August 2008


Dear Friend of Radio Liberty,

"General Motors is now nearer to bankruptcy than at any time since it nearly failed in 1920. . . . Its bonds are junk. Its sales are in shambles. Its management is in denial. . . ."
Dr. Martin Weiss newsletter, July 14, 2008 [1]

"Utilities and industry analysts estimate that it will cost families 30% to 50% more to heat their homes with natural gas this winter. Families who use heating oil could face increases of between 50% and 100%. . . . 'I don't see any way to make the numbers work for middle-income people. . . . They're already shopping at WalMart and eating out less. They'll have to cut back everything that makes them middle class. At some point, you're poor.'"
Rebecca Smith, The Wall Street Journal, July 18, 2008 [2]

"President Bush on Monday lifted an executive ban on offshore oil drilling and challenged Congress to follow suit, aiming to turn the enormous public frustration about gasoline prices into political leverage. . . . By lifting the executive prohibition against coastal drilling, Bush rescinded a White House policy that his father put in place in 1990."
San Jose Mercury News, July 15, 2008 [3]

"Likewise, in April, the U.S. Geological Survey revised its estimate for the Bakken Shale, underneath the badlands of North Dakota and Montana. The new assessment - as much as 4.3 billion barrels of oil - is a 25-fold increase over what the Survey believed in 1995. Such breakthroughs confirm that very large reserves exist, if only Congress would let business get at them."
The Wall Street Journal, June 30, 2008 [4]

"There is as much crude oil on the North Slope of Alaska as in all of Saudi Arabia . . . the oil companies have drilled all over the North Slope and have proven there is that much oil there. . . ."
Lindsey Williams, "The Energy Non-Crisis," 1980 [5]

"The problem we face is not new in history. Authoritarianism has been around a long time. For centuries, inflation and debt have been used by tyrants to hold power, promote aggression, and provide 'bread and circuses' for the people. . . . Time is short for making a course correction before this grand experiment in liberty goes into deep hibernation."
Congressman Ron Paul, July 9, 2008 [6]

The skyrocketing price of gasoline and other petroleum products has had a devastating impact on the American way of life. What is happening? Who is responsible for the increase in the price of oil? Is the oil shortage real or contrived? What does the future hold? What can we do to prevent the impending collapse of our economy?

I will address each of those questions in this, and subsequent Radio Liberty letters. Please reread my September 2005 and October 2005 Radio Liberty letters because they provide a foundation for the information contained in my analysis of THE OIL DECEPTION.



The U.S. airline industry is on the verge of collapse. Skybus, Aloha, and a number of other small carriers have ceased operation, and every major American carrier, with the exception of SouthWest airline, has been forced to lay off personnel, curtail flights, limit service, mothball planes, and increase the cost of fares. American Airlines posted a $1.45 billion loss in the second quarter of 2008. Delta posted a $1.04 billion loss during that period. U.S. Airways, the parent company of United Airlines, reported a $567 million loss, and Continental Airlines announced they should be able to continue operating for 18 months. [7]

Because of the looming insolvency of the U.S. airline industry, several carriers cancelled their orders for aircraft from Boeing, and Boeing's shares collapsed. The company announced they are laying off 750 employees in southern California because they lost a major military contract, but additional layoffs are expected. [8]


Most of the major industries that remain in the United States have been plagued by the rising cost of oil. GM, Ford, and Chrysler have limited their production of gas-guzzling vehicles (SUVs and pick-up trucks), and curtailed production of smaller vehicles because most people can't afford to buy a new car today. As a result, the three companies are losing money on almost every vehicle they produce, and there is a distinct possibility they will be forced into receivership (bankruptcy) if the U.S. economy doesn't recover in 2009. Dr. Martin Weiss addressed that problem when he wrote:

"General Motors is now nearer to bankruptcy than at any time since it nearly failed in 1920.

Its bonds are junk. Its sales are in shambles. Its management is in denial. . . .

Even Wall Street . . . estimates GM has a 75% chance of going broke within the next five years, based on the actual trading of specialized insurance contracts called credit default swaps. That's 3 to 1 odds the company will not survive. . . ." [9]

The three major automobile manufacturers are trying to buy back the benefits they guaranteed their union employees so they can hire people who will work for lower wages and limited benefits, but that won't save the American automotive industry. Why? Because U.S. laborers can't compete with Chinese, Thai and Malaysian workers who work for 15-20% of the salaries that are paid in the United States. What is the solution? If the United States remains in the global economy, the living standards of American workers will have to be lowered so our automotive factories can compete with the factories that GM and Ford are building in Malaysia, Thailand, and China. [10]


The sharp increase in the price of diesel fuel, the rise in the cost of petrochemical fertilizer and potash, the regional droughts and floods that have plagued our nation, and the current economic contraction threatens the survival of thousands of privately owned farms across the United States. [11]


The high cost of diesel fuel is devastating our trucking industry:

"The American Trucking Association predicted that truckers will have to shell out $140 billion for diesel in 2008, sharply higher than the $112 billion they spent in 2007." [12]

Some independent truckers have lost their rigs because they couldn't make their monthly payments. Other drivers have parked their trucks and are waiting for the price of fuel to drop. Many of them are looking for employment elsewhere, but good-paying jobs are hard to find in the United States because the real unemployment rate is over 13%. What is the result? The cost of home delivery, UPS, FedEx, cross country shipping and regional shipping has risen, and will continue to increase until the cost of diesel fuel declines.


The increase in the price of oil and natural gas has raised the cost of electricity. Most of the power that drives our remaining industries is derived from burning coal and natural gas, but between 1/2 and 2% of our electricity is generated by burning oil. [13]


The 2005 Energy Act was designed to make the U.S. energy independent. The legislation required refineries to add 10% corn-based ethanol to gasoline, and gave the ethanol producers a $7 billion subsidy for 4.9 billion gallons of ethanol ($1.45 a gallon). What happened? The legislation raised the cost of corn and other grains, and has contributed to the destruction of the American economy. At the present time 25% of our corn crop is used to manufacture ethanol despite the fact that production consumes far more energy than it supplies, and the U.S. could import ethanol from Brazil at a much lower cost.

What is the result? The price of corn and other grains has doubled, and the cost of products that are dependent on feeding grain to animals (chicken, eggs, milk, catfish, farmed fish etc.) has increased. Many dairymen, cattlemen and hog farmers are slaughtering their herds because they can't afford to feed them, so we can expect the price of meat to increase next year when a shortage materializes. [14]


American families are beginning to feel the devastating impact of the increase in the price of oil, natural gas, and electricity. The Wall Street Journal reports (July 18, 2008):

"Utilities and industry analysts estimate that it will cost families 30% to 50% more to heat their homes with natural gas this winter. Families who use heating oil could face increases of between 50% and 100%. . . .

Mark Wolfe, executive director of the National Energy Assistance Directors' Association, . . . says many New England families could run a tab of $1,600 to $1,700 a month to cover heating oil, electricity and gasoline costs next winter.

'I don't see any way to make the numbers work for middle-income people,' he says, adding, 'They're already shopping at WalMart and eating out less. They'll have to cut back everything that makes them middle class. At some point, you're poor.'" [15]


Oil is an essential ingredient in the production of wax, plastic products, styrofoam, paint, some drugs, ethylene, polyethylene resins, propylene, asphalt, lubricants, solvents, Kevlar, and many other products. The increase in the price of oil has increased the cost of those items.


Some people claim Saudi Arabia and the OPEC nations are responsible for the increase in the price of oil. Other people accuse the major oil companies. Congress enacted a series of laws that restrict offshore oil drilling, exploration in the Arctic National Wildlife Reserve (ANWAR), and extraction of oil in other regions of our country. Is Congress responsible for the skyrocketing price of oil?

In 1990 President George H.W. Bush (Bush I) signed an Executive Order that restricted offshore oil drilling, President Clinton supported the ban, and George W. Bush maintained the restriction until July 14, 2008, when he lifted the ban on offshore oil drilling, and encouraged Congress to authorize drilling. [16]

President Bush knows that lifting his father's ban on off shore drilling won't affect the price of oil for many years, but he wanted to shift the blame for the energy crisis to Congress. Why? Because President George H.W. Bush (Bush I), Bill Clinton, and President George W. Bush (Bush II) blocked offshore oil drilling for 18 years, and the current President Bush aggravated the oil shortage by ordering the DOE to purchase millions of barrels of oil for the National Strategic Oil Reserve when the price of oil was soaring in 2007 and the early months of 2008. As a result, many people believe George W. Bush, and his father, are responsible for the surging price of oil.

Is the environmental movement responsible for the problem? Are the speculators who manipulate the price of oil on the commodity exchange responsible? What, or who, is responsible for the devastating increase in the cost of oil? Will the price continue to increase, or will it fall?

Before I answer those questions, you must understand the logistics of the oil industry, and the goal of the men who control the production of oil throughout the world.

The latest valid statistics I could find on oil production and consumption are from 2006. The phrase "mbd" reflects "millions of barrels of oil per day," and the phrase "bpd" reflects barrels per day.

In 2006:
* Saudi Arabia produced 10.7 mbd, and exported 8.65 mbd.
* Russia produced 9.67 mbd, and exported 6.57 mbd
* The U.S. produced 8.37 mbd, and exported very little oil.
* Iran produced 4.12 mbd, and exported 2.52 mbd
* Mexico produced 3.71 mbd, and exported 1.68 mbd. [17]

Russia is the world's largest exporter of natural gas, and the world's second largest exporter of oil because U.S. officials, British Petroleum (BP), Exxon Mobil, and Royal Dutch Shell helped the Russian oil companies (the KGB and Russian Mafia) develop their petroleum resources. [18] Why did President George H.W. Bush, President Clinton, and President George W. Bush aid Russia, and block development of the oil and natural gas resources that are readily available in the United States?

In January 2008 the world consumed 87 mbd. The U.S. produced 8.37 mbd and consumed 20.5 mbd during that time, so the U.S. imported approx. 12 mbd from other nations.

In May 2008:
* Canada supplied the U.S. 1.840 mbd of oil per day
* Saudi Arabia supplied 1.579 mbd
* Mexico supplied 1.116 mbd
* Venezuela supplied 1.030 mpd
* Nigeria supplied 851,000 bpd, and
* Iraq supplied 583,000 bpd. [19]

Most of the remaining oil the U.S. consumed in January 2008 was purchased from Angola, Brazil, Kuwait, Colombia, Ecuador, Russia, Libya, and Equatorial Guinea. The U.S. is currently spending over $300 billion a year for foreign oil, and transferring the wealth of our nation to other nations. Is that necessary? As you will learn next month, the U.S. has some of the largest oil reserves in the world, but the cabal that controls the U.S. has blocked efforts to develop them.

The increase in the price of oil has led to lower consumption:

"The U.S. Energy Information Administration revised downward U.S. April oil demand by 863,000 barrels per day (bpd) to 19.77 million bpd . . . 3.9 percent below year-ago levels. The revision, which showed April demand was the lowest for the month since April 2002, came even before gasoline prices surged to new records in June." [20]

Why did the cost of oil increase in April 2008 when U.S. consumption declined? Because the speculators (who work for the BOD) drove up the price of oil, and the U.S. officials who are supposed to regulate the commodity exchange didn't intervene. A recent article disseminated by the McClatchy News Service reveals:

"Michael Greenberger, a former top staffer at the Commodities Futures Trading Commission, said, 'There can be no doubt that there is a supply-and-demand problem at work here. But many believe, including me, that there's a speculative premium that goes beyond what supply-and-demand factors dictate. And that's what could be drained with aggressive United States regulation. . . .

My calculation is right now that about. . . . 70 percent of the U.S. crude oil market is driven by speculators and not people with commercial interests. Most of those speculators do not have spec limits. They can buy whatever they want.'"
Michael Greenberger, Testimony, Senate Committee on
Commerce, Science and Transportation, 6/3/08 [21]

On June 11, 2008, the Secretary-General of OPEC commented:

"The price has nothing to do with a shortage of oil. There's a lot of oil on the market. It's because of speculation and OPEC cannot control speculation." [22]

The Senate Democratic Policy Committee noted the view of major oil-company executives:

"Marathon Oil CEO Clarence Cazalot Jr. said, '$100 oil isn't justified by the physical demand in the market. It has to be speculation on the futures market that is fueling this."
Detroit Free Press, 10/30/07 [23]

"Jeroen van der Veer, CEO of Royal Dutch Shell said: 'The [oil] fundamentals are no problem. They are the same as they were when oil was selling for $60 a barrel, which is in itself quite a unique phenomenon."
Washington Post, 4/11/08 [24]

"Exxon Mobil Senior Vice President Stephen Simon told the Senate Judiciary Committee, 'The price of oil should be about $50-$55 a barrel.'"
Senate Judiciary Committee, 4/1/08 [25]

"In June, Gerry Ramm, President of the Inland Oil Company on behalf of the Petroleum Marketers Association of America, testified: 'Excessive speculation on energy trading facilities is the fuel that is driving this runaway train in crude oil prices."
Senate Commerce, Science and Transportation Committee Hearing, 6/3/08 [26]

What caused the increase in the price of oil? Unregulated commodity speculation and the decline in the value of the American dollar. Why didn't the Bush administration intervene and stop the commodity speculation? I believe the Brotherhood of Darkness (BOD ) wants to debase our currency and destroy our nation.

What part did OPEC play? The Organization of the Petroleum Exporting Nations (OPEC) has twelve members: Iran, Iraq, Kuwait, Quatar, Saudi Arabia, the United Arab Emirates, Libya, Algeria, Nigeria, Angola, Venezuela, and Ecuador. The controlled-media is trying to convince the American people that OPEC is responsible for the dramatic increase in the price of oil, but that isn't true. The U.S. State Department controls most of the OPEC regimes, dictates their foreign policy, and removes government leaders who do not accede to the orders they receive from Washington, D.C. Can that be proven? Certainly. If you doubt my assertion, I suggest you read John Perkins' books, Confessions of an Economic Hit Man, and The Secret History of the American Empire, listen to my interviews with John Perkins (the 4-tape or CD set, Economic Hit Men), and learn about the assassinations of high-ranking foreign officials that took place during the years that John Perkins worked for the American Establishment. If you remain skeptical, I suggest you read the "Conclusion" of the 1976-1977 U.S. Senate Church Committee Report, and Lt. Colonel Daniel Marvin's book, The Expendable Elite, which reveals the CIA asked Lt. Colonel Marvin to assassinate Prince Sihanouk, the ruler of Cambodia. I also suggest you read William Pepper's book, An Act of State, which deals with the CIA's involvement in the murder of Martin Luther King, and Robert Joling's book, An Open and Shut Case, which deals with the assassination of Bobby Kennedy. [27]

What part did Congress, the executive branch of government, the major oil companies, and the environmental movement play in the coordinated effort to increase the price of oil? All of them were involved because they are subservient to the Spiritual Hierarchy that rules the world. [28]

By the time you receive this letter, the price of oil will probably be much lower than it is today. Why did the Establishment raise the price of oil, then let it fall? I will answer that question next month.

The U.S. economy is collapsing, inflation and unemployment are soaring (13%), the value of the dollar and home prices are declining, and the public is waiting for the current recession to end so they can resume their comfortable lifestyle. That isn't going to happen. The inflationary depression that lies ahead will last for many years and the value of our currency will be destroyed.

When the economy recovers, we will either re-establish our Constitutional form of government, or we will live under a ruthless tyranny. Which will it be? That is partially up to you. The public will want to know why the crisis developed, and you must be prepared to answer their question.

Please encourage your friends to access, read the letters and essays that are posted, listen to my radio programs, and watch the free videos that are available. I also suggest you access"Other videos," a new site that provides links to short YouTube clips that will help you understand the events that are taking place.

I hope you have prepared fiscally, materially, and spiritually for the events that lie ahead. Please continue telling your friends about Radio Liberty, distribute the flyer that was sent with the June-July letter, and distribute our business cards. (Available on request) The Radio Liberty audience is increasing every day.

I believe we are entering the most difficult period in the history of our nation, and we must know that:

"Blessed assurance, Jesus is mine! Oh what a foretaste of glory divine!
Heir of salvation, purchase of God, Born of His Spirit, washed in His blood.

Perfect submission, perfect delight, Visions of rapture now burst on my sight;
Angels descending, bring from above, Echoes of mercy, whispers of love.

Perfect submission, all is at rest, I in my Savior am happy and blest.
Watching and waiting, looking above, Filled with His goodness, lost in His love." [29]

Barbara and I appreciate your faithful support and your prayers.

Yours in Christ,

Stanley Monteith


2. Rebecca Smith, "Winter Could Test Energy Math," The Wall Street Journal, July 18, 2008, p. A3.
3. McClatchy Newspapers, "Bush lifts executive ban on offshore drilling," San Jose Mercury News, July 15, 2008, p. 6A.
4. "Obama's Dry Hole," The Wall Street Journal, June 30, 2008, p. A12.
5. , p.2.
6. 7. Additional references on request.
9., op. cit.
10. Robyn Meredith, "Auto Giants Build a Glut of Asian Plants, Just as Demand Falls," The New York Times, November 5, 1997
11. Private correspondence.
12. David Goldman, "Think gas hurts? Try diesel,", May 6, 2008.
13. "Price jolt: Electricity bills going up, up, up," 05-power-prices-rising_N.htm
15. Rebecca Smith, op. cit.
16. McClatchy Newspapers, op. cit.
21. p. 2.
22. Ibid.
23. Ibid., p. 3.
24. Ibid.
25. Ibid.
26. Ibid.
27. "Confessions of an Economic Hit Man" and "An Open and Shut Case" available on Amazon. The other items available from Radio Liberty.
28. "Brotherhood of Darkness." DVD and book are available from Radio Liberty.
29. Fanny Crosby, "Blessed Assurance," Charles Johnson, One Hundred & One Famous Hymns, Hallberg Publishing Corporation, Delavan, Wisconsin, 1982, p. 175.

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