Saudi Arabia Admits to Price Gouging
Saudi Arabia and their Wahabi sect of Islam have declared war on the world
over and above their sponsored acts of terrorism over the last thirty years.
What we've been told about oil and its marketplace is untrue.
1. The current price of oil is the result of increased demand coming from
China - Untrue.
2. The law of Supply and demand rules the global marketplace. - Untrue.
3. There is a global free market in oil. Untrue.
There is no free market in oil. A free marketplace, defined, involves competition.
There is no competition in oil and, thus, no free marketplace. Oil is ruled
by a cartel that arbitrarily fixes prices at their whim. The central functionary
in this syndicate is Saudi Arabi who promotes a warped religious agenda and
has now moved into usury price increases to force western interests to bow
to their religious agenda. The price of American domestic crude is set by
this cartel (Opec).
Seventy five persent of American oil consumption is produced here in the United
States but the prices for that crude is set by Opec and Saudi Arabia. If
there was a free marketplace American crude would be sold at lesser prices
due solely to the fact that it is cheaper to produce and refine crude here
in the U.S. than it is to import from a greater distance. American producers
cite their price increases are a result of global marketplace demand. As
there is no free marketplace - the argument fails.
If competition truly existed, the price of American crude would drive
down Opec's prices. This produces an enormous windfall for American
Oil Companies. In the eighties, when Opec was flexing its muscles,
Congress passed the Windfall Profits Tax. This was promoted to the public
as being a tax on the profits of Oil Companies benefiting from Opec's contrivances.
This was a lie! In fact, this tax did not cost Oil Companies one cent, nor
was it intended to. It was applied against the people (mom and pop)
who owned the land from which the oil was pumped. The tax rate was 80% and
it did not touch the billions of windfall to oil companies benefiting from
Opec's price increases. It did, however, efficiently rape the little guy.
In the current contrivance of a crisis, Congress will not address the
greed of this closed marketplace but will (again) go after the mom and pop
while at the same time giving the impression they are actually addressing
the problem (unrestrained greed).
In any business, there is a formula for setting the retail price of any product.
It is a simple one. Cost of production + costs of delivery + profit
margin = retail price. In Oil, the profit margin is a variable that has
a bottom - but no ceiling. These 'facts' are visible to anyone who wishes
to view them.
However, let us not be constrained by the dictums of logic and reason. We
can turn to the Saudi's themselves for the truth The Saudi Port Authority
web site tells us exactly the relationship of goods shipped by all of
Saudi Arabia's ports compared to the same period last year. Read for yourself
http://www.ports.gov.sa/ as of 9/3/2005
63 Million Tonnes handled during First Half of 2005
The total tonnage handled in all Saudi Ports during the first Half of 2005
reached around 63 Million Tonnes, with an increase of 10% over the same
period of the previous year ( Imports 16.5%, Exports 6.6% ). Over all
Saudi exports (oil included) rose 6.6% this year over the preceding year.
Yet!, the price of crude has doubled - a 100% increase.
It doesn't take a genius to do the math and to fill in the blanks as
to why. The Saudi's are attempting to hold the west hostage to their aberrant
religions dictums. It is a wonderment to this writer why the Bush Administration
chooses to brown nose the Saudi's who, in fact, were the supporting cast for
9-11 and are actively interfering with our efforts to bring democracy into
Iraq. Combine this with Iran and this single snake has two heads - both begging
The Saudi's might take a lesson from Japanese history. In the 40's
the U.S., unwisely, placed an embargo on oil shipments to Japan in an effort
to force them to constrain their invasions into Manchuria and China. Japan
is a country with virtually no national resources and everything (oil included)
must be imported. The Japanese military calculated how much time they had
left (based on oil) before they'd be forced to their knees. Instead of submitting,
they attacked Pearl Harbor and entered World War II against the United States.
The cornerstone of Arabic governments is rule by a dictator who insures his
survival by force, threat of force, torture, murder or any tool or contrivance
that will force their enemy to their knees. Reason and diplomacy are simply
ruses to promote the agenda. In truth, Arabic cultures validate and value
only one currency - force. Logic and reason are viewed as the tools of weak
and stupid people and they do view Americans as stupid.
In truth, the purveyors of religious hatred in Saudi Arabia and Iran are
the morons for believing they can force us submit to their dictates or that
our domestic or foreign policies will be set by Middle Eastern potentates
who became wealthy because American oil interests drilled the wells and developed
the resources they'd now endeavor to use as a weapon against us.
Howard Hughes (an American) invented the diamond drill bit that made
it possible - not an Arab from Saudi Arabia.
HQ has copied the exact Saudi web page as it existed on 9/3/2005 Saudi Port Authority