FOLLY AND MORE
November 21, 2005
Peak Oil vs Unlimited Oil
Several new analysis have been published since my last column on this controversy. Urban Survival is an excellent site; their latest offering on peak oil:
"Peak Oil Proof -UK production declining. North Sea say bye bye. No, we don't run out of oil. We run out of cheap. We fight over declining production. Simple enough, huh? Abiotic oil may be a great theory, but look at the numbers. Look at what happened to Texas after the mid 1970's and you see what's ahead for the North Sea...ooops, we're there...then it's what's ahead for the Middle East..."
WorldNetDaily has been carrying some columns on the oil controversy which has promoted one web site to discontinue carrying one of their book offerings on the subject. Michael Ruppert's site, From the Wilderness, is also carrying a very revealing column on this issue:
Kuwait's biggest field starts to run out of oil
"It was an incredible revelation last week that the second largest oil field in the world is exhausted and past its peak output. Yet that is what the Kuwait Oil Company revealed about its Burgan field.
Peter J. Cooper, Editor-in-Chief AME (Arabian Modern Equipment) November 12, 2005
The peak output of the Burgan oil field will now be around 1.7 million barrels per day, and not the two million barrels per day forecast for the rest of the field's 30 to 40 years of life, Chairman Farouk Al Zanki told Bloomberg. He said that engineers had tried to maintain 1.9 million barrels per day but that 1.7 million is the optimum rate. Kuwait will now spend some $3 million a year for the next year to boost output and exports from other fields.
However, it is surely a landmark moment when the world's second largest oil field begins to run dry. For Burgan has been pumping oil for almost 60 years and accounts for more than half of Kuwait's proven oil reserves. This is also not what forecasters are currently assuming.
Last week the International Energy Agency's report said output from the Greater Burgan area will be 1.64 million barrels a day in 2020 and 1.53 million barrels per day in 2030. Is this now a realistic scenario?" The full column can be found here.
CAFTA: Central American Trade Agreement. This is another piece of deception by Congress and Bush - just like NAFTA (North American Free Trade Agreement). NAFTA was passed by Congress as an "agreement," but it is without question a treaty that had to be passed by the Senate. It was not and the federal courts have ignored this constitutional issue since it was illegally passed.
Congress pulled the same deception with CAFTA. As one astute constitutionalist pointed out:
For more details see Steven Yates fine column here.
You might call (1-866-762-8762) and thank those counterfeit senators who voted against CAFTA. Treaties must be ratified by the senate not the House. There needs to be a court challenge over passing off a treaty as an agreement. Because these kinds of lawsuits take hundreds of thousands of dollars, a court challenge would have to be made by a union or company with the financial resources to see it through to the end. The major drawback is that the federal bench is so corrupted, it's difficult to get any constitutional rulings anymore although they do come down here and there.
FTAA: Free Trade of the Americas. It may be dead for now; see here. Bush will not give up and he's still got time left to complete his mission for a new world order. It is most unfortunate that there are tens of millions of Americans who continue to believe this man has the best interests of America as his number one priority. However, time will provide them with the ugly truth because the day of reckoning is coming. It is important that all of us stay on top of any movement in Congress regarding the FTAA. This duplicitous body has a nasty habit of voting in the middle of the night when no one is looking.
Jail for Judges or J.A.I.L. has been struggling for years to get a ballot initiative going in the states of the Union for judicial accountability. It would appear that due to the Herculean efforts of a fine gentleman by the name of Bill Stegmeier, it could happen in South Dakota:
Petitions turned in for amendment to let people sue judges
Chet Brokaw/Associated Press
"PIERRE, S.D. - A South Dakota businessman has turned in about 46,800 signatures supporting a ballot measure that would let people sue judges they believe have abused their authority. William Stegmeier of Tea on Monday gave the petitions to Secretary of State Chris Nelson and state Election Supervisor Kea Warne. If Nelson's office says the petitions have the required 33,456 valid signatures, the proposed constitutional amendment will go to a statewide vote in the November 2006 election. The measure would strip judges of their traditional immunity from lawsuits related to their judicial acts. People could seek damages or criminal charges against judges they believe have harmed them by deliberately violating the law. Stegmeier, who owns a business that makes livestock-feed grinders, said judges should be held accountable if they engage in misconduct." The full story is here.
Naturally, the good old boys club of bar association lawyers and the brain dead are hopping mad about the whole thing - which is good. It's called government of, by and for the people. Not the politicians, the lawyers or the judges, but the people. Remember: We are the wind.
The economy continues to melt down despite the rhetoric from Bush and the media. The wonderful "global economy" is starting to hit the skids at an accelerated rate. Last week there was a story in The Scotsman that doesn't bode well for them or us: right now Scotland's retailers are already holding their January after Christmas sales.
Here is a small sample from a current issue of the International Forecaster:
"Will your pension be there when you are ready to collect it? The answer is maybe. For corporations in this new world of offshoring and outsourcing, pension benefits are very difficult to change, short of bankruptcy. Most corporations have not adequately funded their programs and, over the last few years, gains from stocks and bonds have been inadequate to fund these obligations. Most funds were planning on 9% to 10% returns and that for the most part hasn't happened. In addition, workers were supposed to die between 65 and 70 years old. That is no longer true. We are living to 78 to 82 now. Pensions are a problem, a $2 trillion problem. Investors lost $8 trillion in the collapse of the stock market in 2000 and 2001. It could be they'll lose that much again in the coming correction. $6 trillion could be lost in the coming real estate correction; $4 trillion is possible in bonds. $18 trillion is lots of money, especially for people whose earning years are over.
"Corporate and government pension plans are massively under funded. From the corporate side there is no excuse for under funding. These corporate creeps have already put the taxpayer funded Pension Benefit Guaranty Corporation under water by $30 billion. The fund is supposed to be self-funding via corporate assessment, but that is a cruel joke. As we said often before, the S&L debacle cost taxpayers more than $500 billion, which we predicted two years before it happened, and we tell now, the pension fiasco will cost us over $1 trillion and that doesn't include a 1/2 to 2/3 cut in Social Security benefits.
"The PBGC has created moral hazard in which the insurance may end up bankrupting the system it was intended to save. Corporate America, since the 70s, has been complicit in accommodating unions with benefits tomorrow rather than wages today. Neither corporations nor unions cared because if the financial load were too great, the taxpayer would pick up the bill.
"Recently bankruptcy declarations have put the PBGC some $30 billion in the red. As bad as the situation with corporate America is, the problem of state and local government pensions is even worse. They are under funded by at least $500 billion. Some of these problems have already begun to manifest themselves, such as in San Diego where pension abuse has bankrupted the city. Over the next several years many more public entities will follow. Soon every community will have contracted the San Diego disease. What is resulting is that both business and government want out of the pension business altogether. The Alaska legislature now denies pensions to future employees. Corporations are leaving the system, either by paying off their workers and terminating their pension plans, or by freezing their plans. Some employees are no longer accruing benefits and new employees will not participate at all.
"The modern concept of pensions began in the late 1800s in Germany as pensions began to appear for police and firemen. We are now about to reenter a pension Dark Age that people will work until they die. If they become ill, for now, there is Medicare and Medicaid, which will follow pensions into oblivion. We will then revert to a system where the family will have to take care of is own. A system that had its shortcomings, but worked well. In 1980, about 40% of the jobs in the private sector offered pensions, today it's 20%.
"At the heart of the pension debate is the rate to use in calculating pension liabilities. The law lets corporations' smooth changes in their asset values. If funds fall due to investment non-performance, they do not have to ante up fresh funds to compensate for the loss for five years. If that isn't unsound accounting we do not know what is. In theory Erisa discourages under funding by requiring offenders to pay higher premiums, but loopholes render the sanction worthless. If companies over fund they can skip future contributions even if later they become under funded.
"Changes in corporate pensions are on the way, but they are more punitive toward corporations, so many more corporations will shut down pensions. It has proposed premiums to the PBGC be raised from $19 to $30 a month. Seventy percent of company ratings today are close to or are junk ratings. Many politicians want to give such companies lenience, which simply continues moral hazard. Realities have to be dealt with.
"Almost all public pension plans are under funded, some by 80%. They are not covered by the PBGC. It will be interesting to see how these pensions are handled. Some employees after 30-years will get 90% of their final salary. For a commander in a police department that is $100,000 a year. In faltering San Diego six board members are accused of making a deal to let City Hall under fund the pension system in return to agreeing to higher benefits for themselves. Explicitly or otherwise, this is what unions and legislators have been doing all over the country. That is conflict of interest and it's a felony.
"Before Sir Alan Greenspan leaves, he is making sure there is plenty of money in the system. Over the last few months he has increased flow by better than 10% and credit inflation is off the charts at somewhere around 15%. Financial claims are enormous as individuals and corporations purchase securities and real estate. Its all part of the Greenspan put. That, of course, means no one is allowed to lose money - at least not yet. You might call credit inflation a vast pyramid scheme. That is augmented by free trade and globalization, which has kept downward pressure on interest rates, savings, wages and inflation. It has created booms, busts and generally speaking, financial speculation.
First we saw a Greenspan manufactured stock market boom, bust and a manufactured bear market rally that is kept alive by manipulation of all markets by the Federal Reserve and the Working Group on Financial Markets. Then other central banks followed the Fed's lead creating lots of bubble economies. Now, due to asset inflation and the possibility of deflation in the wings, the inflationary binge has to be continued at all costs. The world is experiencing the biggest liquidity excesses in history. You can be sure eventually that the central banks will have to raise interest rates much higher than they already are. World central bankers know the longer they delay the rate normalization process, the more difficult the correction will be. We believe the central banks have lost control and just react to each new crisis. Inflation is now worldwide - its just the US leads the pack. Why wouldn't they, as they head for a $800 billion current account deficit? The Fed missed the boat long ago. The big question is how long will it be before they really lose control? They cannot manipulate markets indefinitely."
Here's another hint:
Soaring price of gold predicts bout of carnage in bond markets By Ambrose Evans-Pritchard (Filed: 05/11/2005) The Telegraph
"The rising price of gold is a flashing red alert for investors, pension funds, and insurance firms holding bonds worth trillions of dollars, according to a new study by H.C. Wainwright & Co."
The American people are being warned, but so many don't really understand what's actually going on. If you would like to receive El Dorado Gold's complimentary 32 page report, just contact Harvey at 1.623.434.3322. Harvey was on Wall Street for more than two decades and knows this subject matter inside and out. There is no pressure. We are trying to help Americans protect what they have because the big melt down is already underway.
My One for the Road project is just humming. If you haven't ordered the 4 CD set yet, I hope you will. We need to get the truth to all those commuters, long haul truck drivers, Americans driving around town taking care of business, commuters sitting on the train or mass transit with headphones on and the millions of Americans who don't own a home computer. We cannot become a unified nation unless we all get on the same sheet of music. Americans cannot learn to fight effectively until they have the truth, not the drivel they hear from the tube or "conservative talk radio." One for the Road is the way to get the job done. I hope you will order a set or two today.
Happy Thanksgiving to everyone. A safe and enjoyable day I wish to all and God bless America.
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© 2005 Devvy Kidd - All Rights Reserved
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Devvy Kidd authored the booklets, Why A Bankrupt America and Blind Loyalty, which sold close to 2,000,000 copies. Devvy appears on radio shows all over the country, ran for Congress and is a highly sought after public speaker. Your complimentary copy of the 32-page report may be obtained from El Dorado Gold. Devvy is a contributing writer for www.NewsWithViews.com.
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FTAA: Free Trade of the Americas. It may be dead for now; see here. Bush will not give up and he's still got time left to complete his mission for a new world order. It is most unfortunate that there are tens of millions of Americans who continue to believe this man has the best interests of America...