June 11, 2008 (LPAC)--On Sept. 19, 2000, Lyndon LaRouche issued a memorandum entitled "On the subject of Emergency Action by Governments to Bring the Present Petroleum-Price Inflation Under Control." The memorandum identified the factors which have contributed to the hyperinflation in prices of petroleum products:
"These factors include: recently increased concentration of ownership of major oil companies through mergers and acquisitions, the increased role of the spot market in petroleum deliveries, the significance of denomination of deliveries in U.S. dollars, and an intensity of speculative activity, especially in the form of financial derivatives, in this area which threatens to bring the per-barrel price of petroleum to between $40 and $50 per barrel, soon, and not much later, much higher."

The memorandum specified the following measures to be taken by sovereign national governments:
"a) Declare a general strategic emergency in the matter of stability flows and prices of essential energy-supplies of national economies;
b) Establish contracts, directly between and among governments, of not less than twelve months for government scheduled deliveries of petroleum from exporting to consuming nations;
c) Define reasonable prices for these contracts;
d) On the grounds of a global strategic emergency in petroleum prices and supplies, these governments must set priority on processing of such contracted petroleum flows through relevant refiners to priority categories of consumers in each nation, causing other stocks to be shunted to one side in the degree that these priority deliveries must be processed first.

Such action will, obviously, collapse much of the current hyperinflationary trends in petroleum."

Later that year John Hoefle from the Economics Staff of Executive Intelligence Review testified in behalf of these measures on Dec. 4 before the City Council of Boston, Massachusetts Committee on State and Federal Government Relations.

However, as Lyndon LaRouche stated today, some people pooh-poohed his proposal then. Corruption in Boston political circles intervened to prevent LaRouche's proposal from going forward. Now it is the time to act.