Why are oil prices shooting through the roof lately? Well, it seems like TV pundits blame everything except the single institution that has the largest influence on what oil is traded at, and that is the Federal Reserve. Some things might cause brief spikes in the price of oil, like shortages in supply, but the main cause for gas at the pump getting more expensive over time is the Federal Reserve. The real frustrating thing is that TV pundits seem not to have a clue and have not mentioned monetary policy at all. Left or Right, the mainstream media seems totally clueless. Bill Orielly had a discussion with Lou Dobbs about oil prices and not only did the two not mention the FED once but, they don’t seem to understand basic economics either. The conversation went something like Dobbs telling O’Rielly that the oil refined in the United States is being sent overseas. Well, this should not be surprising considering that oil refining is a highly complex process that third world countries often do not have the industry to refine themselves. Therefore many countries ship their crude here and when it is refined it is shipped back overseas. This is not some kind of complex plot where oil companies are taking advantage of American customers.They are simply selling refined oil on the world market at it’s commodity price. O’Rielly seems to think that there is some kind of price fixing going on because gas is at such a similar price between different gas stations. This is pretty easy to understand when you realize that oil and gas are not consumer goods like tennis shoes. They are instead commodities like beef, gold, copper, and many other industrial products. The margins are very small when looking at any commodity because commodities by definition are homogenous, unlike two pairs of shoes that are likely very different. If you went around town trying to buy gold or silver bullion at different coin shops, you would notice that the prices are pretty similar if not almost exactly the same. Same is true for industrial metals like copper, the going rate is the going rate. Additionally, oil, gas, gold, and copper are in a world market, the price of each is nearly uniform around the world, gold costs the same in Shanghai as it does in New York. Oil, before taxes, has a very similar cost as well. The real variable here is the dollar. When the dollar loses value, the price of oil goes up. If you want someone to blame for high gas prices look no further than the Federal Reserve.
Some people might say that the government owning so much land and preventing drilling is pushing the price of oil up. This might be true to some extent, and I would agree that opening up more land for oil exploration would be a good idea but, this does not explain how a gallon of gas used to cost a dime and will now likely be five dollars by summer. The reason that gas is so high this year should be put into consideration of what the Federal Reserve’s actions have been over the last four years. The FED has pumped trillions of dollars into the economy but, this has been mostly absorbed by the big banks where they have kept the money preventing it from being pushed into the economy. We are begging to see the affects of this money as it enters the economy, for food and many other commodities have been inflated up 10% in 2011. The drive up in the stock market to 13,000 has also been a result of inflation because Wall Street is always one of the first in line for newly printed money. We are finally starting to feel the beginning of the price inflation that comes about when the Fed doubles the monetary base. If the economy shoots up to full employment we might even see ten dollar gas but, to be honest we truly do not know because monetary inflation affects different sectors of the economy in different degrees. Oil, though, is one commodity that is almost always affected by monetary inflation (so is food for that matter, interesting how neither is included in the official CPI). When oil starts going up in price for long periods of time, it is likely that we will see inflation in other areas as well.
In conclusion:
The Federal Rerserve is the most to blame for oil prices going through the roof. Someday the media might catch on to this too but, don’t hold your breath, they have been blaming everything else for 50 years.
Hey just wanted to give you a brief heads up
and let you know a few of the pictures aren’t loading properly.
I’m not sure why but I think its a linking issue. I’ve tried it in two different browsers and both show the same outcome.
Here is my web page :: เว็บแทงหวยออนไลน์
Hi, I do believe this is a great blog. I stumbledupon it 😉 I am going to revisit
once again since i have bookmarked it. Money and freedom is the greatest way to change, may you be rich and continue to guide other people.
With thanks, Lots of data!
Have you ever considered publishing an ebook or guest authoring on other websites?
I have a blog based upon on the same ideas you discuss and would really like to have you
share some stories/information. I know my viewers would appreciate your work.
If you’re even remotely interested, feel free to
shoot me an email.
Amazing issues here. I’m very satisfied to peer your article.
Thanks a lot and I am having a look ahead to contact you.
Will you please drop me a e-mail?
Цветочный рай: выбирай из множества видов цветов.
Живые, искусственные, луковичные и многолетние.
Оформи доставку или купи оптом!
первый секс цветы
It is in reality a great and useful piece of info.
I’m satisfied that you shared this helpful info with
us. Please keep us up to date like this. Thank you for sharing.
What’s up, just wanted to mention, I liked this article.
It was practical. Keep on posting!
Hey there! Do you know if they make any plugins to protect against hackers?
I’m kinda paranoid about losing everything I’ve worked hard on. Any
suggestions?
Excellent blog here! Additionally your site lots up very
fast! What web host are you using? Can I am getting your associate hyperlink for your host?
I wish my web site loaded up as quickly as yours lol
Its such as you learn my mind! You appear to understand so much about this, such as you wrote the e-book in it or something.
I feel that you could do with a few p.c. to power the
message home a little bit, however instead of that, this is magnificent blog.
A great read. I will certainly be back.
Thanks for every other great article. The place else may just anybody get that type of info in such an ideal way of writing? I have a presentation subsequent week, and I am at the look for such information.
Amazing a good deal of great data!
hey there and thank you for your info – I have definitely picked up something
new from right here. I did however expertise
some technical issues using this site, since I experienced
to reload the web site lots of times previous to I could get it to load properly.
I had been wondering if your hosting is OK? Not that I am complaining, but slow loading instances times will very frequently
affect your placement in google and could damage your high-quality
score if advertising and marketing with Adwords. Well I am adding this RSS to my e-mail and can look out for much more of your respective interesting content.
Make sure you update this again soon.
Excellent way of explaining, and pleasant article to get information regarding my presentation focus, which i
am going to deliver in academy.
Pretty element of content. I simply stumbled upon your weblog and in accession capital to say that I acquire actually enjoyed
account your blog posts. Anyway I’ll be subscribing for your
feeds or even I fulfillment you get admission to persistently fast.
What i do not understood is if truth be told how you’re no longer really much more well-preferred than you may be now.
You are very intelligent. You recognize therefore considerably in relation to this matter, produced me for my part consider it from so many various
angles. Its like men and women aren’t involved until it is one thing to do
with Woman gaga! Your personal stuffs excellent. At
all times deal with it up!
I blog often and I seriously thank you for your information.
The article has truly peaked my interest. I am going to bookmark your blog and
keep checking for new details about once per week.
I subscribed to your RSS feed as well.
Because the admin of this web site is working, no uncertainty very soon it will be famous, due to
its quality contents.
Useful information. Lucky me I discovered your website
by accident, and I’m surprised why this accident didn’t took place in advance!
I bookmarked it.
Thanks for finally talking about > High Oil Prices? | FreedomOmaha.com < Loved it!
It’s wonderful that you are getting ideas from this post as well as from our dialogue made at this time.
It is the best time to make some plans for the
future and it’s time to be happy. I have read this post and if I could
I want to suggest you few interesting things or tips. Maybe you could write next articles referring to
this article. I wish to read even more things about it!
You are so cool! I don’t believe I’ve truly read through
a single thing like that before. So good to discover somebody with genuine thoughts on this
issue. Really.. thanks for starting this up. This site is something that is needed on the web,
someone with a bit of originality!
If some one needs expert view concerning running
a blog after that i propose him/her to go to see this webpage, Keep up the good work.
I’m amazed, I have to admit. Seldom do I encounter a blog that’s both educative and interesting, and without a doubt, you
have hit the nail on the head. The issue is an issue that too few people are speaking intelligently
about. Now i’m very happy that I came across this in my search for something relating to this.
First off I would like to say awesome blog! I had a quick question which I’d like to ask if you don’t mind.
I was interested to find out how you center yourself and clear your head prior to writing.
I have had a tough time clearing my mind in getting my ideas out.
I truly do enjoy writing but it just seems like the first 10 to 15 minutes are lost simply just trying to figure out how to begin. Any ideas
or hints? Appreciate it!
I am not sure where you are getting your information, but
good topic. I needs to spend some time learning much more
or understanding more. Thanks for fantastic info I was looking for this info for
my mission.
Hey, you used to write great, but the last several posts have been kinda boring… I miss your great writings. Past few posts are just a bit out of track! come on!
Visit my web site https://powerbullcbdgummies.org
Hello to all, it’s in fact a pleasant for me to visit this
website, it contains helpful Information.
Hmm is anyone else experiencing problems with the images on this blog loading?
I’m trying to figure out if its a problem on my end or if it’s the blog.
Any feed-back would be greatly appreciated.
I’m extremely impressed together with your writing talents as neatly as with the layout on your weblog.
Is this a paid subject matter or did you customize it yourself?
Either way stay up the nice high quality writing, it is
rare to look a great weblog like this one today..
Good day! This is my 1st comment here so I just
wanted to give a quick shout out and say I genuinely enjoy
reading your articles. Can you suggest any other blogs/websites/forums that go over the same subjects?
Thanks a lot!
When I initially commented I appear to have clicked on the -Notify me when new comments are added- checkbox and now
whenever a comment is added I recieve 4 emails with the same comment.
Perhaps there is an easy method you are able to remove me from
that service? Thank you!
I loved as much as you’ll receive carried out right here.
The sketch is attractive, your authored subject matter stylish.
nonetheless, you command get got an impatience over that you wish be delivering the following.
unwell unquestionably come more formerly again since exactly the same nearly
very often inside case you shield this increase.
My family members every time say that I am wasting my time here at web, however I
know I am getting experience daily by reading such nice articles or reviews.
Here is my web page; pull a part indianapolis price list
Hi, I do believe this is a great blog. I stumbledupon it 😉 I am going to
come back once again since i have saved as a favorite it.
Money and freedom is the best way to change, may you be rich
and continue to guide others.
My brother suggested I may like this web
site. He used to be totally right. This post truly
made my day. You can not believe just how much time I had spent for
this info! Thanks!
Hi, everything is going fine here and ofcourse every one is sharing facts, that’s genuinely fine,
keep up writing.
Hi, its fastidious paragraph concerning media print,
we all be aware of media is a enormous source of data.
My spouse and I stumbled over here from a different
web page and thought I might as well check things out. I like what I
see so now i’m following you. Look forward to going over your web page yet again.
You really make it appear so easy together with your presentation however I in finding this matter
to be actually something which I think I would never understand.
It seems too complex and extremely huge for me.
I am having a look ahead in your subsequent publish, I
will try to get the hold of it!
Its such as you read my thoughts! You appear to understand so much approximately this, like you wrote the ebook in it or something.
I feel that you simply can do with a few percent
to force the message house a bit, but instead of
that, that is great blog. A fantastic read. I will certainly be back.
Have you ever thought about creating an e-book or
guest authoring on other websites? I have a blog centered on the same information you discuss and would love
to have you share some stories/information. I know
my viewers would value your work. If you are even remotely interested, feel free to shoot
me an e mail.
I like what you guys tend to be up too. This sort of clever work
and exposure! Keep up the good works guys I’ve you guys to my own blogroll.
This is the right website for everyone who would like to find out about this topic.
You realize a whole lot its almost tough to argue
with you (not that I actually will need to…HaHa). You definitely put a brand new spin on a
subject that’s been written about for decades. Excellent stuff, just excellent!
What’s up, this weekend is good designed for me, as this time i am reading this great informative piece of writing here at my residence.
What’s up, constantly i used to check webpage posts here in the early hours in the morning, because i enjoy to learn more and more.
A firm searching to employ developers won’t be disappointed with the audience right here.
Also visit my site; 단란주점알바
Saved as a favorite, I really like your website!