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.
If you desire to improve your experience simply
keep visiting this website and be updated with the newest gossip posted here.
Thanks for sharing your thoughts on useful site.
Regards
Thank you for the auspicious writeup. It in fact was a amusement account
it. Look advanced to more added agreeable from you!
However, how can we communicate?
With havin so much content and articles do you ever run into any
issues of plagorism or copyright infringement?
My website has a lot of unique content I’ve either authored myself or outsourced but it appears a lot of
it is popping it up all over the web without my
permission. Do you know any ways to help prevent content from being stolen? I’d certainly appreciate it.
Its like you learn my mind! You appear to know a lot approximately this, such as you wrote the ebook in it
or something. I believe that you just could do with
a few percent to pressure the message home a little bit, however other
than that, that is fantastic blog. A fantastic read. I’ll certainly be back.
This site was… how do you say it? Relevant!!
Finally I’ve found something which helped me. Kudos!
It’s going to be ending of mine day, except before finish I am
reading this great paragraph to increase
my experience.
http://69.57.162.189
Spot on with this write-up, I honestly think this web site needs a lot more attention. I’ll probably
be back again to read more, thanks for the info!
Do you have any video of that? I’d care to find out some additional
information.
I do not even understand how I finished up here, however I thought this submit was once great.
I do not recognize who you might be however
certainly you are going to a famous blogger should you
are not already. Cheers!
It’s great to see you
Your method of describing the whole thing in this article is actually nice, every one
can without difficulty understand it, Thanks a lot.
whoah this weblog is wonderful i like studying your
posts. Keep up the good work! You recognize, many individuals are looking around for this info, you can aid them greatly.
Повышайте качество вашего ремонта с помощью штукатурка по маякам стен. Для этого есть mehanizirovannaya-shtukaturka-moscow.ru.
Why users still make use of to read news papers when in this technological
world the whole thing is accessible on web?
payday loan
На mehanizirovannaya-shtukaturka-moscow.ru вы найдете услугу штукатурки стен машинным способом. Это оптимальное решение для идеально ровных стен.
Хотите получить идеально ровные стены в своей квартире или офисе? Обращайтесь к профессионалам на сайте mehanizirovannaya-shtukaturka-moscow.ru! Мы предоставляем услуги по механизированной штукатурке стен в Москве и области, а также гарантируем быстрое и качественное выполнение работ.
https://rimbatotolink.azurefd.net
Superb content Cheers.
Very rapidly this website will be famous among all blog visitors, due to it’s good
articles or reviews
I believe this is one of the most significant info for me.
And i’m satisfied reading your article. But want to observation on some
basic things, The website style is perfect, the articles is really nice : D.
Good activity, cheers
If you desire to take much from this post then you have to apply such techniques to your won webpage.
I must say, this article surpassed my expectations!
The comprehensiveness of examination and the
original perspective provided really distinguishes it apart.
The writer’s expertise of the subject is apparent, making complicated concepts
readily understandable. The writing style is gripping and
captures the reader’s attention from the very beginning.
I found myself engrossed in the content, readily absorbing every word.
This is a laudable piece of work that deserves recognition.
Well done!
No matter if some one searches for his vital thing,
so he/she desires to be available that in detail, thus that thing is maintained over here.
We stumbled over here from a different website and thought I may as well check things out.
I like what I see so now i am following you. Look forward
to exploring your web page for a second time.
We are a group of volunteers and starting a new scheme in our community.
Your website provided us with valuable info to work on. You’ve done an impressive job and our entire community will be thankful to you.
Really a good deal of useful material.
Hi there, just became aware of your blog through Google, and found that it
is really informative. I am going to watch out for brussels.
I will be grateful if you continue this in future.
Many people will be benefited from your writing.
Cheers!
Here is my homepage Alcohol Breathalyzer Test For Sale
Greetings from Los angeles! I’m bored at work so I decided to check
out your site on my iphone during lunch break.
I love the info you present here and can’t wait to take a look when I
get home. I’m shocked at how fast your blog loaded on my phone ..
I’m not even using WIFI, just 3G .. Anyhow, very good blog!
Its such as you learn my thoughts! You seem to understand a lot approximately this,
like you wrote the e-book in it or something. I believe that you could do
with a few % to force the message home a little bit, but
other than that, this is magnificent blog.
A fantastic read. I’ll certainly be back.
I was pretty pleased to discover this great site.
I want to to thank you for your time for this fantastic read!!
I definitely enjoyed every little bit of it and
i also have you bookmarked to look at new things
in your web site.
I like the valuable information you supply in your articles. I will bookmark your weblog and test again here frequently. I am slightly certain I will be informed many new stuff right here! Good luck for the following!
When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get four e-mails with
the same comment. Is there any way you can remove me from that service?
Bless you!
penis enlargement
I’m curious to find out what blog system you are utilizing?
I’m having some minor security problems with mmy latest website and I’d like tto fknd something more
safe. Do you have any solutions?
슈퍼카마그라
Hey are using WordPress for your site platform?
I’m new to the blog world but I’m trying to get started and create my own. Do you
need any html coding knowledge to make your own blog?
Any help would be really appreciated!
Hey there would you mind stating which blog platform you’re working with? I’m looking to start my own blog in the near future but I’m having a difficult time making a decision between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design 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!
My partner and I absolutely love your blog and find many of your post’s to be just what I’m looking for.
Would you offer guest writers to write content available for
you? I wouldn’t mind creating a post or elaborating on a lot of the subjects
you write regarding here. Again, awesome weblog!
Can I judt say what a relief to uncover someone who truly kjows what they’re discussing online.
You certainly realize how to bring a problem to light and make itt important.
More and more people really need to lookk at this aand understand this side of the story.
It’s surprising you aren’t more popular since you most certainly possess
the gift.
의정부교정치과
It’s very simple to find out any topic on net as compared to books, as I found this article at this site.
You actually stated that effectively!
I wanted to thank you for this good read!! I certainly enjoyed every little bit of it. I have you book-marked to check out new stuff you post
Oh my goodness! Awesome article dude! Thank you, However I am
encountering problems with your RSS. I don’t know the reason why I can’t join it.
Is there anybody getting similar RSS problems? Anybody
who knows the answer will you kindly respond? Thanx!!
It’s genuinely very complex in this active life to listen news on TV, so I simply use the web for that reason, and take the hottest information.
Does your website have a contact page? I’m having trouble locating it but, I’d like to send you an e-mail.
I’ve got some recommendations for your blog you might
be interested in hearing. Either way, great blog and I look forward to seeing it
grow over time.
Really a good deal of helpful advice!
Unquestionably believe that which you stated. Your favorite justification appeared to be on the net the simplest thing to be aware of. I say to you, I definitely get irked while people consider worries that they plainly do not know about. You managed to hit the nail upon the top as well as defined out the whole thing without having side effect , people can take a signal. Will likely be back to get more. Thanks