OIL ECONOMICS…the TRUTH shall set you free….
The lifting price on average for a barrel of oil is $ 18.50 US. The markup on oil at 100% by producers is fair priced at 36,00 dollars US or 100%. The world price of oil per barrel adds on translation refining and retail profit ( more than enough for raw product commodity pricing ) – plus state and federal taxes. At $ 1.25 a gallon the world flourishes – developed nations soar in growth and expansion – and development countries can EAT. Half a barrel of oil is used for food pesticides and crop production including containers. Oil in one form or another is THE COST OF EVERYTHING. Greed and market speculators – the ability without reform of Global Financial Regulations – to bid on which way the price of oil will go in forward contracts – never buying any oil at all ( non stake holders ) – bid the price of oil UP in the markets. The producers do not get the extra profit. Most of the profit goes to non producer – add nothing of value – doing what was a CRIME under old law and now is LEGAL THEFT on under new laws – totally manipulations commodity prices. As the SPECULATION PREMIUM for the world ( the hidden tax ) is removed from the markets – the COST OF EVERYTHING ceases to consume TRILLIONS of productive dollars from all of “us” and these dollars can be returned in consumer chases to build and grow economies. Nations must come together to outlaw and criminalize speculation or the price will be bid back up – and the result will be trillions in lost production flowing in the hands of an elite less than 10,000 super wealthy who as legal thieves become fantastically more wealthy at a social contract that is totally in breach.
Competitive capitalism is a corrupt and failed economic model in which 1% control more wealth than 99% and this social contract is unsustainable and always leads to SUPER CRASH and WORLD WAR as it will soon.
Communism and socialism are competitive at the STATE LEVEL and are WORSE in their corruption such that the elites own and control 1% of the wealth over the 99% which is unsustainable and leads to social revolution and world war with SUPER CRASH starting that process.
Cooperative Capitalism ( outlined as a financial blue print for nations looking into more stable features to consider via the best selling book REDEMPTION THE COOPERATION REVOLUTION a bible for world leaders reading the book today ) – engages powerful leadership in any community state or nation to adjust cultures and laws into COOPERATIVE CAPITALISM for the county- state – or nation. The result is sustainable economics without the corruption factors.
Oil price is subject to manipulation within the greedy social contract breakers of global SPECULATORS. Oil is exploited as a way to legally tax everyone on the COST OF EVERYTHING making more profits than taxes do for nations. It is obscene doing more harm to families than weapons and war. More suffering and starvation than all the politics combined. OIL PRICE.
Using a GLOBAL ECONOMIC CONSTITUTION called for in this blog and in REDEMPTION THE COOPERATION REVOLUTION – as a new frame work to govern the global economic model – we submit a G 100 appointed board of economists – including oil Industry representatives needs to replace OPEC as the fully GLOBAL PRICE SETTING BODY for the world cost of everything…OIL. Returning sanity to insanity and sustained oil profits the market can plan on versus volatility that creates more unwanted SPECULATION PREMIUMS as a tax upon the most poor and starving – billions – for greed and greed alone. There is no morality or social contract in OIL PRICING but there must be and their should be.
Fair returns for oil producers is a mandate of course – but the accent is on fair not obtuse and socially breached contractual greed fests at the expense of the massive developing world. FULL PARTNERSHIP is the goal.
The old system is corrupt – manipulated – insane – broken – and will create world war – highly profitable to the inside elite while 100’s of millions die – not the ideal way to manage demographics – in fact primitive and spiritually blinded. But historically irreversible economics if we do not CHANGE THE MODEL. We have easy ways to do it – but the G 100 must COOPERATE versus COMPETE to create the WORLD ECONOMIC CONGRESS in Hawaii for three years – to install the policy board for global currency exchange and commodity exchanges making speculation for non stake holders criminal – making speculation criminal – and putting the real crooks in jail like we once did. This created 50 years of oil stability which was shattered as the laws creating that stability ( cheat free laws ) where vacated for legal theft – going on now. The numbers are so gynormous only investment banker economists seem to know what is going on.
Oil Company executives know but they are bribed into premium profits from speculation so that they are seduced to support the speculation versus the return to stable moral pricing. Pricing you can be proud of. They can ultimately be proud does not break a social contract with the peoples of the world. They return to moral based custodian executives.
Money is not the root of any evil. THE ATTACHMENT TO MONEY ( GREED ) is the evil itself. Competition ( lets kill the others ) is evil thought form. Cooperation and collaboration is SANE. Competition is INSANE ..those who love it and wish to preserve it at the great disadvantage to others are LEGAL THEIVES and have broken all social contracts. The crises is a crises of LEADERSHIP. Leaders opt in for sanity against insanity irrespective of systems rewarding GREED. Systems rewarding greed need to be changed to bring a return of SANITY economically to global markets.
Without it – the price of oil will rise for a renewal earth asset where oceans of oil exist everywhere – from shale – from oil and gas to be discovered – from old wells renewed by the earth – as oil is not a scare and depleting commodity. All energy is renewable ( coal gas and oil and the earth is always making more as a factory for unlimited energy ) the issue is using technology to USE the energy in every more efficient ways that are NON POLLUTING.
One of our CEO SPACE GRADS here this week has a technology to burn the unlimited energy of COAL fully clean with ZERO pollution Jim Wilkinson of Wyoming the coal state. The patents are issued. Breeder reactors will be brought on line in our lifetime – unlimited clean energy. The price of OIL can not stay high with the GREED SPECULATION PREMIUM because as Rolf Nader pointed out in the 1980’s the world IS DROWNING IN OIL Oil and Gas are not scare.
The moral social contract price for oil should be industry and global nation set and regulated – as a new moral contract for the cost of everything with subsidies for the most clean use of energy. We use 1800’s technologies to burn polluting coal and oil. NEW TECHNOLOGIES burn these energies clean.
VW ( criminals ) should go to jail- 1000 VW conspiracy executives who are crooks seeking short term profits should GO TO PRISON quickly. Germany should take VW over into RECEIVERSHIP for five years to protect shareholders – and reconstitute a social contract where VW is transformed into THE MOST CLEAN TRANSPORTATION COMPANY ON EARTH as a pledge from the German PEOPLE offsetting the elite few who are criminals. Without accountability for social greed crimes the world is bought and sold into its present corruption.
A fact a cab driver in Cape Town well knows – a single mother struggling to support her family Tokyo well knows – a fact that a laborer from India in the Gulf well knows – we all well know these facts.
Vote Politicians who are LEADERS and get rid of the crises of leadership by VOTING tomorrows true LEADERS into office – and into board rooms. Social contracted leaders. Opting and speaking to the revolution of COOPERATIVE CAPITALISM the publication REDEMPTION calls for.
Until then expect SUPER VOLATILITY until the melt down of SUPER CRASH and World War. Have we learned nothing…..?
Berny Dohrmann- author of REDEMPTION THE COOPERATION REVOLUTION
PS: Oil pricing today is a crime and without new laws legal theft will continue into the price of everything – elites profit at the great pain and suffering of billions upon billions of US – we the people of the global village. We are coming together as one to insist on the economic REVOLUTION for the unborn generation on our watch.— October 12, 2015