The strangest thing is the quick rise and the quick fall in oil price. Who is behind it? Let’s take a look at the post from the 28 Oct 2008 Business Day:
— Oil prices sank below $60 a barrel in London yesterday, hitting a 17-month low on worries that a global recession would sap energy demand, and as the US currency strengthened against the euro. In early trading, Brent North Sea crude for December delivery dropped to $59,02 a barrel, the lowest point since February last year. The contract later stood at $62,28, down $1,87 from Friday’s close.
New York’s main contract, light sweet crude for December delivery, tumbled to $61,30 a barrel, a price last seen in May last year.
“Crude prices have continued to slide as global recessionary concerns intensified after dramatic falls in Asian financial markets which saw Tokyo’s Nikkei index fall to its lowest levels since 1982,” said Sucden analyst Nimit Khamar.
“Prices are more or less tracking the movements of global equity markets at the moment, as market participants view the indices as a gauge for economic conditions and hence an indicator for future oil demand.”
On Friday, even after the Organisation of Petroleum Exporting Countries (Opec) announced a 1,5-million- barrel-a-day cut, oil fell $3,69 to settle at $64,15. Prices have plunged 57% from a record $147,27 on July 11.
“The mood is fairly negative, reflecting worry about the international economic outlook,” said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney.
“If there are further weak economic data in the US or Europe, prices could come under more downward pressure.”
Iran’s Opec governor, Mohammad Ali Khatibi, said on Sunday a reduction in production “will be considered” at the group’s next meeting in Algiers in December.
Moore said: “I thought the Opec cut was a fairly decisive act, but concerns of recession in the major economies remain dominant.” Sapa-AFP-AP
When we examine the collapse of the world biggest banks and corporations, we will be able to gauge this suspicion. 30 years ago, there were some hanky-panky things going on in the world financial market in the name of Capitalism. Little did we know that Capitalism is after all not the best answer to the Economy of the world. The very strength of capitalism is its weakest point. A new world order for the financial arena is coming forth. It may be Socialism???? or Social-Capitalism?
No one really knows which form it will come. Certainly the economists of the world are looking to a way to update the old Capitalism mode. It may take years to achieve. The Poor are many and they are getting poorer and the Rich are getting richer. It will come a time when the poor will be so poor that they will rise up against the rich. Social-Capitalism is coined by me. It may be worth look at. Since many countries are advocating no one should live below the poverty line and social security for all the needy including the old and the young and the disabled. Yes many developed nations are doing that already. The question of ownerships and assets have to be re-examined so not to allow artificial inflation and escalating cost like the recent case of the oil price. Some of the basic ingredients or staple food must be controlled and easily accessible to all people. only the luxury items are not controlled. there should also a limit at the top end to check abuses and wastage.
The early church in the New Testament was doing just that. There were lots of poor people then and the rich people of the church sold lands and properties to share. Some took it as Communism. Outwardly it looks like Communism but the philosophy is greatly different. The poor were looked after through shared food and basic essentials. Those who could work and earn should be able to carry on to earn. There was social security for the poor. The able bodied people should go out and bring back more help. Back in the days of the NT, there was no control over the prices and abuses and wastage. Some form of mechanism must come forth to control and monitor the over-pricing and abuses and wastage. It may not seem to be very exciting on the onset but there are plenty rooms for freedom and expression. It is, as I call it, RESPONSIBLE FREEDOM. Capitalism sets no limit both at the top and bottom ends. But RESPONSIBLE FREEDOM will create a narrower platform for Freedom and Play where it should cause excessive suffering and hurts to the less advantages.
Can we begin within our churches? Why not?
(October 27th, 2008 posted in another place)
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