Reply #11: The inaction of the US government may be deliberate [View All]

[fedsron2us]

Some analysts think that the White House is intentionally exacerbating the energy crisis in order to undermine the growth of the Chinese economy. It would not be the first time that a Republican administration had used the oil price as a political weapon. The Goldman Sachs predictions just help to prime the market

http://www.lancasteronline.com/pages/news/local/4/13108

An article in this months Wried magazine highlights the importance of oil to Chinas plans for growth

After food, oil is the most important issue for Chinese economic planners. Without an increasing supply of oil, high GDP growth will be impossible, creating unemployment and social unrest, potentially threatening the government's hold on power. That's not all. Dependency on foreign oil, in Yang's opinion, inevitably leads to war. Every official I interview makes the same point. Yang uses a pun to summarize the leadership's view: "If you pump for oil, you have to fight wars for it." (Pump and fight sound similar in Mandarin.)

http://www.wired.com/wired/archive/13.04/china.html?pg=2&topic=china&topic_set=


The name of the game is to maintain US political and economic hegemony.

As long as the price of oil is denominated in dollars and the profits are recycled back through the US banking system and capital markets do not expect the current administration to take any more than token action to prevent a spike in the oil price.