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THE "PLAN": OFFEN$IVE $TRATEGIE FOR DEFENDING THE US$..
Some people still think that the recent rise in oil prices is to be explained by the simple "Supply and Demand" theory. They think that this might be just another CONSPIRACY THEORIE and that one only has to examine the increased demand for oil - not just in the United States - but more dramatically by China - and so the conspiracy might "evaporate".
Oil is not a "Supply-Demand" thing - it's a CARTELIZED MARKET!
It's not the "oil price" that's actually rising - but it's the price for oil on the MARKET, the STOCK EXCHANGES, that's rising!
What a difference...
And if you have a look WHO IS BEHIND THE "latest Chinese emerging" (bet, that more than 50% of those Chinese companies are owned by the "usual locusts") than one might say that these arguments are only the SMOKE-SCREEN for covering the REAL CAUSE:
The strategy being adopted by the Fed is at bottom simple, which is why no one might notice it:
Hyperinflate the Dollar.
Why?
The problem of the dollar price vs oil prices (OPEC oil is priced in dollars, pursuant to the agreement at the time of OPEC's formation) goes back most immediately to the 90's when Bush cut a secret deal with the Saudis, to pay for a percentage of their exports IN GOLD. (cf. Regge Howe at www.goldsextant.com)
Henry Liu in a recent article at the Asia Times has shown that oil has traded for 60 years in a narrow price band of INFLATION-ADJUSTED Dollars.
This means that the rise in oil prices is REFLECTING DOLLAR HYPERINFLATION.
FOLLOW THE MONEY.
Our analyst Hadashi comments:
Three years ago at the outset of the Iraq war, conventional wisdom said that oil was the motivating factor. Then William Clarke in an essay published in Fall, 2003, illustrated the relationship between the Dollar and oil. The conclusion, that the Iraq war had been launched as a DEFENSIVE measure, to defend the petrodollar regime.
All of this is quite logical, but for one unquestioned assumption, that it necessarily spelled a "flight forward" response.
Now it should be plain as the nose on one's face (to those who have mirrors) that the strategy is not DEFENSIVE, but OFFENSIVE.
Since all contracts on the exchanges are priced in Dollars, and most trades settled in Dollars, it is Dollar holdings in the world's central banks that keep the international oil trade flowing. There are elements of truth in the Peak Oil phenomenon, but they are not germane. What is, is the Dollar.
The Plan unfolds so simply and elegantly that it almost defies belief. Since the lion's share of world oil reserves MUST be traded in Dollars, the simplest way to deprive non-US competitors for petro resources is
1) drive up the price of oil, which will deplete central bank Dollar holdings while
2) hyperinflating the Dollar which is the key dynamic for increasing its price.
Indispensible to this strategy is controlling all internationally traded oil reserves.
This is why oil-self-sufficient Russia is now out of picture.
The outcome is a foregone conclusion. A world-wide war for oil, the single most precious commodity.
Why are competitive energy sources not developed? The answer should be clear. The Plan is an old one and we are now in its endgame.
Best...
-HADASHI-
The world is not being forced into a scarcity of oil; it's being forced into a scarcity of Dollars ON A FLOOD OF DOLLARS, which will produce over-priced oil. Hence Iraq, then on to Iran, and bet your bottom petrodollar Venezuela and Mexico are next...
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