Stockman: If We Want to Bring Oil Prices Down, We Should Stop Beating the War Drums

Stockman: War Drums Are Driving Up Oil Prices and Hurting the Economy

While Nouriel Roubini says that attacking Iran would lead to global recession (and see this), Ronald Reagan’s budget director – David Stockman – points out that even beating the drums of war is driving up oil prices and hurting our economy:

I think you can address this decisively by stop beating the war drums right now. And Obama could do that, and he could say the neocons are history.

The policy that they’re talking about right now is the same thing we heard in 2001, 2002, and 2003. And he needs to clearly say that we’re not going to attack Iran. We’re not going to permit Israel to attack Iran. They are not part of the axis of evil. They’re part of the axis of medieval.

In other words, these are backward people that aren’t going to threaten the western world, and we need to get into a serious process of negotiation. If we do that, the price of oil will drop $30 within a few months, and all the speculators who are on the wrong side of the ship would learn a good lesson.

But as long as the war drums continue to beat, as they are now, we’re going to see this kind of speculative fraud. It’s not real. It’s not supply and demand world today.

This is not Stockman’s first anti-war statement. Last year, Stockman – who has proved himself to be a true conservative – said:

We are now at a historical inflection point at which the time has arrived for a classic post-war demobilization of the entire military establishment,” David Stockman said in an exclusive interview.

“The Cold War is long over,” he continued. “The wars of occupation are almost over and were complete failures — Afghanistan and Iraq. The American empire is done. There are no real seriously armed enemies left in the world that can possibly justify an $800 billion national defense and security establishment, including Homeland Security.”

Short of that, he suggested, the United States has “reached the point of no return” with its artificial creation of wealth, and will eventually face a sharp economic decline.

***

This is a profound disappointment that there’s not even a debate — a serious debate about dramatic change in our imperialist foreign policy and war-making establishment in this administration — allegedly the most left-wing administration that we’ve had in modern time.”

“I don’t have much hope that what needs to be done will be done until it’s finally forced on us by a world bond market crisis, which will happen sooner or later,” Stockman added.

***

That’s why we’re just at the beginning of solving this massive financial collapse we had in 2008 and not in the process of healthy recovery as some of the pals in the White House or on Capitol Hill or on Wall Street would have you believe.”

This entry was posted in Politics / World News. Bookmark the permalink.
  • http://www.economic-undertow.com/ steve from virginia

    Gillian Tett wisely said nothing, too bad the other doofuses Reich and Stockman couldn’t keep their pie-holes shut.

    What is the ‘cheap gas’ for? (Silence)

    “Oh, I need to use my car …”

    The ultimate instrument of useless waste, to drive a car, to drive aimlessly in circles for absolutely no return. Why is the world economy falling apart? Because humans’ number-one activity is to drive around aimlessly in circles for absolutely no return. Humans are slaves to machines that cover the (useful parts of the) Earth, that poison the air and the water, that cannibalize the world’s resources, that are the cause of decades of pointless wars, that have killed tens of millions on their own account!

    Because fuel is cheap it is wasted, ipso-facto valuable fuel cannot be wasted: worth too much to destroy. Gasoline should cost $40 per gallon, it should cost a potential user a $50,000 investment contract for the right to purchase that $40 gallon of gasoline — or whatever the price should be to guarantee the worth of the investment contract over a reasonable life-span, say fifty years. It might cost $100 per gallon or a thousand dollars. Who would burn gold to ‘drive around the corner’?

    This is the reason for a hard currency right there!

    Instead there is the pathological desperation leading to war to destroy invaluable natural resources ABSOLUTELY RIGHT NOW before someone decides it is no longer in the nation’s interest to do so.

    Let me tell you something: the world economy is a waste-problem that is in the process of solving itself. Prices are high due to constrained supply and leaping demand. All of those Arab Spring countries represent not one single drop of new oil. Instead of the four new Saudi Arabia’s pumping oil into the markets to bring down the precious price, there are instead four new Chinas, millions of television-induced zombies in the streets risking bullets for that new car.

    Do nothing and the consequences will fall where they must. Do something, the hard thing and get rid of the damned automobiles: life will be hard but not as hard as consequences falling where they must. Tough choice but there it is.

  • Doug Diggler

    If we want to bring oil prices down, the US must pass a federal law stating that anybody bidding on a commodity MUST TAKE DELIVERY of said commodity. Too many people (Goldman Sachs) are able to bid up the price on margin. It isn’t supply and demand which is causing this oil price spike it is SPECULATION!

 

 

Twitter