Oil and Commodities

I have to counter with the fact that the pump up in oil prices is artificial, and was started when the money ran out of the mortgage and hedge fund markets. This money needs to make money, and is always looking for a bull market. It found oil and other commodities.

While we'll also agree that oil consumption is overall a bad thing, and has done great damage to the environment, it is an artificial crisis, and bears no resemblance to supply and demand other than the limitations imposed on oil refinery capacity in the US. The limited capacity has the effect of amplifying the current trend, and every oil/political news sparrow fart of an RSS alert drives the price up. That's because there's a huge lump of money that needs to be making money as long as it is perceived that we'll continue to buy. No, it's not natural supply and demand. It's a squeeze job.

Look at what happened when GB the elder left office. Oil dropped in 1993 dramatically, to under $1/gal in most places. At the end of his term, it shot up, but nothing like what happened in late 2001. It dipped, then followed war. When the war in Iraq was artificially over, it dropped again as the mortgage and hedge funds were pumped (after all, there were no dot-coms to fund with exaggerated exuberance).

That money started leaving in 2006 because of all of the negative signs and that's when oil started to rise in price. Any old explosion in Nigeria or bellowing from a Venezuelan blow-hard president-for-life would cause a nice little bump up. Sneeze in the currency market? Bump. Look at the sneezes, follow the money.

You've been seduced by the pimps of the oil companies and the US press, which plays along like a lapdog with their huge benefactors, just as Washington, Inc., does.

But my sig represents not only the economy of peace, also the morality of it. I long for the day of great energy that doesn't pollute, but also a world that plans for the resources of the many that don't get to eat at night, or sleep under a roof, or get to know the luxuries of what we in the west call 'the basics'.

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