Oil and gas for euro
simply because
the euro is evolving into a Gold Euro

The annual Oil & Money Conference will be held at the InterContinental London Park Lane on 28 and 29 October 2008.
The Conference is being hosted by Energy Intelligence and by the International Herald Tribune.
This year’s theme of the Conference is “The New Realities of High Cost Oil”. (1) (2)

The programme says that the Conference will assess the current and future trends affecting the global energy business.
The topics to be addressed do however not include the imminent collapse of the currency in which energy is being priced on international markets.
Why does the title then speak about “Oil & MONEY” and the subtitle about “High COST Oil”?

Energy is being priced on international markets in US dollar.
Since 15 August 1971, when USA president Richard Nixon broke the Bretton Woods system, the US dollar has no more value.
Hence, this planet was confronted in 1973 with its first oil crisis.

MONEY

Why is money not on the programme of the Oil & MONEY 2008 Conference which is going to discuss high COST oil?

Could it be that someone is speculating about that money, the US dollar, being replaced by the Gold Euro?
Could that explain why OPEC, the Organisation of Petroleum Exporting Countries, and the European Union (EU) on Tuesday 24 June 2008 supported more oversight of oil markets? (3)
Why is it then that Jean-Claude Trichet, the European Central Bank (ECB) president, on Wednesday 25 June 2008 rejected the argument of some European politicians that speculators are behind recent sharp rises in world commodity prices? (4)
Nobody will tell us.

Could it be that oil is being traded on this planet for gold
and
that the sellers of oil have only the real value of gold in mind, not the present US dollar-denominated value of gold?
Nobody will tell us.

The sellers would thus be converting their petrodollars to gold.
Could it be that the sellers are speculating with the dollar-regime in order to extend the period during which they will still be able to proceed to this conversion at cheap gold prices?
Nobody will tell us.

The dollar-oil bubble is not yet finished.
It will stop when the Gold Euro will arise.

The Dutch (and Belgian) press reported on Wednesday 25 June 2008 that ECB president Jean-Claude Trichet told in a reply to a question by a Dutch member of the European Parliament that oil will FOR THE MOMENT (“voorlopig”, “provisionally/in the interim”) not yet be priced in euro. (5)(6)

WHEN BUBBLES BURST

It is important that when the present bubbles will burst, “we” make sure that a new business cycle, eventually leading to new bubbles, does not commence.

Business cycles are caused by government manipulation of the money supply setting the stage for the “boom-bust” phases of the modern market.
That’s what the Austrian School of Economics of Mises, Hayek, Rothbard and their followers tells us.

In the last 25 years, we first had the dollar bubble with the dollar at 3 Deutsche Mark.
This ended with the 22 September 1985 Plaza Accord whereby France, West Germany, Japan, the United States and the United Kingdom agreed to, amongst others, depreciate the US dollar in relation to the Japanese yen and German Deutsche Mark by intervening in currency markets.
Then we had the 2000 Nasdaq/Easdaq-bubble, also totally engineered by the dollar-regime fraternity.
Now we are faced with the housing bubbles and the oil and food bubbles.

Gold is the inflation hedge par excellence.

The Gold Euro makes government manipulation of the money supply, and thus business cycles and bubbles, impossible.

In order to prevent the bursting of the present bubbles being followed by new business cycles,
eventually leading to new bubbles and to the Greater Depression,
it is of the utmost urgency that we realise that
the inflationary policies of the central bank of the USA, the Federal Reserve, from 1921 to 1929 are evidence that the depression was essentially caused not by speculation,
but by government interference in the market.

By the same token, it is of the utmost urgency that we revise John Maynard Keynes’ explanation of the (first) Great Depression as being caused by capitalism being incapable of saving itself, on the one hand, and by government doing little to rescue an intellectually bankrupt market system from the consequences of its own folly, on the other hand.
Then it will become clear that the severity of the 1929 crash was not due to unrestrained licence of a freebooting capitalist system, but to government insistence on keeping a bubble going artificially by pumping in inflationary credit. (7)

Upon the revision of John Maynard Keynes’ explanation, it will also become clear that gold’s all-time high of 850 dollar an ounce in 1980 was NOT a bubble.
Indeed, we recently visited a price of gold of 1035 dollar an ounce.

Gold’s uptrend is not yet finished because other bubbles, such as the oil and commodities bubbles are coming into existence.

At the end of the day, we shall be able to judge whether gold’s uptrend was a bubble.

Oil producers know that gold will not appear to be (have been) a bubble.

Fundamental changes are indeed in the pipeline.

One of these changes is the ECB’s FreeGold-concept.

Once
this planet will be allowed to know that
the past three decades of cheap Arabian oil
have been made possible by the flow of cheap gold
to the Saudi Arabia oil-central bank
then
most will start to understand what the Gold Euro really means.

Oil and gas for euro
simply because the euro is evolving into a Gold Euro
through the ECB marking its gold reserves to market.

It is to be hoped that this issue will somehow be tabled at the Oil & Money 2008 Conference.

Ivo Cerckel
ivocerckel AT siquijor DOT ws

NOTES

(1)
http://www.energyintel.com/om/

(2)
http://www.ihtinfo.com/pages/e_oil_2008.html

(3)
EU’s Piebalgs: OPEC And Us Support More Oversight Of Oil Mkts
By: iStockAnalyst   Tuesday, June 24, 2008 7:48 AM
http://www.istockanalyst.com/article/viewiStockNews+articleid_2308600~zoneid_Home~title_EU’s-Piebalgs–OPEC-And.html
SNIP
BRUSSELS -(Dow Jones)- The E.U., along with OPEC, support a push for tougher oversight of the world’s oil markets, the 27-nation bloc’s energy commissioner said Tuesday, with moves by U.S. and U.K. regulators being key, the oil producer group’s president added.
Speaking after a meeting between top Organization of Petroleum Exporting Countries officials and the E.U., energy commissioner Andris Piebalgs told reporters that “both sides support more supervision in the markets.”

(4)
Trichet boosts expectations of rate rise
By Tony Barber in Brussels
Published: June 25 2008 11:45
http://www.ft.com/cms/s/0/8ae93948-42a2-11dd-81d0-0000779fd2ac.html
SNIPS
Jean-Claude Trichet, the European Central Bank president, on Wednesday rejected the argument of some European politicians that speculators are behind recent sharp rises in world commodity prices.
“I am not sure that speculation is the major culprit for what we are observing. The major issues are associated with supply and demand,” Mr Trichet told a European Parliament hearing.
+
Wilhelm Molterer, Austria’s finance minister, is the one of the EU’s main proponents of such a tax, asserting three weeks ago that about €25bn of speculative money had poured into commodities futures markets since the start of this year.
But Mr Trichet disputed this argument, saying: “It is not the futures market itself that is the problem. The problem is that this is across-the-board reallocation of portfolios that gives more weight to commodities in general.”

(5)
Trichet: olie voorlopig niet in euro’s verkocht
BRUSSEL -
http://www.dft.nl/nieuws/4314880/Trichet__olie_voorlopig_niet_in_euro_rsquo_s_verkocht.html
SNIP
De olieprijs wordt voorlopig niet uitgedrukt in euro’s in plaats van dollars. Volgens president Jean-Claude Trichet van de Europese Centrale Bank (ECB) voeren enkele Golfstaten en de ECB daarover nu althans geen specifieke gesprekken.
Trichet antwoordde dat woensdag in het Europees Parlement op een vraag van CDA’er Cornelis Visser. Zes Golfstaten hebben besloten na te denken om de olieverkoop te ontkoppelen van de dollar.

(6)
Trichet: olie voorlopig niet in euro’s verkocht
WOENSDAG 25 JUNI 2008, 13:03
http://www.beursduivel.be/Trichet_olie_voorlopig_niet_in_euros_verkocht-50462.news
SNIP
BRUSSEL (AFN) – De olieprijs wordt voorlopig niet uitgedrukt in euro’s in plaats van dollars. Volgens president Jean-Claude Trichet van de Europese Centrale Bank (ECB) voeren enkele Golfstaten en de ECB daarover nu althans geen specifieke gesprekken.
Trichet antwoordde dat woensdag in het Europees Parlement op een vraag van CDA’er Cornelis Visser. Zes Golfstaten hebben besloten na te denken om de olieverkoop te ontkoppelen van de dollar.

(7)
Paul Johnson, “Introduction to the Fifth Edition”, in: Murray N. Rothbard, “America’s Great Depression”, Auburn, Alabama: Ludwig von Mises Institute , 2000, 5th edition, extract quoted on the cover