From: Gerald A. Levy (Gerald_A_Levy@MSN.COM)
Date: Sun Apr 18 2004 - 21:16:03 EDT
Tonight's episode on CBS of "60 Minutes" had an interview with the journalist Bob Woodward about his new book _Plan of Attack_. Woodward interviewed 75 government officials, including President Bush, about the internal decision-making within the Bush administration in the months prior to the launching of the war against Iraq. In the interview, Woodward describes how Bush administration officials told Prince Bandar, Saudi ambassador to the U.S., about the decision and plans to go to war -- two days before Colin Powell was told by Bush that he had decided to go to war! The story goes on to claim that Bandar's family and the Bush family are close. The story continued: "Bandar has promised the president that Saudi Arabia will lower oil prices in the months before the election -- to ensure the U.S. economy is strong on election day. Woodward said that Bandar understood that economic conditions were key before a presidential election: 'They're [oil prices] high. And they could go down very quickly. That's the Saudi pledge. Certainly over the summer, or as we get closer to the election, they could increase production several million barrels a day and the price would drop significantly'." Full story: http://www.cbsnews.com/stories/2004/04/15/60minutes/main612067.shtml =================================== Now here's my question, for Cyrus and/or whoever knows something about this topic: If it is true, as Cyrus claims, that oil prices are now competitively determined on world markets, how is it that Saudi Arabia -- acting alone -- can cause a significant drop in the price of oil and gas? This suggests a level of market power that shouldn't be present in a more competitive market, doesn't it? On another matter, it strikes me as somewhat naive on the part of the Bush administration to believe that if oil prices go down then the economy will prosper which will then ensure Bush a win in November. But, maybe they just see it as one component in a larger election campaign plan. In seeking to get Bush re-elected, what exactly would the Saudi Arabian government and royal family gain? I wonder. It would seem to me that too close an association with the Bush administration is a very risky strategy for the Saudi royal family. In solidarity, Jerry
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