Bush Sabre Rattling Over Iran Might Drive Oil Prices Beyond $100 A Barrel
By Elaine Meinel Supkis
Bush's sabre rattling has rattled world markets. America is trapped between a rock and a hard place of our own devising. Iran is calling our bluff and bluster making us look even more idiotic to a world which is astonished at our raging stupidity.
Meanwhile, China continues to make inroads in the Middle East, securing Chinese control of oil and refining facilities.
From Associated Press:
A surge in oil prices last week to almost $70 a barrel on concerns about the restart of Iran's nuclear program only hints at what may lie ahead.Never ever play chicken with a country that has a military graveyard that has a central fountain that pours out red colored water to look like blood. A country famous for suicide charges. Like North Korea.
Prices could soar past $100 a barrel, experts say, if the U.N. Security Council authorizes trade sanctions against the Middle Eastern nation, which the West accuses of trying to make nuclear bombs, and Iran curbs oil exports in retaliation. A sharp global economic slowdown could follow.
That's the dilemma the United States and European nations face as they decide whether to act. But Iran would also pay a hefty price if the petro-dollars that now represent 80 percent of export revenues are reduced, potentially stirring civil unrest in a nation with a 14 percent unemployment rate.
These sorts of countries might be insane but that simply means one shouldn't poke at them to see if they will attack, right? Assuming the Iranians desire our sort of lackidasical, couch potato approach to reality is unreal. Namely, the Muslim world right now is very, very motivated and our society just wants to live inside a huge energy bubble and simply suck up all world resources in exchange for pieces of paper called "dollars".
As I have pointed out, the Chinese are intent on using their trillion dollar reserves to bid up the price of oil. They are willing to go all the way up. Here we are, deliberately driving up the world cost of oil and the only way we can buy it ourselves is to go further into debt to the Chinese. Isn't that a lovely thing? We won't nationalize our own oil companies so we can at least reap the profits for ourselves like "insane" Venezuela. Putin did this for Russia. But instead, we cut taxes on the oil companies who now enjoy massive, Midas level profits.
Japan has a trillion dollars to play with, too, and they are buying too, like the Chinese. From Associated Press:
Toshiba Corp. (6502.T) has won a bid for Westinghouse, the U.S. power plant arm of British Nuclear Fuels, for almost $5 billion, the Financial Times reported on Monday, a move that will expand its overseas operations but has raised concerns about the cost of the deal.More and more, Americans no longer own American companies. We are losing our grip on our own nation. This is being encouraged by our rulers and our political leaders who suck up masses of bribes called "campaign contributions" which means they ignore or enable or reward the destruction of American industry and American control of industry.
British Nuclear Fuels Chief Executive Mike Parker and Chairman Gordon Campbell decided to sell Westinghouse to Toshiba late on Saturday night, the FT said. Other suitors for Westinghouse included General Electric Co. (NYSE:GE - news) of the United States and Japan's Mitsubishi Heavy Industries Ltd. (7011.T).
Ever intent on their own private Go game, China plonks down yet another significant rock right in our backyard called "Saudi Arabia". From Xinhua net:
Three Saudi companies announced last week that they are about to complete forming a joint-stock petrochemical company with a Chinese partner, Arab News reported.The Chinese influence in oil countries continues to shoot upwards. They use the profits from all this to extend alternative energy systems in China for they know they are in a race against time, the need to secure renewable systems is a high priority item in the long run. To do this, they need to tap into the profit flow from oil so as we coast over the Hubbert Oil Peak and then head down hill, the price of oil will shoot up and they want to be there with their basket to capture the profits for themselves. They need it for China. They won't translate it to America. The American fake trade with China, funded 100% by China, will be terminated at that point since we will be bankrupt and China won't need us as customers anymore.
The Saudi group announced that part of the $1.76 billion company's capital will be offered in an initial public offering (IPO) and the rest will be distributed among the three companies and their Chinese partner, and the three Saudi companies are MIDROC, Sara Development Co. and House of Invention (HOI) Co.
The new company is set to establish an $6 billion petrochemical complex in the Jubail Industrial City, located in Eastern Province, and is expected to create 2,500 new jobs for Saudi nationals.
The production capacity of the new complex is expected to be two million tons of basic and secondary petrochemical products annually.
Americans who dream that this Chinese free trade will continue forever are insane. And stupid.
From Associated Press:
Japan's benchmark stock index fell sharply Monday morning as the market's unease continued over a criminal probe into prominent Internet company Livedoor Co.One can disregard most of this article. The Japanese stockmarket is sliding down hill because of the sabre rattling in America. Namely, they fear that their fake free trade will collapse when America can't buy squat diddly due to oil prices sailing to over $100 a barrel. So they have the jitters. Unlike the Chinese, they really do depend on the American/Japanese trade of goods for debts system to keep afloat since much of what they sell are very expensive items, not cheap stuff like China who can find markets all over the earth. Not everyone can buy the Japanese stuff except for the reckless, debt addicts in America.
The Nikkei 225 lost 227.27 points, or 1.45 percent, to end morning trading at 15,469.42 points. During the session, the market fell as much as 2 percent.
A cold chill is blowing down GOP necks. From Newsday:
A growing number of Republican voters are frustrated by congressional spending and scandal, according to GOP leaders from across the country who worry that an "enthusiasm deficit" could cost the party control of Congress in November.The GOP stronghold is in exactly those places that celebrate NASCAR driving, energy guzzling, goofy, grasshoppers hating ants culture. They thought the whoopsie doodle dandy war in Iraq would deliver cheap gas so the party could rage on, to hell with the environment! The failure of this epic theft is leaving them feeling nasty and the back to back hurricanes which are brewing yet again already! Scare them a tad but not enough to stop their own madness and sign the Kyoto Accords. They sense something scary is about to happen and clinging to Bush won't make the monster go back under the bed.
Some rank-and-file Republicans wonder what happened to the party that promised to reform Washington after taking control of Congress in 1994 for the first time in 40 years.
Dispirited and dejected, they now want to moon about, hoping a miracle will happen, or worse, angrily go and start WWIII by bombing Iran in a fit of final madness.
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