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View Full Version : Stockman: If We Want to Bring Oil Prices Down, We Should Stop Beating the War Drums



Dolphins9954
02-28-2012, 09:40 AM
While Nouriel Roubini says that attacking Iran would lead to global recession (http://www.moneynews.com/StreetTalk/Roubini-Iran-Global-Recession/2012/01/30/id/426006) (and see this (http://www.forbes.com/sites/afontevecchia/2012/02/24/attacking-iran-will-push-the-u-s-back-into-recession/)), Ronald Reagan’s budget director – David Stockman – points out that even beating the drums of war is driving up oil prices and hurting our economy:

I think you can address this decisively by stop beating the war drums right now. And Obama could do that, and he could say the neocons are history.The policy that they’re talking about right now is the same thing we heard in 2001, 2002, and 2003. And he needs to clearly say that we’re not going to attack Iran. We’re not going to permit Israel to attack Iran. They are not part of the axis of evil. They’re part of the axis of medieval.

In other words, these are backward people that aren’t going to threaten the western world, and we need to get into a serious process of negotiation. If we do that, the price of oil will drop $30 within a few months, and all the speculators who are on the wrong side of the ship would learn a good lesson.

But as long as the war drums continue to beat, as they are now, we’re going to see this kind of speculative fraud. It’s not real. It’s not supply and demand world today.


http://www.washingtonsblog.com/2012/02/stockman-if-we-want-to-bring-oil-prices-down-we-should-stop-beating-the-war-drums.html


:hi5:

NY8123
02-28-2012, 10:03 AM
It cost more to operate a force in the Persian Gulf (forget about war time, I mean just floating around in the sea) than it returns on the investment of protecting the oil sources of our allies.

At this point it would save money to have the fleet just come home and forget about the Gulf.

CedarPhin
02-28-2012, 02:04 PM
Once the Bakken formation comes fully online, we're not going to need the Persian Gulf.

TheMageGandalf
02-28-2012, 05:15 PM
Why?

Because they learned their lesson a few years ago when it dropped from 149 some odd to 35? Nope. That's bogus.

You want to stop the speculative fraud, you take away the Commodity Futures Modernization Act of 2000.

Dolphins9954
02-28-2012, 05:26 PM
Why?

Because they learned their lesson a few years ago when it dropped from 149 some odd to 35? Nope. That's bogus.

You want to stop the speculative fraud, you take away the Commodity Futures Modernization Act of 2000.

There is a connection between war, instability in the middle east and oil prices. Just recently gas prices shot well over $3 dollars a gallon with the Libya charade. And now with Iran and Syria, the speculators love this war-mongering and constant threats of war. It's great for their bottom line and sucks for us.

TheMageGandalf
02-28-2012, 05:30 PM
There is a connection between war, instability in the middle east and oil prices. Just recently gas prices shot well over $3 dollars a gallon with the Libya charade. And now with Iran and Syria, the speculators love this war-mongering and constant threats of war. It's great for their bottom line and sucks for us.

Exactly. So cut the cord and drop that piece of s-- legislation.

Point is, it wont matter how much supply you have, how many wars are going on, or natural disasters.

The price of Oil as well as other commodities being tied to such excess speculation will ALWAYS have a reason to go higher.

EDIT: Look at it this way, today its Iran. You think specualtors will just drop the price $30 because someone comes out that there wont be a war?

Next WTI will drop about $10 to about $98.-- and then it'll slowly rise based on seasonal adjustment factors such as Memorial Day Weekend and of course the Summer grade change (which'll cause some refinery outages adding the the refinery shortage due to the Oil Co. shutting a few down due to 'losing profits' here at home...due to lack of demand.)

Dolphins9954
02-28-2012, 06:00 PM
Exactly. So cut the cord and drop that piece of s-- legislation.

Point is, it wont matter how much supply you have, how many wars are going on, or natural disasters.

The price of Oil as well as other commodities being tied to such excess speculation will ALWAYS have a reason to go higher.

EDIT: Look at it this way, today its Iran. You think specualtors will just drop the price $30 because someone comes out that there wont be a war?

Next WTI will drop about $10 to about $98.-- and then it'll slowly rise based on seasonal adjustment factors such as Memorial Day Weekend and of course the Summer grade change (which'll cause some refinery outages adding the the refinery shortage due to the Oil Co. shutting a few down due to 'losing profits' here at home...due to lack of demand.)

I'll have to check out that bill out and read it. I do believe that our current policies over there only feed the speculators and their racket. An unstable Middle East with constant wars and threats of them is great news for the speculation business. I'll look it up.