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Speculators, Cartels & Myths of Scarcity

The Webby Dean Henderson

 

While governments around the world are told to “tighten their belts”, economies contract and the myth of scarcity (root word: scare) encourages a race to the bottom for the global masses.   Alongside these calls for austerity, an historical concentration of power continues among the well-fed and fueled global elite.

The Rockefeller/Rothschild energy cartel and tax-dodger oil traders in Zug, Switzerland have spread well the lie of peak oil.  Both know full well that while oil hovers near $100/barrel on the international casinos, oil companies pay around $18/barrel to get crude out of the ground.  Big Oil will soon ring up its usual quarterly record profit, while speculators led by Goldman Sachs and Morgan Stanley tack on another $50/barrel before the people get gouged at the gas pump.

In April 2011 the US Department of Energy reported that the main US oil storage depot at Cushing, Oklahoma was holding 41.9 million barrels of crude oil, very near its capacity of 44 million barrels.  In other words, the US is awash in crude oil.  We are now a net exporter and yet oil prices remain high.

Around the same time the USDA announced that South Dakota farmers planned to plant an additional 850,000 acres of corn – the most since 1931.  According to a March 10, 2011 bulletin from USDA, Brazil’s corn crop was 2 million tons higher than last year.  Yet corn futures on the Chicago Mercantile Exchange traded at record prices.  Food prices are high for the very same reasons – concentration and speculators.

According to the same USDA report, “U.S. wheat ending stocks for 2010/11 are projected higher this month on reduced export prospects. Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat, particularly in Australia, and a slower-than-expected pace of U.S. shipments heading into the final quarter of the wheat marketing year.”  Yet wheat futures hover near record highs.

There is nothing alarming in the report about supplies of beef, poultry, eggs, milk, sugar or rice either.  Yet food prices continue to skyrocket.

The global elite know that both food and energy are paramount to life. Control over these two most basic needs means control over people.

After the 2008 acquisitions of Swift, Smithfield and National Beef Packers by Brazilian meat-packer JBS, there are three conglomerates that control over 80% of beef-packing in the US – Tyson, Cargill and JBS.  These same companies control most of the burgeoning cattle feedlot industry centered in SW Kansas and SE Colorado.  They also dominate the pork, chicken and turkey industries.  Cargill is the largest grain processor on the planet, handling a full one-half of global grain supplies.

Four giant companies are making a play to own not just all the oil, but virtually all energy sources on the planet.  In my book, Big Oil & Their Bankers I dub them the Four Horsemen – Royal Dutch/Shell, Exxon Mobil, Chevron Texaco and BP Amoco.

These companies control crude oil from the Saudi well-head to the American gas pump and profit from every step of processing, shipping and marketing in between.  While reactionary Republicans blame environmentalists for the lack of US oil production, it was these oil giants who capped permitted wells in Texas and Louisiana and moved production to the Middle East – where Bangladeshi, Filipino and Yemeni workers are paid $1/day to work the oil rigs.

Royal Dutch/Shell and Exxon Mobil are the heaviest and most vertically integrated of the Four Horsemen. These behemoths have led the charge towards horizontal integration within the energy industry, investing heavily in natural gas, coal and uranium resources.

With the fall of the Berlin Wall, Eastern Europe, Russia, the Balkans and Central Asia were opened to Big Oil.  According to Kurt Wulff of oil investment firm McDep Associates, the Four Horsemen, romping in their new Far East pastures, saw asset increases from 1988-94 as follows: Exxon Mobil-54%, Chevron Texaco-74%, Royal Dutch/Shell-52% and BP Amoco-54%. The Rockefeller/Rothschild Oil Cartel had more than doubled its collective assets in six short years.

Russia and Central Asia contain over half of the world’s natural gas reserves. Royal Dutch/Shell has led the way in tapping these reserves, forming a joint venture with Uganskneftegasin at a huge Siberia gas field in which Shell owns a 24.5% stake. Shell has been the world’s #1 producer of natural gas since 1985, often via a joint venture with Exxon Mobil.

In the US retail natural gas sector Chevron Texaco owns Dynegy, while Exxon Mobil owns Duke Energy. Both were key players – alongside Enron – in the 2000 natural gas spikes that battered the economy of California and led to the bankruptcy of that state’s main utility provider, Pacific Gas & Electric. Exxon Mobil has extensive interests in power generation facilities around the world including full ownership of Hong Kong-based China Light & Power.

During the 1970s Big Oil invested $2.4 billion in uranium exploration. They now control over half the world’s uranium reserves, key to fueling nuclear power plants. Chevron Texaco and Shell even developed a joint venture to build nuclear reactors.

Exxon Mobil is the leading coal producer in the US and has the second largest coal reserves after Burlington Resources, the former BN railroad subsidiary which in 2005 was bought by the DuPont family-controlled Conoco Phillips.  Royal Dutch/Shell owns coal mines in Wyoming through its ENCOAL subsidiary and in West Virginia through Evergreen Mining. Chevron Texaco owns Pittsburgh & Midway Coal Mining.

Seven of the top fifteen coal producers in the US are oil companies, while 80% of US oil reserves are controlled by the nine biggest companies. Both Royal Dutch/Shell and Exxon Mobil are hastily buying up more coal reserves.

Concentration of power across the energy spectrum is not limited to the US. In Columbia, Exxon Mobil owns huge coal mines, BP Amoco owns vast oilfields and Big Oil controls all of the country’s vast non-renewable resources. In 1990 Exxon Mobil imported 16% of its US-bound crude from Columbia.

The Four Horsemen have invested heavily in other mining ventures as well. Shell holds long term contracts with several governments to supply tin through its Billiton subsidiary, which has mines in places like Brazil and Indonesia, where it is that country’s largest gold producer. Billiton merged with Australia’s Broken Hill Properties to become the world’s biggest mining conglomerate – BHP Billiton.

Shell also enjoys cozy relations with the world’s 2nd largest mining firm – Rio Tinto – through historically interlocked directorates. Holland’s Queen Juliana and Lord Victor Rothschild are the two largest shareholders of Royal Dutch/Shell.

Shell recently began investing heavily in the aluminum industry. Shell Canada is Canada’s top sulphur producer. Shell controls timber interests in Chile, New Zealand, Congo and Uruguay and a vast flower industry with farms in Chile, Mauritius, Tunisia and Zimbabwe.

Recently, Shell’s BHP Billiton tentacle announced a $38.6 billion hostile takeover attempt of Canada’s Potash Corp. BHP Billiton already owns Anglo Potash and Athabasca Potash. Ownership of Potash Corp. would give them control over 30% of the global potash market. Potash is a necessary component in growing any agricultural crop.

BP Amoco, through its ARCO subsidiary, has become one of the world’s top six producers of bauxite, from which aluminum is derived. It has mines in Jamaica and other Caribbean nations.

Chevron Texaco controls over 20% of the huge AMAX mining group, the leading producer of tungsten in the US with extensive holdings in South Africa and Australia.

Exxon Mobil owns Superior Oil and Falconbridge Mining, Canada’s largest producers of platinum and nickel, respectively. Exxon also owns Hecla Mining, one of the world’s top copper and silver producers, and Carter Mining, one of the top five phosphate producers in the world, with mines in Morocco and Florida. Phosphates are needed to process uranium, while phosphoric acid is key to petrochemical production, which the Four Horsemen also control.

Another vehicle for Four Horsemen hegemony in the energy sector is the joint venture. For decades before Chevron merged with Texaco in 2001, the companies had marketed petroleum products in 58 countries under the Caltex brand. They also operated Amoseas and Topco as joint ventures before merging.

Caltex owns refineries in South Africa, Bahrain and Japan. In the Philippines, Caltex and Shell control 58% of the oil sector. When Philippine strongman Ferdinand Marcos introduced martial law in 1972, Caltex Vice President Frank Zingaro commented, “Martial law has significantly improved the business climate.”

Exxon and Mobil also shared many joint ventures around the world prior to their 1999 merger, including PT Stanvav Indonesia. Royal Dutch/Shell and Exxon Mobil established a North Sea joint venture called Shell Expro in 1964, while in 1972 Shell tied up with Mitsubishi in Brunei to supply oil to Japan.

Shell owns 34% of Petroleum Development Oman in partnership with Exxon Mobil. Saudi ARAMCO, the Iranian Consortium, Iraqi Petroleum Company, Kuwait Oil Company and the ADCO in the United Arab Emirates all represent(ed) Four Horsemen collusion.

In Iran, Iraq and Libya these cartels were nationalized. That’s why the Rockefeller/Rothschild Oil Cartel billed US taxpayers to invade Iraq and Libya, while continuing to threaten Iran.  The first oil contract in Iraq went to Royal Dutch/Shell. The 2nd goes to BP and the 3rd to Exxon Mobil. You get the picture.

Both food and energy are paramount to life. That’s why Congress should shut down speculator casinos like the Chicago Mercantile Exchange and the NYMEX, while nationalizing the Four Horsemen and the monopoly food processors.  We should form a US Energy Company and a US Food Processing Company which would focus on renewable energy and a healthier diversified diet, respectively.

All things are possible if we show political will and are not scared.  We should reject “peak oil” and its attenant myth of food scarcity and tackle the real problems – concentration of corporate power and speculation.


Dean Henderson is the author of five books: Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network, The Grateful Unrich: Revolution in 50 Countries, Stickin’ it to the Matrix, Das Kartell der Federal Reserve and The Federal Reserve Cartel.
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Posted by on Apr 15 2014, With 0 Reads, Filed under Editor, Politics. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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17 Comments for “Speculators, Cartels & Myths of Scarcity”

  1. Thanks Mr. Henderson –

    On the financial crimes you had previously covered (especially derivatives) The late financial wizard John Pugsley’s original message of September 2008 which was originally published in 2004 with this headline was way ahead of its time –

    “$592 Trillion Phantom Economy Finally Ignites as New Demon Derivative
    Whips Down Wall Street”

    Original no longer available but here is the plain cached text of that revealing newsletter –

    *********groups.yahoo.com/neo/groups/privacy1/conversations/topics/3186?l=1

  2. Your article is informative, but it undermines your scholarship a touch to claim that “scarcity” is derived from “scare”. A quick check of the dictionary would have shown that it is not. These words have separate roots.

  3. UK Moves to Block US Senate Report to Protect Blair, Straw and Dearlove
    by craig murray on April 14, 2014
    From a British diplomatic source I learn that Britain has lobbied the United States against the publication of the Senate Intelligence Committee report on torture and extraordinary rendition. The lobbying has been carried out “at all levels” – White House, State Department and CIA. The British have argued that at the very least the report must be emasculated before publication.”

    Nice people we have in our governments.

    Time to say and do what must be said and done to FREE ourselves, I say.

    • A salute to Craig Murray from ‘Jives’, one of his ‘common taters’, which I second here for its sheer courage, and to let you Freedom Fighters in America know that you are not alone.

      “Craig,

      MAJOR respect for this post…holy hell you’ve got balls of steel for daring to push this post.

      One of the most important posts in the history of this blog-which is saying something indeed Craig.

      How much longer can the architects of this global institutionalised torture,gang-stalking,MK-Ultra programme hide?

      Thank you so much for this brave,vital and defining post Craig.

      Deep respect.”

  4. As always, your information gives us clarity & resolve…

    With appreciation, Jeanne )

  5. Nationalizing would not work well. Government is too inefficient at running a business. But what the government can do, is what it successfully did before Break up the trusts! This was done in the early 1900s, and needs to be done again. For example, in 1904, Standard controlled 91 percent of refined oil production and 85 percent of final sales. The government considered breaking it up. Standard’s market share gradually eroded to 70 percent (trying to save their skins) by 1906 which was the year when the antitrust case was filed against Standard, and down to 64 percent by 1911 when Standard was ordered broken up. On May 15, 1911, the US Supreme Court upheld the lower court judgment and declared the Standard Oil group to be an “unreasonable” monopoly under the Sherman Antitrust Act, Section II. It ordered Standard to break up into 90 independent companies with different boards of directors; the biggest two of the companies were Standard Oil of New Jersey (which became Exxon) and Standard Oil of New York (which became Mobil).

    Big banks, big oil companies, etc need to be broken up. But several steps need to be taken, to make sure they don’t re-form. There needs to be a strict % limit on market share. There needs to be import tariffs to protect local jobs, taxation that penalizes companies that move abroad and rewards those that stay here, etc. Those are the kinds of actions that a reasonable government can take.

    • Definitely add broadcast media, film and book publishers, to be broken up. Concentration in those areas is out of control too, and incompatible with the right of free speech.

      • If we wish to break up Big Media we might begin by repealing Clinton Admin actions like Telecomm. Act ’96’s increased number of broadcast outlets owned by one combination. Clinton’s DOJ also allowed the Time Warner AOL merger of 2000, for example.

        If we wish to break up Big Banks we ought to begin by restoring Glass Steagall which Clinton repealed in 1999. Clinton’s former Deputy Attorney General Eric Holder, in his capacity as Obama’s Attorney General, has entered outrageous non-prosecution and immunity deals with the banking industry. We must void those agreements and toll the relevant statutes of limitations, civil and criminal. If we seize the Clinton’s personal fortune of $150,000,000+ we might also send a clear signal to government officials considering similar sell outs and betrayals. And she did Benghazi.

  6. “While governments around the world are told to “tighten their belts”, economies contract and the myth of scarcity (root word scare) encourages a race to the bottom for the global masses. ”

    I like to play with that word ‘scare’ by changing the ‘c’ and making it ‘sacred’.

    It is an essential distinction, that ‘c’, for Courage.

    Our world is divinely beautiful, yet mindless, craven actions en masse are reducing the sacred and sublime to the depraved and profane.

    ’tis an ages old dynamic.

    Thank you for presenting your thoughtful/informative and always humane articles Dean.

  7. great article Dean; as always important information coming from you, thank you

  8. Thanks Dean, for this supreme information, which is also an exceptional summary of the gigantic aggregation of uncontrolled power over life and death for whole nations.

  9. We need to revive the anti trust sentiment and statutes developed in response to the original Robber Barons of the industrial revolution. The Sherman and Clayton Acts are not being enforced. DOJ Anti Trust Division has been stood down since the 1990’s. FTC and Commodities Futures Commission could be addressing these dynamics also.

    Although the Parker Brothers board game Monopoly captures certain of the dynamics of supply and demand it misses the real dirty tricks. Imagine if your Monopoly opponent could rig the dice roll to cause you to always land on his property. Imagine if he could also then arbitrarily raise the rent above the established rent. Imagine if he could buy property with a budget his politicians funded from your tax dollars instead of from his own supply of Monopoly money. OF course, he also never seems to ‘Go To Jail, Pay $200″

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