Celebrating Manipulation! Oil Cartel Turns 50 Today!

September 14, 2010 at 5:21 pm

Organization of the Petroleum Exporting Countries (OPEC), the cartel of oil producers, celebrates its 50th anniversary on September 14th. The organisation was founded in 1960 with the explicit purpose of manipulating oil prices by controlling supplies. It has generally proved successful. Here are some interesting nuggets for you to chew while you dig deeper in your pockets to pay for that gallon of gasoline/diesel at your neighborhood gas station:
1. OPEC controls around 80% of the world’s proven reserves
2. Over 40% of the worlds production among its 12 member states.
2. Price of oil in the market these days is $75, which the Saudi’s rave as the “ideal price”.

It begs the question who says what’s the ideal price of oil? Speculative investors in the markets around the world are not helping the cause either. It makes you think why are we so hesitant to move away from the fossil fuels and into some other non-petro fuel to power our lives! This group of oil selling, Armani wearing, kingdom-ruling thugs are no different than the Drug cartels who organize and manipulate the market for a different kind of commodity.

An interesting post on Askmen.com goes into great details about the organization. One of the most shocking that I learned from this article is discussed in the next few paragraphs: “Cartels are illegal in many countries. In the U.S., for example, OPEC is in direct violation of antitrust laws, such as the Sherman Antitrust Act of 1890 — the same act that broke up Standard Oil, American Tobacco and Ma Bell. Antitrust laws don’t criminalize monopolies per se, only if the monopoly is used to eliminate its competition through methods of production or price-fixing.

Ordinarily, U.S. antitrust laws explicitly prohibit dealing with cartels. What makes OPEC so special? Simple: Congress grants OPEC diplomatic immunity from prosecution and in essence treats it as though it were a sovereign nation, even though this is not remotely the case. This status was tested in 1978, when the International Association of Machinists and Aerospace Workers (IAM), a non-profit labor organization in the U.S., filed suit against OPEC under the Sherman Act. In 1981, the U.S. Ninth Circuit Court of Appeals rejected the case, claiming OPEC was protected by its sovereign immunity status.

In 2007, a pair of controversial bills were introduced in Congress designed to amend antitrust laws to include OPEC. If the measures are approved in both houses and the president doesn’t veto it, individuals harmed by OPEC in the U.S. can begin to sue the organization. If this were to happen, few expect OPEC to continue doing business with the U.S.”

Now, would you agree with me that many of the Congressmen and women seem to be in bed with the OPEC?

SOLID PROOF – Driving Makes You FAT!

August 10, 2010 at 3:08 pm

Yet another awesome info.graphic from our friends at GOOD.. This site keeps getting better and better with their info. graphics.. This info.graphic below looks at how people get to work in various states, alongside those states’ obesity rates. It is strikingly obvious, at least from this graphic, that driving plays a big part in the obesity factor. It will be great if someone can do a similar thing with commuting habits and healthcare spending (a larger subset of the Obesity epidemic)

Amplify’d from www.good.is
 

Changing face of Rest Stops – As some states close highway rest stops, others see roadside revenue

August 4, 2010 at 4:04 pm

States that aren’t allowed to lease rest-area space to businesses have to pay millions of dollars each year to clean and maintain the facilities.

Amplify’d from www.stateline.org
Last month on the busy Interstate 95 corridor, Delaware unveiled a new $35 million welcome center, which houses restaurants and shops and is expected to bring additional money to the state.

New Mexico is the most recent case in a rash of rest-stop closures that has affected states from Vermont to California. Facing enormous budget deficits, many states have raided transportation funds, forcing them to shut down all but the most necessary of operations. For Arizona, Louisiana and Virginia, the shuttering of roadside rest stops has become one of the most visible signs of the current budget crisis.

In Delaware, however, the story couldn’t possibly be more different. Last month, Delaware unveiled a sparkling new 42,000-square foot welcome center on the busy Interstate 95 corridor. Not only did Delaware not spend a dime constructing what amounts to a $35 million mini-mall in the highway median. The rest stop actually makes Delaware money. The state’s contract with HMSHost, a company that runs retail operations at many airports, gives Delaware a percentage of revenues from sales of gas, food and other goods — at least $1.6 million per year for 35 years.

There’s always been a difference between the highly commercialized highway rest areas in the Northeast and those in the South and West, where the stops often are little more than parking lots with bathrooms and perhaps some vending machines. But the contrast has never been more stark than it is now. The states with commercialized rest stops like Delaware are free to find ways to milk them for more and more revenue. Meanwhile, the states without commercialization are coming to see highway rest areas as a financial drain they might just as well do without.

Read more at www.stateline.org