Sunday, April 17, 2005

Oil Speculators as Terrorists

So, you want to bring the United States to its knees? Don't become some form of human bomb, just jack up the price of oil! The whole world makes lots of money at $35 a barrel. Only the speculators make money at $40 and above. And there is no earthly reason for oil to be above $35 a barrel, NONE! Of course, there was no earthly reason for the stock bubble in 2000 either, but at least the motive was obvious back then, pure greed. The motives behind the people setting the price of oil these days seem to be purely evil. The trouble is when you look at the impact of high oil prices. During the winter, home heating oil prices rise, in the spring and summer, it's gasoline. Either way, it makes people travel less, re-allocate disposable income towards fuel and away from products, and creates a lot of FUD. Petroleum is a major ingrediant in lots of products, from plastics to chemicals and fertilizers. Thus, the cost of food rises, the costs of packaging rises, in fact the cost of most things rise. Once again, people have to re-allocate more money away from "splurges" to more practical items like foodstuffs.
Now, we have to lay off people, because consumers aren't buying what they used to. No one wants an SUV or other irrationally designed vehicle, we all want 100 miles to the gallon. Auto manufacturers have to cut back on hourly workers. All those increased prices in food and gas brings inflation fears, so up go interest rates, down goes home sales, and home prices. Since the baby boomer generation (myself included) use their homes as their retirement fund, whoops, guess I'll be working longer. And lest we forget, the trade imbalance gets HUGE with all that outrageously priced petroleum coming in, and damn little going out. In short, the US economy is on its knees, all by pushing up the price of oil to an irrational level. There you have. You can destroy the US automotive industry, agriculture, future investment, retirements funds, everything. And not a single follower had to imolate themselves to do it. And we just follow the judas goats bell, and abort to orbit again.

No comments: