Wars are Fought to Keep Oil Under Dollars Control

March 24, 2004

By John Wilmerding

Enron, telecom, and the other unprecedented U.S. corporate
financial scandals were the warning sign. But government didn't
act, partly because Enron and the windfall profits generated by
manipulating California fuel prices in 2000 helped (s)elect Bush
into the White House. And everything the president has done
since then has been in favor of profits for the big corporate
entities that now essentially run the U.S. government.

The president's handler and chain-man, Vice President Richard
Cheney, rakes in illegal profits from Halliburton's massive
exploitation of the Iraq attack while almost no one seems to
notice. Rock-ribbed reactionary Supreme Court Justice Antonin
Scalia goes duck-hunting with people he has to sit in judgment
on the next week.

The rich everywhere seem to be on the take, winking at each
other right and left, but they are wrongly taking us for sitting
ducks. The poor are getting ready to eat them alive, and we
will have the state for dessert.

For years the wiser on why gold prices aren't going up, GATA,
the Gold Anti-Trust Action Committee, is trying to break the
Federal Reserve's and others' cartel-manipulation (downward)
of gold prices. Ironically, they are trying to do it on as
rationale of smart investment.

The operative theory says that the Federal Reserve, which
controls U.S. financial policies, is in cahoots with people who
know that the dollar would drop hugely in value if its gold-price
value were allowed to truly float in the commodities market.
So the Fed grabs huge chunks of the U.S. gold reserves in
Fort Knox and elsewhere and mortgages them -- commits
them to futures contract sales -- to keep gold prices down.
This is illegal and done in a clandestine fashion.

Another way the dollar's value has been propped up in recent
months is by huge Japanese buying of dollars. Basically they
are minting yen like crazy just for the purpose of buying dollars,
hoping either to save the U.S. economy or perhaps to buy
everything of value in the United States, depending upon your
point of view, or perhaps your fear.

So in recent months when other precious metals and
commodities have been going up in price to reflect the
several-years-long decrease in the dollar's buying value, the
price of gold has held rock-steady ... until now, that is. There
is speculation that finally a critical mass of investor
understands the statistical proofs of market manipulations,
and we are beginning to see a run on gold (people buying
lots of gold futures) that is becoming consistent.

If GATA's theories are correct and the gold market has been
held way low for a long time to keep U.S. inflation manageable,
it is possible that the price of gold in dollars could even
double or triple go beyond even that. If the value of the dollar
starts to become truly elastic to gold, then the dollar may have
to lose 50 to 75 percent of its buying power.

The result for U.S. consumers will be a deep, deep recession
or maybe even a depression as the U.S. economy finally
re-gears away from "services" and back to the production of
the food, clothing, shelter, and other necessities that the
U.S. populace needs. Long-term, this will be a very healthy
thing for the United States, but in the short term we could see
drastic shortages of gasoline, fuel oil, and other pricey and
limited commodities and consumer products that will flee the
United States and begin to chase the newfound buying power
of Europeans and people elsewhere.

We in the Committee for Equity-Restorative Justice observe
that this is why wars are fought: to maintain the dollar's
hegemony over oil, the primary strategic (read: military)
commodity. The theory here goes that the Saudis and others
rely on the United States to prop up their autocratic regimes
and in return support the 30-year-old fiat that has them
accepting only dollars to buy oil. This means that other
countries have to maintain significant reserves of dollars in
order to keep their oil market share. But if the bottom falls
out of the dollar's buying power, then the petro-dollar -- the
dollar as oil's fiat currency -- is doomed. This will also spell
the doom of the U.S. neo-cons' admitted plans for global
military and economic domination for the rest of the century.

Bottom line? If gold's value increases to some of the higher
estimates -- goes from $400 to perhaps $1,700 an ounce --
we in the United States will be looking at gasoline and heating
oil that runs between $5 and $10 a gallon.

Unthinkable? Think again; it's very possible. People in many
other countries, including Europe and Britain, for years have
been paying two, three, or even four times as much for
gasoline as we do here in the United States. Why? Because
our dollars have had such unwarranted buying power for so long.

Serious economists note that the United States produces little
of its essential commodities and industrial goods anymore,
and consequently is running up a monumental
balance-of-payments deficit. There are signs that the United
States is now truly desperate to prop up its economic statistics
and maintain the confidence of international financiers.

One of these signs is the recent reclassification of burger flippers
in fast-food restaurants as "manufacturing jobs." That should
boggle the mind. So many real U.S. factory jobs have been
exported that the country is propping up the job statistics with the
lie that burger flippers are manufacturers.

More to the point, about 2,000 tons of gold in storage at West
Point were recently reclassified from "deep storage" to "custodial
storage," which can mean that it is being held there for delivery
to a buyer or series of buyers.

It is this kind of thinking that caused the Enron and telecom
debacles -- accounting sleight-of hand to operate huge confidence
games that are robbing us and our children of future security and
opportunities. That and mortgaging our children's futures to
prosecute immoral wars that we can only lose.

Great international economic "corrections" are now the only way
that the world will lurch toward economic justice and reduce the
disparity in wealth and resources between the rich and the poor.
And millions upon millions of people -- possibly even billions of
people -- may die unless we begin to manage our economic
affairs better.

If the media begin to report things fairly, the scandals of this
presidency will include the bankrupting of the United States. I
predict here that this will be illustrated will be through
revelations of how many U.S. military service people are dying
of wounds and illnesses incurred in Iraq.

The U.S. economy today is a one-trick-pony, its only trick being
its efficient machinery for killing people, a nation of predatory
weapons of mass destruction. And we, the doves, are going to
put them out of business.

Non-violently, of course!

Posted by rlancaster at 10:32 PM | Comments (34)

Taiwan Elections, etc.

March 21, 2004

Rich Lancaster says:

Well looks like you have Chen for President in Taiwan for a while longer! How were events in town while the voting was going on? What an interesting time to be living in Taiwan!! What an interesting time to be alive anywhere!!!

Pakistan has the president shot
Venezuela attempted coups
Haiti has Aristide forced out
Spain votes in anti-neocons
Germany went first a year ago with an anti-neocon vote

I know there is more than this, but its still pretty interesting.

I'm predicting a rise in terror activity in to the face of the US election. Britain is going to take a hit and I think the US might too. The war will escalate on all fronts through the summer, all of this will benefit the Bush campaign and the growing need for a police state and a war economy. It will also serve to mask over the economic reality. At the end of it Bush will be re-elected - he will have $400 million to beat Kerry - he'll win this one bro!


Posted by manystrom at 03:34 PM | Comments (71)

Open Thread - The Coming Draft

March 14, 2004

Original Source:

WASHINGTON -- The government is taking the first steps toward a targeted military draft of Americans with special skills in computers and foreign languages.

Defense Secretary Donald Rumsfeld is adamant that he will not ask Congress to authorize a draft, and officials at the Selective Service System, the independent federal agency that would organize any conscription, stress that the possibility of a so-called "special skills draft" is remote.

Nonetheless, the agency has begun the process of creating the procedures and policies to conduct such a targeted draft in case military officials ask Congress to authorize it and the lawmakers agree to such a request.

"Talking to the manpower folks at the Department of Defense and others, what came up was that nobody foresees a need for a large conventional draft such as we had in Vietnam," said Richard Flahavan, a spokesman for the Selective Service System. "But they thought that if we have any kind of a draft, it will probably be a special skills draft."

Flahavan said Selective Service planning for a possible draft of linguists and computer experts began last fall after Pentagon personnel officials said the military needed more people with skills in those areas.

A targeted registration and draft "is strictly in the planning stage," he said, adding that "the whole thing is driven by what appears to be the more pressing and relevant need today" -- the deficit in language and computer experts.

The spokesman said it could take about two years to "to have all the kinks worked out."

The agency already has a special system to register and draft health care personnel ages 20 to 44 in more than 60 specialties if necessary in a crisis. According to Flahavan, the agency will expand this system to be able to rapidly register and draft computer specialists and linguists, should the need ever arise. But he stressed that the agency has received no request from the Pentagon to do so.

Congress, which would have to authorize a draft, has shown no interest in taking such a step.

Kathleen Long, a spokeswoman for Sen. Carl Levin, the senior Democrat on the Senate Armed Services Committee, said a draft has little support among lawmakers.

A spokesman for Rep. Duncan Hunter, R-Calif., chairman of the House Armed Services Committee, agreed. "There are massive operations under way to retrain soldiers" for more pressing duties and to recruit specialties in demand such as language experts, said Harald Stavenas, Hunter's spokesman.

The military draft ended in 1973 as the U.S. commitment in Vietnam waned, beginning the era of the all-volunteer force. Mandatory registration for the draft was suspended in 1975 but resumed in 1980 by President Carter after the Soviets invaded Afghanistan. About 13.5 million men, ages 18 to 25, are currently registered with the Selective Service.

The military has had particular difficulty attracting and retaining language experts, especially people knowledgeable about Arabic and various Afghan dialects. To address this need, the Army has a new pilot program under way to recruit Arabic speakers into the service's Ready Reserves. The service has signed up about 150 people into the training program.

A Pentagon official familiar with personnel issues stressed that the armed forces are against any form of conscription but acknowledged that the groundwork is already under way at the Selective Service System.

On Capitol Hill, Rep. Charles Rangel, D-N.Y., has introduced a bill that would reinstate the draft. The legislation has minimal support with only 13 House lawmakers signing on as co-sponsors. A corresponding bill in the Senate introduced by Sen. Fritz Hollings, the outgoing South Carolina Democrat, has no co-sponsors.

Posted by manystrom at 11:09 PM | Comments (66)

Meltdown Near? Open Thread

March 11, 2004


Rich Lancaster notes: This is interesting.

Almost everyone over 5 years is at or below ZERO and Citi are up 60%, what
is wrong with this picture!!!??

Here's a piece of conjecture for you, using Machiavellian deduction logic:

JPMC has been using Freddie and Fannie as losing counter parts in their derivatives scamming! Every derivative contract needs a counter party, and in the case of JPMC and Citi clearly their counterparts are the losers so the banks can win.

I suspect there are many of the Fortune 100 that are controlled indirectly by these two banks - who have tremendous leverage due to the debt burden of the Fortune 100 (I'd love to see a report on the bankers who sit on the boards of these companies - it would tell a story fer sure). The companies, like Enron, allow a JPMC to come in and set up, with the help of bank consultants (like Arthur Andersen), offshore money laundering facilities in the form of derivative and currency trading.

Of course the bank is then in reciept of massive insider knowledge on the trading movements of the company and due to their ownership and indirect control of the Fed they are also aware of interst rate policy, etc. This is how they are able to weave together $50 Trillion in derivatives without fear of a massive blow out, they own or indirectly control all of the moving parts.

I'm sure I've got aspects of this wrong, but the general picture I think is OK.

Posted by manystrom at 09:26 PM | Comments (249)

Dow Drops Tranny


To those of you not familiar with the Dow Theory, it’s an old fashioned indicator, so you probably shouldn’t pay much attention to it. All these old indicators, such as PE ratios, dividend yield, price-to-book – they don’t really mean anything anymore in the new economy.

But just for fun, just for a little history lesson, let me give you a brief overview of the Dow Theory. Dow theory is a description of market behavior, invented by Charles Dow, of Dow Jones fame, as a way to track the primary trend in the market. It divides the price moves of the stock market into three types of trends: primary (lasting from months to years), intermediate (weeks to months) and minor (days to weeks). It looks at only two indices as a model of the market in general, and it looks only at price action. The two indices were originally the Industrial Average, and the Railroad Average (the “Rails”). This was back at the turn of the last century – 1900 or so – when the “Industrials” numbered only 12 stocks, and the great railroads of this country were the primary means of transporting the goods produced in the industrial factories of the north to the south and out west. The theory thus takes into account the two primary factors of economic value: production and transportation.

The original theory stated that when a change in direction of either the Industrial Average or the Railroad Average is confirmed by the other, a primary change of trend in the overall market is signaled. Simultaneous movement of the DJIA and the DJTA to new highs or lows provides the theory with the signals of trend change.

Can Dow Theory be trusted today? After all, the “Industrials” are no longer really such. Now they include stocks such as Disney, Microsoft, AT&T, Citigroup, Merck and SBC, which produce very little in the way of physical goods. As for the old “Rails” index – it is now called the Transportation index, it is dominated by the airliners, which are notorious for losing money anyway. Fedex and UPS, both primary movers of goods in today’s economy are also components.

The thing about the new economy is that stock prices have no relationship to the underlying economy. This is why those old fashioned indicators mentioned above don’t work any longer. So the Dow’s dropped its tranny and issued a sell signal? Pshaw! This is an election year. The Powers That Be aren’t going to let the market fall before Dubby gets back in office.

Are they?

Forget about the economy. Do your patriotic duty, borrow some money and buy something. Don’t think so much. It’s a bull market. Pay no attention to what the statistics say, or for that matter what the market is saying. It’s a bull market. Chock full of bullsh*t!

Posted by manystrom at 10:04 AM | Comments (23)
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