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Opinion
A Drop of Truth and a Barrel of Propaganda
by Michael Levy
It takes time
to take a misrepresentation of authentic facts, turn it into propaganda
and then hear prestigious and distinguished voices talk their truth
which has grown out of the original fallacy. History is littered with
examples how cults, religions, financial skullduggery and political
parties, succeeded in fooling most people, for a period of time.
The Nazi cult is a prime example how death and destruction can emanate
from a spiritual belief. Yes, The Nazi party was founded on spiritual
principles that became distorted by lies and propaganda to the extent
that millions of followers believed in it as their truth. There are
numerous other past examples in many areas of mortal existence that
brought misery and suffering to humanity.
In the past twenty years many financial markets have brought agony and
distress to millions of people who bought into the notion; ‘It is
different this time.’ The fact is it is never different, rather, the
intellectual cleverness of a few experts managed to convince the
majority of investors to follow what seemed to be financial reason and
logic. Certainly, it is very hard for the average person to question
folks who are well respected leaders in their field of expertise.
So how can anyone determine what is truth and what is just propaganda
dressed up by people with the mastery to induce people to follow their
advice. Even many experts honestly believe they are speaking truth when
they say prices should go to $200.00 if oil supply keeps outstripping
demand.
The dot com boom and bust, the housing boom and bust are two up-to-date
examples of how people got sidetracked. Now we are at the pinnacle of
the oil boom and the bust is yet to materialize. All fallacies in the
monetary world depend of fear and greed to feed their audience. That is
why greed makes for strange bedfellows. The are a few select groups who
are making piles of money while economies all around the world are
facing increasing hardship.
The experts and speculators will argue we need free markets and any
interference will take away free trade. Well, in many cases they may be
correct, however, when it comes to essential commodities of food and
energy they are completely out of order. The criteria they base their
rationale is, supply outstripping demand, so prices have to rise. Well,
under the present method of commodity pricing they have a point. But the
question nobody is addressing is, how fair and proper is the commodity
market system at balancing the scales of what is deemed to be ethical
and moral.
At the end of World War Two, in the UK, people were given ration books
so that nobody went hungry. Everyone got their fair share and there was
no price gouging. If we do have a future shortage of oil, (which may be
twenty years from now if no new discoveries are made) then hiking the
prices will not stop it. It will only make the speculators rich and the
rest of the world poorer in wealth and spirit.
Just for clarity for the dexterous folks who state there is no excessive
speculation in oil, any futures contract in the oil market, no matter
where is comes from, is a speculation on future prices and in truth, can
only be classed as a speculation. Essential commodity markets require
new legislation and here are some home truths that are not spun from
greed and fear
1. There has been no shortage of gas at any filling station for the past
10 years yet prices are up 1200% because of futures trading going out
more than eight years. Even the Saudi oil minister has recently stated
the price of a barrel of oil should be no more than $70.00. Demand from
China and India is still far less than that of the USA. The Chinese
stock market is down 50% signifying a sharp slow down. This news still
is not enough to stop the wild speculators hiking the oil prices.
2. When hurricanes hit Florida many gas stations are closed and there is
a real shortage of gas for a few days. However, if a gas station
increases its prices they will be prosecuted for price gauging.
Therefore, if we take the experts argument that there is a shortage of
oil then that still does not give anyone the right to profit from the
shortage as this is deemed to be prices gauging. How can the USA
governments have double standards and prosecute gas station owners who
price gauge and not treat commodity markets in the same manner?
3. Oil is an essential commodity for every day living in the same way as
water is an essential commodity. It makes no sense to trade water so why
leave oil in the hands of anyone who wants to make a quick buck gambling
on prices.
4. Pension and hedge fund managers have invested billions of dollars in
oil futures. The futures markets are very volatile, thus, no place for
pension funds to risk the money for people who trust them to build
future wealth. The fiduciary duty of a pension fund manger is to find
reasonable returns with low risk and the commodity markets is not that
place.
5. If the price of oil was regulated between $40.00 - $80.00 a barrel,
the price could go up and down on supply and demand. This would be fair
to everyone, for even when supply was plentiful, the price would not
drop below $40.00 which will still give a fair profit to most oil
related industries. When oil is in short supply the price would be
limited to a ceiling of $80.00 which is more acceptable to world
economies.
6. There is a moral issue that greed cannot come before peoples basic
needs ... No right-minded, ethical, principled government can allow
starvation and financial ruin because of a system of trading that is
completely out of control.
7. The price of a barrel of oil effects transport, food supply,
industrial production and every part of modern day living. If terrorists
wanted to devise a plan to destroy the world economies what better way
than finding a method to allow oil to trade at $140.00 a barrel. Why
play a game that makes terrorists and anarchists happy.
8. Goodwill to all people is the credo every democratic country is built
upon. $140.00 a barrel oil delivers no goodwill. It only brings hardship
and political uneasiness.
9. Noble deeds and fair dealing is the hallmark of success for every
truly prosperous person. Since the world is made-up from people, where
are the noble deeds and fair dealing in the commodity pits.
10. We are all put on earth to help each other succeed in the pursuit of
freedom, liberty and happiness. There is no freedom when people are
slaves to greed. There are only liberty takers when oil trades over
$80.00 a barrel. And finally financial hardship brings misery and
discontent.
The time for change in essential commodity trading is now. To quote a
few voices from the past...
“Experience demands that man is the only animal which devours his
own kind, for I can apply no milder term to the general prey of the
rich on the poor”
_Thomas Jefferson
“For
greed all nature is too little.” _Seneca
“He who is greedy is always in want.” _Horace
“What shall it profit a man if he gains the whole world but loses
his soul.” _Jesus Christ
July 6, 2008
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