The reason the rationale for invading Gaza keeps changing, (from rocket-fire to Hamas infrastructure to strengthening deterrents to weapons smuggling to ceasefire violations etc) is because the Israeli leadership wants to conceal the true objective. The purpose of "Operation Cast Lead" is to conduct a dress rehearsal for another invasion of Lebanon.
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1.12.2009
Zionism has arrived
It has achieved the goal of creating a master race out of the Jews of Europe. Jabotinsky's followers even framed it in verse:
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"In blood and sweat, our race will rise, proud and generous and cruel."What happens in Gaza, the death of 800 people, mostly civilians, crushed under debris, mutilated, children starved to death near the decomposing body of their parents, all this is a very natural part and consequence of that project.
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Obama-Bush teams to state 'disaster' exercise on Tuesday
Great. - Ed.
- WASHINGTON (AFP) - The outgoing White House administration will next week hold a joint "disaster scenario" exercise with top members of the incoming team of president-elect Barack Obama, US officials said Friday.
- "I'm not going to go into the details of it, but it is a disaster scenario where the government would be very much tested," White House spokesman Scott Stanzel said.
Cities across the world become platform for hundred of thousands of protesters against Gaza fighting
Lots of pictures. - Ed.
Cities across the world became the platform for protest on Israel's military action in Gaza today.
Organisers said more than 250,000 people marched through Spain's capital of Madrid, with other European cities including Athens, Brussels, Rome, Naples Frankfurt, Munich and Berlin also the focal points of protesters.
The protest in Madrid was the largest of demonstrations across Europe, although there were expressions of both support and opposition for the Israeli offensive in Gaza.
WHO: "21 medics killed, 31 wounded due to ongoing Israeli offensive"
Thursday January 08, 2009
The World Health Organization (WHO) reported on Thursday that basic medical services in Gaza are collapsing as Israel continues its siege and offensive in the Gaza Strip. 21 medics were killed by Israeli shells and bullets and at least 31 others were wounded.
Read more
The World Health Organization (WHO) reported on Thursday that basic medical services in Gaza are collapsing as Israel continues its siege and offensive in the Gaza Strip. 21 medics were killed by Israeli shells and bullets and at least 31 others were wounded.
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Holocaust Denied: The lying silence of those who knew
By John Pilger
January 08, 2009 "Information Clearinghouse" -- -"When the truth is replaced by silence," the Soviet dissident Yevgeny Yevtushenko said, "the silence is a lie." It may appear the silence is broken on Gaza. The cocoons of murdered children, wrapped in green, together with boxes containing their dismembered parents and the cries of grief and rage of everyone in that death camp by the sea, can be viewed on al-Jazeera and YouTube, even glimpsed on the BBC. But Russia's incorrigible poet was not referring to the ephemeral we call news; he was asking why those who knew the why never spoke it and so denied it. Among the Anglo-American intelligentsia, this is especially striking. It is they who hold the keys to the great storehouses of knowledge: the historiographies and archives that lead us to the why.
Read more
January 08, 2009 "Information Clearinghouse" -- -"When the truth is replaced by silence," the Soviet dissident Yevgeny Yevtushenko said, "the silence is a lie." It may appear the silence is broken on Gaza. The cocoons of murdered children, wrapped in green, together with boxes containing their dismembered parents and the cries of grief and rage of everyone in that death camp by the sea, can be viewed on al-Jazeera and YouTube, even glimpsed on the BBC. But Russia's incorrigible poet was not referring to the ephemeral we call news; he was asking why those who knew the why never spoke it and so denied it. Among the Anglo-American intelligentsia, this is especially striking. It is they who hold the keys to the great storehouses of knowledge: the historiographies and archives that lead us to the why.
Read more
Gaza: The massacre in Zeitoun
IN the annals of war crimes, the name "Zeitoun" will assume its place alongside names like "My Lai," "Fallujah," "Sabra-Shatila," "Guernica," "Nanking," "Lidice," and "Wounded Knee."
In the last two days, the massacre that took place in Zeitoun, a neighborhood on the southern flats approaching Gaza City, has only now begun to come into focus. Aid groups, including the Red Cross, have used the three-hour pauses in Israel bombardment that began on Wednesday in a desperate attempt to remove the wounded, some of whom apparently still remain. Most of the dead have been left behind.
Reckless Israel endangering roots of our civilization
Israel is spreading seeds of hatred both on a regional and global scale, experts observe. The seeds of hatred have already been plowed as the number of anti-Israeli and anti-Semitic attacks in Europe multiplied by a factor no less than four only two weeks after Israeli operation Cast Lead began.
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Gaza carnage triggers Israeli protest
One thousand Israeli protestors from Peace Now and the left-wing Meretz party have called for an end to Israeli aggression in Gaza.
The angry protestors held the demonstration opposite the Israeli Defense Ministry building in Tel Aviv on Saturday, calling on Israel to review its military policies on Gaza.
Read more
The angry protestors held the demonstration opposite the Israeli Defense Ministry building in Tel Aviv on Saturday, calling on Israel to review its military policies on Gaza.
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Enough. It's time for a boycott.
It's time. Long past time. The best strategy to end the increasingly bloody occupation is for Israel to become the target of the kind of global movement that put an end to apartheid in South Africa. In July 2005 a huge coalition of Palestinian groups laid out plans to do just that. They called on "people of conscience all over the world to impose broad boycotts and implement divestment initiatives against Israel similar to those applied to South Africa in the apartheid era". The campaign Boycott, Divestment and Sanctions was born.
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Both parties cheerlead still more loudly for Israel's war
World concern over, and opposition to, the Israeli war in Gaza is rapidly mounting:
The Israelis have deliberately made it impossible to know the full extent of the carnage and humanitarian disasters because they continue to prevent journalists from entering Gaza even in the face of a now week-old Israeli Supreme Court order compelling them to do so.International pressure intensified sharply on Israel on Thursday, the 13th day of its Gaza assault, after the United Nations suspended food aid deliveries, the International Committee of the Red Cross accused the Israelis of knowingly blocking assistance to the injured, and a top Vatican official defended comments in which he compared Gaza to a concentration camp.
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Your anti-representatives in Congress
According to the critics, John J. Mearsheimer and Stephen Walt, in their “The Israel Lobby,” much exaggerated the power of the lobby. The critics claimed that congressional support for Israel simply reflected the views of the American people. Congress’ recent resolution on Gaza, however, would seem to belie this criticism and underscore the immense power of the Israel Lobby.
Congress almost unanimously endorsed the Israeli mass killing of civilians in the Gaza Strip, which, of course, involves the use of American weapons. By voice vote, the Senate gave unanimous support for the resolution.
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Congress almost unanimously endorsed the Israeli mass killing of civilians in the Gaza Strip, which, of course, involves the use of American weapons. By voice vote, the Senate gave unanimous support for the resolution.
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The sickness that has overtaken the US Congress
THE FOLLOWING REPRESENTS THE SICKNESS THAT HAS OVERTAKEN THE US CONGRESS, JEWISH POWER HAS EFFECTIVELY MADE ISRAELI SECURITY OUR GOVERNMENT’S PRIMARY CONCERN. THE POWER OF ZIONIST FINANCING HAS MADE A HANDFUL OF JEWISH CONGRESSMEN THE DOMINANT VOICE IN CONGRESS. THE DOMINATION ENABLES THE MOVEMENT OF ISRAELI ISSUES THROUGH THE CONGRESS WITH EASE. IT SHOULD SURPRISE NO ONE THAT BILLS LIKE THIS ONE, WHICH EXPRESS THE WILL OF THE CONGRESS IN SUPPORT OF GENOCIDE IN GAZA, PASS WITH TOKEN OPPOSITION.
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Comedy Gold: Joe the plumber in Israel
Excerpt:
Joe the (representative, typical) American idiot poster boy for stupidity was in Sderot.
Joe the (representative, typical) American idiot poster boy for stupidity was in Sderot.
"I've seen some very bad press about Israel," said Wurzelbacher, a colorful figure in the U.S. presidential campaign in which defeated Republican John McCain cited the Ohio plumber as an example of someone who would be hurt by Democrat Barack Obama's tax plan.Read more
"Israel is being attacked and they're defending themselves," Wurzelbacher told reporters. His remarks were interrupted by an alert for an incoming rocket which sent him dashing to a concrete shelter. No one was hurt.
Robert Fisk's world: Wherever I go, I hear the same tired Middle East comparisons
It all depends where you live. That was the geography of Israel's propaganda, designed to demonstrate that we softies – we little baby-coddling liberals living in our secure Western homes – don't realise the horror of 12 (now 20) Israeli deaths in 10 years and thousands of rockets and the unimaginable trauma and stress of living near Gaza. Forget the 600 Palestinian dead; travelling on both sides of the Atlantic these past couple of weeks has been an instructive – not to say weirdly repetitive – experience.
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Why do so few speak up for Gaza?
Why are we so indifferent to the death and destruction in Gaza?
The major news outlets meekly accepted Israel’s banning of journalists from entering Gaza as an excuse for downplaying collateral civilian casualties, our president-elect, Barack Obama, has had little to say about an invasion that will much complicate his future Mideast peace efforts, and most commentators easily rationalize Israel’s many-more-eyes-for-an-eye killings.
When the truth is anti-semitic
Excerpt:
If I had one major criticism to make about Jews today I would say that I am very disappointed that they are not speaking out against the murders… the lies… the revisionism of history… the prosecution of people who question what ‘appears’ to be untrue. Sooner or later you are going to pay for having allowed some bad apples to poison the barrel. It is your duty as a human being to speak out against injustice and if you can’t clean your own house you shouldn’t be cleaning anyone else’s house.
Read more
If I had one major criticism to make about Jews today I would say that I am very disappointed that they are not speaking out against the murders… the lies… the revisionism of history… the prosecution of people who question what ‘appears’ to be untrue. Sooner or later you are going to pay for having allowed some bad apples to poison the barrel. It is your duty as a human being to speak out against injustice and if you can’t clean your own house you shouldn’t be cleaning anyone else’s house.
Read more
1.11.2009
60 Minutes: Speculation Affected Oil Price Swings More Than Supply And Demand
So much for the theories of free market and supply & demand......
The Case For Socialism
Did Speculation Fuel Oil Price Swings?
About the only economic break most Americans have gotten in the last six months has been the drastic drop in the price of oil, which has fallen even more precipitously than it rose. In a year's time, a commodity that was theoretically priced according to supply and demand doubled from $69 a barrel to nearly $150, and then, in a period of just three months, crashed along with the stock market.
So what happened? It's a complicated question, and there are lots of theories. But as correspondent Steve Kroft reports, many people believe it was a speculative bubble, not unlike the one that caused the housing crisis, and that it had more to do with traders and speculators on Wall Street than with oil company executives or sheiks in Saudi Arabia.
To understand what happened to the price of oil, you first have to understand the way it's traded. For years it has been bought and sold on something called the commodities futures market. At the New York Mercantile Exchange, it's traded alongside cotton and coffee, copper and steel by brokers who buy and sell contracts to deliver those goods at a certain price at some date in the future.
It was created so that farmers could gauge what their unharvested crops would be worth months in advance, so that factories could lock in the best price for raw materials, and airlines could manage their fuel costs. But more than a year ago those markets started to behave erratically. And when oil doubled to more than $147 a barrel, no one was more suspicious than Dan Gilligan.
As the president of the Petroleum Marketers Association, he represents more than 8,000 retail and wholesale suppliers, everyone from home heating oil companies to gas station owners.
When 60 Minutes talked to him last summer, his members were getting blamed for gouging the public, even though their costs had also gone through the roof. He told Kroft the problem was in the commodities markets, which had been invaded by a new breed of investor.
"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," Gilligan explained.
Gilligan said these investors don't actually take delivery of the oil. "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."
"They're trying to make money on the market for oil?" Kroft asked.
"Absolutely," Gilligan replied. "On the volatility that exists in the market. They make it going up and down."
He says his members in the home heating oil business, like Sean Cota of Bellows Falls, Vt., were the first to notice the effects a few years ago when prices seemed to disconnect from the basic fundamentals of supply and demand. Cota says there was plenty of product at the supply terminals, but the prices kept going up and up.
"We've had three price changes during the day where we pick up products, actually don't know what we paid for it and we'll go out and we'll sell that to the retail customer guessing at what the price was," Cota remembered. "The volatility is being driven by the huge amounts of money and the huge amounts of leverage that is going in to these markets."
About the same time, hedge fund manager Michael Masters reached the same conclusion. Masters' expertise is in tracking the flow of investments into and out of financial markets and he noticed huge amounts of money leaving stocks for commodities and oil futures, most of it going into index funds, betting the price of oil was going to go up.
Asked who was buying this "paper oil," Masters told Kroft, "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."
In a five year period, Masters said the amount of money institutional investors, hedge funds, and the big Wall Street banks had placed in the commodities markets went from $13 billion to $300 billion. Last year, 27 barrels of crude were being traded every day on the New York Mercantile Exchange for every one barrel of oil that was actually being consumed in the United States.
"We talked to the largest physical trader of crude oil. And they told us that compared to the size of the investment inflows - and remember, this is the largest physical crude oil trader in the United States - they said that we are basically a flea on an elephant, that that's how big these flows were," Masters remembered.
Yet when Congress began holding hearings last summer and asked Wall Street banker Lawrence Eagles of J.P. Morgan what role excessive speculation played in rising oil prices, the answer was little to none. "We believe that high energy prices are fundamentally a result of supply and demand," he said in his testimony.
As it turns out, not even J.P. Morgan's chief global investment officer agreed with him. The same that day Eagles testified, an e-mail went out to clients saying "an enormous amount of speculation" ran up the price" and "140 dollars in July was ridiculous."
If anyone had any doubts, they were dispelled a few days after that hearing when the price of oil jumped $25 in a single day. That day was Sept. 22.
Michael Greenberger, a former director of trading for the U.S. Commodity Futures Trading Commission, the federal agency that oversees oil futures, says there were no supply disruptions that could have justified such a big increase.
"Did China and India suddenly have gigantic needs for new oil products in a single day? No. Everybody agrees supply-demand could not drive the price up $25, which was a record increase in the price of oil. The price of oil went from somewhere in the 60s to $147 in less than a year. And we were being told, on that run-up, 'It's supply-demand, supply-demand, supply-demand,'" Greenberger said.
A recent report out of MIT, analyzing world oil production and consumption, also concluded that the basic fundamentals of supply and demand could not have been responsible for last year's run-up in oil prices. And Michael Masters says the U.S. Department of Energy's own statistics show that if the markets had been working properly, the price of oil should have been going down, not up.
"From quarter four of '07 until the second quarter of '08 the EIA, the Energy Information Administration, said that supply went up, worldwide supply went up. And worldwide demand went down. So you have supply going up and demand going down, which generally means the price is going down," Masters told Kroft.
"And this was the period of the spike," Kroft noted.
"This was the period of the spike," Masters agreed. "So you had the largest price increase in history during a time when actual demand was going down and actual supply was going up during the same period. However, the only thing that makes sense that lifted the price was investor demand."
Masters believes the investor demand for commodities, and oil futures in particular, was created on Wall Street by hedge funds and the big Wall Street investment banks like Morgan Stanley, Goldman Sachs, Barclays, and J.P. Morgan, who made billions investing hundreds of billions of dollars of their clients’ money.
"The investment banks facilitated it," Masters said. "You know, they found folks to write papers espousing the benefits of investing in commodities. And then they promoted commodities as a, quote/unquote, 'asset class.' Like, you could invest in commodities just like you could in stocks or bonds or anything else, like they were suitable for long-term investment."
Dan Gilligan of the Petroleum Marketers Association agreed.
"Are you saying that companies like Goldman Sachs and Morgan Stanley and Barclays have as much to do with the price of oil going up as Exxon? Or…Shell?" Kroft asked.
"Yes," Gilligan said. "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.'"
Morgan Stanley isn't an oil company in the traditional sense of the word - it doesn't own or control oil wells or refineries, or gas stations. But according to documents filed with the Securities and Exchange Commission, Morgan Stanley is a significant player in the wholesale market through various entities controlled by the corporation.
It not only buys and sells the physical product through subsidiaries and companies that it controls, Morgan Stanley has the capacity to store and hold 20 million barrels. For example, some storage tanks in New Haven, Conn. hold Morgan Stanley heating oil bound for homes in New England, where it controls nearly 15 percent of the market.
The Wall Street bank Goldman Sachs also has huge stakes in companies that own a refinery in Coffeyville, Kan., and control 43,000 miles of pipeline and more than 150 storage terminals.
And analysts at both investment banks contributed to the oil frenzy that drove prices to record highs: Goldman's top oil analyst predicted last March that the price of a barrel was going to $200; Morgan Stanley predicted $150 a barrel.
Both companies declined 60 Minutes' requests for an interview, but maintain that their oil businesses are completely separate from their trading activities, and that neither influence the independent opinions of their analysts. There is no evidence that either company has done anything illegal.
Asked if there is price manipulation going on, Dan Gilligan told Kroft, "I can't say. And the reason I can't say it, is because nobody knows. Our federal regulators don't have access to the data. They don't know who holds what positions."
"Why don't they know?" Kroft asked.
"Because federal law doesn't give them the jurisdiction to find out," Gilligan said.
It's impossible to tell exactly who was buying and selling all those oil contracts because most of the trading is now conducted in secret, with no public scrutiny or government oversight. Over time, the big Wall Street banks were allowed to buy and sell as many oil contracts as they wanted for their clients, circumventing regulations intended to limit speculation. And in 2000, Congress effectively deregulated the futures market, granting exemptions for complicated derivative investments called oil swaps, as well as electronic trading on private exchanges.
"Who was responsible for deregulating the oil future market?" Kroft asked Michael Greenberger.
"You'd have to say Enron," he replied. "This was something they desperately wanted, and they got."
Greenberger, who wanted more regulation while he was at the Commodity Futures Trading Commission, not less, says it all happened when Enron was the seventh largest corporation in the United States. "This was when Enron was riding high. And what Enron wanted, Enron got."
Asked why they wanted a deregulated market in oil futures, Greenberger said, "Because they wanted to establish their own little energy futures exchange through computerized trading. They knew that if they could get this trading engine established without the controls that had been placed on speculators, they would have the ability to drive the price of energy products in any way they wanted to take it."
"When Enron failed, we learned that Enron, and its conspirators who used their trading engine, were able to drive the price of electricity up, some say, by as much as 300 percent on the West Coast," he added.
"Is the same thing going on right now in the oil business?" Kroft asked.
"Every Enron trader, who knew how to do these manipulations, became the most valuable employee on Wall Street," Greenberger said.
But some of them may now be looking for work. The oil bubble began to deflate early last fall when Congress threatened new regulations and federal agencies announced they were beginning major investigations. It finally popped with the bankruptcy of Lehman Brothers and the near collapse of AIG, who were both heavily invested in the oil markets. With hedge funds and investment houses facing margin calls, the speculators headed for the exits.
"From July 15th until the end of November, roughly $70 billion came out of commodities futures from these index funds," Masters explained. "In fact, gasoline demand went down by roughly five percent over that same period of time. Yet the price of crude oil dropped more than $100 a barrel. It dropped 75 percent."
Asked how he explains that, Masters said, "By looking at investors, that's the only way you can explain it."
The regulatory lapses in the commodities market that many believe fomented the rampant speculation in oil have still not been addressed, although the incoming Obama administration has promised to do so.
original article
The Case For Socialism
Did Speculation Fuel Oil Price Swings?
About the only economic break most Americans have gotten in the last six months has been the drastic drop in the price of oil, which has fallen even more precipitously than it rose. In a year's time, a commodity that was theoretically priced according to supply and demand doubled from $69 a barrel to nearly $150, and then, in a period of just three months, crashed along with the stock market.
So what happened? It's a complicated question, and there are lots of theories. But as correspondent Steve Kroft reports, many people believe it was a speculative bubble, not unlike the one that caused the housing crisis, and that it had more to do with traders and speculators on Wall Street than with oil company executives or sheiks in Saudi Arabia.
To understand what happened to the price of oil, you first have to understand the way it's traded. For years it has been bought and sold on something called the commodities futures market. At the New York Mercantile Exchange, it's traded alongside cotton and coffee, copper and steel by brokers who buy and sell contracts to deliver those goods at a certain price at some date in the future.
It was created so that farmers could gauge what their unharvested crops would be worth months in advance, so that factories could lock in the best price for raw materials, and airlines could manage their fuel costs. But more than a year ago those markets started to behave erratically. And when oil doubled to more than $147 a barrel, no one was more suspicious than Dan Gilligan.
As the president of the Petroleum Marketers Association, he represents more than 8,000 retail and wholesale suppliers, everyone from home heating oil companies to gas station owners.
When 60 Minutes talked to him last summer, his members were getting blamed for gouging the public, even though their costs had also gone through the roof. He told Kroft the problem was in the commodities markets, which had been invaded by a new breed of investor.
"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," Gilligan explained.
Gilligan said these investors don't actually take delivery of the oil. "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."
"They're trying to make money on the market for oil?" Kroft asked.
"Absolutely," Gilligan replied. "On the volatility that exists in the market. They make it going up and down."
He says his members in the home heating oil business, like Sean Cota of Bellows Falls, Vt., were the first to notice the effects a few years ago when prices seemed to disconnect from the basic fundamentals of supply and demand. Cota says there was plenty of product at the supply terminals, but the prices kept going up and up.
"We've had three price changes during the day where we pick up products, actually don't know what we paid for it and we'll go out and we'll sell that to the retail customer guessing at what the price was," Cota remembered. "The volatility is being driven by the huge amounts of money and the huge amounts of leverage that is going in to these markets."
About the same time, hedge fund manager Michael Masters reached the same conclusion. Masters' expertise is in tracking the flow of investments into and out of financial markets and he noticed huge amounts of money leaving stocks for commodities and oil futures, most of it going into index funds, betting the price of oil was going to go up.
Asked who was buying this "paper oil," Masters told Kroft, "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."
In a five year period, Masters said the amount of money institutional investors, hedge funds, and the big Wall Street banks had placed in the commodities markets went from $13 billion to $300 billion. Last year, 27 barrels of crude were being traded every day on the New York Mercantile Exchange for every one barrel of oil that was actually being consumed in the United States.
"We talked to the largest physical trader of crude oil. And they told us that compared to the size of the investment inflows - and remember, this is the largest physical crude oil trader in the United States - they said that we are basically a flea on an elephant, that that's how big these flows were," Masters remembered.
Yet when Congress began holding hearings last summer and asked Wall Street banker Lawrence Eagles of J.P. Morgan what role excessive speculation played in rising oil prices, the answer was little to none. "We believe that high energy prices are fundamentally a result of supply and demand," he said in his testimony.
As it turns out, not even J.P. Morgan's chief global investment officer agreed with him. The same that day Eagles testified, an e-mail went out to clients saying "an enormous amount of speculation" ran up the price" and "140 dollars in July was ridiculous."
If anyone had any doubts, they were dispelled a few days after that hearing when the price of oil jumped $25 in a single day. That day was Sept. 22.
Michael Greenberger, a former director of trading for the U.S. Commodity Futures Trading Commission, the federal agency that oversees oil futures, says there were no supply disruptions that could have justified such a big increase.
"Did China and India suddenly have gigantic needs for new oil products in a single day? No. Everybody agrees supply-demand could not drive the price up $25, which was a record increase in the price of oil. The price of oil went from somewhere in the 60s to $147 in less than a year. And we were being told, on that run-up, 'It's supply-demand, supply-demand, supply-demand,'" Greenberger said.
A recent report out of MIT, analyzing world oil production and consumption, also concluded that the basic fundamentals of supply and demand could not have been responsible for last year's run-up in oil prices. And Michael Masters says the U.S. Department of Energy's own statistics show that if the markets had been working properly, the price of oil should have been going down, not up.
"From quarter four of '07 until the second quarter of '08 the EIA, the Energy Information Administration, said that supply went up, worldwide supply went up. And worldwide demand went down. So you have supply going up and demand going down, which generally means the price is going down," Masters told Kroft.
"And this was the period of the spike," Kroft noted.
"This was the period of the spike," Masters agreed. "So you had the largest price increase in history during a time when actual demand was going down and actual supply was going up during the same period. However, the only thing that makes sense that lifted the price was investor demand."
Masters believes the investor demand for commodities, and oil futures in particular, was created on Wall Street by hedge funds and the big Wall Street investment banks like Morgan Stanley, Goldman Sachs, Barclays, and J.P. Morgan, who made billions investing hundreds of billions of dollars of their clients’ money.
"The investment banks facilitated it," Masters said. "You know, they found folks to write papers espousing the benefits of investing in commodities. And then they promoted commodities as a, quote/unquote, 'asset class.' Like, you could invest in commodities just like you could in stocks or bonds or anything else, like they were suitable for long-term investment."
Dan Gilligan of the Petroleum Marketers Association agreed.
"Are you saying that companies like Goldman Sachs and Morgan Stanley and Barclays have as much to do with the price of oil going up as Exxon? Or…Shell?" Kroft asked.
"Yes," Gilligan said. "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.'"
Morgan Stanley isn't an oil company in the traditional sense of the word - it doesn't own or control oil wells or refineries, or gas stations. But according to documents filed with the Securities and Exchange Commission, Morgan Stanley is a significant player in the wholesale market through various entities controlled by the corporation.
It not only buys and sells the physical product through subsidiaries and companies that it controls, Morgan Stanley has the capacity to store and hold 20 million barrels. For example, some storage tanks in New Haven, Conn. hold Morgan Stanley heating oil bound for homes in New England, where it controls nearly 15 percent of the market.
The Wall Street bank Goldman Sachs also has huge stakes in companies that own a refinery in Coffeyville, Kan., and control 43,000 miles of pipeline and more than 150 storage terminals.
And analysts at both investment banks contributed to the oil frenzy that drove prices to record highs: Goldman's top oil analyst predicted last March that the price of a barrel was going to $200; Morgan Stanley predicted $150 a barrel.
Both companies declined 60 Minutes' requests for an interview, but maintain that their oil businesses are completely separate from their trading activities, and that neither influence the independent opinions of their analysts. There is no evidence that either company has done anything illegal.
Asked if there is price manipulation going on, Dan Gilligan told Kroft, "I can't say. And the reason I can't say it, is because nobody knows. Our federal regulators don't have access to the data. They don't know who holds what positions."
"Why don't they know?" Kroft asked.
"Because federal law doesn't give them the jurisdiction to find out," Gilligan said.
It's impossible to tell exactly who was buying and selling all those oil contracts because most of the trading is now conducted in secret, with no public scrutiny or government oversight. Over time, the big Wall Street banks were allowed to buy and sell as many oil contracts as they wanted for their clients, circumventing regulations intended to limit speculation. And in 2000, Congress effectively deregulated the futures market, granting exemptions for complicated derivative investments called oil swaps, as well as electronic trading on private exchanges.
"Who was responsible for deregulating the oil future market?" Kroft asked Michael Greenberger.
"You'd have to say Enron," he replied. "This was something they desperately wanted, and they got."
Greenberger, who wanted more regulation while he was at the Commodity Futures Trading Commission, not less, says it all happened when Enron was the seventh largest corporation in the United States. "This was when Enron was riding high. And what Enron wanted, Enron got."
Asked why they wanted a deregulated market in oil futures, Greenberger said, "Because they wanted to establish their own little energy futures exchange through computerized trading. They knew that if they could get this trading engine established without the controls that had been placed on speculators, they would have the ability to drive the price of energy products in any way they wanted to take it."
"When Enron failed, we learned that Enron, and its conspirators who used their trading engine, were able to drive the price of electricity up, some say, by as much as 300 percent on the West Coast," he added.
"Is the same thing going on right now in the oil business?" Kroft asked.
"Every Enron trader, who knew how to do these manipulations, became the most valuable employee on Wall Street," Greenberger said.
But some of them may now be looking for work. The oil bubble began to deflate early last fall when Congress threatened new regulations and federal agencies announced they were beginning major investigations. It finally popped with the bankruptcy of Lehman Brothers and the near collapse of AIG, who were both heavily invested in the oil markets. With hedge funds and investment houses facing margin calls, the speculators headed for the exits.
"From July 15th until the end of November, roughly $70 billion came out of commodities futures from these index funds," Masters explained. "In fact, gasoline demand went down by roughly five percent over that same period of time. Yet the price of crude oil dropped more than $100 a barrel. It dropped 75 percent."
Asked how he explains that, Masters said, "By looking at investors, that's the only way you can explain it."
The regulatory lapses in the commodities market that many believe fomented the rampant speculation in oil have still not been addressed, although the incoming Obama administration has promised to do so.
original article
Children of Gaza, Run to the Angels
by Suzanne Baroud, Managing Editor of PalestineChronicle.com
Original here.
Ironically, it was in Palestine, 20 years ago, that I concluded that there is no God. For how could a God, who claims to love all and treat all with impartiality, allow such horrors like those in Palestine to happen?
Original here.
Ironically, it was in Palestine, 20 years ago, that I concluded that there is no God. For how could a God, who claims to love all and treat all with impartiality, allow such horrors like those in Palestine to happen?
This unbelief grew stronger with each curfew, with each strike that mourned the death of yet one more martyr, with a decapitation induced by gunfire in the main square on a sunny Ramallah afternoon so many years ago. But it was cemented the day I had to tell one of my fifth grade students that his brother had just been taken away by the Israeli army. His expression, his body going limp, the shuddering of his shoulders as he wept with his classmates…that’s what finally did it.
Nearly 20 years have passed since that day, and I have now married into a Gazan family. I am a wife and mother, the sister and aunt of so many kids living the horror of what Gaza has become. As we watch the footage of Israel’s onslaught, I hear myself, whispering as I see one more martyred child, “Run to the angels….run.” After so many years, this living nightmare is fostering a burning desire to believe once again in the afterlife.
Caged, starved, sniped, suffocated. They are slaughtered like sheep, but the leaders of the free world just cannot seem to find a moment to comment. Golfing, vacationing, Obama, Bush, even the EU, they just aren’t important enough. My mutterings have become a like a canter. I call out to these stricken and shattered little bodies, who frankly never experienced life to lose it. The only consolation to offer is the respite found in death.
A crowd gathers, shrouded in gas, smoke and dust. In the front stand eight young fathers, each holding a white swaddled bundle of what used to be a son, a daughter. For a few moments there is no screaming, no chanting or crying, but a moment of quiet and stillness that presses one to wonder just whom has been granted the greater mercy, the toddler who caught the snipers bullet, or the young father, who will have to find some way to live beyond this moment?
A young boy sits on the sidewalk beside his mother. She is propped up against the wall of a collapsed building and her life is bleeding out all over the sidewalk. It is spattered on his face and smeared on his shirt. She uses the last of her strength to lift her arm and clutch his cheek in her palm and then she is gone. He rests his head in his hands and cries. He is all alone.
The camera zooms in on the scene of a freshly detonated building, a civilian home. A little girls brown curly hair covered in dust and eyes wide open is all that can be found of her. Her mother wails and pulls her hair while her father frantically searches among the rubble for the rest of his daughter, where could she be? I whisper again, “you will be made whole again in Paradise. Run to the angels”.
What amazing faith. What strong devotion that a father loses his mother, father, wife and eight children, that this man before anything can assert, “God is Great, Thank God for Everything”. He holds his child, now still and ashen, he smothers him with kisses and then gently pulls back the sheet to expose two bullet holes in his chest. He then tenderly places the child beside his brother and again, pulls the sheet back of his youngest son to reveal a single snipers bullet to the chest. He can barely compose himself and he moans to the sympathizing camera man, “God is Great, Thank God for Everything”.
An old and wrinkled Imam so lovingly cradles a little girl’s lifeless body, as if mishandling her now could inflict more pain, he mumbles a benediction and gently lies her beside her sisters and her brothers in the mass grave. I try to comfort her, saying, “Finally, a place of safety. Rest beside your sister. Your brother. Put your fears to rest and meet your beloved Prophet and the many of your little friends who have fallen before you.”
Hospitals, schools, mosques, civilian homes, UN shelters, all worthy targets. Doctors, medicines, food and water, truckloads of relief from all corners of the world line up for miles at the Egyptian border but they are refused entry. Security is high, food is scarce, water is completely gone.
Faith seems to spring forth in the strangest of moments. For me, it seems to be coming full circle out of desperation and in agony, for the sake of the snow-white souls of the many bloodied and dismembered innocents of Gaza.
UN workers coordinate with Israelis to get civilians to safety inside a UN school. Hundreds are tucked inside the mutually agreed safe haven. Soon after, the school comes under Israeli fire. Bruised and battered refugees stare Satan in the face, clad in his fatigues. Hundreds wounded, scores dead, many lost and unaccounted for.
Governments negotiate a cease-fire. Rumors buzz of conspiracies. The US President-elect is forever silent. Parents search beneath the collapsed walls for what remains of their children. Shattered concrete, random arms and legs, broken glass, tossed together in a bloody hodge-podge. But, in my mind, I see them whole, their little bodies swiftly being swept up into Paradise and I call out to them, “Run!”
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