Revolution is a registered trademark of Adidas. Revolution is a brand. The love beads, the Afro, it reproduces itself in new contexts continuously reinventing itself; the P.R. machine working on heavy rotation to secure the minds and souls of the faithful caught up in the rapture of the moments, “historic” change of which we are the “chosen” to be witness of….
Even though world stock markets were tanking following the U.S. credit downgrade, the solution to the sticky economic problem of debt deleveraging economic stagnation was already well on its way towards the victory lap. Forget government cost slashing. Cutting oil prices. The word’s incredible expense on oil is probably only unique expense large enough- perhaps with the exception of illegal drugs- to move the wheels on the global economy. The price of crude has been tumbling for several months and until the bottom of the market is reached, probably by late autumn, oil will slide lower through less consumption and producers having to grab less. Inevitably, it shall come to pass.
…The fight is not over in Tripoli, but the carve-up of Libya’s vast oil riches – the biggest in Africa – is already beginning and no doubt the process will not come cheaply for the Libyan people. The Italian Foreign Minister fired the starting gun, saying Italy’s ENI oil company will play the number-one role in the region.
British PM David Cameron already delivered a promise, seen by many as more of a threat, that the NATO mission in Libya, which is “to protect civilians,” will continue for “as long as it is needed” to ensure a safe transition to democracy….
…As allied forces lend air support to the rebels to take Tripoli, the Stop the War Coalition warns Libyans not to expect that they are getting something for nothing.
“The Western powers do not do this without asking for a payback. Why is it that the head TNC [Transitional National Council] is running off to Paris to meet with the French President?” questions John Rees from the Stop the War Coalition. “Well of course that is one very important issue that was why the Western powers and Tony Blair and others struck a deal with Gaddafi in the first place. It will be exactly what they’re seeking to continue with the TNC to further exploit those oil riches.”…
So for the West, the choice was simple. Cut costs to reduce the deficit. The option of mass unemployment and reduction of entitlement is political suicide. The result is either rioting or lose office at the ballot box. If the mortgage hangover from the banks is finally dealt with in an urgent and comprehensive manner, plus other crappy debt from Greece et al, unemployment would also be an unsupportable result. Hence, cut oil prices. And directly from the source. If the Western concessions could sell for less, but lower their costs of acquisition to maintain margins…This would also put pressure on Iran to heel and hurt Russia…..How big for the U.S. $100-200 billion a year, which far exceeds the budget reductions flashed by Congress. Europe at least three times higher. So, the Euro gets to fight another day. Steep oil price discounts will solve the West’s financial problems. Naturally, The West will also be exporting poverty and austerity throughout the Arab world, but they are not really dem
tic and will not be Now, with oil listing at $80, Western economic pain is now hundreds of billions per year less onerous and could conceivably drop further and the economic downturn intensifies and more strong-arm tactics are used on the producing states. There is good reason why Bernanke is not pulling the trigger on QE3….
…The British government makes no secret of the fact that its motives in supporting the rebels are not entirely altruistic. Last year alone the UK exported around US$40 billion worth of goods and services to North Africa and the Middle East.
But “black gold” is the key – Libya has the largest oil reserves in Africa….
“When Western powers look at the region, they talk about humanity and democracy, but they’re thinking about oil,” reveals Greg Muttitt, War on Want campaigns and policy director.
Muttitt says it is impossible not to draw a comparison with Iraq. He has written a book about the aftermath of the Iraq invasion, in which he maintains Western powers imposed a democracy which played on sectarian divisions. That ensured years of tribal struggle, but meant the allies retained control of the oil supply. While the UK government insists lessons have been learnt from Iraq, Western oil firms are moving into Libya….
…Even before the fate of Tripoli is sealed, the great oil grab is already beginning. BP has a contentious oil and gas exploration contract in Libya, which the UK government will be anxious for it to resume. Italian oil giant ENI is the first to send staff back to Libya, and its shares rose on the news. France’s Total and Austria’s OMV also did well as investors hoped they would soon be able to resume production in Libya. But at what price to the Libyan people?
“The great fear is that just as they did in Iraq they’ll create a democracy that serves British interests or the West’s interests or the oil companies’ interests and does nothing for the people of Libya,” Greg Muttitt explains. Read More:http://rt.com/news/libyan-oil-dogfight-europeans-975-915/
“Gadhafi’s creation of the African Investment Bank in Sirte (Libya) and the African Monetary Fund to be based in Cameroon will supplant the IMF and undermine Western economic hegemony in Africa,” said Gerald Pereira, an executive board member of the former Tripoli-based World Mathaba.
The moves are also bad for France because when the African Monetary Fund and the African Central Bank in Nigeria starts printing gold-backed currency, it would “ring the death knell” for the CFA franc through which Paris was able to maintain its neocolonial grip on 14 former African colonies for the last 50 years.
“It is easy to understand the French wrath against Gaddafi,” said Prof. Jean-Paul Pougala of the Geneva School of Diplomacy.
“The idea, according to Gaddafi, was that African and Muslim nations would join together to create this new currency and would use it to purchase oil and other resources in exclusion of the dollar and other currencies,” said political analyst Anthony Wile in an editorial for The Daily Bell online.
According to the International Monetary Fund, Libya’s Central Bank is 100 percent state-owned and estimates that the bank has nearly 144 tons of gold in its vaults. If Col. Gadhafi changed the purchasing terms of his oil and other Libyan commodities sold on the world market and only accepted gold as payment; a policy like that wouldn’t be welcomed by the power elites who control the world’s central banks….Read More:http://www.finalcall.com/artman/publish/World_News_3/article_7886.shtml