Tuesday, September 16, 2008

Are oil producers manipulating the market to keep Republicans in power

In "Is the “Commodity Super Cycle” Dead or Alive?" Gary Dorsch asserts that the oil producers are manipulating the markets to keep republicans in power.

Under the section "Saudis Topple Oil market, US Election Politics" Gary quotes Venezuelan oil chief Rafael Ramirez: "Obviously, when the price of crude oil oscillates $20 up or down in such a short time, it doesn't have anything to do with production,"

Later Gary states "However, the Saudi kingdom might be looking at the US political calendar, and would feel more comfortable with a John McCain presidency, thus Riyadh might be inclined to leave its oil output unchanged awhile longer."

So, what can we voters make of this?

Looking at the markets I see oil down, the dollar up, and the Fed rescuing weak financial companies. It seems to, to quote my dad, the fix is in. Can the republicans really manipulate the world financial and energy markets just in time for the election? Maybe not. But it seems who ever can is off to a good start.

What's interesting is that it is Britain that seems to have escalated buying of US treasuries the most among top players in this market during the past few months. I find it suspicious that Britain does not have the trade surplus with the United States one would expect for them to acquire such a huge surplus in dollars. So where did this money come from?

With no evidence of my own to support it, I suggest looking at the World's oil producers. Oil producers are receiving billions of dollars every month - we all see that at the pump. It doesn't seem difficult to front a bank in Britain and buy these treasuries. Luckily the Saudis' had foresite to nationalize The British Bank of the Middle East in 1979.

Why would the Saudi's do this? Because they feel the extremely hawkish republicans will keep the Iranians down and stay in Iraq.... Perhaps, but I can't really say...

In any event, isn't this cool? It seems we've come full circle. Back to the events that started at the time of the last major oil crisis.

1 comment:

  1. it has all been rigged since kissinger talked OPEC into pegging oil to the dollar.