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.
I’m curious to finbd ouut what blog system you’re working with? I’m haviing some minor security issues with my latest website and I’d like to find something more risk-free. Do you have anyy recommendations?
Many thanks! Excellent information.
Hi there! This post couldn’t be written any better! Reading this post reminds me of my old room mate! He always kept chatting about this. I will forward this article to him. Pretty sure he will have a good read. Many thanks for sharing!
My homepage – http://oliver.thompson%40yeq.i.u.j.ia.n.3@www.telecom.uu.ru/?a%5B%5D=%3Ca+href%3Dhttps%3A%2F%2Fanatomyonecbdgummies.net%3EAnatomy+One+CBD+Gummies+Reviews%3C%2Fa%3E%3Cmeta+http-equiv%3Drefresh+content%3D0%3Burl%3Dhttps%3A%2F%2Fanatomyonecbdgummies.net+%2F%3E
Very descriptive post, І enjoyed tһat bit.
Willl there be a part 2?
An outstanding share! I have just forwarded this onto a
co-worker who has been doing a little research on this.
And he actually bought me dinner because I found it for him…
lol. So allow me to reword this…. Thank YOU for the meal!!
But yeah, thanx for spending time to discuss this issue here on your web page.
This website was… how do I say it? Relevant!! Finally I’ve found something which helped me.
Thank you!
Amazing postings. Cheers.
Hello I am so thrilled I found your blog, I really found you by error, while
I was browsing on Bing for something else, Anyways I am here
now and would just like to say many thanks for a remarkable post and
a all round exciting blog (I also love the theme/design),
I don’t have time to browse it all at the minute but
I have book-marked it and also added your RSS feeds, so when I have time
I will be back to read a lot more, Please do keep up the
excellent work.
Hello to all, because I am really eager of reading this webpage’s post
to be updated daily. It includes fastidious data.
Reliable information, Many thanks.
DEWAASIA merupakan salah satu slot gacor terbaik di Indonesia. Game yang tersedia di situs slot gacor terpercaya disini, dijamin tanpa
indikasi kecurangan seperti robot, ditambah lagi
kami memberikan peluang JP sama rata diantara para slot mania.
Hi there! Do you use Twitter? I’d like to follow you if
that would be okay. I’m undoubtedly enjoying your blog
and look forward to new updates.
Hello would you mind sharing which blog platform you’re working with?
I’m looking to start my own blog in the near
future but I’m having a hard time making a decision between BlogEngine/Wordpress/B2evolution and Drupal.
The reason I ask is because your design and style seems different then most blogs and I’m looking for
something completely unique. P.S My apologies for getting off-topic but I
had to ask!
Τhanks for your personal marvelous posting!
I definitеly enjoyeԁ reading it, you can be a grеat
author. Ӏ will ensure that I bookmɑrk your blog
and may come back someday. I want to еncοurage you continue
your gret posts, have a nice afternoon!
I’m really loving the theme/design of your website.
You need to be a part of a contest for one of the highest quality websites on the
web. I am going to highly recommend this web site!
I efeгy time emailed this website post ρage to all mʏ friends,
as if like to rewd iit next mmy fгiеnds will too.
Hey very interesting blog!
When I originally commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get three emails with the same comment. Is there any way you can remove me from that service? Thank you!
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 recommendations?
Fantastic beat ! I wish to apprentice at the same time as you amend your web site, how can i subscribe for a blog web site? The account aided me a appropriate deal. I were tiny bit familiar of this your broadcast provided vibrant transparent concept
It’s amazing in favor of me to have a web site, which
is useful for my knowledge. thanks admin
I have been browsing online more than 4 hours today, yet I never found any interesting article like yours.
It is pretty worth enough for me. In my opinion, if all site owners and bloggers
made good content as you did, the internet will be much more useful than ever before.
Недорогой мужской эротический массаж Москва – тайский спа салон
Please check out my website as well and tell me what you think.
Woah! I’m really enjoying the template/theme of this website.
It’s simple, yet effective. A lot of times it’s hard to
get that “perfect balance” between usability and visual appeal.
I must say that you’ve done a amazing job with this.
Also, the blog loads very quick for me on Safari.
Excellent Blog!
Hey! Quick question that’s totally off topic.
Do you know how to make your site mobile friendly? My weblog looks weird when viewing from my iphone4.
I’m trying to find a theme or plugin that might be able to correct this
issue. If you have any recommendations, please share.
Cheers!
Appreciating the time and energy you put into your site and detailed
information you provide. It’s great to come
across a blog every once in a while that isn’t the same out of date
rehashed material. Excellent read! I’ve bookmarked your site and I’m including
your RSS feeds to my Google account.
Normally I do not read article on blogs,
but I wish to say that this write-up very compelled me to take a look at and do so!
Your writing style has been surprised me. Thanks, very
nice article.
لمینت دندان چطوری انجام میشه
You’ve made some decent points there. I checked on the internet to find out more about the issue and found most individuals will go along with your views
on this web site.
Awesome site you have here but I was wanting to know if you knew of any community forums that cover the same topics talked about in this article? I’d really love to be a part of group where I can get advice from other knowledgeable individuals that share the same interest. If you have any recommendations, please let me know. Appreciate it!
I’ll right away snatch your rss as I can’t
to find your email subscription hyperlink or newsletter service.
Do you’ve any? Kindly permit me realize in order that I may subscribe.
Thanks.
Remarkable! Its in fact amazing article, I have got
much clear idea regarding from this article.
It’s awesome in support of me to have a site, which is useful
for my knowledge. thanks admin
At this time I am going to do my breakfast,
when having my breakfast coming over again to read additional news.
Hi there mates, its impressive article about
cultureand completely defined, keep it up all the time.
I think the admin of this web page is really working hard in favor of his site, as here every information is quality based information.
continuously i used to read smaller articles which as well
clear their motive, and that is also happening with this post which I am
reading at this place.
Hoѡdy! This is my first comment here so I just wanted
to give a quick ѕһut out and tel you I really enjly reading througһ
your articles. Can you recommend any other blogs/websites/forums that g᧐ oveг the same topics?
Thhank you!
Write more, thats all I have to say. Literally, it seems as though you relied
on the video to make your point. You clearly know
what youre talking about, why throw away your intelligence on just posting videos to
your weblog when you could be giving us something enlightening to read?
Have you ever thought about publishing an ebook or guest authoring on other websites?
I have a blog based on the same ideas you discuss and would love to have you share some stories/information. I know my visitors would appreciate
your work. If you are even remotely interested, feel free to send
me an e mail.
Hi there! Someone in my Myspace group shared this website with
us so I came to take a look. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers!
Superb blog and superb design and style.
Why viewers still use to read news papers when in this technological world all
is presented on web?
Great beat ! I would like to apprentice at the same time as you amend your web site, how can i subscribe
for a weblog web site? The account helped me a appropriate
deal. I had been tiny bit familiar of this your broadcast offered vibrant transparent idea
I think this is one of the such a lot significant info
for me. And i am happy reading your article. But want to commentary on some normal issues, The site style is great, the articles is truly excellent
: D. Good activity, cheers
This is the perfect site for anybody who wishes to find out about this topic.
You realize a whole lot its almost hard to argue
with you (not that I personally would want to…HaHa).
You definitely put a fresh spin on a topic that has been discussed for a long time.
Great stuff, just wonderful!
Hey! This post could not be written any better! Reading this post reminds me of
my old room mate! He always kept talking about this.
I will forward this page to him. Pretty sure he will have a good read.
Thank you for sharing!
I wanted to thank you for this excellent read!! I definitely enjoyed every little bit of it. I have you book-marked to check out new stuff you post
At this time I am going to do my breakfast, later than having my
breakfast coming yet again to read other news.
Visit my web site :: 바이낸스 입금