On Friday the cost of oil shot up by nearly $11 a barrel. This is the biggest one day dollar gain in history.
According to the Los Angeles Times this was due to bellicose statements by Israel's Transport Minister, Shaul Mofaz. Here is the statement by Mofaz.
If Iran continues with its program for developing nuclear weapons, we will attack it. The sanctions are ineffective. Attacking Iran, in order to stop its nuclear plans, will be unavoidable.But Goldman Sachs attributes the rise to comments on Friday by the ECB, the European Central Bank.
The way the game is played
Now let's suppose you
- Are an oil speculator,
- Are in contact with Minister X from Israel.
- Know in advance that Minister X is going to threaten to attack Iran
Is there speculation?
Does that sound unlikely? Well let's continue connecting the dots, shall we?
George Soros was just on Capitol Hill saying that oil speculators have driven up the cost of a barrel of oil and Gerry Ramm, an oil executive, says that ''excessive speculation on energy trading is the fuel that is driving this runaway train in crude oil prices.''
Mark Cooper of the Consumer Federation of America told the Senate that according to normal supply and demand gas prices should be about $2.25 per gallon. And that anything above that is ''funny money'' largely tacked on by speculation and manipulation.
Meanwhile Bill Moyers of PBS wants to ask Rupert Murdoch, the owner of Fox News, why oil is at about $130 a barrel when Murdoch promised the American People that the Iraq War would result in $20 a barrel oil? (Watch the video)
Why is Goldman Sachs trying to attribute the sharp rise to the ECB? Is this a cover for their huge profits? Traders at Goldman Sachs might not be able to anticipate a comment by the ECB, but there is a much higher probability that someone at Goldman Sachs might have a connection that would allow them to "anticipate" a statement by a high placed Israeli official.
Investigate the traitors
Ask Congress to investigate the oil speculators. That was the message of Soros. Soros is Jewish and is the owner of a highly profitable hedge fund himself, but there is every indication that he is not part of the Israel Lobby. Soros testified that ''speculative excess'' and the resulting run-up in oil prices could drag the United States into a recession.
Manipulation of the Futures Market is nothing new. It is as old as markets themselves. The government is supposed to regulate the markets and punish anyone caught excercising unfair practices. So Soros is right. Congress should investigate the oil speculators, and leave no stone unturned. Even if that stone is buried under the Western Wall.