Bush's Energy Secretary Lies To Protect Oil Speculators and Helps Them Rip Off Americans
As gas prices go into the stratosphere, the King of Saudi Arabia and Bush's energy secretary have different public viewpoints as to the causes. Who is telling the truth?
From the NYTimes: "An emergency energy summit meeting convened hastily here on Sunday underscored how few options the world has to push oil prices down from their record levels, as producers and consumers repeatedly emphasized starkly divergent views on both the fundamental causes and possible remedies for the current energy crisis.
"The one-day meeting in this coastal town on the Red Sea ended with the promise of a modest increase in Saudi oil production that is unlikely to stem the most-rapid run-up in oil prices ever. Beyond that, participants called for both more transparency and more regulation in energy markets, more investments in both production and refining capacity, and more cooperation between producers and consumers.
"But King Abdullah and the British prime minister, Gordon Brown, who walked into the high-ceilinged hall together as a military band played, soon offered totally different perspectives on the problem and how to approach it.
"The king spoke of the “selfish interests” of speculators as a main reason oil prices have risen 40 percent this year, urging the gathered ministers to 'rule out biased rumors and to reach the real causes for the increase in price.'
"But Mr. Brown squarely pointed to fundamental economics and “oil demand rising faster than supply.” The U.S. Energy secretary, Samuel W. Bodman, put it more bluntly in a meeting with reporters, saying 'there is no evidence we can find that speculators are driving futures prices.' "
Is that so, Mr. Bodman? Like the rest of Bush's loyalist cabinet members heading Bushite politicized departments and agencies, Bodman is lying with carefully chosen words to protect the administration and the speculators.
Last week I quoted from Jim Hightower's posting about how speculators and McBush's chief economic adviser, Phil Gramm, drove up the price of oil. Now I will post Hightower's entire piece.
"The biggest cause is not OPEC, or increased demand from China. Instead, it’s that same fun bunch that brought us the collapse in today’s housing market: rich speculators, working through global investment banks and hedge funds.
"Most Americans who find themselves being robbed at the pump have no idea that faraway commodity traders are manipulating the price of crude using a mischievous mechanism known as the “Enron Loophole.” This creates an electronic casino game, allowing global speculators to bet on the future price of oil, using a few facts, wild guesses, and chicken entrails as the basis for their bets, which artificially drive up the price of oil. Hedge funds at Goldman Sachs and Morgan Stanley, for example, own huge amounts of these oil futures, and they’re already accepting bets as high as $200 a barrel – a price completely unattached to the real cost of producing oil or to such niceties as supply and demand.
"Worse, their gambling on our prices is done with no public oversight. That’s because a special loophole says that electronic trading of such commodities as oil is not subject to the normal government rules that prevent price distortions. This loophole was written by Enron lobbyists, rammed through Congress in 2000 by then-Senator Phil Gramm, and signed by Bill Clinton. The resulting speculative oil bubble has jacked up our pump prices by a third, costing you and me about $1,500 each over the past two years – with much more to come out of our pockets as speculators raise their bets.
"By the way, John McCain’s top economic advisor is Phil Gramm, who recently convinced McCain to oppose efforts to close the Enron Loophole."
“Speculators help drive up gas prices, experts say,” Austin American Statesman, June 4, 2008
Because there is no oversight or regulation by this criminal corporate crony Bush administration of hedge funds and other speculative financial instruments and banking systems, this lawless administration has brought about the mortgage lending financial catastrophe, and $4.00 a gallon gasoline prices, a financial disaster for regular hardworking Americans.
And impeachment is still off the table.
From the NYTimes: "An emergency energy summit meeting convened hastily here on Sunday underscored how few options the world has to push oil prices down from their record levels, as producers and consumers repeatedly emphasized starkly divergent views on both the fundamental causes and possible remedies for the current energy crisis.
"The one-day meeting in this coastal town on the Red Sea ended with the promise of a modest increase in Saudi oil production that is unlikely to stem the most-rapid run-up in oil prices ever. Beyond that, participants called for both more transparency and more regulation in energy markets, more investments in both production and refining capacity, and more cooperation between producers and consumers.
"But King Abdullah and the British prime minister, Gordon Brown, who walked into the high-ceilinged hall together as a military band played, soon offered totally different perspectives on the problem and how to approach it.
"The king spoke of the “selfish interests” of speculators as a main reason oil prices have risen 40 percent this year, urging the gathered ministers to 'rule out biased rumors and to reach the real causes for the increase in price.'
"But Mr. Brown squarely pointed to fundamental economics and “oil demand rising faster than supply.” The U.S. Energy secretary, Samuel W. Bodman, put it more bluntly in a meeting with reporters, saying 'there is no evidence we can find that speculators are driving futures prices.' "
Is that so, Mr. Bodman? Like the rest of Bush's loyalist cabinet members heading Bushite politicized departments and agencies, Bodman is lying with carefully chosen words to protect the administration and the speculators.
Last week I quoted from Jim Hightower's posting about how speculators and McBush's chief economic adviser, Phil Gramm, drove up the price of oil. Now I will post Hightower's entire piece.
"In only two years, the price of crude oil – which accounts for 75 percent of gasoline prices – has more than doubled, from $60 a barrel to $140. Why?
"The biggest cause is not OPEC, or increased demand from China. Instead, it’s that same fun bunch that brought us the collapse in today’s housing market: rich speculators, working through global investment banks and hedge funds.
"Most Americans who find themselves being robbed at the pump have no idea that faraway commodity traders are manipulating the price of crude using a mischievous mechanism known as the “Enron Loophole.” This creates an electronic casino game, allowing global speculators to bet on the future price of oil, using a few facts, wild guesses, and chicken entrails as the basis for their bets, which artificially drive up the price of oil. Hedge funds at Goldman Sachs and Morgan Stanley, for example, own huge amounts of these oil futures, and they’re already accepting bets as high as $200 a barrel – a price completely unattached to the real cost of producing oil or to such niceties as supply and demand.
"Worse, their gambling on our prices is done with no public oversight. That’s because a special loophole says that electronic trading of such commodities as oil is not subject to the normal government rules that prevent price distortions. This loophole was written by Enron lobbyists, rammed through Congress in 2000 by then-Senator Phil Gramm, and signed by Bill Clinton. The resulting speculative oil bubble has jacked up our pump prices by a third, costing you and me about $1,500 each over the past two years – with much more to come out of our pockets as speculators raise their bets.
"By the way, John McCain’s top economic advisor is Phil Gramm, who recently convinced McCain to oppose efforts to close the Enron Loophole."
“Speculators help drive up gas prices, experts say,” Austin American Statesman, June 4, 2008
“Experts Tell Senate Committee How to Burst Energy Price Bubble,” Press Release of Senator Cantwell, June 3, 2008
“McCain Defends ‘Enron Loophole,’” www.consortiumnews.com, May 19, 2008
“Costly oil could mean recession – Soros,” money.cnn.com, June 3, 2008
“Squeezed at Both Ends,” The New York Times, May 14, 2008
“Saudi Arabia says it will call summit on energy prices,” Austin American Statesman, June 10, 2008
“Gamblers Get Their $100 Oil,” www.oilwatchdog.org, February 19, 2008
“Success!” www.closetheenronloophole.com, May, 2008
Because there is no oversight or regulation by this criminal corporate crony Bush administration of hedge funds and other speculative financial instruments and banking systems, this lawless administration has brought about the mortgage lending financial catastrophe, and $4.00 a gallon gasoline prices, a financial disaster for regular hardworking Americans.
And impeachment is still off the table.
Posted by Kaz at 6/22/2008 2:50 PM 
Categories: Transportation, Bush, greed, Bushites, Energy, Repuglicans
Categories: Transportation, Bush, greed, Bushites, Energy, Repuglicans
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