I know how the govt can control the USD and anything that is levered to it. but how can they control oil? or more importantly the price we pay at the pump. is this related to the hedging?

Anyone here have a link to an online paper or book? I would like to learn more.

Exxon says the supply is sufficient to fuel the next century. Ensco, a driller, says that the surplus is dangerously low. What is really going on here?

I always thought this was very obvious but maybe it isn't. Bush is an oil man. Cheney is well-connected in oilfield services. Condy Rice is deeply connected in Chevron. Its important that these people and their congressional allies maintain their political strength. Lowering energy prices with informal prodding is nothing out of the ordinary.

Try googling the Skull and Bones Society.

A good book I mentioned in the past is Confessions of an Economic Hitman by John Perkins, I believe. It shows the manipulation of countries and their oil.

Wouldn't you just love to be a fly on wall for a conversation between Bill Cara and John Perkins?

Worth your perusal: www.johnperkins.org

Imagine if Carlos Casteneda had started out with degree in economics and an MBA and you get the idea. I recently read and very much enjoyed "Shapeshifting" - wonderful storytelling, insight, and challenges for us "westerners" ...

t4k

Thanks guys for the recommended reading!

"This chart is sufficient reason for traders to believe the recent price decline in gasoline prices was manufactured for the times."

"Credible dialogue" would begin with something better than the paranoid conspiracy theories which abound on this site, such as the one quoted here. Or yesterday's whopper, which cited the blow up of a Canadian energy trader as proof that the US Constitution is at risk.

This blog is verging into tin-foil hat territory.

Tales is an amazing book, though he isn't supposed to be the 'Economic Hitman' he portrays himself to be.

It does provide some insight into economic warfare and how the US has come to where it is now.

Steps for becoming an economic hitman (what I gathered from the book):

Give someone a 10 million loan to build their house, for someone who can't afford to pay back $10.
Supply all of the building materials
Charge for all transportation costs
Employ all of your friends back home with huge overhead costs
Ensure you get some of those costs kicked back to you.
Charge a backbreaking interest rate.
Move one of your friends into the basement.
Call the loan.
Take posession of the house and everything in it.
Sell the house to your friend in the basement.

Whether the oil/gas price decline was "manufactured" or not - I guess from a traders perspective is irrelevant - as it just provides us an opportunity to make money.

Having said that though - there is a strange consensus emerging - even from Iran today of all places - whereby everyone is bashing the price of oil - and talking prices lower.

I can only think this is happening because lower prices are now benefiting those in power in some way - in the same way that higher prices were benefiting them up until recently.

As I mentioned one other time - IMO these people simply move the oil prices to where they want them to be - like in the late '90's when they dropped them to about $10.

Other than just filling their pockets - these people see themselves as global planners and "elites" - they have to keep the overall economy in mind - cause if they blow the economy up - all their wealth dissipates with it.

So lower prices... for now...

tradesman

Trademan,

Without an enemy their cause is discounted.

maybe the powers controlling oil knows that the Republicans + Bush have a better chance to stay in power with lower oil. Democrats have not presented a plan on the middle east or financial but have stated much more moderation and diplomacy.

Please see this quote from Bush relayed by 'journalist' Fred Barnes:

In the midterm election on November 7, Bush predicted Democrats won't win either the House or the Senate. "I believe these elections will come down to two things: one, firm belief that in order to win the war on terror there must be a comprehensive strategy that recognizes this war is being fought on more than one front, and, two, the economy." Bush said the price of gasoline, which has been falling rapidly, is one of the "interesting indicators" that the press should watch carefully. "Just giving you a heads up," he added.

Sounds like he is pretty confident in the direction of gas prices between now and November 3rd.

http://www.weeklystandard.com/Content/Public/Articles/000/000/012/696wnfcp.asp?pg=1

Potentially significant breaking news also for the markets from the UN:
«Palestinian President Abbas Says
Government Will Recognize Israel«

Our hats will be cheap. I'm in.

http://www.stockta.com/cgi-bin/analysis.pl?symb=$CRX&action=WatchModule

"nova" as in ...

"new" ?

"doesn't work" ? (no va)

or, my personal favorite, "a star that suddenly increases its light output tremendously and then fades away to its former obscurity in a few months or years" (with a tip'o the tin foil hat to www.m-w.com)

Geez Bill, 5 crowns in one sitting!? That's a lota nova-caine! Explains the move in PDCO.

;-) t4k

Gasoline prices always go down in the fall, so I'm not sure why it would lead to talk about price manipulation. And oil from what I understand had a big speculative premium built in and the supply/ demand situation did not really justify close to 80 dollars/barrel. So, falling gas prices were pretty much inevitable.

But, it is very interesting to me how much gas prices affect people's perceptions of the government. The way I look at it, if gas prices stay down, and the stock market does okay from now until Election Day, the Republicans shouldn't have any trouble keeping both Houses, especially as people are once again starting to say that they trust the GOP more on issues of national security than the Democrats.

Novalawyer,
Its one person's opinion versus anothers - unless you can conclusively prove there is *no* conspiracy, Bill is entitled to his view.
And to date, I have seen Bill be more right than not, so I would tend to pay more attention to his view. That's why I read his blog.
If you think his view is wrong, why bother to read him? Why not have your own blog, and if you're good / right, I think people will read and respect your view!

Bill,

I understand what you're saying, but at the time that gas prices started falling gasoline stockpiles were rising and oil prices had been very frothy for quite a while and were starting to correct. So, I figured that that was enough reason for gas prices to begin dropping.

I'm not disputing that markets are manipulated because I'm sure they are. I just thought there were enough other reasons for gas prices to be falling that I thought talking of manipulation was somewhat curious.

I've shared my response with Bill on this privately, by email. If he chooses to publicize it, he will.

Until then, I'll just enjoy these lower gasoline prices, given to us because Dick Cheney is obviously manipulating the market, as that chart clearly shows. Prices should bottom out a 99 cents a gallon the week before the midterms. ;-)