Saturday, May 31, 2008

THE GREAT OIL CRUNCH ICH: "The Commodity Futures and Trading Commission (CFTC) is investigating trading in oil futures to determine whether the surge in prices to record levels is the result of manipulation or fraud. They might want to take a look at wheat, rice and corn futures while they're at it. The whole thing is a hoax cooked up by the investment banks and hedge funds who are trying to dig their way out of the trillion dollar mortgage-backed securities (MBS) mess that they created by turning garbage loans into securities. That scam blew up in their face last August and left them scrounging for handouts from the Federal Reserve. Now the billions of dollars they're getting from the Fed is being diverted into commodities which is destabilizing the world economy; driving gas prices to the moon and triggering food riots across the planet. For months we've been told that the soaring price of oil has been the result of Peak Oil, fighting in Iraq, attacks on oil facilities in Nigeria, labor problems in Norway, and (the all-time favorite) growth in China. It's all baloney. Just like Goldman Sachs prediction of $200 per barrel oil is baloney. If oil is about to skyrocket then why has G-Sax kept a neutral rating on some of its oil holdings like Exxon Mobile? Could it be that they know that oil is just another mega-inflated equity bubble - like housing, corporate bonds and dot.com stocks - that is about to crash to earth as soon as the big players grab a parachute? There are three things that are driving up the price of oil: the falling dollar, speculation and buying on margin. A conservative calculation is that at least 60% of today's $128 per barrel price of crude oil comes from unregulated futures speculation by hedge funds, banks and financial groups using the London ICE Futures and New York NYMEX futures exchanges and uncontrolled inter-bank or Over-The-Counter trading to avoid scrutiny. US margin rules of the government's Commodity Futures Trading Commission allow speculators to buy a crude oil futures contract on the Nymex, by having to pay only 6% of the value of the contract. At today's price of $128 per barrel, that means a futures trader only has to put up about $8 for every barrel. He borrows the other $120. This extreme 'leverage' of 16 to 1 helps drive prices to wildly unrealistic levels and offset bank losses in sub-prime and other disasters at the expense of the overall population. The great oil crunch is another fabricated crisis; another 'smoke and mirrors' fiasco; another Enron-type shell-game engineered by banksters and hedge fund managers. Once again, the bloody footprints can be traced right back to the front door of the Federal Reserve." 12:25:19 PM

DOING GOD BBC: "Former prime minister Tony Blair has promised to 'spend the rest of my life' uniting the world's religions. He is launching a 'faith foundation' in New York on Friday." Ah, there you have it. I first thought the man was so addicted to spin, he couldn't stop. But now we know better: he is setting up a tax free religious foundation and practising his favourite pastime, 'spin' - it's just a continuation of his previous job. And his recently found Catholic religion comes in handy to whitewash his sins in confession. His war crimes need religious backing. He has learned a lot from al-Qaeda ideology. Independent: "Such is the relentlessness of Tony Blair's public immersion into matters of faith these days that Alastair Campbell's 'we don't do God' assertion in Downing Street has now been fully exposed for what it was: a skilful piece of diversionary spin. For Mr Blair, rhetorically and professionally, religion is the new politics. Introduced by Bill Clinton to a more sympathetic audience than he might receive in the UK, he said: 'Religious faith will be of the same significance to the 21st century as political ideology was to the 20th century.'" Charles Dickens: "That what we falsely call a religious cry is easily raised by men who have no religion, and who in their daily practice set at nought the commonest principles of right and wrong; that it is begotten of intolerance and persecution; that it is senseless, besotted, inveterate and unmerciful; all History teaches us." 12:17:15 PM

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