Oil Prices Being Used As Excuse To Impose Global Economic Regulation
Posted by Job on June 21, 2008
NEW YORK (CNNMoney.com) — Saudi Arabia this weekend will convene a special summit on oil prices that could lead to cheaper crude on the world market. But a Saudi decision to produce more crude likely won’t come without a demand: The Kingdom is expected to press the U.S. government to impose greater controls on oil trading and take steps to strengthen the dollar.
The world’s largest oil producer, stepping out of its usual role as de facto leader of OPEC, will host representatives of big oil producing nations, consumer countries and companies. The Saudis are widely believed to be concerned that escalating oil prices – crude hovered around $134 a barrel Thursday, nearly double what it cost a year ago – will cause a permanent drop in demand as consumers get more efficient or, worse, the global economy slows.
One sign of the Saudi anxiety: The country’s oil production decisions, usually left to its oil minister, appear to have been put back in the hands the Royal Family, according to Antoine Halff, deputy head of research at brokerage firm Newedge.
As a group, OPEC has been reluctant to raise production. Several states, enjoying the record prices, maintain there is no shortage of crude. It’s a line the Saudis also touted – until recently. Saudi Arabia now says it will pump more. The Kingdom, during a recent visit by President Bush, pledged to increase production by 300,000. Last week, they said they would boost it by another 200,000 barrels. Those numbers are not set in stone, and Sunday’s meeting may produce more details on the planned increases.
The Saudis will also seek to convince refineries and others to keep buying. Recently, refiners worldwide have cut back in light of record prices. But that has only led to a drop in crude inventories – further pushing up the price of oil. (Almost as if it was PLANNED.) To inject more oil into the market, Halff said the Saudis may use the meeting to arrange for special deals with refiners and others that could bring crude to market at below-market prices. The exact nature of the deals, he noted, will probably never be disclosed. At the very least, traders will be watching the Sunday meeting to see if those announced production increases fall closer to the 500,000 or 800,000 barrel a day mark.
The meeting holds high stakes for both Saudi Arabia and the United States. If prices don’t respond, the country’s credibility will suffer, and with it any notion that someone has control over these record oil prices. “Riyadh is seen as running out of options to regain control of the market,” said Halff. “Failure to do so, it is assumed, could cause prices to leap even higher.”
The Saudis will also expect something from consumer nations in return. The Kingdom has long held that oil markets are well supplied, and that speculative investing is the real culprit behind high prices. (What happened to the booming economies in China and India? By the way … most electricity in China is generated by coal.) To that end, the Saudis will likely seek more oversight of oil markets, and perhaps even limits on the amount of contracts speculators can hold. (This will lead to increased government regulation of mutual funds, major banks, stock and commodities trading, etc. and furthermore it will have to be regulation by unelected international nongovernmental bodies accountable to no one, instead of by the leaders of sovereign states or even of corporations. I can imagine some United Nations “oil trading oversight board” or similar. More on that later.)
That’s something consuming counties may give them. Several proposals along those lines have bipartisan support in Congress. (More evidence still that both parties are working for the anti-Christ.) More difficult to deliver, and probably more important to the Saudis, is a stronger dollar. (No it isn’t. Going back to the gold standard would fix all of these problems, and also force our nation to go back to sound economic – and foreign/military – policy because we would no longer have the illusion of unlimited financial resources, pretending that, for instance, grotesque sums of money like 100 trillion dollars have any basis for existing in reality. Of course, that is precisely why it will never happen.)
Like the currencies of many countries in the Middle East, the Saudi riyal is pegged to the U.S. dollar – it rises and falls with the greenback. (Which makes me think that these guys are in on it too. Which basically is why no major political group, either in America or outside of it, has ever taken a line against the Saudi royal family despite their being extremely wealthy, powerful, corrupt, and a major exporter of terror. As a matter of fact, the only two that I can think of that has ever opposed the Saudis were Saddam Hussein and Usama bin Laden. Not only is the former dead, but he is also dead on account of what the latter did. It begs the question: what does the Saudi royal family have to gain from a global anti – Christ economic system? By the way, as the current version of events go, the reason for the FIRST Gulf War was that Saddam Hussein invaded Kuwait in order to institute a puppet regime. Why? To get more votes on OPEC. Saddam wanted to reduce production to increase prices, Saudi Arabia wanted to keep production high and prices low – the position of the George H. W. Bush family which has extensive financial and political ties and interests with the Saudi regime. And why did Saddam want the price of oil to go up? Because the Iran – Iraq War left his regime bankrupt, and he feared domestic political instability because of it. And who put Saddam in power to wage war against Iran, and supplied him with arms and money only to cut off the aid when the Berlin wall fell and Iran’s backer the Soviet Union fell apart? The United States.)
But while lower interest rates – and hence a lower dollar – may be what the U.S. economy needs to snap out of its slump, they have been disastrous for the red-hot Saudi economy. Inflation in Saudi Arabia has doubled in the last year and is projected to surge even higher. (This is the first article of the many that I have read in years on the weak dollar that claims that the weak dollar was in any way a good thing for the United States economy.) “I think [Saudi Arabia] wants something from the West, particularly the U.S. … a stronger monetary policy,” Nauman Barakat, an energy trader at Macquarie Futures, wrote in a research note. (No, what America is getting from the Saudis is political and economic cover to consent for international economic regulation.)
That will be hard to get. The Federal Reserve is unlikely to raise interest rates anytime soon. And any other move by the U.S. government is likely to have little effect on the free-trading dollar. More info (This is the “more information later” section. What if the Saudis and other oil producing countries state that we need international economic regulation to guarantee stability in the currency markets … that there is never a “weak dollar” or “strong euro” because of the effect that it would have on OPEC’s oil output? Pretty soon, they would also link this monetary exchange oversight to debt relief for third world countries and the economic reform in these countries required to lift them out of poverty and attract foreign investment from – of course – globalist corporations. And since the motivating force is to control oil prices, how long would the idea develop that in order to really have an effect on oil prices, the world needs to agree to cut down on oil consumption? And that easily ties into – you guessed it – global warming regulation!)