Best of the Week
Most Popular
1.Gold And Silver Voodoo Analysis Price Forecasts - Austin_Galt
2.UK Saved From I.S. Threat But Scottish Independence Nightmare is Not Over! - Nadeem_Walayat
3.Silver Price At or Very Close to an Important Low - Clive_Maund
4.Gold And Silver - PetroDollar On Its Deathbed? PMs About To Rally? No - Michael_Noonan
5.Gold and Silver Bear Phase III Dead Ahead - Rambus_Chartology
6.Stock Market Major Selloff Looms - Zeal_LLC
7.Inflate or Die! When Leverage Fails and Market Hope Turns to Fear - Ty_Andros
8.Gold Price Very Close to an Important Low - Clive_Maund
9.Market Forecasts for Stocks, Gold, Silver, Commodities, Financials and Currencies - EWI
10.U.S. Aggression - Will Russia and China Hold Their Fire? - Paul_Craig_Roberts
Last 5 days
Stock Market Wil-e-Coyote Moment May Have Arrived - 1st Oct 14
Europe Teetering the Ddge of a "Japan-style" Deflation - 30th Sept 14
Economists Economic Atonement - 30th Sept 14
Everything You Need to Know About the Stock Market S&P Index Until Christmas - 30th Sept 14
Singapore Becoming Global Gold Hub - Launches Kilo Bar Contract And Gold ATMs - 30th Sept 14
Germany Fights on Two Fronts to Preserve the Eurozone - 30th Sept 14
Turn the Tables on the Gold and Silver Market Manipulators - 30th Sept 14
U.S. 2014 Election Business as Usual - 30th Sept 14
Gold - Time to Buy the Dip? - 30th Sept 14
Urging Investors to Stay Liquid for the Coming Gold Stocks Boom - 30th Sept 14
The Japanese Deflation Myth and the Yen’s Slump - 29th Sept 14
Epic Investor Optimism that Can Be Reversed Only by a Huge Stocks Bear Market - 29th Sept 14
Russia’s Gokhran Buying Gold Bullion In 2014 and Will Buy Palladium In 2015 - 29th Sept 14
The End of Monetary Policy - 29th Sept 14
Here's What Rising Interest Rates Really Do to Your Shares - 29th Sept 14
Is a Credible Stock Market Top Forming? - 29th Sept 14
Silver Price At or Very Close to an Important Low - 29th Sept 14
Gold Price Very Close to an Important Low - 29th Sept 14
Nihilism And The Unknown Future - 29th Sept 14
Stock Market S&P, NAS Change In Trend? None Apparent, But A Caveat - 29th Sept 14
UK Saved From I.S. Threat But Scottish Independence Nightmare is Not Over! - 29th Sept 14
U.S. Aggression - Will Russia and China Hold Their Fire? - 28th Sept 14
Currency Wars and the Death of the Euro - Audio - 28th Sept 14
Obscure Maritime Law Practically “Guarantees” Profits for These Energy Companies - 28th Sept 14
Stock Market Primary IV Underway? - 27th Sept 14
Darwin And The Climate Apocalypse - 27th Sept 14
The Global Middle Class and Copper Consumption, A Stop Spike Event - 27th Sept 14
Can Money Save The Climate? - 27th Sept 14
Gold And Silver - PetroDollar On Its Deathbed? PMs About To Rally? No - 27th Sept 14
Debt and Inflation Consquences of American Fear - 27th Sept 14
U.S. and Global Confidence are in Divergence - So Are Stock Markets - 27th Sept 14
Are U.S. Cars About to Crash? - 27th Sept 14
Why the U.S. Created and Armed ISIS From Libya to Syria - 27th Sept 14
Stock Market vs the Developing Bear Market for Liberal Democracy? - 26th Sept 14
Stock Market Major Selloff Looms - 26th Sept 14
How My Charts Uncovered Two Big Stocks That Are Soaring Like Small Caps - 26th Sept 14
What Cycles Reveal About Stock Market Crash - 26th Sept 14
Gold Not A Safe Haven On Terrorism, Middle East Bombing, Russia ... Yet - 26th Sept 14
Valuing Gold and Turkey Farming - 26th Sept 14
Gold $1200 Underpinned by Physical Demand - 26th Sept 14
Inflate or Die! When Leverage Fails and Market Hope Turns to Fear - 26th Sept 14
Market Forecasts for Stocks, Gold, Silver, Commodities, Financials and Currencies - 26th Sept 14
Gold and Silver Bear Phase III Dead Ahead - 26th Sept 14
The Home Depot Breach Boils Our Blood – and It Should - 26th Sept 14
Why the Pundits are Wrong About Crude Oil Prices - 26th Sept 14
Where’s the Economic Growth? - 26th Sept 14
Stock Market Future Bull - 25th Sept 14
The Specter of Global Debt Default is Once Again Rearing its Head - 25th Sept 14
All Major Market Analysis and Forecasts Investor Open House has Started! - 25th Sept 14
Federal Reserve Policies Cause Booms and Busts - 25th Sept 14
Currency Wars Deepen - Russia, Kazakhstan Buy Very Large 30 Tons Of Gold In August - 25th Sept 14
Strong U.S. Dollar Pressures Gold - 25th Sept 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Most Exciting Event in the History of Technical Analysis

U.S. Economy in Free Fall, Why is the Arctic National Wildlife Reserve in this picture?

Politics / Oil Companies May 11, 2009 - 05:47 PM GMT

By: Robert_Singer

Politics Best Financial Markets Analysis ArticleThe world is engulfed in a global economic crisis of staggering ferocity rivaling three other financial meltdowns—which all began in the month of October. [1]


VP Biden and former Fed Chairman Paul Volcker don’t remember any time when things went down quite so fast, quite so uniformly around the world. The current crisis looks more like the collapse of the Soviet Union: in October 18, 1991 when Gorbachev signed an agreement forming a new economic community.

Analysts point to the September bankruptcy of Lehman Brothers as the turning point in the functioning of the financial markets and the Barack Obama Presidential campaign. [2]

But they overlook an Associated Press (AP) report that the unprecedented rise in gas prices has brought a change to the American way of life that even a drop in oil prices below $100/barrel (now below $60) won’t erase.

In July 2008, retail sales fell as shoppers shunned autos and other big-ticket items. In spite of government stimulus payments to U.S. households retail sales dipped 0.1 percent when a variety of economic woes including skyrocketing gas prices combined to blunt America's shopping habits—habits which wreak havoc on the environment.

Why is the ANWR in this picture?

Skyrocketing gas prices and $142 for a barrel of oil was the price it took for Americans to cry “uncle” and give up their last Arctic Wilderness. It was long gas lines in 1973 (the Oil Embargo) when Americans authorized the 800 miles of Trans-Alaska Pipeline through some of the most pristine country in Alaska.

Putting aside common sense and the environmental alternatives, drilling to reduce the price and our dependence on foreign oil ignored the published estimates of the impacts of new oil from the ANWR.

The oil companies and the U.S. Energy Information Administration (EIA), an independent statistical agency within the Department of Energy, estimate that new oil from ANWR could lower the world price of oil by a minimum of  .44 cents and as much as a $1.44 per barrel but, that won’t take effect for 20 years. As far as reducing our dependence on foreign oil: The EIA projection for oil production in the ANWR is 0.4 to 1.2 percent of total world oil consumption in 2030.

Nevertheless on August 14, House Speaker Nancy Pelosi signaled her willingness to consider opening up more coastal areas to oil and gas exploration. Just weeks before, Pelosi was resolved to block any votes to allow offshore drilling.

And then the most extraordinary thing happened, oil dropped by $45 a barrel and gasoline by a dollar a gallon.

Is that possible? Just because we agreed to consider more drilling!

Unlikely – Five dollar a gallon gasoline was required to get Americans to give up their last arctic wilderness, once Pelosi agreed to drill the price had to come down.. and fast because Americans were beginning to realize they can live comfortable lives without all that useless toxic stuff from China. In other words they weren’t trashing the planet by going to the mall. 

And later when gasoline fell to 2.03 a gallon it wasn’t enough to fool anyone into thinking the “economy” is back to normal. Bank failures, home foreclosures, high unemployment and the experts like Warren Buffett predicting major disruptions in financial markets put the final nail in the “economy” and the shoppers coffin.

 

It appears the price of gasoline stayed high too long and apparently has produced the worst-case scenario for the select group of people who raised the price of gasoline to almost $5.00/gallon to get Americans to give up their last Arctic wilderness while continuing to trash the planet shopping at the mall. The question is Why?

 

Consider this, our last president Bush wasn’t “stupid” if his goal was Ecocide.

All too often we see the result of failed public policies, government actions and inactions, and conclude the leadership is inept, corrupt, arrogant or just “stupid.”

 

Some thought drilling in the ANWR was about profits and a gift by Bush to his buddies in the oil business. However that explanation ignores that oil companies have 70 million “offshore acre leases” remaining out of a total 90 million. 

 

George W. Bush isn’t stupid if he wasn’t joking when at the G8 summit, he said, "Goodbye, from the (then) world's biggest polluter.”

 

Drilling in the Arctic National Wildlife Reserve, will trash America’s last arctic wilderness.

 

Sonar testing is about torturing whales and dolphins, and the border fence that keeps everything out but the illegals is disrupting an extraordinary source of biological diversity along a 2,000-mile-long region that includes deserts, mangrove forests, plains, mountains, river valleys and wetlands.

 

Thanks to $5.00 a gallon gasoline, the group of people who were betting on trashing the planet by drilling in the ANWR and keep the public shopping for billions of dollars of useless, non-recyclable consumer goods appear to be losing.

As the AP press said, “Americans have changed; being frugal is the thing.” And that makes winners of the rest of us, for now.

I highly recommend the 20-minute documentary at www.storyofstuff.com that lays this out so clearly that even a child could understand. And it shows us that the path to saving the planet is no more complicated than controlling our addiction to all that "stuff."

[1] October Crashes, Black Monday 10/28/1929, Black Monday 10/18/1987, Soviet Union Black Friday 10/18/1991 and Black Tuesday 10/29/2008

[2] In September 2008, when the Obama campaign seemed to be slumping and their candidate’s long-standing lead in the polls had evaporated, the senator’s supporters openly worried that a potential victory might be slipping away. Then providence joined the campaign: the failure of the giant investment bank Lehman Brothers followed by a global financial meltdown.  The October Stock Market Crash guaranteed McCain/Palin who still received 45.7% of the popular vote would not be going to the White House. Article by Robert Singer written on October 24, 2008 “Why Barack Obama will be the Next President of the United States...By a Landslide” (Electoral), Governor Palin, aka Hockey Mom, is the insurance policy for an Obama win. The worst financial crisis (October 29) since the 1930s Great Depression is the guarantee that Barack Obama, an unknown senator four years ago, will be elected president of the United States...by a landslide.

By Robert Singer

Robert Singer is an Entrepreneur and the author of a forthcoming book on the Federal Reserve. His articles cover politics and the financial and environmental implications of our consumer society.  The articles have been main headlined and can be found on numerous popular websites: Marketoracle, Silverseek, Goldseek, Daylife, LAprogressive, Canadafreepress, Opednews, Daily.pk and many of the Wordpress sites. Richard Daughty, The Mogambo Guru, proclaimed him a Junior Mogambo Ranger (JMR)

Dem Bones is Connected To De Debt Bone by Robert Singer, an analysis of the Federal Reserve, can be found on numerous popular websites including G. Edward Griffin’s Unfiltered News. Edward Griffin is the author of,the definitive work on the Federal Reserve, The Creature from Jekyll Island.

Meat, Milk and Motors: The New China Syndrome by Robert Singer, an essay about China first released in February 2009 has been widely posted and read on the Internet. Quotes from the article can be found in The Wall Street Journal Digital Network and the essay was the Top World Story on the Pakistan Daily website for over a week.

© 2009 Copyright Robert Singer - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Robert Singer Archive

© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014