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.
An intriguing discussion is definitely worth comment. I do think that you need to write more on this topic, it may not
be a taboo subject but generally people do not talk about such issues.
To the next! Cheers!!
It’s a shame you don’t have a donate button! I’d most certainly donate to this excellent blog! I suppose for now i’ll settle for book-marking and adding your RSS feed to my Google account. I look forward to fresh updates and will talk about this site with my Facebook group. Chat soon!
Hello colleagues, its great post regarding educationand entirely explained,
keep it up all the time.
What’s up to all, as I am actually keen of reading this webpage’s post to be updated daily. It consists of pleasant stuff.
Hi! I understand this is kind of off-topic however I needed
to ask. Does running a well-established website such as yours take a
lot of work? I am completely new to writing a blog however I do write in my diary every day.
I’d like to start a blog so I will be able to share my experience and views online.
Please let me know if you have any recommendations
or tips for brand new aspiring bloggers. Thankyou!
whoah this weblog is magnificent i love studying
your articles. Keep up the good work! You understand, a lot of people are
looking round for this information, you could
help them greatly.
Hello there! Do you know if they make any plugins to help with SEO?
I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good gains.
If you know of any please share. Appreciate it!
What’s Going down i’m new to this, I stumbled upon this
I’ve found It absolutely useful and it has helped me out loads.
I am hoping to give a contribution & assist different users like its helped me.
Great job.
camisetas de españa
you’re actually a excellent webmaster. The site loading velocity is incredible.
It sort of feels that you’re doing any unique trick. Furthermore, The contents
are masterwork. you’ve done a excellent job on this topic!
Very rapidly this website will be famous amid all blog users, due to
it’s fastidious posts
Greetings! Very helpful advice within this post!
It is the little changes which will make the largest
changes. Thanks a lot for sharing!
[url=http://%5Chttps/]นักตะกร้อชายทีมชาติไทย[/url]
นักตะกร้อชายทีมชาติไทย
Hi there to all, how is everything, I think every one is getting
more from this web site, and your views are nice in support of new people.
Thank you a bunch for sharing this with all people you really understand what you are talking approximately! Bookmarked. Please also visit my site =). We may have a link change agreement among us
Thank you for sharing your thoughts. I really appreciate your
efforts and I am waiting for your further post thanks once again.
I believe what you published made a bunch of sense.
But, think on this, what if you added a little information? I am not suggesting your content is not solid., however suppose you added something to possibly
get people’s attention? I mean High Oil Prices? | FreedomOmaha.com
is kinda boring. You ought to look at Yahoo’s front page and see how they create news headlines to get people to
click. You might add a related video or a pic or two to grab people excited about everything’ve written. Just
my opinion, it could make your website a little bit more
interesting.
Wow quite a lot of amazing advice!
Seriously loads of beneficial data!
Kudos! Numerous posts.
http://notary-eoa.ru/
Admiring the time and energy you put into your blog and detailed information you provide. It’s great to come across a blog every once in a while that isn’t the same old rehashed information. Excellent read! I’ve bookmarked your site and I’m adding your RSS feeds to my Google account.
I like what you guys tend to be up too. This sort of clever work and exposure!
Keep up the superb works guys I’ve you guys to blogroll.
Superb information. Thanks!
Wow, that’s what I was seeking for, what a stuff! existing here at this webpage, thanks admin of this web page.
It’sgenuinely very complex in this busy life to listen news onn TV, therefore I
just use world wide web ffor that purpose, andd get the most recent news.
webpage
Also, slot games are designed to supply random wins.
Enjoy the $1500 Welcome Package aand all of the generous bonuses and promotions that come after.
Click proper here to find out much more about
judi Kartu online.
What’s up, its good piece of writing on the topic
of media print, we all be familiar with media is a enormous source of data.
I relish, cause I discovered exactly what I was looking for.
You have ended my four day long hunt! God Bless you man. Have a great day.
Bye
Seriously a lot of terrific tips!
I am sure this article has touched all the internet visitors,
its really really nice paragraph on building up new web site.
bookmarked!!, I love your blog!
Hi there everyone, it’s my first go to see at this web page,
and post is truly fruitful designed for me, keep up posting these
posts.
My coder is trying to persuade me to move to .net from
PHP. I have always disliked the idea because of the costs.
But he’s tryiong none the less. I’ve been using WordPress on numerous websites for
about a year and am concerned about switching to another platform.
I have heard great things about blogengine.net. Is there a way I can transfer all my
wordpress posts into it? Any kind of help would be greatly appreciated!
Fine way of telling, and good article to obtain data regarding my presentation topic, which i
am going to deliver in college.
I am really inspired together with your writing talents as smartly as with the structure for your blog.
Is this a paid subject or did you modify it your
self? Anyway stay up the nice quality writing, it’s uncommon to look a nice blog like
this one these days..
Here is my homepage: 1950 packard
Oh my goodness! Incredible article dude! Thank you so
much, However I am going through problems with your RSS. I don’t understand why I
cannot subscribe to it. Is there anybody else having the same RSS issues?
Anyone who knows the answer will you kindly respond?
Thanks!!
http://blackterrier.pp.ua/
Link exchange is nothing else but it is only placing the other person’s webpage link
on your page at proper place and other person will also do same in favor of you.
I’m no longer positive where you’re getting your information, but good topic.
I must spend a while learning much more or understanding more.
Thank you for wonderful information I used to be on the lookout for this information for my
mission.
Hello I am so glad I found your webpage, I really found
you by mistake, while I was searching on Google
for something else, Nonetheless I am here now and would just like to say kudos for
a incredible post and a all round interesting 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 in your
RSS feeds, so when I have time I will be back to read more, Please do keep up the awesome b.
What’s up, I read your blog regularly. Your story-telling style is witty, keep doing what you’re doing!
If you would like to improve your experience only keep visiting
this site and be updated with the hottest news posted here.
This information is worth everyone’s attention. Where can I find out more?
Do you have a spam issue on this blog; I also am a
blogger, and I was curious about your situation;
we have created some nice procedures and we are looking to trade
techniques with others, please shoot me an email if interested.
Hi friends, nice post and nice urging commented at this place, I am in fact
enjoying by these.
I always used to read post in news papers but now as I am a user of web therefore from now I am
using net for articles or reviews, thanks to web.
I have fun with, lead to I found exactly what I used to be taking a look for. You have ended my 4 day long hunt! God Bless you man. Have a nice day. Bye
Good way of describing, and fastidious post to get data
regarding my presentation topic, which i am going to deliver in school.
I have read a few good stuff here. Certainly value
bookmarking for revisiting. I wonder how much attempt
you put to make this type of great informative web site.
Oh my goodness! Incredible article dude! Thank you, However I am encountering difficulties with your RSS.
I don’t know why I can’t join it. Is there anybody having similar RSS problems?
Anyone that knows the solution can you kindly respond?
Thanks!!
casino siteleri olarak arattığınız zaman önünüze
pek çok deneme bonus veren bahis siteleri seçeneği çıkacaktır.
Önemli olan çıkmış olan bu siteler değildir. Önemli olan girdiğiniz bu sitelerin ne kadar güvenilir olduğudur.
Sizler de yazımızı okuyup bu konuda bilgilenerek farklı bahis sitelerine girebilir ve
dilediğiniz kadar keyifli bir zaman geçirebilirsiniz.
Çeşitli bonus veren siteler bulunmaktadır.
Her sitenin kendine özel bonus kampanyası vardır. Bonus kelimesi çevrimsiz bonus veren siteler farklı yerler
de deneme bonusu olarak da karşımıza çıkar. Bonuslar sayesinde firmalar arası rekabet oluşmaktadır.
Bahisçilere casino bonusu veren siteler son dönemde bedava bahisi tercih
etmektedir. Müşteri memnuniyeti ile sonuçlanan bu bonus en iyi
kampanyalardan biridir. Sitelere çevrimsiz bonus veren siteler üye olduktan sonra bedava
bonustan faydalanabilirsiniz. Bahis oynamak için ise herhangi bir ücret yatırmanıza gerek yoktur.
Piyasa da bonus veren bahis siteleri güvenilir olması açısından önemlidir.
Belirli bir tutarı yatırmadan para çekme işlemi gerçekleşmez Deneme
bonus veren bahis siteleri yenilik yapmışlardır.