July 5, 2000
The biggest issue on the highways and byways of America is the
high price of gasoline at the pump, in some areas higher than $2 per
gallon. Who's to blame? Is it a presidential campaign issue?
Al Gore, struggling to pull himself up from bad polls numbers, is
trying to blame George W. Bush because (a) he's from Texas, (b) he once
ran an oil exploration company, and (c) he has received some (perfectly
legal) contributions from oil companies. Gore's charges simply don't
If we want to play that game, Gore is the vulnerable one. He and
his late father received much money and many financial favors from
Occidental Petroleum and its founder Armand Hammer, a notorious friend
of the bosses of the former Soviet Union, and Gore still controls
$500,000 in Occidental stock.
Gore may even be happy about the rising gas prices. He made clear
in his book "Earth in the Balance" that he wants to rid the world of
the internal combustion engine.
The real place to levy the blame is OPEC, the 11-country oil
cartel (plus Mexico) that conspired to raise the price of oil. OPEC is
a criminal price-fixing conspiracy and, if its members were reachable
by U.S. law, its sheiks would be in jail.
OPEC is not selling us oil at free market prices. It has
monopolized the oil market by engaging in illegal practices that are
exactly designed to kill off the competition.
However, OPEC is part of the global economy that we've been told
is the wave of the future. OPEC is part of Clinton's plan to
"integrate our economy" with other nations and to seek interdependence
with other countries in the new global market, and that includes being
dependent on foreign oil.
Clinton just failed to advise us of the price of his plan.
There isn't any shortage of oil in the Middle East. The OPEC
rulers don't even need to drill any more wells. All they need to do is
turn the spigots to increase or decrease the flow of oil, which is
exactly what they've been doing.
In 1997 they opened the faucets wide to increase the flow of oil
and drive oil prices down to historic lows. That had exactly the
effect they planned: it discouraged U.S. investors and drillers from
exploration, U.S. production was cut back and 30,000 Americans lost
Now, in 2000, OPEC turned the faucets down in order to decrease
the flow of oil and drive up the price. So Americans, whose domestic
production has been curtailed, are paying extra tribute to the OPEC
sheiks to the tune of tens of billions of dollars a year.
Some politicians, at both the congressional and state levels, are
toying with the idea of cutting or suspending some of the taxes on
gasoline. That would affect only a small part of the big gasoline
price increase and, anyway, why let a criminal cartel stop us from
repairing our roads?
These countries owe us. Don't you remember? We went to war in
1991 to save Kuwait from being taken over by Saddam Hussein. U.S.
ships and planes are defending Saudi Arabia today.
In 1994 the U.S. taxpayers bailed out Mexico with $50 billion.
Then, we organized a $40 billion bailout of Indonesia. Most of these
countries are still getting handouts from our foreign aid program and
from those alphabet-soup global lending rackets.
"Ingratitude, thou marble-hearted fiend," spoke the Bard. And
George Washington warned us, "There can be no greater error than to
expect or calculate upon real favors from nation to nation. It is an
illusion which experience must cure, which a just pride ought to
But maybe there is more behind this story than just greed and
ingratitude. In looking into the causes of the oil price increase,
Congress should start by investigating what could turn out to be the
biggest scandal of the scandal-ridden Clinton Administration.
This is the published news report that OPEC oil ministers quietly
told national security advisors on Capitol Hill that the oil production
cutbacks, which is the cause of the price increases, were made at the
request of the Clinton Administration. How's that again?
Can it really be true that the Clinton Administration asked OPEC
to institute cutbacks in order to raise the price of oil? What could
possibly be the motive of such duplicity?
The wealthy OPEC sheiks don't need additional money, but the
increase in the price of oil on the world market immensely benefits
debtor nations such as Russia, Mexico and Indonesia. They are now able
to start paying back some of their overdue loans to important Western
The American people have gotten very tired of taxpayer bailouts of
corrupt foreign regimes that enable powerful U.S. investment bankers to
collect on their foolish foreign loans. Raising the price of oil that
we pay to foreign producers is a devilishly clever scheme to give the
big fellas another subsidy from the U.S. taxpayers.