Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
 |
Dear Mr. President: |
|
The Honorable George W. Bush, President
of the United States
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500
September 28, 2002
Dear Mr. President:
The editors of the OTC Journal
are writing on behalf of stock market investors everywhere. Our newsletter
is about the stock market, not politics. However, occasionally political
agendas have a significant effect on the market, and now seems to be one
of those times.
The possibility of war with Iraq
is having three major negative effects on the market as follows:
-
Firstly, investors are frozen
like a deer in the headlights, afraid to act with war on the horizon.
-
Secondly, the possibility of
war is artificially inflating the price of oil. High oil prices only benefit
large oil companies and middle eastern producers. This hurts everyone else,
and has a deflationary effect on the economy as activity slows due to higher
costs.
-
Thirdly, the climate of uncertainty
and lack of available capital is hampering expansion. Companies are afraid
to invest in new products and technologies, focused only on preservation
of cash. This is not a climate which bodes well for the end of the recession.
This past Thursday an informal poll
conducted by CNBC indicated 66% of respondents believed your primary focus
should be on the economy. Only 28% believed the Iraq situation should be
your first priority.
The editors of the OTC Journal
are certain you believe you are acting entirely in the best interest
of the American people. However, your critics are building a compelling
case which suggests there could be conflicts of interest which diminishes
your credibility.
Inflated oil prices hurt the American
economy badly. In fact, the only winners are the large multi national companies.
With oil at $32 per barrel, these companies are enjoying windfall profits
from their North Sea and Gulf operations. Prices go up without a corresponding
increase in cost creating windfall profits.
In the meantime, higher oil prices
are hurting many other American industries which are desperately in need
of help. Specifically, lower fuel prices would have the most significant
positive effect on the airline industry, which just this past week was
on Capitol Hill presenting its case for aid to avoid more bankruptcies.
Costs in the airline industry have skyrocketed as they have borne the brunt
of increased security measures at our airports. Air travel has decreased
significantly since 911. Now their costs are skyrocketing again with increasing
fuel costs brought about by the unrest in the Middle East.
Your critics are quick to point out
how deep both your and the vice president's roots are in the oil industry.
Recently we have read many scathing editorials about perceived favoritism
to the oil industry community, especially in light of the windfall profits
major oil is enjoying thanks to your aggressive rhetoric towards Iraq.
As you pointed out in Thursday's
speech, a great deal of progress has made towards rooting out corporate
fraud. Your special Justice Department Task force has to date brought 100
cases in 2 1/2 months. Charges have been brought against 150 defendants.
The SEC has filed 156 actions claiming financial fraud. High profile arrests
have occurred in WorldCom, Tyco, and Adelphia.
However, your critics are quick to
point out that there has no been one single of indictment of any executives
from former energy behemoth Enron. Several news organizations have
been reporting the first indictment of the former CFO may come out next
week. Former Chairman Ken Lay is still a free man, enjoying any one of
his 18 homes he chooses to visit while former Enron employees have watched
their life savings evaporate.
Particularly curious is the long
standing relationship between Vice President Cheney and middle eastern
oil producers. It is widely known a consortium of oil industry giants were
negotiating with the Taliban in the late 1990's to install a pipeline through
the heart of Afghanistan. Here is a quote directly from Mr. Cheney in 1998
when he was CEO of oil services giant Haliburton:
| "I can't think of a time when
we've had a region emerge as suddenly to become as strategically significant
as the Caspian. It's almost as if the opportunities have arisen overnight.
The good Lord didn't see fit to put oil and gas only where there are democratically
elected regimes friendly to the United States. Occasionally we have to
operate in places where, all things considered, one would not normally
choose to go. But we go where the business is." |
On May 2, 1997, Dow Jones reported
several oil giants, with Enron and Haliburton at the forefront,
were looking at spending $22 billion for a pipeline through Afghanistan.
Here is an excerpt from that report:
| For many years under Soviet
control, the mineral-rich nations of central Asia have had little return
for their wealth. Now two of the republics, Turkmenistan and Uzbekistan,
are looking west for assistance in exploiting their resource, and major
companies, including Unocal Corp. (UCL) and Enron Corp. (ENE), have moved
swiftly to try to fill the void. Argentine oil firm Bridas, an early entrant
in the fray, is trying hard to defend its ground against U.S corporate
and government muscle.
In an effort called the ''project
of the century,'' by its creators, Mitsubishi Oil Co. (J.MBO), China's
National Petroleum Corp. and an affiliate of Exxon Corp. (XON) plan to
build a massive $22 billion gas pipeline from central Asia through China
to Japan.
Asia's need for energy to power
its growing economies is increasing rapidly. Japanese gas demand is expected
to double by 2010 and China and Pakistan will soon face acute fuel gaps,
some of which could be fulfilled with reliable, and possibly cheaper sources
in central Asia.
Now the U.S. oil and gas companies
face their sternest test - getting the oil out of central Asia while avoiding
Russia, Iran and China. Their main option: Afghanistan . The latest Review
details the power plays of the new Great Game, the intrigue and the betrayal
as the West's executives, diplomats and other experts court both the dictators
of central Asia and the radical Islamic fundamentalists of Afghanistan
's Taliban.
The Far Eastern Economic Review
is published by Dow Jones & Co., publisher of The Wall Street Journal,
Barron's and this newswire.
(END) DOW JONES NEWS 04-02-97
4:29 AM |
There is clear evidence major oil
companies were looking to do business in Afghanistan in the late 90's.
The door is now open with the Taliban unseated. Furthermore, the current
President of Afghanistan, Hamid Kharzai, is a former oil executive at Unocal.
The Enron, Unocal, and Haliburton ties are all well documented, and unfairly
erode your credibility in this arena.
After the technology bubble burst
in March of 2000 investors felt the Bear market might be waning towards
the end of last summer. Then 911 came.
Investors felt the bear market might
be waning towards the end of 2001 as we recovered from 911, then Enronitis
hit the market and triggered the unveiling of many other instances of corporate
fraud.
Stock market investors have now suffered
through the worst bear market in history, and the longest bear market since
the Great Depression. We have all been praying for some relief.
The technology bubble, 911, and corporate
fraud were out of your control. However, it is in your control to take
steps to rein in the price of oil. Corporate expansion is at a standstill
as capital in no where to be found. The consumer, the only group that has
been keeping us out of deep recession, is running out of steam.
We ask you to carefully consider
the effect of your actions on the American economy. High oil prices will
kill any possibility of a return to growth. Therefore, we ask you to use
your powers to bring stability to the Middle East as quickly as possible.
The longer this drags out the worse it is for the market. Work with the
oil producing countries to reduce the price of oil. The American economy
would flourish and everyone would benefit from your efforts.
We realize our national security
has to be priority one, and we certainly don't have all the answers. We
just know stock market investors are sick of this never ending bear market,
and would love to see an upside bias return. Our hopes and prayers are
with you. We know you have the best interests of the American people at
heart.
Regards,
The Editors of the OTC Journal
Your comments are welcome.
If scheduling allows, we may publish some responses next week for everyone
to read. Email your thoughts to info@otcjournal.com.
If you wish to forward this letter
to President Bush, his email address is president@whitehouse.gov.
Charts Provided Courtesy
Of TradePortal.com
The OTC Journal is
a proud partner of the SwingWire.com
Online Investment Community. A next generation Online Analyst Exchange
providing Members the ability to search, review, track and monitor some
of the Internet's best Online CAs (CyberAnalysts). Members
have the opportunity to potentially achieve higher
returns by viewing top performing portfolios
and receiving real-time alerts from favorite CAs.
SwingWire.com
also has a lucrative incentive model for experienced investors and traders
who consistently outperform the market. Share market ideas with other like-minded
investors, establish a proven track record, provide insightful commentary,
attract followers and ultimately become one of the Internet's highest paid
and most sought after CyberAnalysts!
Click
here to receive your FREE 30-Day Trial Membership with no further obligation.
Sign Up Today!
|
