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Scrutiny
  
Hey King, how ‘bout a last waltz?
The occurrence of the sub prime crisis and oil price hike at the same time defies conventional theory and logic
24/07/2008

While Mr.Bush might browbeat the world into believing that it is the insatiable appetite of India and China for food and fuel that is to be blamed for the exponential rise in the price of both, a closer scrutiny of the chain of events as well as a glance back at US history of instigating global turmoil would reveal that things are actually far more intriguing than what they actually seem.

The US modus operandi has always been to instigate a political crisis in a land obviously rich in mineral resources – act as a ‘saviour’ in that ‘crisis’, spend tens of billions during the course of the event, unleash an economic or military blitzkrieg, reduce the mineral rich state to rubble, call a UN General Assembly meeting, make the world pay for the reconstruction of the destroyed places, the contracts of which would go to US backed companies, increasing demand for construction material to be supplied by US, in turn reviving the US economy. Simple!

The world knew for long that ‘Saddam Hussein’ and ‘Weapons of Mass Destruction’ were just lame excuses. The real reason was to take control of one of the largest global oil reserves and thwart further attempts to trade oil in euro, as that would have been the death knell for the biggest brand US has created, i.e. the dollar. Presently, while Bush would like us to believe that the US too is suffering much due to the oil price hike, what is not told is the way the US is profiting through windfall profits from Iraqi oil and from huge refining margins its companies are earning.

Things wouldn’t have been as bad, had the US not failed to invade Iran and finish off the remaining threats to its dollar hegemony – as Iran too has been planning to trade in the euro. But the US found the Iranian resolve a bit too tough to handle. Further, its anti ballistic systems, for all their hype, might be good for outdated Iraqi Scuds, but not for Iranian systems.
A control over Iran would have made the US control on global oil trinity absolute. What happened instead was the sub-prime crisis leading to the losses of more than a trillion dollars (IMF data) for US financial giants, with many on the verge of bankruptcy. A closer look at the chronology of the oil price hike in the last one year reveals that it has gone hand in hand with the sub prime crisis. Rationality would demand that a near $1 trillion loss in sub prime would invariably mean economic slowdown and the eventual fall in the price of oil as demand recedes. But that didn’t happen. And incidentally, some of the biggest losers in the sub-prime crisis, like CitiGroup, Morgan Stanley, Merrill Lynch and JP Morgan are also some of the biggest players in the oil futures markets. Noted analyst Michel Morkos writes in Dar Al-Hayat, “Oil price speculations are a security valve for financial institutions, speculators and oil companies even. Through long-term deals, speculators cannot but pass through a financial institution, which opens credits, turning buying and selling into book activities. Hence, profits go to credit-opening institutions.”

He further states, “Hence, we cannot ignore daily heated speculations of oil, led by major financial institutions, aiming at compensating their losses.” It’s quite evident that all this is happening in open political connivance with Bush and Saudi Arabia, who are quite content waltzing around while their cohorts loot the world. And if the world smells something fishy anytime in the future, be sure, they’ll just blame it all on Bush’s bad breath! And all he requires for resolving that is mint... a money mint for Chrissake!

By:- Pathikrit Payne
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