Can BP pay for the Oil Spill Damage?

Asked during a news briefing if the Obama administration was concerned BP could be financially ruined due to the oil spill, White House spokesman Robert Gibbs said it was big enough to absorb the expense. "You've got a company with the type of market capitalization that can and will fully pay for the damage caused by the disaster they are responsible for," he said. How could a company pay for the damage when much of it cannot be rectified? For example what about the wildlife in the Ocean, how will they know how many have died due to this issue and how will they replace that wildlife. Also, with nearly 25 percent of the Gulf’s rich fishing grounds closed off already, the local economies are suffering. How are they going to determine the damage to the local economies and how is BP going to pay for this? Not to mention moderate southerly and southwesterly winds this week promise to spread the damage into the coasts of Mississippi and Alabama. As the spill continues, and we head into hurricane season, the potential for the oil to reach as far Florida, Cuba and Mexico grows. When will it all stop? BP is attempting yet another fix – this one is a new version of the containment cap idea, but they have stated clearly that it may not work. The government has been forced to admit that they simply do not have the technology to deal with the problem and have no choice but to leave it to BP and other industry experts. The longer BP struggles to contain the spill, the more it becomes clear that they really don’t have to technology to deal with it either. Estimates are that 12,000-20,000 barrels a day are spilling into the Gulf of Mexico. They are hoping to contain it soon, however they have also stated that containment may not happen until August, when the relief wells are completed. Can BP pay for the damage when their stocks have plummeted $60 Billion since this fiasco, and they have spent close to a Billion dollars already and still don’t have the solution. Will they be able to survive this, or will someone have to buy or bail them out?

The IMF’s Initiatives

Many people do not know what the International Monetary Fund (IMF) is or what they do. The IMF was created in 1944 and is the world's central organization for international monetary cooperation. It has over 185 countries that are members and it oversees the Global Financial System, which many people don’t even know exists. Each member of the IMF has a quota allocated to them. The quota is a member's subscription in the IMF, or what a country must pay to "belong" to the IMF. A member must pay its subscription, or quota, in full to the IMF; up to 25 percent must be paid in reserve assets as specified by the Fund. They have created a global currency called Special Drawing Rights (SDR’s) that is used, and many countries contribute usable currencies like dollars, deutsche mark, pounds, yen etc. The IMF also has large amounts of gold assets, which they are in the midst of selling over 400 metric tons into the markets. Getting rid of their gold and continuing with more paper assets, does that sound like a good strategy for the world’s central organization for international monetary cooperation. There must be a reason! This is an organization that is working to lead the world into global financial recovery and they are endorsing things such as spending less on health, less help for the elderly and raising taxes. (See http://www.ctv.ca/CTVNews/Canada/20100601/canada-20-bank-tax-100601/) How about less government spending in areas that do not affect our health, elderly or taxes! What about eliminating some of the special interest groups, lowering large government pensions and salaries, and eliminating some of the bureaucracy that so much is spent on! The trends that we are in are quite clear; more money in government hands, less in the people’s hands and steps to a one world government in control!

US Gov't taking more control

Last week, the Senate approved legislation that put auto dealers under the auspices of a new consumer board with power to regulate financial products. But on Monday, the Senate voted 60-30 to instruct members preparing to meet with their House counterparts to settle differences between their versions of the bill to exclude auto dealers from the new board's purview. So, according to the recent bill passed, it now sounds like the U.S. Government wants control over all financial products, but they currently want to exclude Auto Dealers. This is probably because there doesn’t seem to be much profits in Auto Manufacturing and sales, but there sure are large profits in financial products, sold by Banks, Mutual Fund Dealers, Insurance Companies and more. Although Obama had originally pushed for Auto Dealers to be included in this new reform, it may just begin with Financial Products that the government will control. Originally the Government was set up to serve the people, but as we can see today it is moving more and more to the time where we serve the government. There has not been such a financial reform in the U.S. since the Great Depression of the 30’s. Obama and the Democrats are moving very quickly with 2 major reforms this year: health and finance. Slowly, but surely you can see government taking more and more control. Make sure to learn your rights and understand enough of the system to survive in the day and age we are in. If you learn and apply enough you can not just survive under this world reform, you can even thrive!