Pic Source: goatmilk
By Grant Lawrence
"However, it is not all bad news, because the major oil producing countries have been the enemies of the prevailing world order. Venezuela, Iran, Russia and it is not so easy to finance a Bolivarian Revolution with $40 oil. So I think Venezuela, Chavez, probably his days are numbered. In Iran probably he won't last a year." Global Financier George Soros in Davos Switzerland at the World Economic Forum, on why lower prices for oil is not all bad news.
As Soros alludes to, oil is not only the reason wars are fought but it is also used as a weapon against those that are not in line with the "Prevailing World Order." Before the crash of oil prices, not only were average Americans suffering, but China and India were the big losers in the oil price war.
But then something curious happened. Georgia invaded S. Ossetia and Russia took action against that New World Order push by bombing a major pipeline in Georgia that supplied the west with oil. Russia gave a clear signal that it would not allow the globalists to do as it pleases in a former part of the Soviet Union. Coincidentally after Russia signaled its intentions with bombs, oil prices began to take a drastic decline.
But was this all a coincidence or a conspiracy to use the oil weapon against Russia?
Some still believe the price of oil is based on the demand for oil. But that is not true. Oil prices are controlled by oil speculation.
"Approximately 60 to 70 percent of the oil contracts in the futures markets are now held by speculative entities. Not by companies that need oil, not by the airlines, not by the oil companies. But by investors that are looking to make money from their speculative positions....All they do is buy the paper, and hope that they can sell it for more than they paid for it. Before they have to take delivery,"according to Dan Gilligan, President of the Oil Marketers Association.
Who is buying all this paper oil?
"I tease people sometimes that, you know, people say, 'Well, who's the largest oil company in America?' And they'll always say, 'Well, Exxon Mobil or Chevron, or BP.' But I'll say, 'No. Morgan Stanley,'" said Gilligan.
Hedge fund manager Michael Masters explains that that there are a lot of interests in paper oil. "The California pension fund. Harvard Endowment. Lots of large institutional investors. And, by the way, other investors, hedge funds, Wall Street trading desks were following right behind them, putting money - sovereign wealth funds were putting money in the futures markets as well. So you had all these investors putting money in the futures markets. And that was driving the price up," he said.
So when the economy was in a recession all last year and the demand for world oil was actually low, it was paper oil that was driving the record highs in oil prices. Paper oil that was being speculated on by hedge funds and various institutional investors.
Iranian President Mahmoud Ahmadinejad said last year that oil was abundant and that the high oil prices were "fake."
"At a time when the growth of consumption is lower than the growth of production and the market is full of oil, prices are rising, and this trend is completely fake and imposed," Ahmadinejad declared.
So oil prices are being manipulated outside of market forces for the demand for oil. But how do we know that it is being used as a weapon?
Some may recall that the Soviet economy was bolstered in the 70s because of high oil prices. But, later in the 80s, the price of oil was cheap. Those low oil prices helped bring about the fall of the Soviet Union. The Soviet Empire collapsed not because of Star Wars or the arms race but because of a hidden oil war in which the "Prevailing World Order" destroyed a supposedly evil empire by manipulating oil prices.
Thus we come to a major reason the "Prevailing World Order" has hesitated to move to a Green Economy and use available technology to leave the age of fossil fuels behind. The oil weapon is one of the most powerful weapons the globalists have at their disposal. It helped bring down a competing Soviet Empire, it is wielded against China and India at times, and it is being used presently to keep the Russian Bear in line, and to fight against "Bolivarian Revolutions" in South America.
An understanding of the oil weapon also brings to light one other dark and murky subject.
For years, it has been a mystery to many why hedge funds are allowed to operate with little financial oversight from regulators. Some in Congress have repeatedly called on the President and the Federal Reserve to encourage major legislation to regulate hedge funds and other financial instruments. But even after a world economic collapse, there has been little in the way of new regulation of these financial instruments.
Obviously, the "Prevailing World Order" may not like regulation because unregulated hedge funds allows certain elites to grow even larger fortunes. But regulation would likely shine a light into the workings of paper oil and the forces behind oil pricing. It would go against national security to expose a black operation like oil price fixing. After all, it is all for the good of humanity to combat forces that operate against the "Prevailing World Order."
But the interests of humanity may in fact not be the interests of the "Prevailing World Order." Right now we are seeing climate change being worsened by the use of oil and coal technology. Not only is fossil fuel pollution contributing to the destruction of the ecosystem of the planet but it is also killing and sickening millions of the world's people.
Oil may be a valuable weapon for the globalists but it contributing to a great deal of economic suffering of the world's population. Energy is the source for the world's economic engine and the price of oil means a great deal to the economic health of the world's population. When the globalists play oil wars to destroy or to keep a competing powers in check, it is the people of the world that must pay the price for that war.
Perhaps someday the governments of the world will align themselves with the interests of the people of the world. But until then look for more oil wars, environmental catastrophes, pollution, and economic collapses.
You may not know exactly what is going on but be assured that it is not happening by accident.
Video of the George Soros Interview Below