As oil prices refuse to back off, are former Iraqi Information Minister Muhammed Saeed al-Sahaf (aka Baghdad Bob) and Federal Reserve Board Chairman Alan Greenspan becoming soul mates?
Jason Bradford for Global Public Media
April 9, 2005
April 9, 2005
Before the U.S. Invasion of Iraq over two years ago, Iraqi Information Minister Muhammed Saeed al-Sahaf became famous worldwide for his outstanding, fact-defying rhetoric. Web sites of devoted fans sprung up and have captured these jewels of political history:
"There are no American infidels in Baghdad. Never!"
"My feelings - as usual - we will slaughter them all"
"Our initial assessment is that they will all die"
"I can say, and I am responsible for what I am saying, that they have started to commit suicide under the walls of Baghdad. We will encourage them to commit more suicides quickly."
"Lying is forbidden in Iraq. President Saddam Hussein will tolerate nothing but truthfulness as he is a man of great honor and integrity. Everyone is encouraged to speak freely of the truths evidenced in their eyes and hearts."
"Let the American infidels bask in their illusion"
"The midget Bush and that Rumsfield deserve only to be beaten with shoes by freedom loving people everywhere."
Now it appears that the same spirit possesses Alan Greenspan. Perhaps Baghdad Bob and The Chairman are soul mates? Their rhetoric appears equally disconnected from reality. For example, just a couple days ago, Greenspan was speaking to the National Petro-chemical and Refiners Association meeting. Here's a choice quote:
"We must remember that the same price signals that are so critical for balancing energy supply and demand in the short run also signal profit opportunities for long-term supply expansion."
I don't want our Federal Reserve Chairman to suffer the same sarcastic ridicule, as has the honorable Muhammed Saeed al-Sahaf. Therefore, I have alerted The Federal Reserve Board of some information using this web form:
Dear Chairman Greenspan,
You assume that oil supply will expand because the price is going up. I am not so sure about this and I ask that you please let me run a few things by you.
Did you happen to see the April issue of the UK Petroleum Review? It came out just before your speech to the National Petro-chemical and Refiners Association and I figured you and your audience would be up to speed on the literature. Seems from the latest analyses in there (see the article "New Projects to 2012") that the rate of depletion of existing fields will soon become greater than the capacity for developing megaprojects to offset. In other words, Peak Oil will likely arrive this year or next.
You know about this topic don't you? Just a few weeks ago Republican Congressman Roscoe Bartlett made a presentation to the House all about it. Find the C-SPAN video here: http://www.energybulletin.net/5080.html
Did you check out the U.S. Department of Energy sponsored report, released in March, that opens with this rather alarming statement: "The peaking of world oil production presents the U.S. and the world with an unprecedented risk management problem. As peaking is approached, liquid fuel prices and price volatility will increase dramatically, and, without timely mitigation, the economic, social, and political costs will be unprecedented." http://www.energybulletin.net/4789.html
Even the International Energy Agency (IEA) is concerned about something! According to this article from April 1st, the IEA "has come to the conclusion that the world economy is facing a serious threat of acute oil shortage. IEA experts have prepared a special report, due to be published within a few weeks, in which they warn the key oil consuming countries about the need for immediately taking tough energy-saving measures..." http://www.energybulletin.net/5074.html
Now I see that the IEA is worried about an "acute" shortage but Peak Oil would mean a "chronic" shortage, wouldn't it? That's kinda scary given the dependence we have on oil for transportation, tractor fuels, the electric grid, plastics, pesticides, pharmaceuticals, crop irrigation...you name it! Makes me sort of worried. The guy who made this web site seems worried too:
Based on his testimony, Congressman Bartlett appears to be a big fan of that web site.
Do you like to rock and roll? Maybe pick up a copy of Rolling Stone and check out the feature called "The Long Emergency." Or let me save you a few bucks by giving you another url (gosh I love the information economy!): http://www.energybulletin.net/4856.html
Let me know if you need more information about this topic. I want to be certain someone in your position of influence has all the facts straight. What if the commodities traders thought you were blowing smoke? In your business you understand trust. We need to tell the American people and our foreign creditors about this, right?