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Economy
Tuesday, April 1, 2008
Oil price….. and the Club of Rome

The price of oil peaked at US $106/barrel recently — an effective quadrupling in cost since the invasion of Afghanistan in October 2001.
The popular wisdom says the reason is the huge demand for energy supplies on the part of the Chindia region and the so-called “emerging markets” that in turn have been enjoying an increased demand for their raw materials. While this is true, and perhaps the immediate cause, CEO of Stern Stewart & Co, Joel Stern wishes to mention a more insidious force that may have something to do with it as well.
“In my view, an artificial limit has been imposed on supplies of oil both in the States and in Canada.” He says that left-wing liberals have regulated oil production out of business close to the shores of America and Canada. There are tremendous reserves of oil in the Gulf of Mexico and off the coast of both the Pacific Ocean side and Atlantic Ocean side, and the with-holding of permits to drill for oil all up and down the coast of the United States is contributing to a shortage of supply.
“One of the forces operating negatively in the world is what I would call ‘populism of zero growth’,” he adds. “There is something called the Club of Rome  that was quite popular back in the Seventies.”
This is a group of people who do not want a capitalist system, and will do whatever is necessary to disrupt it.
Stern believes they want to slow down the rate of growth so that a capitalist society will perform much less well. Thus it will be easier for them to criticise capitalism as a failed alternative to socialism.
“If you permit laissez-faire capitalism the oil industry will seek out its energy needs, and develop alternatives such as ways to make dirty coal into clean coal, and utilise wind and solar power.
“But people who are fundamentally enemies of a free society are regulating us out of this solution.
“The biggest enemies of free markets are intellectuals and businessmen — from two opposite points of view,” he adds. “Intellectuals want to tell everybody else what to do, but they want freedom for themselves; businessmen want protection for themselves, but they want free enterprise for everybody else.
“It’s just the way of the world; there’s nothing we can do about it.”
He says the forces operating against a free market economy are quite powerful. “They’ve been at it for a long time and they follow populist regulations that are designed to slow economic growth whether they realise it or not. And it’s bad for the society; fundamentally bad for everybody.”
This is one of many factors — perhaps one of the more colourful and interesting factors — affecting the price of oil.

Footnote

[1] The Club of Rome is a conspiratorial umbrella organization, a marriage between Anglo-American financiers and the old Black Nobility families of Europe, particularly the so-called "nobility" of London, Venice and Genoa. The key to the successful control of the world is their ability to create and manage savage economic recessions and eventual depressions. The Committee of 300 looks to social convulsions on a global scale, followed by depressions, as a softening-up technique for bigger things to come, as its principal method of creating masses of people all over the world who will become its "welfare" recipients of the future.

Copyright © Insurance Times and Investments® Vol:21.3 1st April, 2008
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