From
http://www.timesofindia.com/today/12edit2.htm
}}>Begin
Oil's Well
The Organisation of Petroleum Exporting Countries (OPEC) has finally bowed to
international pressure. Daily production of crude oil will now be upped to 26
million barrels and that should be of immense relief to countries across the
globe. Oil price which had reached its highest level since the Gulf war is
expected to fall and stabilise around $24-28. The sudden rise in oil prices had
led to road and port blockades in France and parts of the UK. There was growing
fear that if fuel prices were to stabilise at that high level it could trigger
off a global recession. Ultimately that would have led to a fall in the
international demand for oil and prices too would have fallen, but such an
equilibrium would have taken a long and tortuous time to arrive. Thanks to
President Clinton's pressure on Saudia Arabia, that bridge seems to have been
crossed: The Saudis will contribute most of the extra 0.8 million barrels a day
since all other members, except Iraq which is subject to a ceiling on its
production, are already producing very close to their maximum capacity. But the
OPEC decision did not come easy. After all, increased production will only
benefit Saudi Arabia while all other exporters will suffer some fall in their
oil revenues. But, in the end the prospects of a global recession and a
consequent free fall of oil prices seems to have forced everyone to accept
somewhat lower revenues. Saudi Arabia, of course, was always ready for this
because it will be able to balance the loss in revenues per barrel by the
increase in its total exports. It seems to have taken some time for the others
to understand that such high oil prices cannot be sustained and it is in their
interest to sacrifice present profits for future gains.
In India, the UK and France taxes on petroleum and oil products are extremely
steep. Our government, for instance, collects taxes on oil products which
counts as its revenue income. At the same time fuel is subsidised through the
`oil pool deficit'. Thus any rise in the price of oil -- whether through a rise
in its dollar price or due to exchange rate fluctuations -- results in a rise
in the oil pool deficit. The government then complains that it cannot continue
to subsidise fuel, forgetting, of course, that part of the reason for its high
price is the heavy taxation regime. In France and the UK, protesters have been
demanding that taxes be cut so that prices at petrol pumps remain stable.
Consumers in the US did not face such a sharp rise -- unlike in the UK and
France -- precisely because taxes are low and international oil prices are
quoted in dollars. But it is not only a question of final prices for the
consumer. For, giving up taxes on oil means a higher fiscal deficit, which is
inflationary too. And if there were to be a global demand recession then the US
would also be affected by it. The effects would have been both economic and
political. Perhaps, that would explain why President Clinton chose to put
pressure on Saudi Arabia and other OPEC countries. This happens to be one of
those issues in which the interests of the US and the rest of the world
coincide.
End<{{
>>>Well, well ... all the way from India (which is *why* I'm posting this -- to
give some additional perspective) and isn't it interesting that their title is
almost zackly the one I used last week when posting articles describing the
genesis of this issue. What's really weird is the price hikes we took in the
U.S. that are now being followed by other pricing problems (albeit taxes) in
Europa. All we need is a little MidEastern unsteadiness and wowie, zowie, the
world gets a little depression. Will the "October Surprise" wind up being an
Arabian 'trick or treat'? What makes this almost goofy is the apparent
inability of countries to manage their petroleum needs and forecast
accordingly. Of course, the effect on the various populations is interesting
to watch and must provide hours of light-hearted entertainment for the
ministers of oil. Cars upon cars upon cars in line waiting for a few gallons
(or quarts if buying by the litre [rough equivalent[). Group dynamix in
action. It might be easier for a fuel truck to make the rounds like the
milkman or the heating oil fellow. A<>E<>R <<<
A<>E<>R
Integrity has no need of rules. -Albert Camus (1913-1960)
+ + + + + + + + + + + + + + + + + + + + + + + + + + + +
The only real voyage of discovery consists not in seeking
new landscapes but in having new eyes. -Marcel Proust
~~~~~~~~~~~~~~~~~~~~
The libertarian therefore considers one of his prime educational
tasks is to spread the demystification and desanctification of the
State among its hapless subjects. His task is to demonstrate
repeatedly and in depth that not only the emperor but even the
"democratic" State has no clothes; that all governments subsist
by exploitive rule over the public; and that such rule is the reverse
of objective necessity. He strives to show that the existence of
taxation and the State necessarily sets up a class division between
the exploiting rulers and the exploited ruled. He seeks to show that
the task of the court intellectuals who have always supported the State
has ever been to weave mystification in order to induce the public to
accept State rule and that these intellectuals obtain, in return, a
share in the power and pelf extracted by the rulers from their deluded
subjects.
[[For a New Liberty: The Libertarian Manifesto, Murray N. Rothbard,
Fox & Wilkes, 1973, 1978, p. 25]]
<A HREF="http://www.ctrl.org/">www.ctrl.org</A>
DECLARATION & DISCLAIMER
==========
CTRL is a discussion & informational exchange list. Proselytizing propagandic
screeds are unwelcomed. Substance�not soap-boxing�please! These are
sordid matters and 'conspiracy theory'�with its many half-truths, mis-
directions and outright frauds�is used politically by different groups with
major and minor effects spread throughout the spectrum of time and thought.
That being said, CTRLgives no endorsement to the validity of posts, and
always suggests to readers; be wary of what you read. CTRL gives no
credence to Holocaust denial and nazi's need not apply.
Let us please be civil and as always, Caveat Lector.
========================================================================
Archives Available at:
http://peach.ease.lsoft.com/archives/ctrl.html
<A HREF="http://peach.ease.lsoft.com/archives/ctrl.html">Archives of
[EMAIL PROTECTED]</A>
http:[EMAIL PROTECTED]/
<A HREF="http:[EMAIL PROTECTED]/">ctrl</A>
========================================================================
To subscribe to Conspiracy Theory Research List[CTRL] send email:
SUBSCRIBE CTRL [to:] [EMAIL PROTECTED]
To UNsubscribe to Conspiracy Theory Research List[CTRL] send email:
SIGNOFF CTRL [to:] [EMAIL PROTECTED]
Om
