IMF / Iran / Israel / Libya / Oil / OPEC / Qatar / Saudi Arabia

The Perils of Reporting The Obscene Business Of Tanking the Global Economy (Part 8)

Just as Dominique Strauss-Kahn (DSK) was forced to resign as head of the International Monetary Fund (IMF) following his spectacular arrest for allegedly raping a Muslim hotel maid in New York City, the IMF, under his leadership, was engaged in aggressively probing the tawdry exploits of certain energy rich nations, exposing, as it happens, a scandal of immense proportions, a scandal with profound, and far reaching global implications, a scandal that should have been met with outrage, protest and international condemnation–a scandal that, rightly, should have resulted in international headlines.

Instead, as fate would have it, the headlines went to IMF chief Dominique Strauss-Kahn.

In surprisingly explicit detail, the IMF began releasing information on the sudden, dramatic surge in the price of oil and its devastating, near catastrophic impact on the world’s economy and global security in the “International Monterey Fund (IMF) World Economic Outlook Report” published on April 11, 2011 as reported by alifarabia the following day in: “Global Recovery May Slip on High Oil, But Boost Saudi Economy.

Published while DSK was at the helm, it is easy to see how some might have found aspects of the IMF report to be just a little too lurid for comfort.

The report estimates a staggering 36% increase in the price of oil in 2011 that, if sustained, would have devastating implications for an already tenuous global economic recovery, leading, the IMF concluded, to even greater political instability and deepening the hardship for an estimated (some say conservative figure of) 205 million people worldwide unable to find work— a number that, since 2007, it notes, had already risen 30%.

Noting that even when the price of oil reached between $70 and $80–a pricing structure that had been deemed “fair”–the Organization of Petroleum Exporting Countries’ (OPEC) quickly moved to engorge their profits further still employing the tried and true performance enhancing technique of low “output response,” even in the face of the purportedly regional turmoil driven “disruptions” to supply.

Most notably, Saudi Arabia and Qatar, the IMF’s reported, stood to disproportionately profit in 2011 with the Saudi’s GDP swelling 7.5% placing it third among the G20 nations for highest growth levels, while Qatar (home to Al-Jazeera and the spiritual leader of the Muslim Brotherhood ), was expected to surpass all others with its growth ballooning a jaw dropping 20%.

In fact, as many nations were facing dire financial peril, OPEC nations, according to the IMF, were expected to thrive on the manufactured supply crisis and ensuing hardship; the United Arab Emirates, it estimated, would see its GDP rise 3.3%, while Iraq and Kuwait will show a 9.6% and 5.3% rise respectively.

The orgy was on. And with the United States committed to providing a steady supply of the latest in weapons grade Viagra in Libya, it promised to be wildly orgasmic—for the privileged few invited. But all this was at a price.

The IMF cautioned that the resulting spike in the cost of commodities and trade would have ever widening, virtually inescapable “repercussions”.

Already reeling financial markets and investments, the IMF predicted would suffer greater setbacks, acerbating the increasingly insurmountable fiscal challenges faced by governments already in the red and barely managing to remain operational.

In effect, the IMF was describing nothing less than an aggressive, global offensive, not just on the world economy, but on national governments already on the brink, and nearing collapse.

Saudi Arabia and Qatars’ less fortunate kin in Egypt and elsewhere, the IMF warned, were likely to be especially hard hit. “There are downside risks to supply including geopolitical risks,” the reports says, “that imply that oil scarcity could be more severe and may materialize in large and abrupt changes.”

It goes on to explain the resulting globalized nature of the impact on the Middle East noting that,

“…slower-than-expected recovery in advanced economies would adversely affect the region’s export earnings, fiscal and external balances, and growth.”

Collapsing first world economies, deftly sodomized by exorbitantly inflated energy costs far in excess of established fair market values, would have even less to spend on the exports and industries of the non oil exporting Arab nations thanks to the immense wealth being extracted out of the global economic system by Saudi Arabia, Qatar, and other corrupt energy rich entities and corporate oil giants, stoked by their contrived limits on ‘output’.

All this was destined to fuel still more regional unrest and turmoil condemning poorer Arab nations to ever deepening unemployment, runaway food prices, poverty, and escalating political instability — even as it is that very unrest and “tension” in the Middle East that is erroneously named as the root cause of the higher oil prices.

Thus far, the wealthy Arab elite have shown no particular interest in sharing their astronomical revenues with their desperate Muslim brethren, unless, that is, it’s to incite still more profiting yielding turmoil, violence, poverty and war.

And why not? The return on investment has been exceptional.

By July of 2011, IMF profit projections for oil producing nations had gone from disturbingly hardcore to unfathomably obscene. According to an article on from July 2011:

Saudi Arabia’s oil revenues ” it was announced “will reach $324 billion this year, a sharp increase from the $153 billion in 2010 income

That’s an increase in income of $171 billion in just one year for Saudi Kingdom alone.

The much criticized aid given to Israel (the bulk of which comes in the form of loan guarantees, and is largely dispersed to American manufacturers ) is incidental in comparison to the absolutely astronomical revenues flowing unfettered, and without protest into the coffers of the desert oil Barons.

Indeed, according to Alarabiya,

The IMF is forecasting that the cumulative oil revenue for members of the Organization of Petroleum Exporting Countries (OPEC) will exceed $1 trillion this year [alone]…

Meanwhile, Iran, an OPEC member and the fourth-largest oil exporter and producer in the world, will earn about $100 billion of that sum, according to the IMF’s “World Economic Outlook” report, a substantial increase from 2010’s $72 billion in revenue.” 

These astronomical revenues are derived—not from actual shortages in oil. Indeed, they exceed even the faux ones blamed on regional unrest and war—but on what in effect translates into a stealth excise tax imposed on the planet—an immense, destabilizing transfer of wealth to unelected, authoritarian regimes with disproportionate influence at a time of crushing economic crisis –all done with the obvious collusion of  the Washington elite: both Democrat and Republican.

It is jizya defined.

As ever, in the face of the mounting fiscal disaster facing the United States, there have been renewed calls from Libertarians, Leftists, peace activists and now even a coalition of Christian groups to condemn the devastating financial burden being placed on the American taxpayer. Their demand? End aid to Israel.