Opinion
Pumping up Oily Propaganda
by
Michael Levy
Repeat after me three times
... There has Never been a Shortage of Oil – There has Never been a
Shortage of Oil – There has Never been a Shortage of Oil.
Ever since 1999 when oil traded at $12 a barrel there has never been a
shortage of crude oil. What there has been is a whole lot of empty fear
laden propaganda containing many 'what ifs'. None have come to
anything and yet the rhetoric continues to pump up the price of oil to
'lubricous' high levels ... Today oil is trading at $118.20 a barrel.
The strange thing is, it is American intellectuals who find reasons why
oil should go higher by expressing much of the propaganda that are just
half truths at best. They tell us China and India are using a lot more
oil. Well, the truth is most Indian and Chinese ride bikes or walk, so
the amount of extra oil is only a few percentage more. Nothing to
justify a large rise. There has been no increase in usage in the USA.
With a recession looming the price should have gone down, not up.
Likewise, the weak dollar is blamed for a big increase in price. The
truth is the dollar has not fallen anything like one-tenth of its value,
however, oil has increased tenfold since 1999. On value of dollar basis
crude oil should be around $18 a barrel from 1999 to today.
Probably the main reason for oils nonsensical price is the verbal
propaganda emanating from the mouth of the Iranian president who hates
Israel and the USA. So how does the USA answer him. Why, by letting oil
speculators send the price of oil up 10 fold from 1999. Good game for a
few and empty pockets for the majority.
Mercantile exchanges were formulated many years ago so that manufactures
could go to a central market place and buy raw commodities on an open
outcry basis, from companies that mined and harvested raw commodities.
It was a fair way of dealing ... when demand was high the prices would
be bid up by the manufactures who needed the supply. Likewise, when
demand was slack the prices would fall to a fair market level. The law
of supply and demand reigned supreme.
In today's futures world it is a significantly different picture. Any
Tom, Dick or Harry can bid up the price of a commodity. When fear and
greed are induced by a media that use sensationalism to report every
world event, prices can get completely out of control as is the case
today with the price of oil. Every dollar increase on the price of oil
feeds terrorist sponsoring states coffers so that they can build more
missiles and fund more terrorism.
If the G8 governments allow this trend to continue oil will hit $150
soon. This will cause a world recession the like of which has never been
seen ... Governmental controls are needed now.
When currencies trade erratically central banks step in to balance the
prices to a more sensible level. Equivalent action needs to be taken now
to bring down the price of oil to around $45 - 65 a barrel.
The only winners in this propaganda game are the greedy speculators, oil
companies and a few oil producing countries who are laughing all the way
to the bank.
The easy solution is for governments to set up a world agency that
oversee the prices of commodities and regulate the increases by true
supply and demand factors. The mercantile exchanges are no place for
essential natural assets that belong to people of the world, not the
greedy speculators ... But who would think of doing something so
simple... Best let propaganda ridden speculation take center stage and
send the world into a bigger and deeper recession than needed...
La-de-dah!
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