The G8 calls for global action on oil but real culprits – India, China, and OPEC stay untouched
victor Upadhaya
Jun. 8, 2008

The only way to bring oil price down is to ration oil to countries that subsidize the same to their own population diverting outsourcing money from America and Europe. The G8 expressed “serious concerns” about soaring oil prices and urged producers to lift production through greater investment and provide more transparency on oil supply data.

Blaming the futures market and OPEC may not solve the problem. On one side, the current oil price is the result of failed policies in Europe and America since 1980. On the other hand the rich corporations of the same nations have gained from the outsourcing from India, China, and other countries. They have supplied these Government the money to subsidize petroleum products to its own native population to gain popularity.

The end result is a $2500 car from Tata for Indians who make less than $50 a month and use gasoline well subsidized by a Government who is looking to stay in power with the help of the votes of these people. In India and China, personal and credit card debts are soaring beyond imagination.

While OPEC enjoys the ride and does little other than making sure Bush family in America is happy and Halliburton and Cheney look alikes make their day, the real trouble comes from American-Russian relationships.

Two countries in the world can turn around the Oil crisis in the short run – Canada and Russia. But Russians have no reason to do anything. They want to take a Tit for Tat approach to Bush’s missile deployment, which is a bigger mistake than the Iraq war. A higher oil price is trouble for Japan, Europe and America. Why should Russians do anything to solve the oil crisis?

The G8 has a lot of words but little resolve to do anything.

The steps needed to solve the oil crisis are as follows:

• Stop globalization of trade – stop China and India from enjoying outsourcing money and direct foreign investments. That will force them to stop oil subsidy. Free market price will automatically curb the oil demand among the two billion people in India and China.
• Normalize relations with Russia and make them pump oil and gas like never before.
• Put a special 30% tax on all company profit if they do not reinvest the same in refineries and oil exploration.
• Have an open discussion on oil with OPEC. Make sure they realize that they face UN Security Council military action if they do not lower the price of oil to below 460 a barrel.
• If India and China continues to subsidize petroleum products, ration the same to these countries.
• Provide tax holidays for alternative clean fuel enterprises.
• Encourage high vehicle mileage through tax incentives to consumers and auto makers.

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The G8 calls for global action on oil but real culprits – India, China, and OPEC stay untouched
victor Upadhaya
Stop China and India from enjoying outsourcing money and direct foreign investments. That will force them to stop oil subsidy. Free market price will automatically curb the oil demand...
READ MORE>>

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