Saturday, March 7, 2009

Some Thoughts on the Price of Oil

The media loves to report on the price of oil as a function of 'market forces', of supply and demand, of investors and speculators, of inventories and production, etc, etc, blah, blah blah....

The factor the media always fails to mention is the power of the owners of the world's central banks, corporations, and institutions.  This omission is curious because these individuals and families exert a decisive influence on the price of oil (and other commodities). For example, the roller coaster ups and downs of the price of oil in the last few years was a direct result of their machinations.    

These super-rich owners, including the Rothschilds' world empire, thrive on using their power to control the factors that can threaten their wealth.  They deeply believe in risk-free investing, and try to control all conditions to attain it.  Control of a market is a paramount ambition and concern for them.

A well-known example of such control was the manipulation of the London stock market by Nathan Rothschild after the defeat of Napoleon at Waterloo.  Rothschild made an incredible fortune by suppressing information of Napoleon's defeat, driving the market down through some dramatic selling, and then making a killing on the rebound when the accurate information became known.  

The behavior pattern in this example was not a one-time anomaly.  Such manipulation is standard operating procedure for the super-wealthy.  The only difference today is that the superrich are much more adept at keeping their economic thuggery hidden from public view.

The Rothschilds in particular, but others as well, have the wealth, knowledge, inside connections, leverage and power to engineer the price of a commodity up or down, depending on world conditions and what they want to achieve.  Either way, going up or down, they can arrange things so that they are sure to make money.

In the short run they manipulate the price to make a bundle.  But they also have long range money-making schemes and political aims.  An examination of the price patterns of the last few years can illustrate their schemes.

Rothschild and friends' secrecy makes getting at the facts of their manipulation of the oil price more difficult,  Nevertheless, it is possible to surmise their intervention by looking at what was accomplished and at who benefitted.

A few years ago the price of oil began a steady and inexplicable march toward the heavens.  All manner of explanations were offered for this phenomenon, yet none seemed to make sense.  A look at some of the objectives that the superrich had in mind when they engineered a rise in the price of oil can help clarify the picture.  To wit:

*  First of all was the greed.  They wanted to make a bundle, a really, really big bundle.  And that they did.  Exxon, for example, recorded the greatest profits in corporate history.  Its stock also quadrupled in value.
*  Politically, the main immediate objective was an attempt to moderate China's economy and thereby nudge China to be more integrated into the world banking and institutional world.  The Nixon visit to China initiated the decades-long project to transform communist China into a state capitalism fully integrated into the world economy, leadership structures, banking, etc.  This effort has been mostly successful.  Lately, however, the overheated China economy brought about a little too much independence for the liking of the world masters. The Chinese currency was also gaining to much power because of an imbalance in trade.  The world rulers thus decided to drive upward the price of oil to slow the Chinese economy, and to induce the Chinese leadership to better 'appreciate' the world leaders.  The Chinese economy is dependent on imported oil.  A dramatic increase in the price of oil, such as we witnessed, had the immediate effect of forcing China to slow growth.
* To induce a mini-crisis prelude to the current economic crisis.   The rise in the price of oil softened things up a bit in the body politic in preparation for the big jolt they intended for the world economy.  
*  To generate support for war, current and future.  By generating pressure on the world populace the goal was to promote a public desire for drastic action to make things better. The rulers never really rolled out their argument that a victory in Iraq, Afghanistan, Iran would reduce the price of oil.  But they had it ready in case the reaction to the price of gasoline took to the streets. 

These objectives had built-in limits.  There were also unfavorable consequences that had to be tolerated for a period.  The worst of these for the world rulers was the effect on the Russian economy.  Russia derives much income from oil production.  A rise in the price of oil means the Russian economy thrives.  During the oil-price rise the Russian economy boomed and Russia increasingly threw its weight around in world politics.  Russia under the strengthened Putin regime became notoriously reluctant to go along with the plans of the world bankers.  The stronger the Russian economy grew the more recalcitrant the Russian leadership became. 

The circumstances that led to the oil-price increase came to an end and the price of oil seemed to turn on a dime and head downward, again seemingly without explanation.  The reversal was brought about by several factors.  

First, the time had come to precipitate the world economic crisis.  A reduction in the price of oil was desired to help alleviate the strains on the citizenry brought about by loss of employment, retirement savings, investments, etc.  

Second, Russia became too strong.  The Russian invasion of Georgia, in which the Russian army kicked butt big time, was the last straw.  The superrich had Georgia all set up with their people running the country, Israeli citizens in the cabinet, oil pipelines bypassing Russia, and a planned use of Georgia as a overland-supply route for an invasion of Iran.  Russia put a thorn in all these plans.  And so, from the rulers point of view the time had come to punish Russia.  The dramatic drop in the price of oil sent the Russian economy into a tailspin.  

Third, greed is never absent from the rulers plans.  They set things up so that they made a bundle on the price going down.  
What will happen next?  Unknown at this point.  It is a certain that the superwealthy will ensure that the price of oil and other commodities serve their interests, and nobody else's. 

Does any of this have anything to do with Catholicism?  Yes, plenty.  Pope Benedict and Vatican spokesmen have made statements to the effect that globalization is inevitable, and that the key for the Church is to ensure that the new order is a humane system and includes the Church.

The problem is that globalization means more events like the oil-price yo-yo which cause distress to everyone but the manipulators.  To try to sugar coat globalization, as the current Church orientation does, only miseducates and disarms the world's population.  And thus Church faithful are made all the more vulnerable to the depredations of the globalization process. 

Those who are constructing the new global economy are not Catholics.   Their system of usury and fraud has nothing to do with the Church traditional aims.   The owners of the world's wealth are implacable enemies of Christianity and Catholicism.  Their new order will only be in their own interests and they will tolerate the Church only to the extent that the Church doesn't hamper their plans.

It is a mistake for the Church to be a friendly advisor to Globalization.  A better course would be to explain what globalization is and what it will do.  The faithful should at least be made knowledgeable about what faces them.  Appeals from Rome for a world wide campaign of prayer to stay the hand of the madmen behind globalization would be appropriate and effective.

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