Posts with the tag cartels

Cartel Catch 22

griffith — Wed, 28 May 2008 13:37:19 EDT

Cartel Catch 22

Indonesia is leaving OPEC because its production quotas, exploration and recovery targets are so low it cannot meet its own needs.

That means Indonesia will leave the cartel and add supply to the market. In other words, pluralism has been added to the marketplace. The result will be increased supply.

IEA to Study Oil Supply

griffith — Thu, 22 May 2008 15:52:29 EDT

IEA to Study Oil Supply

The International Energy Agency of the OECD announced it will be evaluating OPEC's asessement of adequately supplied oil markets.

It is the first step toward an organized OPEC conterpart.

Weak Dollar Causes High Oil Price?

griffith — Tue, 20 May 2008 15:02:33 EDT

Weak Dollar Causes High Oil Price?

No.

High oil prices are the result of the cartel, an increase in demand, and an intentionally organized inability to meet the increasing demand by witholding the funding (profits) from investment needed to increase the supply.

As the revenue consolidates, there is progressively less funding to increase supply without it being taxed away and independently invested--that would be pluralism in the marketplace, something that the elite do not want, and do not want to talk about. So we talk about the price of oil in circles.

The result is a weak dollar as the high price of a prmary economic input (energy) inflates prices generally, deflating economic activity, reducing GDP and, thus, the dollar is worth less, or weaker.

Now the cartel can falsely BLAME, fallaciously argue in a circle, the weak dollar chases up the price of oil which in turn weakens the dollar, and so on.

A cartel is what is called "an organizational tautology." It causes and effects itself, in a self-fulfilled circle of causation. It is literally full of itself!

Circular argumentation is fallacious reasoning. It is a rhetorical trick! It is just a way to avoid accountability, something that a free and unconsolidated organization of markets will not tolerate.

Very best wishes.

tags
cartels,free markets,logical fallacies,circular arguments,organizational tautologies

Excess Capacity

griffith — Mon, 12 May 2008 19:55:26 EDT

Excess Capacity

George Bush pleads with OPEC to increase supply. It countered with little-to-no excess capacity due to peak demand.

The demand increase has been anticipated for literally a decade. In many cases, political economists warned of an increased demand and an organized restraint of supply over 30 years ago.

Are these captains of industry really that stupid that a 10-30 year learning curve is not long enough to organize and finance the means of supply?