Lindsey Williams was *RIGHT* - $50 a barrel oil!!! (UPDATED!)

[link to watchman-news.warn-usa.com]



Gold, Silver, Economy + Lindsey Williams’ $50/barrel & Dollar Collapse Scenario

By: Bob Chapman, The International Forecaster

Posted Sunday, 27 July 2008

US MARKETS

Lindsey Williams, who has been an ordained Baptist minister for 28 years, went to Alaska in 1971 as a missionary. The Transalaska oil pipeline began its construction phase in 1974, and because of his concern for the spiritual welfare of the “pipeliners,” Mr. Williams volunteered to serve as Chaplain on the pipeline, with the subsequent full support of the Alyeska Pipeline Company. Because of the executive status accorded to him as Chaplain, he was given access to the information that is documented in his book, “The Energy Non-Crisis,” which shows that peak oil is a scam because our domestic reserves in the North Slope of Alaska alone are at least as large as those in Saudi Arabia and are potentially large enough to power the US with domestic oil for two centuries. Recently this year, due to the sensitive nature of his book, Mr. Willians’ life was threatened and he was forced to shut down his web-site and stop selling his books and CDs. At the urging of Dr. Stanley Monteith of Radio Liberty, he called back the same oil executive who had warned him about the danger he would be in if he continued to disseminate certain information to ask if in fact there was any information that he could in fact convey to the public without upsetting the powers that be. The oil executive, who Mr. Williams had known for years, gave Mr. Williams some startling revelations which he could safely reveal to the general public.

Basically, Mr. Williams was told that over the next twelve months, from mid-2008 to mid-2009, (1) news of super giant oil fields, ready to produce, would be announced for two locations, in the Northern Slopes of Russia and in Indonesia, which oil fields would together contain more oil reserves than the entire Middle East; (2) that this news would drive oil prices down to $50/barrel; (3) that OPEC countries, especially in the Middle East, would be bankrupted by this price decrease; (4) that this would cause the financing of our foreign trade and current account deficits through purchases of treasury paper by foreign nations with their surplus oil profits to collapse, leading to the collapse of the dollar; (5) that the collapse of the dollar would cause unprecedented financial strife and turmoil in the US, and that it would take many years for the US to recover from this financial debacle; (6) that they (big oil) support John McCain for President; and (7) that US domestic oil reserves would never be tapped, and that any legislation which might allow domestic reserves to be tapped would not be allowed to pass, leaving the US dependent on foreign oil forever.

News of the Russian oil field has been announced just as predicted, but whether the rest happens as stated above remains to be seen. Nevertheless, many of these revelations seem quite feasible, so we thought we would comment on how these revelations might play out under the current financial scenario.

Certainly, if the world’s oil reserves, ready to produce, are increased by an amount equal to the total oil reserves of the Middle East, oil could easily be brought down to $50 per barrel. It would almost be like starting all over again from an oil reserve perspective. This would destroy the economies of countries that are currently giving us trouble, such as Iran and Venezuela, allowing us to defeat them without ever firing another shot. Russia would get less per barrel, but would be selling an awful lot of oil out of their vastly increased reserves, so they would be weakened, but not bankrupted. Nations in the Middle East, whose reserves are rapidly dwindling, would all be destroyed from an economic perspective at first, but the ensuing civil unrest would also eventually topple all Middle East OPEC regimes, allowing the US to move in and take over control of their governments and their remaining oil reserves. Countries such as China, Japan and India, who import large portions of their oil, would get a huge shot in the arm from reduced oil prices, and this would also be a great help to the free trade-globalization agenda, which is being strained by high oil prices because transportation costs are offsetting the advantages of cheap labor.

What we envision happening under the scenario revealed to Mr. Williams would certainly start with the stated reduction in oil prices well ahead of elections. This would produce great joy and relief for the sheople and ignite a huge, worldwide stock market rally just prior to elections, making George Bush and congressional incumbents look a lot better and lending support to John McCain, the stated preferred presidential candidate of big oil. Much lower oil prices would support the dollar and suppress precious metals by reducing inflation by the amount attributable to recent oil price increases, but only at first.

The huge rally would give the elitists the chance they were looking for to bail out of paper assets such as stocks, bonds (which would include treasuries) and derivatives at the top of the markets using the dark pools of liquidity known as Project Turquoise and Baikal. The proceeds from the sale of paper assets would then be plowed into real, tangible assets such as commodities, precious metals, real estate, infrastructure, machines and equipment and corporations whose values are heavily weighted in tangible assets, such as resource stocks. The prices of such real, tangible assets would be bought on the cheap due to their ongoing suppression, or at least that would be the Elitetists’ hope, but we see most of these items skyrocketing long before the elitists get their fill of these goodies. Many nations with large forex reserves, like China, Japan and Germany, and especially nations “friendly” to the US, such as Saudi Arabia, who would be hurt by lower oil prices, would be given free reign to invest in tangible, real assets of the US, and this ties in with the cessation of the FTC’s publication of statistics regarding foreign investment in the US as a cover-up for this huge flood of foreign money. These foreign investment reports allegedly were discontinued because such reports cost too much to produce, but essentially this is the same bologna we got from the Fed when they discontinued the publication of M3 to cover up their profligate issuance of money and credit.

All this money pouring into tangible, real assets from the sale of paper assets through dark pools of liquidity outside the view of the public and outside the view of non-insider institutional investors would then ignite a fresh round of wildly spiraling inflation. Such hyperinflation, compounded by direct monetization of treasuries by the Fed to bail out big commercial banks and other financial institutions, including Fannie and Freddie, and to finance burgeoning foreign trade and current account deficits caused by the cessation of foreign investment in treasury paper, would take us to a historical reenactment of Germany’s former Weimar Republic and today’s Zimbabwe.