The Colossal Oil Fraud You Probably Don't Know About.

The Global Oil Scam

$2.5 Trillion – That’s the size of the global oil scam.

It’s a number so large that, to put it in perspective, we will now begin measuring the damage done to the global economy in “Madoff Units” ($50Bn rip-offs). That’s right – $2.5Tn is 50 TIMES the amount of money that Bernie Madoff scammed from investors in his lifetime, yet it is also LESS than the MONTHLY EXCESS price the global population is being manipulated into paying for a barrel of oil.

Goldman Sachs (GS), Morgan Stanley (MS), BP (BP), Total (TOT), Shell (RDS.A), Deutsche Bank (DB) and Societe Generale (SCGLY.PK) founded the Intercontinental Exchange (ICE) in 2000. ICE is an online commodities and futures marketplace. It is outside the US and operates free from the constraints of US laws. The exchange was set up to facilitate “dark pool” trading in the commodities markets. Billions of dollars are being placed on oil futures contracts at the ICE and the beauty of this scam is that they NEVER take delivery, per se. They just ratchet up the price with leveraged speculation using your TARP money. This year alone they ratcheted up the global cost of oil from $40 to $80 per barrel.

A Congressional investigation into energy trading in 2003 discovered that ICE was being used to facilitate “round-trip” trades. ” Round-trip” trades occur when one firm sells energy to another and then the second firm simultaneously sells the same amount of energy back to the first company at exactly the same price. No commodity ever changes hands. But when done on an exchange, these transactions send a price signal to the market and they artificially boost revenue for the company. This is nothing more than a massive fraud, pure and simple.

More...

Amazing.

The lawlessness is on such a grand scale it's almost pointless to try and stop it.



Look at this interesting ATS thread from over a year ago:

‘Perhaps 60% of Today’s Oil Price is Pure Speculation’

It's source article stated at the time:

...how today’s oil prices are really determined is done by a process so opaque only a handful of major oil trading banks such as Goldman Sachs or Morgan Stanley have any idea who is buying and who selling oil futures or derivative contracts that set physical oil prices in this strange new world of “paper oil.”

With the development of unregulated international derivatives trading in oil futures over the past decade or more, the way has opened for the present speculative bubble in oil prices.

...

In the most recent sustained run-up in energy prices, large financial institutions, hedge funds, pension funds, and other investors have been pouring billions of dollars into the energy commodities markets to try to take advantage of price changes or hedge against them. Most of this additional investment has not come from producers or consumers of these commodities, but from speculators seeking to take advantage of these price changes. The CFTC defines a speculator as a person who “does not produce or use the commodity, but risks his or her own capital trading futures in that commodity in hopes of making a profit on price changes.”

The large purchases of crude oil futures contracts by speculators have, in effect, created an additional demand for oil, driving up the price of oil for future delivery in the same manner that additional demand for contracts for the delivery of a physical barrel today drives up the price for oil on the spot market. As far as the market is concerned, the demand for a barrel of oil that results from the purchase of a futures contract by a speculator is just as real as the demand for a barrel that results from the purchase of a futures contract by a refiner or other user of petroleum.

So not only were the players neither producers nor consumers, they really weren't buyers or sellers either. The lion's share of the entire market was nothing but a sham!

Now you know how it really was done.

:shk:





[edit on 13-11-2009 by loam]

I don't mean to belittle your point here, as I agree with it but wouldn't this be true of much of our entire world economy?

Isn't this how stock markets work?

reply to post by Seiko


No. This is NOT how it is supposed to work.

This is outright FRAUD. There is nothing obscure leading to that interpretation.


[edit on 13-11-2009 by loam]

Speculation indeed and very controlled IMO.


But as usual, this will be swept under the rug. Election year is coming and those members running need those contributions.

Speaking of oil, whatever happened to Obama's and Pelosi's pledge to go after the oil companies and make them pay?

reply to post by loam


I agree it's fraud, but......

Maybe I'm cynical, or I just don't understand economics very well...

Isn't this how they've been working for quite some time? What makes this different from the way other economic manipulations work?

The gold market works the same way.

There is 20 times more gold in the market then there is gold out there being sold as paper gold.

This scam will work till someone goes bust and brings the system down.

Then we will have a crash unlike any other.

When the gold market crashes it will bring down many of the other markets.

these tungsten filled gold bars that have been found may makes every one worry about there gold bars.
www.marketoracle.co.uk...
www.tungsten-alloy.com...
www.dailypaul.com...

The large purchases of crude oil futures contracts by speculators have, in effect, created an additional demand for oil, driving up the price of oil for future delivery in the same manner that additional demand for contracts for the delivery of a physical barrel today drives up the price for oil on the spot market. As far as the market is concerned, the demand for a barrel of oil that results from the purchase of a futures contract by a speculator is just as real as the demand for a barrel that results from the purchase of a futures contract by a refiner or other user of petroleum.

Geez, anybody wonder how "Slick Willy", who never held a job in the private sector in his entire life and is now worth 400+ million dollars,made his fortune?

Think about it next time you pump gas into your car.

[edit on 13-11-2009 by RDR17]

[edit on 13-11-2009 by Seiko]

reply to post by loam


I just heard about this scam on a radio show called Phil's Gang, he explains how the stock markets/ commodity markets work.

I'm NOT trying to push this show, but just saying he doesn't do this stuff for money, he does it to raise money for St. Judes Hospital for Kids and to try to make people wake up and realize what the stock market really is for, and it aint to make money for you!

And, what happened to DRILL HERE, DRILL NOW garbage the Repube-licans were screaming about a year ago?!?

ARRRRRRGGGHHH!!!

reply to post by ANNED


I sit here scratching my head thinking WTF is going on here....... we people are so COMPLETELY screwed over by governments of all countries it may seem that the only thing to do at this point is to get off the grid and live off the land, Ohhhh wait we aren't allowed to do that either....

Yep we are in fact 100% completely HOSED folks...... its all a big game and we are the game pieces.

so whats the answer? frankly there is none, point of no return was passed many years ago. so we are just passengers on the train wreck folks..... no stopping it now.

Free market capitalism is full of holes. If you bring the government into the mix, well, damn if you do, damn if you don't. Fraud is fraud nevertheless.

reply to post by Jazzyguy


I don't know why you blame Capitalism? The problem isn't a market ideology. The problem is CRIMINALITY. That can be had in any system.

Case and point.

I will say, however, we are supposed to better at policing against such things.

reply to post by loam


It is the job of the Government to protect the consumers from Fraud. Our Government is good at it. It is not that we don't have the laws. Politicians not looking the other way, they also protect them. I remember Senior Bush as president allowed Chevron to buy out Amoco. Ever since the Gas from
33 cents a gallon gone up above 1 dollar and is going up and up. Don't forget 80% of World Oil production is in control of Amertican Oil Cartel. It is not enough they want the oil of Iraq, Iran, Kazikistan etc. despite the fact that they are sitting on vast reserves here at home.

This has been going on for ages and unfortunately is the nature of the beast. The positive is that by purchasing commodities in futures contracts , one can control as well as project their future costs.

One of the first commodities traded was gold and the two major markets were located in Paris and London.
The Rothschilds would use carrier pigeons flying across the English channel from France to get the Paris closing prices before the London market opened the next day based upon prices delivered by courier.

The Rothschilds were the first market manipulators. They bet on everything including the outcome of wars. THey'd fund both sides of a war and control the outcome by providing less capital to the side they'd chosen in which to be defeated.

The land in Palestine that Israel now occupies was conveniently taken from the Turks for non payment of war loans after they'd lost WWI while allied with the Germans.

There is nothing new under the sun....

Very easy way to fix this problem.




Green technology is the answer.


Otherwise you better get used to a commercial bank like Goldman Sachs buying whole oil liners and keeping them parked out at sea for months at a time to manipulate market prices. Yea that what they did last year.

There used to be a law that prevented banks from buying commodities.

I was with family at a mystery dinner show and there just happened to be two other couples sitting with us. Well, it seems the men worked in the Oil industry and man the stuff I overheard.

We the people are so living in the cocoons they supplied us with, we need to wake up faster before this beautiful Planet is raped of everything good.

Originally posted by Seiko
reply to post by loam

 

I agree it's fraud, but......

Maybe I'm cynical, or I just don't understand economics very well...

Isn't this how they've been working for quite some time? What makes this different from the way other economic manipulations work?

Other economic manipulations are almost entirely driven by supply and demand. Oil is not quite so.

-rrr

The problem becomes how to separate the boomers retirement investment in the market from the gambling operation being ran by world banks. This problem will have to be solved before they can shut down these fraudulent scams.

This stuff has been shut down before, and it can be shut down again.

This is the result of the deregulation of the banks and the investment industry by the neocons with their contract on America back in the late nineties. Gingrich and the boys opened the bar for the big banks, and they have been guzzling up ever since.

Wasn't the $4.50 - $5.50 per gallon gas price last fall right before Bush gave them all the first "bailout"? Hmmm.... wonder if that was a blackmail attempt that paid off BIG. See what we can do to the people who will vote you out of office if you don't give us $B??? I guess it worked.

[edit on 13/11/2009 by Iamonlyhuman]