The Oil Conspiracy

A couple of weeks ago, I wrote a post asking why the gas in my area was $ 1.93, when less than six months ago, it was over $4.00. Well now, it's down to $ 1.77. I see I'm not the only one wondering what has happened.

From Politicalinaction.com:

Thursday, December 4, 2008
My oil conspiracy......

I do not believe the oil markets are telling us the truth. The sudden rise in oil, followed by the sudden collapse, are just too coincidental for everything to be on the up and up. When viewed from a far, meaning outside of 'supply and demand', it seems to me that the oil companies were trying to maximize their returns before having to cut prices dramatically to boost Republican chances in November. I was called a fool when I said, in July, that gas would be $2 by election day. I said that the oil companies would try and help McCain win by taking the gasoline worry off of the minds of the American public...but the oil companies lost and the drive by media fired everyone up about the cratering economy. Now, faced with Obama, Democratic majorities, and a mandate for real change, oil has fallen precipitously. My question is why....and I believe the answer makes the oil companies out to be nothing more than criminal.

Oil was $150 a barrel in July, and gasoline was over $4 a gallon in late July of this year. Barack Obama had just returned from his successful overseas trip, and he was 10 points ahead of John McCain. Then oil and gas prices began to fall and basically halved themselves by election day. I believe the oil companies were trying to take gasoline off the minds of consumers so they wouldn't elect Obama, and as many Democrats. While that is criminal in and of itself, whatever, what I am more concerned about is how far oil has fallen since Obama won. I believe the oil companies think they're fighting for their very survival. I think they view the incoming Obama administration as radically dangerous to their business models. I think that the drop in prices right now is an effort by oil companies to take away the public will for green energy. I myself have been a victim of their nefariousness. I drive a pickup, and it gets decent gas mileage. But even now I'm not even thinking about how much I spend on gas or drive, when all summer with gas at $4 a gallon I religiously watched my total mileage each day. I've even caught myself looking at Hummers and Ford F150s the other day, thinking how it wouldn't be that much more to drive one of those. I was astonished at myself given how much of a gasoline Nazi I was over the summer. If the drop in prices put fuel efficiency on the back burner, I know it done the same for Joe the Plumber.

I don't believe this is a result of supply and demand, but that this is blatant manipulation by the oil companies. Prices don't sky rocket in a global slowdown, given that a report came out last week that said our economy has been in a recession for over a year, then suddenly plummet. Sure, we can say the world was still booming, but we use 25% of the oil. If we are in a recession, oil should not go up. It means we aren't buying Chinese products, therefore they need less oil. The oil companies are doing this because Obama has 2-3 initiatives he can implement immediately when he gets into office. He'll get his way with hardly any pushback from Republicans as long as he includes them in the process. The first is going to be an economic recovery package of some kind. My guess is that Paulson leaves Obama some money from the remaining $350 Billion, but not enough to really do anything, which forces the Democrats to pass a new bill, which Nancy Pelosi and Harry Reid will load with welfare giveaways, union giveaways, 'training programs', and other complete wastes of money when the money should be given directly to you and I in a rebate check. I'll spend my money better than my government will. For example, the American people have already rejected the bailout of the Big 3 by buying Hondas and Toyotas. The second is going to be Iraq, continuing the gains there, but funding veteran's healthcare and redeploying and reconstituting our force in Afghanistan. Everyone has pretty much agreed to this already, but the Republican genie is going to say this is one of his wishes. So that leaves one more initiative, combat energy independence or healthcare. If the oil companies can remove the problem of oil and gas prices from the American mind, not only will they take away Obama's political capital, but they can then say any Obama energy initiative will return prices back to July, and blame any future price hikes by them on Democrats. They're trying to make universal healthcare reform more appealing to Obama than revamping our national energy policy.

To get around this, Obama could group all the domestic stuff into one big stimulus package....take care of the healthcare and energy monkey while stimulating the economy. Put the energy lobby up against fixing the economy. My personal opinion is that within 6 weeks we will see $.99 a gallon gas. Thankfully, when asked 2 weeks ago if that the fall in oil put energy independence on the back burner in light of all that is of pressing need to the country, Obama responded that now that prices have dropped, it is even more pressing, so we can use this time of price relief to our benefit.
Labels: Barack Obama, CNN, Congress, Conservatives, Democrats, Economy

posted by Brian Francis

Just cause you're paranoid, doesn't mean folks aren't out to get you.

I think Henry Waxman should investigate.

Will Chavez Pull The Trigger?

Hat tip: Los Angeles Times.

Will Chavez pull the trigger?
Venezuelans may give their president the power to restrict oil production -- and cause a global recession.
By Michael Rowan and Douglas Schoen
November 13, 2007


On Dec. 2, Venezuelan President Hugo Chavez can tip the world into a recession.

On that day, if Venezuelan citizens pass the dozens of constitutional amendments on the ballot, Chavez will essentially be granted dictatorial powers -- an elected strongman reminiscent of Spain's Franco, Italy's Mussolini and Orwell's Big Brother. The day could easily deteriorate into one of violence, martial law and suspension of oil production, the latter calculated to inflict maximum damage on the U.S. economy.

With the price of oil hovering near $100 a barrel and markets skittish because of the sub-prime housing crisis (not to mention the stability of U.S. banks, the U.S. trade deficit, the weak dollar and deteriorating domestic consumer confidence), such a move on Chavez's part would go a long way in triggering a recession. An oil crisis during the Christmas season -- with its 40% share of annual retail sales -- would be especially detrimental in the U.S.

Rising oil prices have caused global recessions in the past. The Saudis and other oil-producing countries have tried to increase output to offset rising costs. But working against stability and for high oil prices are Chavez and Iran's Mahmoud Ahmadinejad, who are in a strategic alliance to push up the price of oil.

Oil economists calculate that on a supply-and-demand basis alone, the price of oil would be about $50; the remaining $45 in the current price is a political premium caused by uncertainty in the Israeli-Palestinian conflict, Iran's suspected nuclear plans, the wars in Iraq and Afghanistan and social unrest in Pakistan, Nigeria and Venezuela. But where the world sees a threat, Ahmadinejad and Chavez see opportunity: Civil discord lines their pockets.

In Chavez's eyes, a world economic crisis would prove that capitalism is a failure and the U.S.' "evil empire" is historically over. Chavez's Bolivarian socialist economic order would supposedly move to the forefront. For his part, Ahmadinejad can use world chaos to gain hegemonic strength in the Middle East. The two, working in cahoots, could then reach out to partners in Syria and elsewhere in the region.

Chavez is a brilliant military strategist who has reportedly spent or committed $110 billion since 2004 (an amount equivalent in today's dollars to what the U.S. spent in the Marshall Plan after World War II) in political investments in the Americas and elsewhere. His plan is to spread the revolution against capitalism and the United States. So far, he has a string of victories to show for it. Bolivia, Ecuador and Nicaragua are already in his camp; Argentina owes him $5 billion, and his candidates came within 1% of winning elections in Mexico and Costa Rica in 2006.

Alarmingly, Chavez is also building support in the U.S. He subsidizes winter oil available for up to 2 million American families in 17 states and promotes his revolution through photo-ops with celebrities such as Sean Penn and Naomi Campbell and dealings with politicians such as Jimmy Carter and Joseph P. Kennedy II. He has retained consulting firms connected to such politicians as Jack Kemp and Rudy Giuliani.

Chavez has succeeded because he was grossly underestimated by his opponents. It's happening even now. The Bush administration has ignored Chavez in the hope that he would go away or that his neighbors would isolate him. But he has done just the opposite and isolated the U.S. within the Americas.

Rest of article is here.

This article interested me for several reasons.

1. I've been watching Chavez work his ' magic' in Latin America, with respect. He really is the modern day incarnation of Fidel Castro - but, with OIL,which makes all the difference.

2. The way that Chavez has opened his doors to the President of Iran. For one of our ' enemies - over there' to have such a good friend ' over here', in this hemisphere, can't be too good for us.

3. I'm wondering when the rumblings will begin about military action in Venezuela - you know it's coming, people.

4. Our dependence upon oil is truly beginning to bite us seriously, and the proposition that Chavez could manipulate things on such a scale as this, well, shows the present vulnerability of the United States.

5. Is he a dictator if the people give him the power? Hmmmm.....

December 2nd could be a very interesting day indeed.

Oil Prices Above $90 a Barrel

Crude Oil prices nearly hit $100 a barrel last week. Prices are now hovering in the mid-90's. However, many analysts believe that it's only a matter of time before oil prices reach the $100 mark. oil prices have spiked into this territory before, but only briefly. This time the prices seemed to be holding. Instead of spiking and going back down, there seems to be the feeling that these prices represent the new normal. Keep in mind, we are not even in Winter yet.


And of course this is great news for Bush & Cheney (both former oil men) and their buddies in the oil business who will rake in obscene amounts of money because of these higher prices. But eventually these higher prices will spur inflation, since retailers and manufacturers will have to pass the cost of fuel to the consumer.


Meanwhile the U.S. dollar continues to fall, and for some businesses overseas (and even some Countries) it is no longer the preferred currency. Add to that the rising cost of healthcare, stagnant wages, increased cost of education, home prices are down, foreclosures are up, increases in both individual debt as well as the national debt, record trade deficits, the shipping of jobs overseas, the lack of retirement savings, billions wasted on a senseless war (some now say trillions)and we end up with a recipe for economic disaster.

I have mentioned before that the current U.S. economic situation is unsustainable.

Hear a debate between 2 opposing economists about the future of the U.S. economy... One economist, Peter Schiff, believes that the U.S. is headed for recession. Ken Rogoff on the other hand believes that everything is fine and dandy and that those who say that rough times are ahead are simply being alarmists. Rogoff's view seems to be overly optimistic. It's as if he has no connection to reality.

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