I mean, the American President could help to resolve problems between Exxon Mobile and Venezuela. And, a new President could have a positive effect with regards to the conflict with Iran.
But, why is the price of oil so high? It is, at least in part, because OPEC is purposefully choosing for it to be high. Check this out:
OPEC members meeting in Vienna last week decided to hold production flat, insisting markets were well supplied and blaming record prices on factors outside the group's control, including speculators and what Khelil called the "mismanagement" of the U.S. economy.
13 comments:
And the camel you rode in on
The sudden (unjustifiable) rise in crude value also correlates to increased use of biofuels, introduction of fuel cells and hybrid technology.
Johnny Cash for Ambassador to Saudi Arabia.
Anonymous,
So you're saying you think they're punishing us for "going green"?
No Pas. The Arabs believe the profits (pun intended) are theirs and simply follow through.
They've got to keep up their lifestyles.
sorry, not true.
price driven by speculators and weak dollar.
in euros oil aint so pricey.
when the HYSTERIA/PANIC over subprime mortgages subsides the dollar will quickly rebound and oil get cheaper.
this will happen sooner than u think.
like in 60 days.
oil will go to 70.
to get it lower all we need to do is elect a GOP controlled congress and have them DEMAND we drill in ANWR and off the coasts of CA and FL.
and then oil will drop to 40.
dem/leftist/green policies make oil more expensive by decreasing supply of poll and greater use of coal.
the left is - in this way -also empowering the enemy.
which is why i always say: the defeat the jihadist we must FIRST defeat the left.
I figured you'd take issue with this post.
But, if what you say is the whole truth, then why did George Bush go to Saudi Arabia and ask them to increase oil production?
An increase would bring prices down, wouldn't it?
And, Saudi Arabia, and the rest of OPEC do have the ability to increase production, right?
Sorry Relia - disagree -this is about keeping the foreign barbarian in his place as well as a PURE exercise in speculation FOR SPECULATORS. Foreign wealth funds don't fart with speculation, it about wealth preservation.
More, while the subprime mortgage thing TRIGGERED this round, it's not about that anymore. Gold, diamonds, oil, copper, all respond to the same underlying dynamic... the US is a consumer nation, with no end in sight to importing a basic need - energy. It has shown no inclination to DO ANYTHING HARD about this. This is loss of confidence in the the AMERICAN PEOPLE by those who hold wealth.
Frankly the only thing saving us right now is that if the USA's consumers STOP, or are stopped by other forces, it will make the 1930's look like the 1990's. The deflationary spirals, protectionist actions and loss of labor world wide would simply be awesome, what do you think India would be like? Think, the end of outsourcing. China? Walmart will cut them off to stay alive in a protectionist USA. Russia? Those outside the protection of the sovereign wealth funds in arab lands when the deflation takes oil to less than $30....and then this might force americans and I bet, euros to correct this imbalance and take direct action. The middle east will be an after thought in a mess like that.
It is not in OPEC interest to increase production. Their interest is best served $1 short of American economic collapse. Of course, if anything else take us over the edge, like sub prime, the chain of events means NATO becomes the largest OPEC member in order for the people to eat tomorrow.
As usual, it all comes back to greed. A little too much, and over the falls we go.
The OPEC moron who said what he did is a complete fool, but you'll notice the MSM remains as silent on this as they about Abbas real statements to his people.
Time to stop selling the Saudis wheat at subsidized prices. That's a step that could be taken immediately.
Epa,
While I don't wholly agree with Reliapundit, I think you contradict yourself within the course of your criticism.
If this were a wholesale loss of confidence in the America people by those who have wealth, then we wouldn't matter to China and India.
The fact is, it is in the best interest of the nations on Earth that the U.S. continue to do well. And, the American economy is still a better long term investment than, say, Russia or India or China. The EU may be faring well by our downturn, but how would that look were they to add Turkey?
On the other hand, I agree with you completely that the explanation of the OPEC guy is completely nuts. I can't imagine that the economy of the world is shaking over how Venezuela feels about Exxon Mobile. If that were true, then Exxon Mobile would be in big fucking trouble. If they were in big trouble they wouldn't be playing the hand they're playing.
Additionally, it is evidence against Reliapundit's theory that OPEC is not siding WITH us AGAINST Iran. If the Iranian situation were causing trouble in the markets, and I believe it is, then it is in OPEC's interest (economically) that they QUASH Iran. Loosen up the flow of oil and it would hurt Iran.
But, they won't do it, because they stick with their own first, even if their own are trying to kill them, which they are.
All I can say is, it is pretty sad state of affairs, when you are so dependent on your ENEMY, that you have to kiss your ENEMIES ASS to stay alive.
Ok, once your enemy has released you, you kill them. Right?
Everyone is making a huge mistake..you are talking logic.
"The fact is, it is in the best interest of the nations on Earth that the U.S. continue to do well. And, the American economy is still a better long term investment than, say, Russia or India or China."
When the US cut off all steel and oil going into Japan in 1939-1940...one reason war was not considered as a serious risk was because there was no way the Japanese could win. We expected them to recognize and act on this objective fact.
For whatever set of reasons we care to characterize, few of which are logical or based on facts, the USA faces a world of anti americanism.
Bringing us to heel as a sign of submission, damaging our economy, AND THE PEOPLE, you and I, who are seen are voracious robbers of the natural resources of others (yah, pulleeeeeze) is a main EMOTIONAL goal of our ....our...if not enemies than, those who would enjoy our being brought down to some other level, and certainly humbled.
While the amoral judgment of CAPITAL is a loss of confidence in the american people, Russia and China so long as we have a reliable, usable nuclear deterrent must ALWAYS take us seriously in case we elect some cowboy who might do anything. This has NOTHING to do with the basis of our power, the economy, which I believe can erode for a hundred years if nothing changes without provoking a war.
China needs you and I to go to ToysRUs and Walmart or they starve. Russia depends on us for NOTHING at this point but won't still very still for a new NATO base in Vilnius in a very IVAN IV, kind of way.
I regard it as a real danger that a combination of events, each one of which would not by itself undo the balance in our system, could do so in synergy, and devastate an economic system in which certainly a large plurality - at best- of americans live check to check.
China over Taiwan.
The Al Saud and Al Sabah over Palestine
UAE over commercial interests within the USA
Russia hitting on europe over natural gas
Soros advising people out of the dollar
None of these are connected and today are historical already, if you will, but they all conjoin at one point.
To overcome the emotional imbalance caused by the triggering of the subprime greedy cretins, the fed has pumped in how many billions, JUST TO GET BANKS TO LEND TO EACH OTHER?
We are vulnerable, and depending on rivals, and those inimical to us to recognize it is not in their long term interest to harm us is not a good defense. Historically it's no defense.
That's why I feel so strongly about hydrogen cars and such, and taking any and all actions in a Manhattan Project way to correct this situation. It's intimately related to our ability to oppose jihad, and thrive.
Post a Comment