June 14th, 2011
The Independence & Power
of
Consumer Confidence
Harnessing Choice & Competition
Last week, six (6) of the twelve (12) member representatives which make up OPEC walked out of a high-level meeting. Their discussions quickly broke down amidst heated disagreements whose focus centered solely upon issues related to their organization’s responsibility to respond responsibly to requests which would have …otherwise raised production output levels necessary to meet market requests …all in the wake of a rising demand …for whose calls which had been rising against existing supply.
In the wake of the meeting though, supply issues were a matter which was met with a certain degree of eager contempt …generously offered instead …to service a growing sea of speculators through their (OPEC’s) actions of irresponsible indifference …precariously and curiously resemble more that of a chorus line …in view of (no spite spared aside …) the wake of all the recent supply disruptions whose unseemly bad timing …also, merely seemed to have added to their fair share of opportunity to self-serve their own indulgences ( also rather precariously …) in adding all the more to all the uncertainty amid the simultaneous eruptions of unrest within several regions of Africa and elsewhere in the Middle East.
If I didn’t know any better, I would say that if the SEC couldn’t …or, rather wouldn’t pin anything on Bernnie Madoff …who stands any better chance against an equally dubious OPEC, NO?
I merely offer …in answer that American consumers …one and all would …if offer the choice …that’s who!!!
June 9, 2011
As a result, oil prices temporarily rose sharply in response to the failure of OPEC to back a Saudi-sponsored, pro-production call. As was, the six (6) member walk-out was a response that caused the meeting to end …almost before it had a chance to get under way.
The resulting OPEC consensus came not in the form of a failure, but as one in the form of a deliberate political anti-western statement.
Dissident members of OPEC were abundantly clear. Their actions and comments were sharply punctuated …seasoning member countries indifference to the needs of western demand for their organization’s crude..
Aside from grasping at straws …in reaching for an explanation, nothing else sparked the walk-out. It can only be categorically viewed as an anti-west, politically-driven protest.
Indifference is as indifference does.
Life is not always a box of chocolates.
Even if one were to be as complacent and naïve as one Forest Gump, doing nothing does not necessarily guarantee that one will be able to sail through life in a perpetual state of bliss …especially when the sea is awash with dissidents who wish America no favors.
Even those who …once upon a time, worked for ENRON would testify that this world can be an angry any raging sea …with, or …without rose tinted perceptions.
Some universal expressions were never meant to apply indefinitely …so as to allow one to express trends in terms of assumptions which extend mere conjecture way beyond the realm of prudence …too far into perpetuity. That would be akin to taking license by making and perpetuating some false long-range assumptions …when unable to see to recognize the nose on the face before the mirror.
Such short-sighted assumptions, er; well …you know what they say about assumptions, yes?
And if things are not managed well enough in the short term, who (in their right mind) is wiling to put their confidence in one who has failed to earn and merit the belief of one’s credence in a second chance?
If one demonstrates that they can not run their own house; I’ll be dammed it I would give them a chance to foul up mine. No thank you …very much please …and now leave!
As the saying goes; “…a rising tide raises all ships.â€
But, if there is a flip side to this adage, it might be wise to find a way to pull the plug and let the water out of this particular sea’s bath-tub …or, just get out of it all together.
Regardless as to how one chooses to characterize the atmospheres in the Middle East …the impact of how abruptly OPEC’s meeting broke resulted in causing oil prices to rise sharply …meeting with speculation’s sharp rise …also not withstanding.
Six members …or half of OPEC’s full compliment rowed …or otherwise, walked out of meeting arguing that crude output need not rise due to continuing weakness in the U.S. economy …this, in spite of existing response and continuing unrest which are continuing to have an affect upon supply
Thus, the level of contempt from those who walked out …can be seen only …in the light of their cavalier indifference. These six members of OPEC obviously believe they bear no responsibility for the consequences of their belligerent actions.
Alas, so be it.
However, and in response to the meeting’s breakdown …Saudi Arabia, shortly thereafter …announced that it would increase its production output (single-handedly) in order meet and make up for the recent disruption’s impact in the market place …head-on and virtually sigle-handedly.
Yet for all this, the meeting still ended prematurely and on a sour note.
None the less, and …after the fact, an apologetic the Saudi Oil Minister’s verbiage was necessary in order to sooth anxious nerves and smooth many a ruffled feathers.
None the less, the events of last week’s unsettling OPEC’s meeting …present enough alarming evidence of a clear and present danger. And the rise of this evidence represents a clear warning whose signals indications illustrate that there exists more than a measure of real anxiety which is NOW being manifested by …our would-be adversaries whose failings and will’s palls are casting out a net of angst …in hopes of adding to their catch …fishing for whatever might add to the already turbulent sea of speculation and doubt.
As is, such actions at such a hi-level are inappropriate …save that such might just be the tip of the iceberg.
And if these anxious compulsive actions are supported by underlying fears fomented by unrest and instability in their respective (????) regions, this would speak of the tensions below the surface.
And this, by itself are the beginnings whose failings are forming a catch which no net shall be large enough to hold. Such as these nets may be casting ….more certain than mere speculation …will be any sea of doubt, worry or fear might be able to define as raging.
Can you say unrest and tension in the Middle East?
Is life a box of Chocolates?
No wonder why Saudi Arabia would only be all too happy to raise their production output. Although they do not need the extra revenue, it does make for an interesting opportunity to make up for all the sweet chocolate that they passed out to their Royal Subjects in recent weeks …the money distributed to quell unrest among their Loyal Royals.
Nice! If only Obama would have given me the opportunity to order my new BMW in Dead Sea Grey.
Alas, here in America …in the wake of the Debt Conundrum …waning consumer confidence is having such an impact …it is causing consumers to rethink a whole host of their purchases.
Such as it may be, recently …in the wake of the “Sell in May and Walk Away†mentality which has been just another one of several details whose additive affects have been impacting equity markets as of late, Consumer Confidence is becoming increasingly …overshadowed and punctuated by the tenuous reality that America is facing a real and present threat which endangers Her sovereign interests …a risk in regards to the consequences of Her single-dimensional dependency upon a one-sided energy’s policy platform.
Today, depending upon whose numbers you trust to use; America imports from between 51 % to … perhaps, as much as 61 % …or, more of its crude oil from foreign countries.
If you would like to see more; feel free to visit the websites whose sources I have pasted below the bottom of this post. Keep in mind that even the best source’s material is somewhat time dated to one degree or another.
As is, what kind of footing is it whose foundations are built upon sinking and shifting sands?
Crude oil, alone …by itself makes for a mighty slippery slope.
Such as can be seen, more and more …in terms of America’s addiction to oil, American energy policy has formed a dependency upon imported oil which …and Her well-being’s are positioned in a potential world of hurt …so precariously hanging on a thin, narrow, single-minded thread …one which could become more easily unbalanced than one would think to imagine.
Why, because America has come to a point of maturity wherein which She has outgrown Her …single-dimensional Energy policy.
Think of this; American prosperity …like Her sovereignty …hangs on one commodity, crude.
Today, more than ever before …this does not make for a healthy nor a stable patient …not now …in the short run …and now with more uncertainly …definitely not long into the future’s long-run.
The sooner All Americans come to grips with this reality, the sooner the patient can embark upon a path of therapy in all the best prognosis has to offer in the way of a far better hope.
But change must pave the way …in order to save the day.
Let’s be honest, America’s essential single-minded, uni-dimensional dependence upon crude threatens to adversely affect the patient in all other dimensions of Her economic health …making the likely probability of recovery akin to a craps-shoot in which speculation which afflicts everything which the doctor may either prescribes or fail to prescribe.
In all honest, doing nothing may be an option …but, by failing to prescribe anything to alleviate the patient’s single dependency …the doctor is actually …inadvertently …choosing a winner …merely by the reason of an argument whose reason is founded upon both …omission …as well as commission …all political ulterior motives, not withstanding.
Remember Sergeant Schultz of the television series, Hogan’s Heroes?
I know nothing!
But this one thing I do know; our forefather ordained a charter in hopes order to establish a priority which …above else …considered the interests of “…We the People …†to be chief among all other considerations.
And I, for one …am sick of all the addictions which have done nothing but serve big government and large corporate lobbies.
None the less, what I am saying is that; by NOT choosing a winner …big government is both assuring that the patient loses, and those who are the problem …continue to win and benefit …lobbies and special interests aside …major campaign contributors’ low hanging fruit not withstanding.
(End of Part 1; The Independence & Power of Consumer Confidence …Harnessing Choice & Competition)
All the best,
Bill
From an article appearing in The Wichita Eagle, July 5th, 2011 http://www.kansas.com/2011/07/05/1921073/congress-among-least-productive.html
CNN US April 10, 2010
U.S. Imported Oil Sources: Broken Out by Hemisphere and Countries in Those Regions
http://www.cnn.com/2010/US/04/01/foreign.oil.dependence/index.html
WALLSTREET JOURNAL SUMMARY OF OPEC’S Meeting
-James Herron, Stephen Power, Sarah Kent and Jerry A. DiColo contributed to this article.
Write to Benoit Faucon at benoit.faucon@dowjones.com and Summer Said at summer.said@dowjones.com
http://online.wsj.com/article/SB10001424052702304259304576373150163060100.html?KEYWORDS=SUMMER+SAID
OPEC SUMMARY:
The 159th Meeting of the OPEC Conference was held in Vienna, Austria, on 8 June 2011.
http://www.opec.org/opec_web/en/2072.htm
COMMODITY SUMMARY FROM IBT:
By Dominick A. Chirichella | June 10, 2011 12:05 PM GMT
http://www.ibtimes.com/articles/160713/20110610/oil-prices-moving-lower.htm
Wikipedia: U.S. Energy Policy
http://en.wikipedia.org/wiki/Energy_policy_of_the_United_States
Percentage of Imported Oil vs. U.S. Domestic Production
http://wiki.answers.com/Q/What_is_percentage_of_oil_imported_into_the_US
U.S. Dept. of Energy
http://en.wikipedia.org/wiki/United_States_Department_of_Energy
The U.S. Energy Information Administration: The U.S. Energy Department
How dependent are we on foreign oil?
The United States imported about 51% of the petroleum, which includes crude oil and refined petroleum products, that we consumed during 2009. Just over half of these imports came from the Western Hemisphere. Our dependence on foreign petroleum is expected to decline in the next two decades.
2009 RAND Study: Infrastructure, Safety, Environment and National Security Research Division
