Monday, June 23, 2008

Oil Prices Continue To Rise

Over the weekend the Saudis agreed to up the production of oil. Under normal circumstances the price of futures for oil would automatically to start to fall. This is not the case for this heavily manipulated market. In the commodities market any negative news coming out of any country that is heavily dependent on oil production or consumption has an immediate effect on prices. A person would think that on the other hand any good news would also have an immediate effect, but not in this market.

Unrest in Nigeria= Immediate Increase in price

Political unrest in Middle East= Immediate Increase

Hurricanes in Gulf= Immediate Increase

Fire at any refinery= Immediate Increase

Terrorist Threat= Immediate Increase

Political Election= Immediate Increase

Candidate for Presidential election makes a statement about oil= Immediate Increase

Analyst predicts higher oil prices= Immediate Increase

News Media reports a rumor (true or not) about future oil supplies= Immediate Increase

Oil rig in Gulf shuts down for maintenance= Immediate Increase

Refinery shuts down for maintenance= Immediate Increase

You name it= Immediate Increase

It should be clear to everyone including Congress, the market is being played. Like the hide the pea under the shell game, the price of a barrel of oil is controlled by greedy speculators for purely selfish reasons. Some are investing for monetary gain and some are investing for political reasons. Unless something is done these continued high prices will bankrupt America and set off another worldwide Depression. China and other nations that subsidize the cost of gasoline in their own countries have began to feel the pressure of a weak dollar and inflation. The situation is becoming intolerable, and America (because oil like most commodities is tied to the dollar) must take immediate action.

Increase the cost of investing in commodities.

Lift the Executive Moratorium on offshore drilling.

Congress-Lift the ban on offshore drilling.

Pass Legislation making the Commodities Market investors more transparent.

Pass Legislation forcing large investment firms to name investors and investments.

Pass Legislation Restricting Pork Barrel Spending.

Pass Legislation Forcing all amendments to a bill to be directly relevant to the bill.

Support Sen McCain's idea of awarding up to $3oo million to the first person to come up with a viable and reliable battery for the electric car.

Redirect the NASA mission to investigate a viable consumer friendly alternative vehicle/fuel.

Create a Manhattan Style Project to study Oil Shale, Clean Coal technology and other means of becoming independent from foreign oil.

Hold an emergency session of Congress (Do Not Take The 4th of July Vacation) and pass legislation dealing with the Crisis Facing America.

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