Who spiked the oil in '08? Americans are far too sanguine about our international vulnerability on oil. The left's concerns about all forms of energy play, conveniently, into the hands of the American enemy that can bid the highest. by Paul Benedict
(libertarian)
Saturday, May 30, 2009
Even an American still able to employ common sense after living through the housing market collapse, the bank collapse, the rise of Obama, and, as the gratuitous final flatulent: the bank bail out, may forget it was the spike in oil tumbled the house of cards. It was easy to forget the role of higher oil because the price dropped as quickly as the stage lights at the end of a Broadway show.
It is another thing to determine what or who caused this foul spike in oil. A vile signature begins to appear in the place of the most likely suspects, and, in the ink may be found forensic evidence about who hates the United States the most. That these answers are news is the news. The news is that the American public has been as naive as those hypnotized by the curling serpent or by the sparkling radiance glimmering from the jewels of political corruption.
Although there were significant run ups in prices all through Bush's second term, the economy continued to grow. The increases were certainly part of Bush's growing lack of popularity, but the American economy, driven by real estate profits, continued on. It was as though some entity, frustrated at the inability to curtail America's consumer driven economic prowess, finally decided to pull out all the stops. The frustration, of course, was not necessary. If previous experience is any predictor of future patterns of behavior, it should have been plain that the downturn in real estate, was already in the works. Because it takes about a year for higher oil prices to impact consumer spending on durable goods, including real estate, the result of the early 2007 price increases were due to knock down the American consumer in early to mid 2008, just in time to hand the election over to Bush's opposition.
Although it is possible that things simply got out of control in the frantic run up to the 2008 election, agents and agencies of fantastic means from around the world, investors with great experience and clear risk recognition, must have been very passionate. The tremendous amounts of finances that had to be put at risk in order to bid oil futures out of sight are staggering.
The Bush-Cheney war on terror was so successful that a strategy of "any administration that is not Republican" would have been rational enough for those that favor a Taliban administered, Aljazeera espoused, world view. Recent headlines illustrate the political advantage America's enemies gained by investing so heavily in oil futures throughout 2007 and 2008. The Taliban takeover of north Pakistan happened in the first month of the Obama administration. Certainly, the Al Qaeda of Pakistan didn't take Obama's threat of drone attacks on America's enemies in Pakistan very seriously. Likewise, foreign students of the American political process who would have taken action to assure a Democratic victory can not have been disappointed by the continuing trickle of previously classified CIA documents being posted on the World Wide Web. Not only will the CIA interrogation processes be curtailed in ways that offer Al Qaeda greater operational security, but those who survived Guantanamo Bay will become even greater propaganda stars in the Islamic world.
If there was a conspiracy to topple the global economy to secure a change in American policy, the conspirators are giddy at Obama administration's willingness to expose the presence of nuclear weapons in Israel. This policy should not have been a special surprise to potential conspirators for it was telegraphed by Jimmy Carter six months before Obama was elected, right during the most spectacular section of the oil spike.
Oil is on the rise again, and new conspiracy theories involving Morgan Stanley and Goldman Sach's speculative activities are being shouted in the halls of congress. The Saudi's have cut supply, and there are signs of renewed demand. The dollar, which has been buoyed on thermals since Obama and the Fed heaved it over a Far-Eastern cliff, has now finally begun to slowly float down and away into the abyss. Lastly, the drums of war are beating in Iran and Korea.
Update June 6, 2009
Obama’s failure to visit Israel on his recent Mideast trip was as brimming with threats as was his failure to eat with Sarkozy was alive with payback. Even Obama’s denial of the Sarkozy snub was an insult. Likewise, Clinton’s (the lesser) willingness to absolve the Obama administration of previous commitments made to Israel on settlements is only the tip of the icy relationship to come. If Europe has only played at apathy towards Israel to get Americans to pay the lion’s portion of the bill, that time may well be over. A real Euro-commitment may be imminent.
(End Update)
Conspiracy theories or a continually dripping, American sore that any enemy can exploit at will: oil independence is the pain that will not go away. Oil independence must be first for economic and national self-defense. Before an Egyptian style VAT for "health care" why not an "energy independence" tax on ANWR and coastal American crude?
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