Ahmadinejad calls oil price hikes �manipulated�
By Jerry Mazza
Online Journal Associate Editor
Jun 26, 2008, 00:16
How is that Mahmoud
Ahmadinejad, the president of Iran, a country we�re about to attack for
building a nuclear power reactor, is commenting more cogently on our soaring
oil prices than our own president, George Bush, who continues to perceive
enemies everywhere, but sees no solutions to our oil price crisis in the
a televised speech Tuesday, the Iranian president, who was called �either
brazenly provocative or astonishingly uneducated� by President Lee
Bollinger of Columbia University, said, with the precision of a graduate
school instructor that he also is, that oil was abundant in the world�s crude
market and that the current high oil prices were, �fake.� Ahmadinejad
attributed the daily increases in the price of crude oil as �unwarranted� since
the market �has more than enough oil.�
These comments were
made at a meeting of the OPEC (Organization of Petroleum Exporting Countries)
Fund for International Development, not exactly a group lacking oil savvy. It took
place in the central Iranian city of Isfahan. Like a good economist, he added.
�The dollar is being manipulated weaker, too.�
Specifically he said,
�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.� He ironically attributed the oil price
manipulation to �visible and invisible hands.� (See my The �Invisible
Hand� is picking your pocket for clarification on that last term.)
underlined the fact that �The price of oil is skyrocketing in order to secure
economic and political gains.� Could that possibly be? Yes. �Speculation is the
reason behind the increasingly high prices of crude, not a lack of supply,� the
�provocative� president added.
After all he should
know. Iran is the world�s fourth-largest oil exporter. And probably the main
reason we would like to get our bunker-busters around it, via us or our willing
friend Israel. By the way, Israel just bought a whole bunch of them from us to
blast through the Iranian nuclear facility.
obviously no fool, pointed out that Iran has �repeatedly blamed geopolitical
factors and the weak US dollar for the out of control oil prices.� Once again,
he was on the money.
He added that �the
dollar has already lost 15 percent of its value over the past 12 months against
the euro, to $1.54 per euro. Since oil is priced in dollars [petrodollars], producers
have had to increase prices in part to offset losses when converting that money
into local currency.� So our sinking currency is at the root of the problem,
which has to do with our excessive debt, the constant bailouts to subprime
debt-ridden banks, to making war, and giving tax cuts to the rich, among a few
of the reasons.
�As you know,�
Ahmadinejad said, �the decrease in the dollar�s value and the increase in
energy prices are two sides of the same coin which are being introduced as
factors behind the recent instability.�
Oil prices have
climbed to $140 per barrel of late. Yet they leveled, the Iranian President
pointed out, as Saudi Arabia, the world�s top oil exporter, announced it will
increase output to its highest rate in decades. This as consumption has slipped
as well, and there are signs that a slowing US economy could lower prices.
Could it be that some hedge funds and oil brokers are hoarding oil futures?
Switch from dollars to a
basket of currencies
Ahmadinejad suggested that oil should not be sold in US dollars, but sold
instead in a basket of currencies. Of course, only one other OPEC member has
suggested that, Venezuela, the oil-rich South American country that sells a
good deal of its oil to the US.
that one of the world�s largest problems is the continuing decline of the value
of the dollar. One wonders what �Invisible Hand� is engineering that fiasco.
To ward of that
trend, Iran�s leader suggested �A combination of the world�s valid currencies
should become a basis for oil transactions or [OPEC] member countries should
determine a new currency for oil transactions."
He described the
dollar (as Bush once described our Constitution) as �a worthless piece of
paper.� He even suggested that �'some big powers' have pushed the dollar even
lower for a reason.� He said it was no accident that the dollar continues to
decline. Could it be that our own government, with the help of the Federal
Reserve and Wall Street�s top echelon, are leading us to economic collapse, so
that the truly rich and ugly can buy up the market at a song, the way they did
in the 1930s?
In fact, Ahmadinejad
suggested, �For years they [some big powers] imposed inflation and their own
economic problems to other nations by injecting the dollar without any support
to the global economy.� This means that we keep borrowing from China, Japan,
and dozens of other countries with stable currencies and, as the dollar
declines, so does their investment in us, creating potentially disastrous results
for their economies. Not nice business at all.
But then we are not
living in a period of �nice,� �responsible,� �the common good,� �economic and
fiscal responsibility,� et cetera. We�re living in the New World Order with an
agenda of endless war to accomplish world hegemony any which way the neocons
can. And thus, in speaking out, is Ahmadinejad, the so-called �either brazenly
provocative or astonishingly uneducated� president of Iran actually trying to
wake up the American people to what is really happening?
Think about it,
especially the next time you drive up to the gas pump and the price for a
gallon of regular has climbed to $5. You might not think Ahmadinejad is quite
the wild man he�s made out to be. Nor is the Texas oilman president quite as befuddled
as he seems to be, especially as the wealth of America keeps rolling into the
hands of a precious and superrich few, mostly his friends.
But don�t think too
long. After all, the US fleet is sitting, waiting to attack Iran, along with
our good friends the Israelis pumped to blast away with their brand new US-made
bunker busters. The question is are the American people the victims as well?
Jerry Mazza is a freelance writer living in New York.
Reach him at email@example.com.
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