Three months ago on 60 Minutes was a segment regarding the Saudi Oil Giant ARAMCO! Aramco….is a joint venture run by the Saudi’s that makes world policy and sets prices on the world oil supply. Not China, Not India….Aramco! In that segment the head of ARAMCO; “His Excellency the Minister of Petroleum and Mineral Resources Ali I. Al-Naimi has announced the appointment of Khalid A. Al-Falih as president and chief executive officer of Saudi Aramco, effective January 1, 2009″
These guys are cute. During a time when the price of a barrel of oil was broaching below $30 dollars……Al-Naimi told Leslie Stahl that oil was going up to $75 dollars a barrel…..”That you can take to the bank! We will get what we want for oil – no question!”
Well fellas and gals….at a time when oil demand is at its lowest and the actual supply is well above any known demand….with oil production down to 2002 levels…….why has the price of oil surged? Let’s start with US banks and European Central Banks. These are the same wonderful guys that once greedily invested in so-called “Toxic Assets” – “Super Leveraged Hedge and Derivative Funds” trying to make between 25% to 500% short term profits on investment vehicles that were worthless. Well, our Government has bailed out many of these guys and as soon as they are able to de-leverage some more of those “bad boyz assets”…..they have/will immediately put their money into commodities…oil in particular. As T. Boone Pickens once said: “The biggest transfer of wealth in history!”
As Energy and Transportation prices surge….and people start to feel the smarting from higher gasoline and electricity costs…..it will be alot harder for consumers to help buy our way out of this depression/recession. Vice President Biden has been on a virtual pilmagrige, with the Administration “Road to Recovery” program to deliver the $787 Billion dollars in Stimulus Funds to cities, counties and states all around the country. So far, they have only obligated around $156 Billion of that money. Much more to come…but along with that “inflationary power chair” comes the needless rise in Saudi Oil Pricing…because Saudi’s want their pint of blood from US Citizens, all along the way!
There is little doubt that President Obama and his Administration are more than motivated to save our economic chops. They are working diligently, thoroughly and with an all consuming passion. We cannot fault President Obama in this regard. Our question however is?: When are they going to get a handle on the Banks in Dubai and the Saudi Aramco connection?
The price of oil breaks even, so they say at around $40 dollars a barrel. The price of a gallon of gasoline needs to stay around $2.75 a gallon for high test…..$2.45 for 87 Octane and $2.89 for Diesel 2. These are the numbers that will allow the Average American Family….both consumer dollars and the ability to watch their Energy useage! More than that……Consumer dollars at the Mall will suffer. Less than that……will create further demand for SUV’s or other inefficient vehicle use. Our best guess is that $46 dollars a barrel, for oil, should fill the mid term bill. Add 3 to 5% a year after that….and we are talking about Economic Recovery…101.
The best side effect to “the Great Global Economic Depression of 2009” has been that the mask has finally been pulled off the Oil Barrons…those Saudi Kingmakers….and the brutal stupidity of World Bankers and Drug Cartels. Will the people catch on? Will the people put the lawmakers feet to the fire? Will anything change now or in the future? The good news is: With the current Administration….there is at least a slim chance!
Leave a Reply