According to this article, Shaul Mofaz, an Israeli cabinet minister and former military chief and defence minister has said in a published interview that “Israel would have no choice but to attack Iran if it doesn’t halt its nuclear program.” The article then goes on to say that “Mofaz has been Israel’s representative in a strategic dialogue on Iran with U.S. officials.” In this context it’s pretty safe to assume that “strategic dialogue” is political /military code for war planning. It’s axiomatic that tactical plans are already in place.
Is Iran really a bullwark for oil prices?
The head of the IEA contends that market fundamentals (supply & demand) account for the 50% increase in the cost of oil since the start of the oil price spike in 2008. We can safely say that is balderdash because there is no way in the world that demand for oil has increased by 50 percent in 6 months as it has in the past. It is really wild, unregulated speculation in the futures markets that has been responsible for the dramatic shifts in the world pricing of oil and food. In the past, and now, it has gotten so bad that Dr. Keith Martin, an MP in Canada, started calling out for an investigation into market manipulation.
Someone (most likely a cabal of hedge fund managers) has figured out a way to “corner the market” on commodity futures. They must be stopped if even by the most draconian of means. In our wildest dreams we can imagine a surprise freeze on trading in all the world’s commodity markets. At that point, full disclosure would be imposed on all parties and appropriate taxation could be levied.
This is not a conspiracy theory – it’s obvious from the unprecedented swings in commodity prices that markets are being manipulated around the world. The most obvious villain in this scenario are the hedge funds with their opaque nature and ability to control vast funds with relatively little capital at stake. Witness the losses suffered by investment bankers in the recent mortgage debacle.
The oil prices reflect the absolute highest price the oil companies and elistist stock market goers can possibly make it. People are being slowly manipulated into thinking these prices are “just a sign of the times” and will continue to buy into it. As the manipulation continues, the price will be higher. Whether people can afford to eat or be healthy is of no concern to them whatsoever.
What would happen to the world economy if Iran were attacked?
#1) The Price Of Oil Would Skyrocket – One of the very first things a war with Iran would do is that it would severely constrict or even shut down oil shipments through the Strait of Hormuz. Considering the fact that approximately 20% of the world’s oil flows through the Strait of Hormuz, world oil markets would instantly be plunged into a frenzy. In fact, some analysts believe that oil prices would rise to $250 per barrel.
#2) Fear Would Explode In World Financial Markets – Even without a war, the dominant force in world financial markets in 2010 is fear. We are already seeing unprecedented volatility in financial markets around the globe, and there is nothing like a war to turn fear into a full-fledged panic. And what happens when panic grips financial markets? What happens is that they crash.
#3) World Trade Would Instantly Seize Up – Once upon a time the economies of the world were relatively self-contained, so a war in one area would not necessarily wreck economies all over the globe. But all of that has changed now. Today, the economies of virtually every nation are highly interdependent. That has some advantages, but it also has a lot of disadvantages.
#6) Massive Inflation – A huge jump in the price of oil and dramatically increased military spending by the U.S. government would most definitely lead to price inflation. We would probably see a dramatic rise in interest rates as well. In fact, it is quite likely that if a war with Iran does break out we would see a return of “stagflation” – a situation where prices are rapidly escalating but economic growth as a whole is either flat or declining. Read the rest of the points at Pravda.