ECONOMICS - LOOKING GLASS NEWS | |
World at tipping point; oil peak arrives |
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by Larry Chin Online Journal Entered into the database on Friday, November 18th, 2005 @ 19:27:45 MST |
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The American empire is an energy junkie in its death throes, punching
for new veins and final fixes, knowing that the supplies of its drug of choice
-- cheap oil -- are virtually depleted. According to geologist Kenneth Deffeyes, author of Beyond Oil: The View from
Beyond Hubbert’s Peak, this long-anticipated world oil peak is now --
Thanksgiving
2005. The holocaust of imperial thrashing -- epitomized by the Bush administration’s
Peak Oil-fueled criminal atrocities -- promises to intensify, along with the
denial and cover-up. Confirmation of Peak Oil crisis is everywhere. Oil supplies may be
lower than OPEC wants to admit. The second largest oil field in the world,
situated in Kuwait, is running dry.
The US trade deficit just hit another
all-time high. Yet in the US, we have witnessed the spectacle of rising
stocks, in response to temporary and artificially manipulated low gas prices
created only by the tapping (and possible depletion) of strategic
reserves. As Mike Ruppert and the From The
Wilderness team point out, in the course of their continuous tracking of
Peak
Oil-related news: “Even today the US media glibly lies and misleads
about falling oil prices while failing to tell the American people that most
of its domestic production is still shut in or that the 'falling' prices are
simply a result of tapping the strategic reserves of this and other IEA countries.
Both of those 'artificial' market influences will end shortly . . ." The Gulf Coast’s energy infrastructure is not
even close to repaired, and some damage is permanent. The official data
on the impact
from Hurricanes Katrina and Rita flies in the face of denials. How is it
possible for energy prices to fall if supplies are depleted and the infrastructure
to bring supplies to market remains crippled? Outgoing Federal Reserve Chairman Alan Greenspan and his likely successor,
White House advisor Ben Bernanke, continue to tap-dance,
admitting energy and severe trade
deficit problems, and the “souring” of critical foreign investment
in the US, but insist on repeating old mantras about eternal US economic and
market resiliency. How long before the trick bag of artificial market manipulations and transparent
lies comes up as empty as a Caspian Basin dry hole? How long before the Plunge
Protection Team fails? How much of the strategic reserves have been wasted,
in order to create one last short-term illusion of cheap energy bounty? Meanwhile, piece by piece, the White House cover-up of its 9/11-Peak Oil war
falls apart. After years of intensive White House stonewalling, the Washington
Post revealed documents proving that Dick
Cheney's 2001 energy task force involved secret meetings with major oil company
executives (Chevron, Exxon Mobil, Conoco and Shell Oil). This, along with
other related scandals (falsified Iraq war intelligence, the Cheney-Libby-Rove-Plame
case, 9/11, etc.) thoroughly vindicate those who have accurately chronicled
it all. When one finds Peak Oil suddenly the subject of major mainstream news (major
magazine stories, daily headlines, books, and even television) and oil giants
such as Chevron Texaco putting out expensive
advertising and public relations about a worldwide energy shortage and Peak
(without ever using the actual phrase), and urging conservation, the writing
on the wall is beyond obvious. When California Governor Arnold Schwarzenegger
(whose ties to Big Energy and Enron are well
documented) is tapped for a tour of China to
sell conservation, it speaks volumes. If this is the voice of Big Oil, the
era of oil is over. In a presentation for a Peak
Oil-related conference, Mike Ruppert laid out in exhausting detail how the
world’s key decision makers have been aware of and planning for the Peak
Oil crisis as far back as the 1970s, if not even decades earlier. Broadly, these
measures include, according to Ruppert: 1. Rationing 2. More coal and nuclear 3. Suspended environmental and drilling restrictions 4. Protection of critical infrastructure 5. Strengthening and reinforcing military operations --
the suspension of Posse Comitatus 6. Suspension and relaxation of labor and minimum wage
laws 7. Changing and tightening the bankruptcy laws, allowing
fewer distressed consumers to discharge debts 8. Allowing and facilitating population reduction through
famine and disease 9. Strengthening and giving more power to FEMA 10. Destroying demand through economic collapse and allocating
scarce resources -- by force if necessary -- to protect the interests of the
wealthiest communities and interests in the country This destructive paradigm provides the explanation for all that has transpired:
the protection of what is left for elites, and the “destruction of demand."
The Bush faction. Enron. The attacks of 9/11 and the “war on terrorism."
The targeting of Muslim and other ethnic populations. Afghanistan-Iraq. The
USA PATRIOT Act. The Bush administration’s “let them die”
response to Hurricane Katrina. Cold war with China. Bird flu and other pandemics.
The looting of Social Security. War against the sick and elderly. The Medicare
drug disaster. Etc. An example of the official response in action is found in the unprecedented
and disastrous energy bill
quietly and enthusiastically passed by Congress in August 2005. This recipe
for disaster is full of subsidies to Big Energy, offering nothing for ordinary
people. Here is yet another. Even though California Governor Arnold Schwarzenegger
and the Republican Party suffered a largely humiliating election defeat in which
virtually all Republican-backed state measures were rejected by voters, Proposition
80, designed to re-regulate California energy (and stop Enron-type manipulations),
lost. The elites who control the electronic votes (who likely
assisted his previous victory) may permit political faction change, but
they will not relinquish the Peak Oil energy agenda. What next? Whether one chooses to accept the
Deffeyes Thanksgiving 2005 forecast, or a more conservative one that places
Peak a few more years down the road, the crisis is now. As pointed out by Tom Whipple
of the Falls Church News: “It is nearly impossible to convince people
and their elected representatives something very bad is about to happen until
it actually does . . . Peak oil is yet another example of denial with potentially
much more serious consequences. Nearly every unbiased observer who has looked
seriously at the issue comes to the conclusion world oil production will peak
within 10 years -- tops. “There is no shortage of potential events that will lead to higher prices
in the next few years. The Gulf of Mexico is not going to cool down any time
soon, so we can expect each year the hurricane season will produce a succession
of monster storms, some of which will once again tear up oil facilities. The
overall political situation in the Middle East is deteriorating. Every month
brings us closer to an event that will interrupt a significant share of production
. . . Once the flow from Iran, Saudi Arabia or Venezuela is interrupted, the
resulting shortages and prices will lead to the rapid formation of a consensus
from the White House to the courthouse . . ." It is this “consensus” -- the destruction that is sure to ensue
-- that all people of the world must prepare for. The time for denial is over.
The jig is up. |