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History and Analysis -Crude Oil Prices

History and Analysis -Crude Oil Prices
OPEC has seldom been effective at controlling prices. Often described as a cartel, OPEC does not fully satisfy the definition. One of the primary requirements of a cartel is a mechanism to enforce member quotas. An elderly Texas oil man posed a rhetorical question: What is the difference between OPEC and the Texas Railroad Commission? His answer: OPEC doesn't have any Texas Rangers! The Texas Railroad Commission could control prices because the state could enforce cutbacks on producers. With enough spare capacity to be able to increase production sufficiently to offset the impact of lower prices on its own revenue, Saudi Arabia could enforce discipline by threatening to increase production enough to crash prices. During the 1979-1980 period of rapidly increasing prices, Saudi Arabia's oil minister Ahmed Yamani repeatedly warned other members of OPEC that high prices would lead to a reduction in demand. Unfortunately for OPEC only the global recession was temporary. Related:  Oil War

untitled It’s Time to Bury the “TAXES BAD!!!” Lie Forever Lately, some of my left brethren have been shopping the President’s assertion that taxes right now are lower than they were under Saint Ronnie. While this assertion is true, it’s nothing to be proud of. We still don’t seem to get the lessons the last 100 years have offered us about slashing tax rates for the super rich. And the lessons remain the same, old economy or new one. (1.) (2.) (3.) Since the President included a bunch of stupid tax cuts in a supposed “stimulus” package, it’s less than no wonder that what is about to happen, will happen. There is a way out of this, but it requires, at long last, a President with a spine, who wants what is best for the country, rather than for a few at the top. On June 1, stock markets in New York and around the world declined in levels not seen since summer 2010. Now, people can parrot the fat dope addict and scream “CLASS WAR!!!” Well, they are right about success being punished.

What Does Putin Want? Via TheFallingDarkness.com, Foreword by the Saker: The analysis below is, by far, the best I have seen since the beginning of the conflict in the Ukraine. I have regularly posted analyses by Ishchenko on this blog before, because I considered him as one of the best analysts in Russia. This time, however, Ishchenko has truly produced a masterpiece: a comprehensive analysis of the geostrategic position of Russia and a clear and, I believe, absolutely accurate analysis of the entire “Putin strategy” for the Ukraine. I have always said that this conflict is not about the Ukraine but about the future of the planet and that there is no “Novorussian” or even “Ukrainian” solution, but that the only possible outcome is a strategic victory of either Russia or the USA which will affect the entire planet. Ishchenko does a superb overview of the risks and options for both sides and offers the first comprehensive “key” to the apparently incomprehensible behavior of Russia in this conflict.

Griper Blade: The Bush Tax Cuts Failed. Period It's a chart that's been making the rounds for a while now. The Center for Budget and Policy Priorities graphed out the main drivers of current and projected deficits and came up with the following: TARP, bailouts, the stimulus? Ain't crap. This isn't pie-in-the-sky liberal loopiness here. Link to original post Mises Daily | Mises Institute With the creation of the BRICS bank and now the Asian Infrastructure Investment Bank (AIIB), the major economies of the world are hoping to lay the foundation for a multi-polar financial world beyond the unilateral control of the United States. Due to the enormous size of the US economy, coupled with the reserve status of the US dollar, the United States government has long been able to achieve strategic and military goals through flexing its financial power. This power has long allowed the US government to buy allies and friends among foreign regimes, to finance proxy wars, and to threaten the growth potential of foreign economies whenever the US government deemed it necessary. Today, however, with an enormous debt and a rapidly inflating supply of dollars, the US has become vulnerable to financial warfare aimed at cutting off the US government’s ability to finance its debt and to keep price inflation under control. Military and Financial Power Financial Warfare and the Suez Crisis

Don’t Need to Speculate Any More It should be of little surprise that the banks lied to us back when oil prices spiked in the summer of 2008, hitting $147 a barrel. The banks, the Bush administration, the media, etc. blamed it on their old friends supply and demand — mainly demand from China and from Americans who wanted to drive ever bigger and more gas hungry SUVs. Even liberals fell for this, with cries of “peak oil”. But the reality was much simpler. In other words, the price spike was yet another bubble, largely caused by speculators. Why is this interesting now? How did this happen? And now the price of oil has risen precipitously yet again, and yet again we are being told that this is due to China, US consumption, and a new reason: unrest in the Middle East.

Les projets de réorganisation du « Moyen-Orient élargi », par Thierry Meyssan Voici quatre ans que les États occidentaux ont lancé une vaste opération de remodelage du « Moyen-Orient élargi » qui devait placer au pouvoir, partout dans le monde arabe, la Confrérie des Frères musulmans. Ce fut d’abord le renvoi par les seuls États-Unis de Zine el-Abidine Ben Ali de Tunisie et d’Hosni Moubarak d’Égypte, tandis que l’on faisait croire aux populations qu’elles venaient de renverser ces dictateurs. Puis, ce fut les guerres d’agression contre la Libye et la Syrie, toutes deux travesties en soutien à des « révolutions démocratiques », alors qu’elles s’appuyaient sur al-Qaïda. Cependant, depuis deux ans, force est de constater que ce dispositif a atteint sa limite et qu’il ne sera pas possible d’imposer par la force un changement de régime en Syrie. Pourtant la guerre continue, extrêmement meurtrière. Pourquoi ? Nul ne sait ce que Washington et Téhéran sont convenus. Israël a déjà intégré Elles ne se font pas dans le dos des États-Unis, mais avec leur consentement.

In Yemen, celebrations and confusion after Saleh leaves A myriad of colors lit up the sky in Yemen's capital, Sanaa, last night. Skip to next paragraph Subscribe Today to the Monitor Click Here for your FREE 30 DAYS ofThe Christian Science MonitorWeekly Digital Edition Celebratory fireworks were launched from Change Square as news broke of Yemeni President Ali Abdullah Saleh’s departure to Saudi Arabia for what the Yemeni government called “medical treatment” resulting from minor injuries it says he sustained during an attack on his presidential compound Friday. Government officials insist Mr. The celebrations – most intense among the thousands of protesters who've been living for months in tents just outside Sanaa University and in other camps around the country – were interrupted at around 9 p.m., however, by the familiar sound of shelling.heard as artillery pounded the al-Habasa district of Sanaa where loyalist military forces and anti-government tribesmen have been battling for almost two straight weeks. Too early to celebrate? What's next?

Arabie saoudite et Russie : nouvelle prise de contact, par Boris Dolgov Le prince héritier d’Arabie saoudite, Mohammed ben Salmane, avec le président russe, Vladimir Poutine, lors du Forum économique de Saint-Petersbourg La prochaine visite en Russie du roi d’Arabie saoudite, Salmane ben Abdelaziz, pourrait devenir une étape charnière dans le développement des relations entre les deux pays. Les liens Russie-Arabie saoudite se sont créés il y a maintenant 80 ans. Notons que l’Union soviétique a été un des premiers pays à reconnaître le gouvernement saoudien indépendant et à établir des relations diplomatiques avec le Royaume en 1926. Le premier ambassadeur de l’Union soviétique à Ryad ne fut autre que Karim Hakimov, un diplomate connu pour sa passion de l’Orient. Dans le monde de l’islam, le roi d’Arabie saoudite porte le titre de « gardien des deux lieux saints » : la Mecque et Médine. Le roi actuel d’Arabie saoudite, Salmane ben Abdelaziz, est arrivé sur le trône en janvier 2015 suite à la mort du roi précédent, Abdallah ben Abdelaziz.

American Psychosis The United States, locked in the kind of twilight disconnect that grips dying empires, is a country entranced by illusions. It spends its emotional and intellectual energy on the trivial and the absurd. It is captivated by the hollow stagecraft of celebrity culture as the walls crumble. The virtues that sustain a nation-state and build community, from honesty to self-sacrifice to transparency to sharing, are ridiculed each night on television as rubes stupid enough to cling to this antiquated behavior are voted off reality shows. Our culture of flagrant self-exaltation, hardwired in the American character, permits the humiliation of all those who oppose us. It is the cult of self that is killing the United States. We have a right, in the cult of the self, to get whatever we desire. The tantalizing illusions offered by our consumer culture, however, are vanishing for most citizens as we head toward collapse.

Que deviendra le Proche-Orient après l'accord entre Washington et Téhéran ?, par Thierry Meyssan Que peuvent bien se dire John Kerry et Mohammad Javad Zarif ? La réunion du Conseil de coopération du Golfe, le 14 mai à Camp David, était la dernière étape avant que Washington et Téhéran ne signent leur accord, le 30 juin. Les États du Golfe ne pouvaient publiquement que se féliciter de la paix retrouvée. Cependant, comme tous les protagonistes de la région, ils se demandaient qui fera les frais des clauses secrètes et cherchaient à anticiper la nouvelle donne régionale. Le président Obama a refusé de signer un traité qui garantisse le maintien des régimes actuels, tandis que les délégations du Golfe ont refusé de signer un texte qui ne garantisse que la pérennité de leurs États. Finalement les États-Unis leur ont reconnu le statut d’« alliés majeurs non-membres de l’Otan » et leur ont vendu une quantité d’armes astronomique. Que peuvent bien être les clauses de ce partage ? Le rôle des intellectuels est de permettre de comprendre le monde qui nous entoure.

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