Oil nears $123 on $200 oil prediction, supply concerns

Oil prices rise to record near $123 a barrel on prediction of $200 oil, supply concerns

NEW YORK (AP) — Oil futures blasted to a new record near $123 a barrel Tuesday, gaining momentum as investors bought on a forecast of much higher prices and on any news hinting at supply shortages. Retail gas prices edged lower, but appear poised to rise to new records of their own in coming weeks.

A new Goldman Sachs prediction that oil prices could rise to $150 to $200 within two years seemed to motivate much of Tuesday’s buying, although a falling dollar and increasing concerns about declining crude production in Mexico and Russia contributed, analysts say.

Read moreOil nears $123 on $200 oil prediction, supply concerns

Fannie Mae Reports $2 Billion Loss

“Fannie Mae said it expects “severe weakness” in the housing market in 2008, bringing increased mortgage defaults and foreclosures.”

(This sounds a “little bit” different to what Mr. Alan Greenspan told the public recently. – The Infinite Unknown)

_______________________________________________________________________________________

Fannie Mae reported losses of $2.2 billion in the first quarter and the nation’s largest buyer of home loans said Tuesday it would cut its dividend and raise $6 billion in new capital, with expectations that the housing slump will persist into next year.

Home prices fell faster in the first quarter than Fannie Mae had expected, the government-sponsored company said, and it will open a $4 billion share offering immediately, with the remainder being offered in the “very near future.”

Fannie Mae’s federal regulator, the Office of Federal Housing Enterprise Oversight, announced Tuesday that following the stock sale, it will cut the capital surplus cushion the company has to maintain by 5 percentage points to 15 percent. Another five-point cut will come in September, provided there is “no material adverse change” in the company’s regulatory compliance.

Read moreFannie Mae Reports $2 Billion Loss

Bernanke urges more action to stem home foreclosure crisis

WASHINGTON (AP) — A rising tide of late mortgage payments and home foreclosures poses considerable dangers to the national economy, Federal Reserve Chairman Ben Bernanke warned anew as he urged Congress to take additional steps to alleviate the problems.

“High rates of delinquency and foreclosure can have substantial spillover effects on the housing market, the financial markets and the broader economy,” Bernanke said Monday in a dinner speech to Columbia Business School in New York. “Therefore, doing what we can to avoid preventable foreclosures is not just in the interest of lenders and borrowers. It’s in everybody’s interest,” he said.

Some 1.5 million U.S. homes entered into the foreclosure process last year, up 53 percent from 2006, Bernanke said. The rate of new foreclosures looks likely to be even higher this year, he said.

Read moreBernanke urges more action to stem home foreclosure crisis

Gates says big changes in store for Internet in next decade

SEOUL, South Korea (AP) – Microsoft Chairman Bill Gates said there will be a vast shift in Internet technology over the next decade as he met Tuesday with South Korean President Lee Myung-bak.”We’re approaching the second decade of (the) digital age,” the software mogul and philanthropist told Lee at the start of their meeting at the presidential Blue House, according to a media pool report.

“The Internet has been operating now for 10 years,” Gates said. “The second 10 years will be very different.”

Read moreGates says big changes in store for Internet in next decade

Defense Industry Consolidation in the USA

The US GAO’s 2008 Assessments of Selected Weapon Programs is proving to have a longer tail than usual. Booz Allen Hamilton is a strategic/ I.T/ program assistance consultancy with strong representation in the government and defense sectors. This May Day, we refer readers to the recent Washington Post article “One-Stop Defense Shopping,” wherein Booz Allen Hamilton VPs Dov S. Zakheim and Ronald T. Kadish discuss the state of competition in the American defense industry, and some of its consequences:

“The GAO report lays bare a festering problem in our nation’s military procurement system: Competition barely exists in the defense industry and is growing weaker by the day.

It was a different story just two decades ago. In the 1980s, 20 or more prime contractors competed for most defense contracts. Today, the Pentagon relies primarily on six main contractors to build our nation’s aircraft, missiles, ships and other weapons systems. It is a system that largely forgoes competition on price, delivery and performance and replaces it with a kind of “design bureau” competition, similar to what the Soviet Union used—hardly a recipe for success….”

America is certainly not the only country facing these pressures: Britain is even farther down this road, and Europe is aggressively moving to restructure its own industry into a very few global competitors. Ultimately, the policy implications described here will be played out on a near-global basis, with the possible exception of China.

30-Apr-2008 18:27 EDT

Source: Defense Industry Daily

Making a killing from hunger

We need to overturn food policy, now!

GRAIN

For some time now the rising cost of food all over the world has taken households, governments and the media by storm. The price of wheat has gone up by 130% over the last year.[1] Rice has doubled in price in Asia in the first three months of 2008 alone,[2] and just last week it hit record highs on the Chicago futures market.[3] For most of 2007 the spiralling cost of cooking oil, fruit and vegetables, as well as of dairy and meat, led to a fall in the consumption of these items. From Haiti to Cameroon to Bangladesh, people have been taking to the streets in anger at being unable to afford the food they need. In fear of political turmoil, world leaders have been calling for more food aid, as well as for more funds and technology to boost agricultural production. Cereal exporting countries, meanwhile, are closing their borders to protect their domestic markets, while other countries have been forced into panic buying. Is this a price blip? No. A food shortage? Not that either. We are in a structural meltdown, the direct result of three decades of neoliberal globalisation.

Farmers across the world produced a record 2.3 billion tons of grain in 2007, up 4% on the previous year. Since 1961 the world’s cereal output has tripled, while the population has doubled. Stocks are at their lowest level in 30 years, it’s true,[4] but the bottom line is that there is enough food produced in the world to feed the population. The problem is that it doesn’t get to all of those who need it. Less than half of the world’s grain production is directly eaten by people. Most goes into animal feed and, increasingly, biofuels – massive inflexible industrial chains. In fact, once you look behind the cold curtain of statistics, you realise that something is fundamentally wrong with our food system. We have allowed food to be transformed from something that nourishes people and provides them with secure livelihoods into a commodity for speculation and bargaining. The perverse logic of this system has come to a head. Today it is staring us in the face that this system puts the profits of investors before the food needs of people.

Read moreMaking a killing from hunger

Emptying the Breadbasket

For decades, wheat was king on the Great Plains and prices were low everywhere. Those days are over.

At Stephen Fleishman’s busy Bethesda shop, the era of the 95-cent bagel is coming to an end.

Breaking the dollar barrier “scares me,” said the Bronx-born owner of Bethesda Bagels. But with 100-pound bags of North Dakota flour now above $50 — more than double what they were a few months ago — he sees no alternative to a hefty increase in the price of his signature product, a bagel made by hand in the back of the store.

I’ve never seen anything like this in 20 years,” he said. “It’s a nightmare.”

Fleishman and his customers are hardly alone. Across America, turmoil in the world wheat markets has sent prices of bread, pasta, noodles, pizza, pastry and bagels skittering upward, bringing protests from consumers.

But underlying this food inflation are changes that are transforming U.S. agriculture and making a return to the long era of cheap wheat products doubtful at best.

Half a continent away, in the North Dakota country that grows the high-quality wheats used in Fleishman’s bagels, many farmers are cutting back on growing wheat in favor of more profitable, less disease-prone corn and soybeans for ethanol refineries and Asian consumers.

“Wheat was king once,” said David Braaten, whose Norwegian immigrant grandparents built their Kindred, N.D., farm around wheat a century ago. “Now I just don’t want to grow it. It’s not a consistent crop.”

In the 1980s, more than half the farm’s acres were wheat. This year only one in 10 will be, and 40 percent will go to soybeans. Braaten and other farmers are considering investing in a $180 million plant to turn the beans into animal feed and cooking oil, both now in strong demand in China. And to stress his hopes for ethanol, his business card shows a sketch of a fuel pump.

Read moreEmptying the Breadbasket

Multinationals make billions in profit out of growing global food crisis

Speculators blamed for driving up price of basic foods as 100 million face severe hunger

Giant agribusinesses are enjoying soaring earnings and profits out of the world food crisis which is driving millions of people towards starvation, The Independent on Sunday can reveal. And speculation is helping to drive the prices of basic foodstuffs out of the reach of the hungry.

The prices of wheat, corn and rice have soared over the past year driving the world’s poor – who already spend about 80 per cent of their income on food – into hunger and destitution.

The World Bank says that 100 million more people are facing severe hunger. Yet some of the world’s richest food companies are making record profits. Monsanto last month reported that its net income for the three months up to the end of February this year had more than doubled over the same period in 2007, from $543m (£275m) to $1.12bn. Its profits increased from $1.44bn to $2.22bn.

Cargill’s net earnings soared by 86 per cent from $553m to $1.030bn over the same three months. And Archer Daniels Midland, one of the world’s largest agricultural processors of soy, corn and wheat, increased its net earnings by 42 per cent in the first three months of this year from $363m to $517m. The operating profit of its grains merchandising and handling operations jumped 16-fold from $21m to $341m.

Similarly, the Mosaic Company, one of the world’s largest fertiliser companies, saw its income for the three months ending 29 February rise more than 12-fold, from $42.2m to $520.8m, on the back of a shortage of fertiliser. The prices of some kinds of fertiliser have more than tripled over the past year as demand has outstripped supply. As a result, plans to increase harvests in developing countries have been hit hard.

The Food and Agriculture Organisation reports that 37 developing countries are in urgent need of food. And food riots are breaking out across the globe from Bangladesh to Burkina Faso, from China to Cameroon, and from Uzbekistan to the United Arab Emirates.

Read moreMultinationals make billions in profit out of growing global food crisis

Time to Stockpile Food?

A Guide to Preparing for Rising Food Costs or That Next Big Emergency


The inside of H-bomb steel shelter from 1955. (AP Photo)

Worried about the dramatically rising cost of food? Afraid of a shortage?

Well, then maybe it’s time to clean out that old Cold War-era bunker and stockpile your favorite treats. Just move those gas masks to the side and start stacking up the canned string beans.

OK, so maybe that is a bit extreme. But some families have been talking about stockpiling to hedge against further increases and possible shortages.

The idea took hold last week when Costco and Sam’s Club announced that they would limit customers to four wholesale-size 20-pound bags of imported jasmine, basmati and long-grain white rices per trip.

That has caused some concern, but think about the last time you bought 20 pounds of rice in one shopping trip, let alone 80, 100 or even 120 pounds.

How Is the Economy Treating You? Tell ABC News
(A Clever way to find out who is in financial trouble. – The Infinite Unknown)

The clubs’ restrictions were probably not aimed at everyday consumers, however.

In a statement Friday, Sam’s Club said: “These limits are designed to prevent large distributors or wholesalers from depleting our stock. We believe limiting rice purchases to four bags per visit is consistent with the needs of the majority of our members, including many restaurants.”

In other words, the big chains are afraid some restaurants will deplete their stocks because their prices are cheaper than some traditional restaurant suppliers.

Stockpiling Hurts Everyone

The reasons for the food price increases include more grains being used for fuel production, increased demand in countries including China, and poor harvests.

For consumers concerned about rising food prices, stockpiling probably makes little economic sense, said Bill Knudson, a professor in the Department of Agricultural Economics at Michigan State University.

“The thing about stockpiling is that it becomes a self-fulfilling prophecy,” he said. “The easiest way to raise food prices is if everybody went out and stockpiled food.”

(If everybody went out buying just 20% more food there would be empty shelves everywhere. And if you do not stock up food now, you will probably find yourself in big trouble very soon. This is a crisis played down.
– The Infinite Unknown
From recent articles:

“Even if people increased their purchasing by 20%, all the store shelves would be wiped out.”

…global grain reserves are “precarious,” at just 1.7 months of consumption, down from 3.5 months of reserves as recently as 2000.”…)

In the past two decades food prices have only increased by an average of 2.5 percent each year. But from 2006 to 2007, prices spiked 4 percent. The Department of Agriculture is forecasting a 4 to 5 percent increase in retail prices this year.

But some individual staples have jumped in price.
(Just some individual staples have jumped in price
??? What a bad joke.- The Infinite Unknown)

The cost of white bread alone was 16.3 percent higher in March than a year earlier, according to the Labor Department’s Bureau of Labor Statistics, which tracks inflation through the Consumer Price Index. Grade A large eggs were up nearly 35 percent during the same period and sliced bacon rose 4.6 percent.

Read moreTime to Stockpile Food?

IBM joins Lockheed on FBI identification contract

IBM Corp. and Lockheed Martin Corp. have agreed to work together on the $1 billion contract to develop and maintain the FBI’s Next Generation Identification (NGI) system, IBM said today. Federal, state and local authorities will use the new multimodal biometrics system.

Lockheed Martin won the 10-year contract in February, but IBM lodged a protest with the Government Accountability Office and work was held up. Big Blue’s announcement that it is joining Lockheed Martin’s team as a subcontractor made no mention of the protest.

As the prime contractor, Lockheed Martin will provide program management and oversight in addition to biometric and large-systems development and integration expertise, the news release said. As a subcontractor, IBM will provide some information technology services in addition to specific software and hardware to be used in the NGI system.

NGI is an upgrade to the Integrated Automated Fingerprint Identification System, which collects and stores fingerprints related to law enforcement investigations.

The system will expand fingerprint processing capacity and also include palm prints and iris- and facial-recognition capabilities. The system requires a significant degree of technical flexibility to accommodate other biometric modalities that may mature and become important to law enforcement efforts in the future.

When completed, the system will double the FBI’s IAFIS capabilities. The Clarksburg, W.Va., facility houses the largest collection of its kind in the world — more than 46 million sets of digitized fingerprints. Searches require only a matter of minutes.

In addition to IBM, the Lockheed Martin team includes Accenture Ltd, BAE Systems Information Technology Inc., Global Science and Technology Inc., Innovative Management and Technology Services LLC, Platinum Solutions Inc. and the National Center for State Courts.

05/02/08 — 04:17 PM
By David Hubler

Source: Washington Technology

Fed joins with European banks to battle credit crisis

WASHINGTON (AP) — The Federal Reserve announced Friday that it will expand a series of efforts to deal with the global credit crisis, in coordination with European central banks.The Fed said it was boosting the amount of emergency reserves it supplies to U.S. banks to $150 billion in May, from the $100 billion it supplied in April. The Fed took this action and several other moves to boost credit in coordination with the European Central Bank and the Swiss National Bank.

The latest moves are part of a series of actions the Fed has made since the credit crisis struck in August.

The efforts are designed to increase reserves so that banks don’t become hesitant about lending to consumers and businesses, which would make the current economic slowdown even more severe.

(The continuing bailouts are destroying the dollar and will create a total crash very soon. – The Infinite Unknown)

Read moreFed joins with European banks to battle credit crisis

Fed `Rogue Operation’ Spurs Further Bailout Calls


Ben Bernanke, chairman of the U.S. Federal Reserve, arrives at the Federal Reserve building for a Federal Reserve Open Market Committee meeting in Washington, April 29, 2008. Photographer: Brendan Smialowski/Bloomberg News

May 2 (Bloomberg) — A month after the Federal Reserve rescued Bear Stearns Cos. from bankruptcy, Chairman Ben S. Bernanke got an S.O.S. from Congress.

There is “a potential crisis in the student-loan market” requiring “similar bold action,” Chairman Christopher Dodd of Connecticut and six other Democrats wrote Bernanke. They want the Fed to swap Treasury notes for bonds backed by student loans. In a separate letter, Pennsylvania Democratic Representative Paul Kanjorski and 31 House members said they want Bernanke to channel money directly to education-finance firms.

Student loans are just the start. Former Fed officials and other Fed-watchers say that Bernanke’s actions in saving Bear Stearns will expose the central bank to continuing pressure to use its $889 billion balance sheet to prop up companies or entire industries deemed important by politicians. The Fed satisfied Dodd’s request today, expanding the swaps to include securities backed by student debt.

“It is appalling where we are right now,” former St. Louis Fed President William Poole, who retired in March, said in an interview. The Fed has introduced “a backstop for the entire financial system.”

Critics argue that the result will be to foster greater risk-taking among investors emboldened by the belief that the government will bail them out of bad decisions.

The Fed’s loans to Bear Stearns were “a rogue operation,” said Anna Schwartz, who co-wrote “A Monetary History of the United States” with the late Nobel laureate Milton Friedman.

`No Business’

“To me, it is an open and shut case,” she said in an interview from her office in New York. “The Fed had no business intervening there.”

Read moreFed `Rogue Operation’ Spurs Further Bailout Calls

Federal Reserve may Want Inflation

We are now importing inflation. This does not only apply to the cost of commodities, such as oil, but also to consumer goods imported from Asia. This is a newer trend as, in our analysis, Asia had been exporting deflation until the summer of 2006; since then, we have seen increased pricing power by Asian exporters.

Inflation is not just a U.S. phenomenon; as Asian economies are far more dependent on agricultural and industrial commodities, rising inflation may become a serious concern in the region. The stronger and more prudent Asian central banks may realize that allowing their currencies to float higher versus the U.S. dollar may be the most effective way to combat inflationary pressures.

Read moreFederal Reserve may Want Inflation

Iran dumps U.S. dollars in oil transactions

TEHRAN – Iran had totally removed U.S. dollars in the country’s oil transactions, an Oil Ministry official said on Wednesday.

“The dollar has completely been removed from our oil trade….Crude oil customers have agreed with us to use other currencies (in the trade),” Oil Ministry official Hojjatollah Ghanimifard was quoted as saying by the state television.

“We make our transactions with euros in Europe, but yen in Asia,” he added.

Due to the tensions with Washington in the past years over the nuclear disputes and the latest depreciation of dollars, Iran has vowed to decrease the greenback in its foreign trade. Iran central bank also has reduced dollars in the country’s foreign reserves. In last November’s summit of the Organization of Petroleum Exporting Countries (OPEC) in Saudi Arabia, Iran proposed that it was necessary to replace the U.S. dollar with other major hard currencies in oil trading.

(In the past such actions were enough for the U.S. to start a war. – The Infinite Unknown)

Read moreIran dumps U.S. dollars in oil transactions

Rockefellers urge action on climate change

One of America’s most powerful families will call tomorrow for a sweeping shake-up at the top of ExxonMobil, the world’s largest company.

A group of descendants of John D. Rockefeller, who founded Exxon’s predecessor Standard Oil in 1870, will begin a campaign to split the role of chief executive and chairman of the board at the oil and gas group, a role held by Rex Tillerson.

Last night the family group issued a statement saying that the company’s leadership was “failing to address the future of energy and related industry hurdles”.
It said that representatives would make an announcement in New York to explain “that a majority of the family is now so concerned about the direction of ExxonMobil Corporation that it is urging a major change”.

Exxon, which earned $40 billion (£20 billion) last year, when Mr Tillerson was paid $21.7 million, was the slowest of the big oil majors to acknowledge climate change. The family is calling for an independent chairman and a bigger leadership role for the directors. The campaign comes as big oil companies face mounting pressure to deal with public concern over global warming.

Read moreRockefellers urge action on climate change

U.S. risks stagflation, says BIS chief

BASEL, Switzerland, April 29 (Reuters) – Stagflation is an increasingly plausible prospect in the United States and weak economic growth could last well into 2009, if not longer, the head of the Bank for International Settlements says.

That does not herald a rerun of the economic stagnation and rampant inflation that ran riot during the 1970s when oil prices last soared to unprecedented levels, Malcolm Knight, BIS general manager, said in an interview.

But it does cast some doubt on the White House’s thesis that the economy will rebound in the second half of 2008 in response to the tens of billions of dollars of tax rebates the government will be delivering to U.S. households in the coming weeks.

“I see a certain amount of scope for stagflation in a number of economies and that usually tends to result in subpar economic growth performance for an extended period of time, which could go well into 2009 or even longer,” said Knight, a Canadian who worked for more than 20 years at the International Monetary Fund.

“I think the U.S. economy is likely to experience weakness this year and in much of 2009,” said Knight, speaking to Reuters at BIS headquarters in Basel, Switzerland.

“Stagflation is a definite risk.”

Read moreU.S. risks stagflation, says BIS chief

Bank bail-outs to be kept secret

The Bank of England has imposed a permanent news blackout on its £50bn-plus plan to ease the credit crunch.

Ferocious and unprecedented secrecy means taxpayers will never know the names of the banks that have been supported through the special liquidity scheme, which was unveiled by Bank Governor Mervyn King last week.

Requests under the Freedom of Information Act are to be denied. Details will be kept secret even after 30 years – the period after which all but the most sensitive state documents are released.

Any Bank of England employee leaking the names of institutions involved will face court action for breach of contract.

Even a figure for the overall amount advanced will not be published until October. Meanwhile the Bank is expected to issue at least £50bn of Treasury bills to banks in exchange for their mortgages – entirely in secret.

Read moreBank bail-outs to be kept secret

Former workers accuse employees of improper activity, including the stealing of weapons, artwork and gold

WASHINGTON — KBR employees working in Iraq stole weapons, artwork and even gold to make spurs for cowboy boots, two former company workers told Senate Democrats on Monday.

Appearing before a Democrats-only panel looking into allegations of contracting abuses in Iraq, the witnesses accused their former co-workers of widespread improper activity.


Linda Warren, former employee of KBR, shows the flag she brought back from Iraq during testimony on Capitol Hill on Monday. Warren said many of her colleagues stole numerous items while doing reconstruction work in Iraq.
SUSAN WALSH
: ASSOCIATED PRESS

Read moreFormer workers accuse employees of improper activity, including the stealing of weapons, artwork and gold

DynCorp Manager Used Armored Car To Transport Hookers in Iraq

Some explosive testimony this afternoon from a panel of whistleblowers testifying before the Senate’s Democratic Policy Committee on contractor abuse in Iraq.

A contractor died when a DynCorp manager used an employee’s armored car to transport prostitutes, according to Barry Halley, a Worldwide Network Services employee working under a DynCorp subcontract.

“DynCorp’s site manager was involved in bringing prostitutes into hotels operated by DynCorp. A co-worker unrelated to the ring was killed when he was travelling in an unsecure car and shot performing a high-risk mission. I believe that my co-worker could have survived if he had been riding in an armored car. At the time, the armored car that he would otherwise have been riding in was being used by the contractor’s manager to transport prostitutes from Kuwait to Baghdad.

Other revelations:

– Kellogg Brown & Root contractors used to destroy countless quantities of still-usable equipment that was difficult to transport in “massive burn pits” that were “burning 24 hours a day.”

– KBR’s ice foreman “was cheating the troops out of ice at the same time that he was trading the ice for DVDs, CDs, food and other items at the Iraqi shops across the street.”

– When KBR whistleblower Frank Cassaday reported weapons looting, he was placed in a jail tent by KBR security.

– KBR employees looted Iraqi palaces for treasure to sell on eBay.

Monday, April 28th, 2008 at 5:04 pm

Source: Muckraked

Wall Street Grain Hoarding Brings Farmers, Consumers Near Ruin

April 28 (Bloomberg) — As farmers confront mounting costs and riots erupt from Haiti to Egypt over food, Garry Niemeyer is paying the price for Wall Street’s speculation in grain markets.

Commodity-index funds control a record 4.51 billion bushels of corn, wheat and soybeans through Chicago Board of Trade futures, equal to half the amount held in U.S. silos on March 1. The holdings jumped 29 percent in the past year as investors bought grain contracts seeking better returns than stocks or bonds. The buying sent crop prices and volatility to records and boosted the cost for growers and processors to manage risk.

Niemeyer, who farms 2,200 acres in Auburn, Illinois, won’t use futures to protect the value of the crop he will harvest in October. With corn at $5.9075 a bushel, up from $3.88 last year, he says the contracts are too costly and risky. Investors want corn so much that last month they paid 55 cents a bushel more than grain handlers, the biggest premium since 1999.

Read moreWall Street Grain Hoarding Brings Farmers, Consumers Near Ruin

U.S. Credit Card Debt Soars to Unprecedented Heights

WASHINGTON—Studies indicate that credit card defaults and related write-offs increased drastically since 2006. Today, lenders write off 33 percent more in credit card debt than they did two years ago.

Statistics show that about 35 percent of all credit card holders are already exhibiting signs of possible default. Late credit card payments result in fees many consumers can’t afford.

Credit card debt accelerated to unprecedented heights since bank loans began to dry up due to mortgage defaults. Total U.S. credit card debt reached almost $800 billion in November 2007, up from around $680 billion in March of last year, according to the latest available government statistics.

In the aftermath of the U.S. mortgage crisis, the credit card bubble may be next to burst. In the past few years, banks have aggressively marketed credit card ownership and usage to consumers with limited income and low credit scores. Credit card standards remain lax, while loan standards have tightened to a degree.

Read moreU.S. Credit Card Debt Soars to Unprecedented Heights

Gasoline May Soon Cost $10 a Gallon.

Big New Shock at the Pump Forecast by Two Analysts

Get ready for another economic shock of major proportions — a virtual doubling of prices at the gas pump to as much as $10 a gallon.

That’s the message from a couple of analytical energy industry trackers, both of whom, based on the surging oil prices, see considerably more pain at the pump than most drivers realize.

Gasoline nationally is in an accelerated upswing, having jumped to $3.58 a gallon from $3.50 in just the past week. In some parts of the country, including New York City and the West Coast, gas is already sporting a price tag above $4 a gallon. There was a pray-in at a Chevron station in San Francisco on Friday led by a minister asking God for cheaper gas, and an Arco gas station in San Mateo, Calif., has already raised its price to a sky-high $4.62.

Read moreGasoline May Soon Cost $10 a Gallon.

Ted Turner Repeats Call For Population Curb

Says diminishing farmland will lead to food riots, despite being behind corn-based ethanol push

Says diminishing farmland will lead to food riots, despite being behind corn-based ethanol push
Billionaire Globalist Ted Turner, who earlier this month predicted that global warming would eventually lead to cannibalism, has repeated his call to curb population growth, claiming that disappearing farmland will cause food riots, despite the fact that Turner himself is behind the push to grow corn-based ethanol, an industry the UN has blamed for food shortages and increased poverty.

“There are a lot of different problems being caused by an ever-increasing number of people in a finite-sized world,” Turner told CNBC’s Bob Pisani. “The resources of the planet just can’t keep up with the demand and I’m afraid this going to be more commonplace. I’m afraid we’re just seeing the tip of the iceberg. It’s very complicated I do want to say.”

Watch the video.

“We’ve had warnings for a number of years,” Turner said. “Grain stocks have been dropping every year for the last 10 years or pretty close to that – the reserves. And, the environment in so many different areas is being – the pressure being put on it by the ever-increasing number of people and the number of people using more stuff and more energy – that’s what ‘s leading to global climate change and the over-fishing of the oceans,” he added.

Read moreTed Turner Repeats Call For Population Curb

OPEC president sees $200 oil possible

ALGIERS (Reuters) – OPEC President Chakib Khelil does not rule out oil prices reaching $200 a barrel, even though supply is adequate, because the market is driven by the dollar’s slide, Algerian government newspaper El Moudjahid reported on Monday.

“Questioned about a possible rise which would go to $200, the minister did not rule out this eventuality, explaining that this rise is indexed from now on to the fall in the dollar or to the rise in the dollar,” El Moudjahid reported.

“In terms of fundamentals, stocks are high, demand is easing, supply is satisfactory. Therefore normally, without geo-political problems and the fall of the dollar, the prices of oil would not be at this level,” he was quoted as saying.

Khelil, a former World Bank official, is also Algeria’s Minister of Energy and Mines.

He added: “The prices are high due to the fact of the recession in the United States and the economic crisis which has touched several countries, a situation which has an effect on the devaluation of the dollar, and therefore each time the dollar falls one percent, the price of the barrel rises by $4, and of course vice versa,” he was quoted as saying in brief remarks to journalists on Sunday.

He added that: “If this (the dollar) strengthens by 10 percent, it is probable that (oil) prices will fall by 40 percent.”

If the U.S. economic situation improved from now to the end of the year “that would help the market to stabilize.”

“But I don’t think that an increase in production would help lower prices, because there is a balance between supply and demand and the stocks of gasoline in the United States have recorded a surplus and are at their highest level for five years.”

The independent El Watan newspaper reported Khelil as saying that if the dollar’s value on currency markets stayed as it was at present, then oil prices would be expected to remain at between $80 and $110 a barrel.

(Reporting by William Maclean; editing by James Jukwey)

Mon Apr 28, 2008 5:59am EDT

Source: Reuters