Obama’s Devious Plan to Crush Gasoline Prices

In an election year reminiscent of George H. W. Bush’s 1992, recent polls reveal President Obama’s sudden drop in approval ratings can be directly tied to the economy, but more precisely, to gasoline prices.

Three polls conducted in March show the President dropping sharply among those who approve of his performance, with the NY Times/CBS News poll registering the lowest and most dismal 41 percent approval rating. Sign-up for my 100% FREE Alerts

Details of the three surveys strongly suggest that Americans, though still upset about the lack of well-paying jobs, are most angry about rising gas prices—which have risen to levels hovering $4.00 in many states.

Republican consultant Mike Murphy told Bloomberg News that on top of a stalled U.S. economy and disappointing jobs picture, gas prices are destroying an already-tight family budget.

“I think the President suffers from a lack of public confidence in his economic leadership,” Murphy stated in an email. “Any bad economic news, in this case soaring gas prices, triggers a fast decline in his numbers. He lacks any reserve of support on economic issues to fall back on. This is a definite sign of political vulnerability.”

Not unlike the Operation Desert Storm of 1990, oil prices are expected to rise sharply if the U.S. executes a military strike on Iran, which would then not surprisingly lead to even greater economic woes for a troubled U.S. economy.  Some have even suggested that a spike in the price of oil to the $150 – $200 per barrel level this year could finish the U.S. economy, leading to a dollar crisis.

Economists strongly believe that escalating gasoline prices pushed the U.S. economy into recession in 1991, torpedoing any chance of a second term for George H. W. Bush.  Undoubtedly, the politically battered Obama doesn’t intend to make the same mistake.

—Obama’s plan to crush gasoline prices in time for the Fourth-of-July weekend

On Mar. 24, not-for-profit International Movement for a Just World reported that preliminary U.S. government data show a 25 percent jump in oil imports from Saudi Arabia, “the highest level since mid-2008.”

“The White House has been scrambling for options to bring down gasoline prices — at a seasonal record high — during an election year, after concerns over an Iranian supply disruption launched benchmark Brent crude to over $120 a barrel not seen since the record price run of 2008,” according to the article’s authors Matthew Robinson and Jonathan Sau.

“Washington has urged ally Saudi Arabia to cover potential shortages when new U.S. and European Union sanctions are expected to reduce Iranian oil exports from July,” Robinson and Sau added.  “The Obama administration has considered releasing strategic oil inventories, potentially as part of a bilateral deal with Britain.”

How much oil the U.S. ultimately intends to stockpile cannot be known, yet.  But, so far, the number of barrels in play appears to be rather significant, which, ironically, makes a strong case for U.S. stockpiling contributing to the recent rally in WTIC above the $105 level, a level that could be unwound at more fortuitous time for the President.

Robert Fitzwilson, founder of boutique investment firm The Portola Group told King World News on Tuesday that, quietly, the U.S. is importing millions of barrels of oil in addition to its regular shipments from Saudi Arabia.

Fitzwilson speculates that the additional imported barrels could be used in the event that the Strait of Hormuz is closed during a military strike on Iran, or could be used to prepare for sanctions imposed on Iran to fully shut out the nation’s three-million barrels per day of production come the July 1 deadline for Iran’s customers to make other arrangements.

“Saudi Arabia is suddenly sending 22 million barrels to the United States.  Why did they do that?” Fitzwilson asked rhetorically.

“Are they trying to get paid for it before there is some sort of eruption in the Middle-East?  Is the U.S. stockpiling oil ahead of war?”

Maybe not.

Contrary to a growing consensus, war with Iran, if it actually happens, may not be executed until after the U.S. elections.  With the Fed expected to formally announce additional purchases of Treasuries and Agency debt in the coming months, a double-whammy response to the oil price from further dollar debasement and a war with Iran would usher a new president in as fast as President Bill Clinton was swept into the presidency in 1992.

A scenario, the one proffered by commodities guru Jim Rogers, of a relatively calm 2012 commodities market, with economic Armageddon reaching the U.S. in 2013, would make much more sense for a sitting president than an obvious $6 gasoline kiss of death during an election year.

“This is an election year in the United States, and a lot of politicians want to be re-elected,” Rogers told Opalesque Radio on Mar. 22.

“You should worry about 2013, you should be very worried about 2014, but this year, more or less, is not going to be so bad,” he added.

As expectations for record gasoline prices slated for this summer abound, President Obama, not only wants to continue talking about high energy prices during the campaign year, so he says, but he may also want to control the dialogue of gasoline prices with the American people all the way up to the Fourth-of-July weekend, at which time he simultaneously floods the oil market with the U.S. oil stockpile and makes peaceful overtures with Iran.

The Rogers scenario of a relatively quiet commodities market for 2012 just makes more political sense, assuming, of course, a Nassim Taleb Black Swan doesn’t spoil the plan.

Unlike the relatively thin gold market, whereby naked short selling can push the price of gold down during lulls in overseas trading, the oil market is much too big and deep for JP Morgan’s manipulation tactics to have any meaningful effect on the price.

Instead, that’s where the quiet stockpiling of oil can be then dump to trigger stop-loss orders in the futures pits, squashing the oil price with the physical commodity in conjunction with an orchestrated temporary cooling of tensions in the Middle East.  Gasoline prices will follow the oil price down.

Then . . . the coast will be clear for the disaster of 2013. Sign-up for my 100% FREE Alerts

Gold Price: “We’re Going to Kill the Dollar,” Senior Obama Official

Thinking the gold market has seen its best days?  Not a chance, if the Fed and the Washington pathocrats get their way.

Speaking at AmeriCatalyst 2011, in November, hedge fund manager extraordinaire Kyle Bass of Hayman Capital Management LP told attendees he was given one of the strategies for reviving a dying U.S. economy.  It involves devaluing the U.S. dollar to affect renewed export demand.  Sign-up for my 100% FREE Alerts

No surprise there, really, as the playbook for mature economies, strapped with bizarre levels of public and private debt, deficits and stagnant employment, always opt for trashing the currency to make good on debt promises.

“The governments idea right now is we are going to export our way out of this,” Bass said with a grin.  “And when I asked a senior Obama administration official last week how are we going to grow exports if we won’t allow nominal wage deflation, he said we are just going to kill the dollar.”

Gold should soar in the coming years as the cat can no long be contained in the bag, even too obvious to the most financially illiterate among us.  How the Fed will explain a continuation of rising food and energy costs should prove interesting.

Why should Bass be told about such a sensitive issue?  Most likely the “senior Obama official” wasn’t especially concerned with Kyle Bass and his obscure name recognition level with the public, nor was this “official” prepared to lose credibility with a pretty sharp hedge fund manager with tired government propaganda.

So, how rapidly could the dollar decline to achieve this export miracle.

If the signing of the National Defense Authorization Act (NDAA), suspending a good chunk of the Bill of Rights, by a sitting U.S. president doesn’t provide a strong enough clue to the extent of mayhem expected (feared?) in the coming months in the U.S., it would take similarly blind faith to expect that a baby crawling across a busy highway during rush hour will reach the other side unscathed.

The Godless and humorless woman, Ayn Rand, once said “We can evade reality, but we cannot evade the consequences of evading reality.”  Or, taken from another philosophical prospective, the shaman priest could recommend to his ‘flock’ to use the brain that God had given them to figure out what’s most likely in store for the U.S.

And for those who feel too old to bother with such nonsense of currency devaluations and the extra chore involved in learning more about precious metals while living the romanticized ‘golden’ years, the pathocracy that has crept into America’s forefathers’ Republic has already counted the vast majority of you out—sizing up the more-than-65-years-old group as the Greenback cannon fodder for the State of alleged free people dependent upon pensions and savings, too old, too civilized and too shocked to take on low-IQ goon squads in defense of their life savings.

In his book, Political Ponerology: A Science on the Nature of Evil Adjusted for Political Purposes, Andrew Lobaczewski, wrote:

During stable times, which are ostensibly happy, albeit dependent upon injustice to other individuals and nations, doctrinaire people believe they have found a simple solution to fix the world. Such a historical period is always characterized by an impoverished psychological world view, so that a schizoidally impoverished psychological world view does not stand out as odd during such times and is accepted as legal tender.

The kickoff of the bogus 9-11 event; Patriot Act; Iraq War; Afghanistan invasion; TSA; FEMA camps, tyrannical handling of the OWS movement; obvious Ron Paul blackout; and the suspension of the Constitution with a flick of pen—were all achieved within one decade!  Compare that with a generation, which protested against the war in Vietnam and expressed outrage during the 1968 Democrat Convention, ending with the resignation of a U.S. president and a tumbling U.S. dollar for the remainder of the decade of the 1970s.

This time, the finale could include a real war with Iran (proxy of Russia and China) as a means of raising Obama’s approval rating in time for the 2012 election.  As bizarre and suicidal as an all-out war with Iran may seem, consider the alternative, a collapsed dollar in a country that sports more firearms than it calls citizens, with no enemy outside of the pathocracy to blame for the economic collapse.  The trials and imprisonments would begin very shortly.

A strong presidency during wartime could be the rouse to take the bite out of a dollar free-fall, keeping the illusion of ‘normalcy’ of perpetual war intact for a while longer.

Lobaczewski explains:

If the laws of normal man were to be reinstated, they and theirs could be subjected to judgment, including a moralizing interpretation of their psychological deviations; they would be threatened by a loss of freedom and life, not merely a loss of position and privilege.

Comment: Wouldn’t a Ron Paul win threaten the pathocracy?  Auditing the Fed and the NY Fed’s Exchange Stability Fund (ESF) would blow the 75-year fraud of the dollar wide open.  There would be no recovery from that.

Since they [pathocrats] are incapable of this kind of sacrifice, the survival of a system which is the best for them becomes a moral imperative. Such a threat must be battled by means of any and all psychological and political cunning implemented with a lack of scruples with regard to those other ‘inferior-quality’ people that can be shocking in its depravity.

Comment: After killing one million-plus Iraqis, Bush makes jokes at a roast about not finding weapons of mass destruction.  Cheney openly states torture is okay, knowing the practice is against the Geneva Convention and is a war crime.  The course for a totalitarian regime had already been planned.

This should be kept firmly in mind by those who think that getting rid of George W. Bush and the Neocons will change anything. [Editor's note.]

Comment: Isn’t that what Alex Jones of Infowars.com and former Assistant Secretary to the Treasury and father of Reagonomics Paul Craig Roberts have said for some years now?  Some have characterized the U.S. as an inverted totalitarian state.  Democrats and Republicans work for the pathocrats. 

In general, this new class is in the position to purge its leaders should their behavior jeopardize the existence of such a system. This could occur particularly if the leadership wished to go too far in compromising with the society of normal people, since their qualifications make them essential for production. The latter is more a direct threat to the lower echelons of the pathocratic elite than to the leaders 

Comment: Doesn’t that explain the actions of Greenspan, Rubin, Obama, Bush, Cheney, Blankfein, Jamie Dimon, Bernanke, Geithner, Paulson and a list of Washington and Wall Street minions too long to list here?  Isn’t that what Ron Paul has been talking about for several decades now?  And if Ron Paul doesn’t float your boat, hasn’t the emerging leader of Generation X age group, Max Keiser of the Keiser Report, already exposed enough of these criminals?  Who would have thought the CEO of a stodgy bank like JP Morgan’s Jamie Dimon would be as well-known as Max Keiser.

Pathocracy survives thanks to the feeling of being threatened by the society of normal people, as well as by other countries wherein various forms of the system of normal man persist. For the rulers, staying on the top is therefore the classic problem of ‘to be or not to be.’

Comment: That last line, in other words, means, roll the dice and go for broke.  The victors are never tried for their crimes.   Therefore, go to war with Iran (U.S. citizens are accustomed to wars), bring Russia and China into it, watch oil soar to at least $200 per barrel during the closing of the Strait of Hormuz, resulting in a further and accelerated collapse of the U.S. economy and dollar, which is on the brink of caving in, anyway.

After the shock and awe—and boos, the dialogue, then, becomes quite predictable, especially with a U.S. media already complicit with the wishes of a corporatist State turned pathocratic and anti-Arab-Persian-Muslim (helping a foreign nation that really has a motive for stirring up war with its neighbors in the region, Israel).  The world will blame Iran (no.2 of the axis of evil) for $200 oil and a collapsing dollar.  Anyone not on the same page is branded a domestic terrorist.

It’s 9-11, part II.   But instead of a falling buildings and stock market, it’s going to be far worse, and global, including a dollar fiasco, bank holidays, TSA everywhere, severe social unrest, and a raft of further, now ‘codified’, un-Constitutional responses to the crisis, according to Gerald Celente.

Therefore, the U.S. loses all remaining credibility of every paying back its debt, instead, acting more like a CIA-installed Pinochet regime on steroids.  Internal false flag attacks from ‘extremest’, played by FBI stooges, will have U.S. citizens debating whether the other stooges at the TSA should be deployed for protection anywhere two or more individuals gather.

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Peter Schiff slams Obama, Geithner and Buffett

As global stock markets crash in the backdrop of a soaring gold price, Euro Pacific Capital CEO Peter Schiff unleashed a series of salvos on the Obama Administration in the handling of the budget crisis, and slammed billionaire investor Warren Buffett for encouraging continued profligate policies of the White House and, by implication, the Congress.

Standard & Poor’s downgrade of U.S. debt kicked off a firestorm of financial and political calamity that has now required an all out damage control operation from the White House and the government’s go-to “private sector” operative Warren Buffet.

“In Wall Street parlance, any downgrade means get the hell out … If they [rating agencies] go from a Strong Buy to a Buy, it means, you know, look out below,” Schiff told Max Keiser of Russia Today’s Keiser Report.

“What S&P is saying, as far as I’m concerned, is get out of U.S. debt, any dollar-denominated debt, because what they’re really downgrading is not Treasury bonds, but the dollar.”

And, immediately after the S&P downgrade, investors fled the dollar—in mass.  As U.S. Treasuries soared (dollar positive), gold sailed past Treasuries (dollar negative), turning what seemed like a dollar-positive event into a catastrophein the dollar in purchasing power against the ultimate currency, gold.

Even the Wall Street Journal headlined an article on Monday, following the rating agency’s announcement of a U.S. downgrade on Friday, heralded U.S. Treasuries as the “gold standard” of debt, in a well-place position atop Yahoo’s financial news feed.  The orchestrated response, crafted over the weekend, couldn’t be more obvious to those following closely the 3-year-long slow-motion global financial crisis.

Of course, the U.S. has other options apart from defaulting in a manner Argentina, Mexico or German had defaulted in the past.  Instead, it appears the U.S. has predictably chosen to inflate its way out of overburdening debt, which Schiff said, is the point of S&P’s downgrade.

“Because S&P knows—as Alan Greenspan said, and Warren Buffett said—they don’t have to default, they can print,” Schiff explained. “But that’s worse, especially if you’re a bondholder; you get paid back in Monopoly money.”

In complete agreement with European leaders, Schiff went on to ridicule a rating agency system that rates the world’s largest creditor, China, below the world’s largest debtor, the U.S.

“Why is China, the world’s biggest creditor nation—we owe China trillions—how could they be rated AA-, and we’re rated AA+?” Schiff asked, rhetorically.  ”What kind of twilight world is the world’s biggest debtor a bigger risk [meant to say, better risk] than world’s biggest creditor?”

Then, in a typical Schiff rapid-fire rant, U.S. Treasury Secretary Timothy Geithner entered Schiff’s sites.

Geithner, who said S&P made a math error in its calculations of projected U.S. deficits, calling the error a “$2 trillion mistake,” only serves as a red herring, or a canard, as Keiser put it in his question to Schiff about Geithner’s comments.

Schiff responded to Geithner’s comment by pointing out that the Congressional Budget Office (CBO), a political arm of the White House, had made grandiose growth and unrealistically low inflation assumptions in its forecast, which Schiff implied, were nothing more than typical self-serving propaganda budget forecasts out of Washington.

“The reality is that we are going back to recession,” Schiff scoffed.  “So you take all those rosy scenarios and throw them in the trash can where they belong.  The budget deficit is going to be much worse than both the Administration and S&P believe.  So they’re all wrong on the math.”

And on the subject of Warren Buffett’s comment following the S&P downgrade announcement, in which, he said U.S. Treasuries should hold a “AAAA rating,” Schiff again commented by implying that Buffett is a has-been, a kept man of the rigged system, and has become more of a humorous sideshow during the crisis than a man whose comments should actually be taken to heart by investors.

Buffett’s opinion is “moronic,” said Schiff.  In his advanced age, “senility is catching up with Warren.”