OPEC blames ‘mismanaged’ U.S. economy for soaring oil prices

OPEC, rebuffing calls from U.S. President George W. Bush to increase oil output, cited “mismanagement” of the American economy as a major factor driving prices up.Record prices are suddenly creating the sharpest tensions in years between the oil cartel and the United States, the world’s largest oil consumer. Two days after the president called for more oil on the global market, OPEC members, meeting in Vienna, Austria, chose to leave their production levels unchanged, declaring that the market has plenty of oil already.

The cartel’s president on Wednesday blamed financial speculators and American economic problems, which have helped lower the value of the dollar, for the high oil prices. After the meeting, oil prices settled above $104 a barrel, a record.

Bush, who had said this week it would be a mistake for the Organization of the Petroleum Exporting Countries not to raise production, was disappointed by the outcome of Wednesday’s meeting, according to the White House.

It is the second time this year that OPEC ignored public calls from the United States to boost supplies. In January, Bush traveled to Saudi Arabia and urged producers to open their taps. But the plea failed to sway OPEC. When the group met in February, it kept its production level unchanged.

Read moreOPEC blames ‘mismanaged’ U.S. economy for soaring oil prices

Rove: Iraq Redeployment Would Cause Oil Prices To Skyrocket To $200 A Barrel

This morning on Fox News Sunday, former White House adviser Karl Rove claimed that redeployment from Iraq would cause oil prices to shoot to $200 a barrel:

If we were to give up Iraq with the third largest oil reserves in the world to the control of an Al Qaida regime or to the control of Iran, don’t you think $200 a barrel oil would have a cost to the American economy?

 

Occupying Iraq has hardly helped oil prices stay low. Last week, oil prices reached a record high of over $102 a barrel. On March 19, 2003 — the day the Iraq war commenced — oil was trading at $36 a barrel. A look at the rise in oil prices:

oilprices65.gif

None of this should have come as a surprise to the Bush administration; before the war, economists were widely predicting a prolonged presence in Iraq would lead to a rise in oil prices. As Nobel laureate Joseph Stiglitz recently noted in Vanity Fair, “The soaring price of oil is clearly related to the Iraq war. The issue is not whether to blame the war for this but simply how much to blame it.”

Rove is also out of step with the American people, a majority of whom believes that the Iraq war is tied to the current economic downturn. A recent AP poll found that 68 percent of Americans say that redeploying from Iraq would help the economy.

Digg It!

Transcript:

WALLACE: All right. But Obama has found a clever way to link the war in Iraq to our domestic problems with the economy here at home. Let’s watch.

(BEGIN VIDEO CLIP)

OBAMA: We are spending $12 billion per month. That is money that we could be spending here in the United States, rebuilding our infrastructure, building schools, sending kids to university.

(END VIDEO CLIP)

WALLACE: If he’s able to define Iraq in terms of where do you spend that $12 billion, on the battlefield over there or on infrastructure and social programs here, doesn’t Obama win?

ROVE: Well, Obama — it’s a good argument for Obama, but I’m wondering where it goes, because it really is a very neo-isolationist argument. It basically says, you know, We should not be involved in the world because of the consequences to the budget here at home.

Well, we were not involved in the world before 9/11, and look what happened. Look at the cost to the American economy after a terrorist attack on the homeland. We lost a million jobs in 90 days after 9/11.

If we were to give up Iraq with the third largest oil reserves in the world to the control of an Al Qaida regime or to the control of Iran, don’t you think $200 a barrel oil would have a cost to the American economy?

So you know, it’s a cute thing in a primary. I’m not certain over an 8-month general election that you can make the argument that we ought to take a look at every foreign policy commitment in the United States and measure it on the basis of the number of dollars that we’ve got there.

I happened to be in Los Angeles on Monday, and somebody had heard Obama say this to me, and they were Democrat, and at dinner they said,

I’m worried about that, because does that mean he’s going to be looking at our support, for example, for the state of Israel and looking at it in terms of what could we be doing at home with those dollars?

And it was a nice line, but I’m not certain how durable a line it necessarily is.

Source: thinkprogress.org

Iran shifts oil sales away from dollar

Deputy head of the National Iranian Oil Company for international affairs says Iran has completely dropped dollar in its oil sales.“We issue invoices in dollars and agree with clients that the letters of credit and other means of payment will have a non-dollar basis,” he said.

In an interview with The Financial Times, Hojjatollah Ghanimifard said that over the past three months, Iran has received 75 percent of the proceeds from its oil sales in euros and the remaining 25 percent in the Japanese currency, yen.

ghanimifard.jpg
Hojjatollah Ghanimifard

Read moreIran shifts oil sales away from dollar

Abu Dhabi fund draws scrutiny in U.S.

The headquarters of the InvestmAbu Dhabient Authority. The authority has a high profile in the emirate, but its secrecy is drawing scrutiny in Washington. (Charles Crowell/Bloomberg News)

Abu Dhabi has about 9 percent of the world’s oil and 0.02 percent of its population. One result is a surfeit of petrodollars, much of which is funneled into a secretive, government-controlled investment fund that is helping to shift the balance of power in the financial world.

After decades in the shadows, the fund, the Abu Dhabi Investment Authority, is turning heads on Wall Street and in Washington by making high-profile investments in the United States and elsewhere.

Known as ADIA (pronounced ah-DEE-ah), the fund recently formed a small team that is now buying big stakes in Western companies. This unit masterminded ADIA’s $7.5 billion investment in Citigroup, the largest U.S. bank, in November. It has also taken a large position in Toll Brothers, one of America’s biggest home builders.

“There is an idea that Abu Dhabi should not be the underdog of the map,” said Frauke Heard-Bey, a historian who has written a book about the political emergence of the United Arab Emirates. “They have the money to buy companies that are ailing, and why should they not? Why not make a mark?”

ADIA is the largest of the world’s sovereign wealth funds, giant pools of money controlled by cash-rich governments, particularly in Asia and Middle East. But Abu Dhabi, the wealthiest of the seven Arab emirates, says little about its fund. Few outsiders know for sure where ADIA invests, or even how much money it controls. And secrecy breeds hyperbole; some estimates of the fund’s size exceed $1 trillion.

Read moreAbu Dhabi fund draws scrutiny in U.S.

Ben Bernanke’s high-wire act

Fed chief, in first of two days of testimony on Capitol Hill, acknowledges troubling signs about economic growth but also raises concerns about inflation.

WASHINGTON (CNNMoney.com) — For Federal Reserve Chairman Ben Bernanke, running the central bank has become an increasingly challenging high-wire balancing act.

All of Wall Street was watching the Fed chairman on Wednesday when he headed to Capitol Hill to outline the trio of challenges facing the Fed: an economy at risk of falling into a recession, topsy-turvy financial markets and the rising risk of inflation.

“We do face a difficult situation,” Bernanke told members of the House Financial Services Committee, marking the first day of his two-day semi-annual hearing on the Fed’s monetary policy. “The challenge for us is to balance those risks and decide at any given time which is more serious.”

Read moreBen Bernanke’s high-wire act

Oil hits record

The price of oil increases dramatically and will continue to do so.

Oil hits record as OPEC rebuffs Bush http://www.azstarnet.com/business/228364

All this fits into the plan to crash the economy, destroy the value of the Dollar, take away your money and to keep all of you in a survival mode.

There has been found enough oil in Alaska to keep the US economy running for 200 years!

Lindsay Williams, an ordained Baptist minister for 28 years, is witness that this is true.

Visit his homepage: http://www.lwoil.com/index.php and read his book: The Energy Non-Crisis

Why would they do that? To earn more money? Yes, but those guys already have enough money! It’s now all about power.

They want to control you utterly and totally.

10-Year U.S. Strategic Plan For Detention Camps Revives Proposals From Oliver North

Editor’s Note: A recently announced contract for a Halliburton subsidiary to build immigrant detention facilities is part of a longer-term Homeland Security plan titled ENDGAME, which sets as its goal the removal of “all removable aliens” and “potential terrorists.” Scott is author of “Drugs, Oil, and War: The United States in Afghanistan, Colombia, and Indochina” (Rowman & Littlefield, 2003). He is completing a book on “The Road to 9/11.” Visit his Web site at http://www.peterdalescott.net.

The Halliburton subsidiary KBR (formerly Brown and Root) announced on Jan. 24 that it had been awarded a $385 million contingency contract by the Department of Homeland Security to build detention camps. Two weeks later, on Feb. 6, Homeland Security Secretary Michael Chertoff announced that the Fiscal Year 2007 federal budget would allocate over $400 million to add 6,700 additional detention beds (an increase of 32 percent over 2006). This $400 million allocation is more than a four-fold increase over the FY 2006 budget, which provided only $90 million for the same purpose.

Both the contract and the budget allocation are in partial fulfillment of an ambitious 10-year Homeland Security strategic plan, code-named ENDGAME, authorized in 2003. According to a 49-page Homeland Security document on the plan, ENDGAME expands “a mission first articulated in the Alien and Sedition Acts of 1798.” Its goal is the capability to “remove all removable aliens,” including “illegal economic migrants, aliens who have committed criminal acts, asylum-seekers (required to be retained by law) or potential terrorists.”

There is no question that the Bush administration is under considerable political pressure to increase the detentions of illegal immigrants, especially from across the Mexican border. Confrontations along the border are increasingly violent, often involving the drug traffic.

Read more10-Year U.S. Strategic Plan For Detention Camps Revives Proposals From Oliver North