Dear Friends,

At last some sense out of OPEC.

The Australian Prime Minster is reassuring Australians by asserting that he is pressuring G8 leaders to pressure OPEC into increasing oil production. President Bush is alleging that he is pressuring OPEC into increasing production and on the morning of 10 June EST was reported as saying America could increase production to lessen the problem. Indeed they could do so.

A couple of Sabbaths ago we reported that there is no oil shortage in production; we repeat: no oil shortage in production.

Another article was released on 10 June PM EST titled Speculators, not OPEC, ‘causing oil price spike’

(AFP) Paul J. Richards.

The article says that a former Iraqi oil minister says record high oil prices are more to do with speculators, including central banks, than supply and demand. Mr Richards holds that Speculation-fuelled: Rising oil prices have the world economy in turmoil (emphasis mine).

The interview with Isam Chalabi, who was Iraq’s oil minister before the first Gulf War with more than 40 years’ experience in the industry, was revealing. He states that Mr Rudd’s strategy will not work and that is something we know and have reported, and President Bush knows, and Mr. Rudd either knows and he is playing games, or he simply does not listen to the experts on anything related to the crisis. What is more important, the opposition spokesmen in Australia and the US are either complete idiots or they are playing dumb on the issue, arguing over trivialities concerning fuel tax.

Isam Chalabi says:

"The question of prices today is not related to supply and demand fundamentals - everybody knows that," he told AM.

"Everybody has said so and hence it is not a matter of increasing supplies because whoever is in need of oil has been able to get it, so there is no need of problem of getting the oil."

Paul Richards reported that Brian Wilson, former British energy minister under Tony Blair, agrees.

"What takes it from $US100 to $US130 is that there is a huge speculative element and the actual connection between the paper trading price of oil and anything that is happening in the physical world is now extremely remote," he told the BBC.

Mr Chalabi reportedly said that only regulation of oil trading will stop the price spike.

"The world consumes 85 million barrels a day, you have trading going on over a billion - some people estimate up to two billion - barrels a day, so if something really happens to put a hold on that, I believe that the price spike will not continue and maybe it will start to decrease," he said.

On the morning of 12 June EST, Saudi Arabia confirmed that there is no reason for the price spike and that there is plenty of oil being produced to meet world demand.

We said in the last report that China’s consumption of oil has decreased over the last three years to a third of what it was.

This oil price crisis is a deliberately engineered scam by the Globalists using the Central Bank institutions in both the US and Europe, and also Asia and the Pacific, to force up prices and place the world economy in chaos. The aim is to force a regulatory system not only on oil, but also on international trade to avert total meltdown. Kissinger hinted at such a solution, which we reported on recently. However, he allegedly wanted free global trade.

This crisis is not an accident. It is a deliberately induced crisis by Globalist speculators.

What is more obscene is that these politicians behind the scenes and the Central Bank system are using the workers’ own pension funds and the financial hedge funds, which are not subject to the same accountability and controls, to speculate the price of oil so far above actual demand they are destroying the very livelihood of the people investing in these funds. They are using the workers’ own funds to destroy their economies and livelihoods.

It is not that they don’t know what is happening. The Australian Parliament is awash with incoherent gibberish and babbling from both sides of the Parliament. The BBC recently dealt with the silly comments of the Prime Minister, Kevin Rudd, and the experts on the BBC interview called them ill-informed. The problem is that Mr Kevin Rudd has made all sorts of silly propositions and promises regarding global carbon footprints and Australia’s lead in the Kyoto Protocols now Australia has ratified them, and his extraordinary postulations of the creation of the Greater Asian Co-prosperity sphere that he is in a bind and the opposition does not want to expose him because they will be faced with the same bind if they gain office. They don’t want to drop the price of oil and then be faced themselves with trying to reduce the emissions levels by raising it again. How long they think they can all get away with treating the people like idiots I suppose is up to an idle and seemingly oligarchic controlled media. The failure of the media to properly analyse the veracity of the presidential election is breathtaking. The US may well be faced with a potential Manchurian Candidate and an unknown reaction in the ill-defined policies of a young man that defeated a determined but delusional woman.

President G.W. Bush is up to his eyeballs in conflicts of interest and should be impeached along with Vice-President Cheney. The new presidential candidates are too busy calling each other names to bother with the legislative requirements to control this speculation. By the time they face election the country will be in chaos. Europe is already facing chaos in Britain, France and Spain and who knows where else.

The price of oil should be at no more that $US40 a barrel given the supply and demand figures that the world experts agree upon. Demand is at 85 million barrels a day according to the oil experts. Speculators are buying it at between one and two billion barrels a day. That is between 12 and 24 times the world’s current usage per day.

This is a bubble that will blow and the ones to really pay for it all will be the pension funds and the hedge funds that are not in the Globalist retinue.

It may collapse the world’s economy. Certainly the funds cannot cope with storing 12 to 24 times the daily usage at four times the normal price. Oil will be forced purchased for months and years to come and people will be sent bankrupt, and it is deliberately being engineered by unscrupulous men.

The solution is to pass legislation immediately to prevent the purchase of oil in advance of demand by 30 days except by national governments in pools of supply reserves. No pension funds can be used to purchase the reserves. They have to be made accountable and under more stringent controls. Reserves should be purchased and stockpiled by governments only, and the supplies are released from government reserves on an as required basis at the previous supply prices.

Release oil from the reserves immediately and arrange for all imports to be taken into reserves and cancel all contracts made in speculative hikes of prices. The problem can be solved in a matter of weeks.

The people responsible for the bubble should be charged with conspiracy and their assets confiscated under the legislation.

The other alternative is that the Globalists are preparing for war against the Middle East to bring it into the New World Order of the Globalists. That system is allegedly still led by Bush Snr. Each candidate made noises re Iran.

The oil still has to be stockpiled though.

It was reported on the ABC Radio National News on the morning of 11 June 2008 that the US attempted to put through legislation to control this speculation by the oil cartels including Exxon-Mobil and the Republican Party blocked the attempted legislation to control the cartels and the oil pricing. This legislation needs to be forced through and the Democrats need to pass legislation backdating the offences and expropriating the profits as gains from criminal activities. Why would anyone in their right mind support a system that is run by Globalist Neocons that are destroying the welfare of their own people? It makes one wonder at the level of intelligence of the supporters and backbenchers in their respective Houses.

Here is the graph of oil prices from 1947 to the present. It shows the steep spike in prices and shows the spike is out of all proportion to the causes and the levels of production. It makes no comparison with supply and demand and actual levels of world usage. The comments by the OPEC experts make the spike obvious as to its cause and we know the systems involved.

Wade Cox

Coordinator General