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.
It’s an awesome piece of writing in favor
of all the online visitors; they will get benefit from it I
am sure.
If you desire to get a good deal from this post then you have to apply these techniques to your won blog.
I will right away take hold of your rss as I can not find your email subscription link or e-newsletter service.
Do you’ve any? Please allow me recognize in order that I may just subscribe.
Thanks.
buy viagra online
Hi there to all, how is all, I think every one is getting more from this website, and your views are nice in favor of new viewers.
This design is wicked! You most certainly know how to keep a
reader amused. Between your wit and your videos, I was almost moved to start my own blog (well,
almost…HaHa!) Great job. I really enjoyed what you had to say, and more than that, how
you presented it. Too cool!
Hello Dear, are you genuinely visiting this web page
regularly, if so after that you will without doubt get nice knowledge.
After looking over a number of the blog articles on your site, I honestly like your way of blogging. I bookmarked it to my bookmark site list and will be checking back soon. Take a look at my web site as well and let me know what you think.
Very good post! We are linking to this great content on our website.
Keep up the good writing.
obviously like your web site however you need to test the spelling on quite
a few of your posts. A number of them are rife with spelling problems and I in finding it very troublesome to inform the truth then again I’ll definitely come back again.
Hi there mates, its enormous post concerning tutoringand fully explained, keep it up all the time.
It is appropriate time to make a few plans for the future and it is time to be happy. I have read this submit and if I may just I wish to suggest you few interesting things or advice. Perhaps you could write next articles relating to this article. I want to read more things approximately it!
Way cool! Some very valid points! I appreciate you writing this post and the rest of the site is extremely good.
You actually expressed it really well.
Thanks for finally writing about > %blog_title% < Liked it!
Remarkable! Its in fact awesome article, I have got much clear idea concerning from this article.
Excellent beat ! I wish to apprentice while you amend your
website, how can i subscribe for a blog web site? The account aided
me a acceptable deal. I had been a little bit acquainted of this your broadcast provided bright clear idea
I think the admin of this web site is genuinely working hard in support
of his website, since here every material is quality based stuff.
Hello, I enjoy reading through your article post.
I like to write a little comment to support you.
WOW just what I was searching for. Came here by searching for Drywall
Repair Near Me
I’m really enjoying the design and layout of your site. It’s a very easy on the eyes which makes it much more enjoyable for me to come here and visit more often. Did you hire out a designer to create your theme? Excellent work!
Incredible! This blog looks just like my old one! It’s on a totally different subject but it has pretty much the same layout and design. Superb choice of colors!
Here is my webpage … https://Penzu.com/p/9427cac2
We are a bunch of volunteers and opening a new scheme in our
community. Your website offered us with useful info to work
on. You’ve done a formidable job and our entire group might
be thankful to you.
I loved as much as you will receive carried out right here. The sketch is tasteful, your authored subject matter stylish. nonetheless, you command get bought an edginess over that you wish be delivering the following. unwell unquestionably come further formerly again since exactly the same nearly a lot often inside case you shield this increase.
If some oone dеsires to be updated with most гecent technologies after thhat he must be go to seｅ thiѕ web site and
bе up to date all the time.
Hi, Neat post. There is a problem together with your web site in internet explorer, could check this? IE still is the marketplace leader and a big part of folks will miss your great writing due to this problem.
I was curious if you ever considered changing the layout of your blog?
Its very well written; I love what youve got to say.
But maybe you could a little more in the way of content so people could connect with it better.
Youve got an awful lot of text for only having 1 or 2 pictures.
Maybe you could space it out better?
Your mode of describing everything in this paragraph is really good, all can effortlessly know it, Thanks a lot.
I simply couldn’t leave your website prior to suggesting that I actually enjoyed the usual information a person supply
to your visitors? Is going to be again frequently in order to check up on new
posts
I’m amazed, I must say. Seldom do I come across a blog that’s equally educative and
engaging, and let me tell you, you’ve hit the nail on the head.
The problem is something that too few men and women are speaking intelligently about.
I am very happy I stumbled across this during my hunt for something relating to this.
I am really happy to glance at this blog posts which consists of tons of useful facts, thanks for providing such information.
Also visit my blog post – https://Sites.google.com/view/start-playing-online-casino
I’ve been browsing online more than 3 hours today, yet I never found any interesting article like yours.
It is pretty worth enough for me. In my opinion, if all webmasters and bloggers made good
content as you did, the net will be much more useful than ever before.
Thanks for finally writing about > High Oil Prices? | FreedomOmaha.com < Loved it!
I am regular visitor, how are you everybody?
This paragraph posted at this site is actually nice.
hey there and thank you for your information – I have definitely picked up anything new from right
here. I did however expertise several technical issues using
this web site, since I experienced to reload the site many times previous to I could get it to load
properly. I had been wondering if your hosting is OK? Not
that I’m complaining, but slow loading instances times
will sometimes affect your placement in google and could damage your high-quality score if advertising and marketing with Adwords.
Anyway I am adding this RSS to my email and can look
out for a lot more of your respective interesting content.
Make sure you update this again soon.
What’s up it’s me, I am also visiting this web site regularly, this web page is truly fastidious and the people are really sharing good thoughts.
I’m not that much of a online reader to be honest but your sites really nice,
keep it up! I’ll go ahead and bookmark your site to come back down the road.
Cheers
There’s definately a great deal to learn about this subject.
I like all of the points you have made.
Hmm it appears like your site ate my first comment (it was super long) so I guess I’ll just sum it up what I had written and say, I’m thoroughly enjoying your blog.
I too am an aspiring blog blogger but I’m still new to the whole thing.
Do you have any recommendations for first-time blog writers?
I’d certainly appreciate it.
Thank you for the auspicious writeup. It in fact was once a amusement account it.
Look advanced to far introduced agreeable from you! By the
way, how could we keep in touch?
I love what you guys are usually up too. This sort of clever work and
coverage! Keep up the wonderful works guys I’ve added you guys to my blogroll.
Woah! I’m really loving the template/theme of
this website. It’s simple, yet effective. A lot of times it’s hard to get that “perfect balance” between user friendliness and
appearance. I must say that you’ve done a great job with this.
In addition, the blog loads very fast for me on Firefox.
Excellent Blog!
magnificent post, very informative. I ponder why the other experts of this
sector do not realize this. You should continue your writing.
I’m sure, you have a great readers’ base already!
Une fois que vous aurez savouré votre bonus de bienvenue,
Winstler vous donnera accès à sa promotion régulière.
First off I would like to say awesome blog! I had a quick question which I’d
like to ask if you do not mind. I was interested to find out how
you center yourself and clear your head before writing.
I have had trouble clearing my mind in getting my thoughts out there.
I do enjoy writing but it just seems like the first
10 to 15 minutes are generally wasted simply just trying to figure out how to
begin. Any recommendations or tips? Appreciate
it!
What i don’t understood is actually how you’re now not really a lot more neatly-favored
than you may be now. You’re so intelligent. You realize thus considerably when it comes to this subject, produced me in my opinion consider it from a lot of numerous angles.
Its like men and women aren’t interested except it’s one thing to
accomplish with Woman gaga! Your personal stuffs great.
Always take care of it up!
Appreciate the recommendation. Let me try it out.
Persian Porn Tube and Beautiful Iranian girl dancing sexy
I’ve been surfing on-line greater than 3 hours nowadays,
but I never found any interesting article like yours.
It’s lovely worth sufficient for me. Personally, if all web
owners and bloggers made good content as you did, the
internet can be much more helpful than ever before.
Greetings! Very useful advice in this particular article!
It is the little changes that will make the largest changes.
Thanks a lot for sharing!