Firstly, we all need to understand there is no shortage of oil.
There never has been a shortage of oil for the past 20 years. Yet, every media outlet quotes the fear mongers perspectives of what might happen if oil production is curtailed by Middle East events. The propaganda becomes “the truth, the whole truth, and nothing but the truth” as far as the media is concerned.
Recently, the evening news got a press release from an executive of a leading oil company stating gas will be $5.00 a gallon in 2012. His opinion has now been brainwashed into people’s minds and is now their reference point of what gas prices will become. This type of “truth” is very rarely questioned by the public and people will talk about gas going to $5.00 a gallon simply because they heard it on the evening news on the TV.
OK, let’s play the game the way the intellectual propaganda brigade want it played out at the moment. Oil goes to $150.00 a barrel, which in turn, stifles the weak economic world recovery, which in turn, damps down demand of oil, which in turn, sends oil back to $33.00 a barrel. This is the level it fell after the last oil fiasco, when every fear mongering expert declared oil will go to $200 a barrel from the then price of $147.00. So what can be done to stop the propaganda madness and intellectually fed greed?
A few months ago the Saudi oil minister declared that $70.00 a barrel was a fair market price. Therefore, in time of Middle East unrest, why not bring in government intervention to stop all oil commodity market speculation and oil ETF trades in the stock market. Let the price be fixed at $75.00 a barrel until all the unrest settles down. Then resume trading with limits, between $70.00- $80.00 and only allow companies that are directly connected in the oil industry to hedge their production and usage.
The only reason commodity mercantile exchanges were created was for merchants to protect their products from future falls and rises. A while ago, a philosophy said that if we plant a seed of thought into a persons mind, that seed will grow into a be-lie-f and that be-lie-f will become a person’s truth. As time has progressed the sophistication of intellectual propaganda has grown in strength and stature. With media help, perspectives become truth so that commodities can be traded to insane levels with no regard to the mayhem they can create.
Food and energy need regulation on how and when they can be traded and by whom. With 700 new ETF’s coming on stream, leveraged financial instruments are growing and with them increased volatility, mayhem and destruction of wealth for all but the greedy few.
Nobody wins in the end, in the avaricious race for money, with no social or ethical principles.
