What are the economic downside of a physical elimination of OPEC ?

Discussion in 'Economics' started by SNBthetrue, Jan 7, 2010.

  1. Hello,

    After posting on the fed, the currency etc... And with the help of all the posters in this forum, I came to the conclusion that the biggest ennemy of the Free Market wasn't the Fed or the Gov, because I really trust the heart of all these dedicated civil servants. Their mission is really hard, there is no PnL to know if they are right... however they keep improving, correcting mistakes ( at least for the Fed :D ). However I realized that all economies of the world had a common ennemy. It's OPEC.

    "OPEC's mission is to coordinate and unify the petroleum policies of Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital to those investing in the petroleum industry."
    ( http://www.opec.org/home/ )

    and a picture :

    http://www.opec.org/library/Annual Statistical Bulletin/interactive/2007/FileZ/worldmapz.htm

    However as they are, in my opinion, an illegal, anti-market organization, I think the efficientest way to handle it is trough the Supreme Alliance :

    CHINA + USA.... China takes care of Iran, the USA the rest. When I say take care, I am speaking of mercyless action. The goal isn't to glass the country, just eliminate physically the leaders of this criminal organisation. The problem is that they will be tempted to shut down the oil field...

    However as it's only 13 poor, stupid, retarded countries a few Predators, Tomahawks and 200 millions chinese soldiers, and the 168 US military bases abroad will be enough to eliminate all of them at the same time... Leaving their countries in full chaos for a few months.

    So the main beneficiaries of this ultra, mercyless operation :

    1. the people, real efficiency in the market.
    2. the world, less tension to get the precisous commodity.
    3. the free market ! a fair pricing for oil... and all the volatility during this mission.
    4. the muslim world, that is manipulated now by the OPEC against the World will enjoy peace and prosperity.
    5. the Alliance of China-Usa will remove every risks of WW3.
    6. Isreal, After this strike no more weapon in the middle east, no more aggresive Iran.
    7. the gov-army-intelligence complex, proving that it can serve a real purpose by annihlating the real ennemy of the Market.
    8. The OPEC members were given enough time to change their way, time to see the sword. It will help all the citizens of these countries who are kept under control with the money that their leader gains from oil trades...

    Some comments ? Something that I don't understand ? For this idea to be a succes it's imperative to have the full support of China. If they agree that OPEC is their ennemy too... Game Over for the opponents.

    I am sure that even Observer67 will like the idea :D
  2. pt199


    Wow, can't wait to hear the comments on this one!
  3. I will just add that the PEACE concept work for them too...

    So as I see all the reasons to strike them, I hope that they will be smart enough to cancel their cartel themselves. quickly, it's just a 13 simulatneous call, skype do it well... they don't have time nor choice...
  4. 1) If you were an energy producer instead of merely an energy user, you would feel differently.
    2) To answer your original question, a bigger threat than OPEC would be for a financial organization to overtake OPEC, such as Goldman Sachs.
    3) Please don't praise the FED. :cool:
  5. I actually had high hopes that president hussein could sit down and talk with these bad guys and make them like us.

    That's what I thought he would do....

    ...and be transparent......

    and create jobs with CAT.....


    So disillusioned. How could I be so silly?
  6. The financial system would be in ruins without the Fed.
  7. The problem is that I know that it's the best move possible for all world except them, of course:D ( 182 vs 13 coutries ). Furthermore, I deeply reject the pain that these criminals have done to all the People of the World and know how it can dangerously perturbate our judgments in regards to their crimes...

    However I pray God to help them think clearly, fast and efficiently for only one reason : the PEACE concept ! At least there will be no more deaths... And it will be a very good point for their judgments in the special court for the occasion, Nuremberg trials style, so they will be given the right to defend and co... Maybe they have real arguments for maintening their cartel :confused: , a trial will bring transparency anyway.

    Proper Education Always Corrects Error(s)
  8. Read about the Ottoman Empire, junior.

    Then sell your fruits of love to those "people".
  9. Logic


    The interrupt in the oil supply from such an operation would bring *everything* grinding to a halt.

    Decapitating the OPEC leadership creates a power vacuum, ensuring an ensuing power struggle with the other actors in each of the regions.

    You will essentially be turning every country into Iraq circa 2002. It's taken Iraq ~7 years to gain any semblance of producing oil near its pre-war levels. And this is with American oversight.

    OPEC controls around 43% of the world's oil production.

    Do you really think the rest of the world would be able to stomach a 40% drop in oil production for the next seven years?

    It's a bridge too far, my friend.
  10. What do you call what we have now? Do you have a poster of Volcker, Greenspan and/or Bernanke taped to the ceiling above your bed? :)
    #10     Jan 7, 2010