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.
Ahaa, its fastidious discussion on the topic of this piece of writing here at this website, I have read all that,
so now me also commenting here.
Thank you for the auspicious writeup. It in reality used to
be a enjoyment account it. Glance complex to far introduced agreeable from you!
However, how can we keep up a correspondence?
Howdy! This article could not be written any better!
Looking at this article reminds me of my previous roommate!
He continually kept preaching about this. I will forward this
article to him. Fairly certain he’ll have a very good read.
Thanks for sharing!
My family members every time say that I am killing my time here at web, however I know I
am getting know-how daily by reading such fastidious articles or reviews.
I am regular visitor, how are you everybody? This article posted at this web site is really
nice.
Thank you for every other magnificent article.
The place else could anybody get that kind of info in such a perfect means of writing?
I’ve a presentation next week, and I am on the look for such
info.
Everyone loves what you guys are usually up too.
This sort of clever work and exposure! Keep up
the terrific works guys I’ve added you guys to my
own blogroll.
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 blog when you could be giving us something informative to read?
I’ll immediately grasp your rss as I can’t to find your
email subscription link or e-newsletter service.
Do you have any? Kindly permit me understand in order that I could subscribe.
Thanks.
I love your blog.. very nice colors & theme. Did you create this website yourself or did you hire someone to do
it for you? Plz answer back as I’m looking to create my own blog and would
like to find out where u got this from. kudos
Wow, this paragraph is fastidious, my sister is analyzing these kinds of things,
so I am going to tell her.
It іs truⅼy a great annd useful piece of info. I am glaԁ that yyou just
shаred this useful info with us. Please keeр uuѕ informed like this.
Thank you fօr sharing.
Greetings I am so delighted I found your blog page,
I really found you by error, while I was looking on Google for something
else, Regardless I am here now and would just like to say
cheers for a incredible post and a all round thrilling blog (I
also love the theme/design), I don’t have time to look over it all at the minute but
I have bookmarked it and also included your RSS feeds, so when I have time I will be
back to read a lot more, Please do keep up the awesome
work.
Hi, I believ your website could be having browser compatibility problems.
When I take a look at your site inn Safari, it looks fine however,
when opening in I.E., it haas some overlapping issues.I merely waned to provide
you with a quick heads up! Apart from that, fantastic blog!
Twitter リツイート
I know this website offers quality based articles and extra stuff, is there any other web page which gives these kinds of things
in quality?
I believe everything published was acrually very
logical. But, think about this, what if you wrote a catchier title?
I am not suggesting your information isn’t
solid., however hat if yyou addeed a title that grabbed a person’s attention? I mean High Oil Prices?
| FreedomOmaha.com is a little plain. Yoou could look at Yahoo’s
front page and note how they create news titles to grab viewers to oopen the links.
You might add a related video or a pic or two to grab readers interested about everything’ve written. In my opinion, it might bring your blog a little livelier.
소닉카지노 쿠폰
Hi, I would like to subscribe for this webpage to obtain most up-to-date updates, so where can i do it
please assist.
I havbe besn surfing online greater than thrree hours as of late, yet I
never discovered anyy attention-grabbing article like yours.
It is pretty worth enough for me. In mmy view, if all website
owners and bloggers made just right content material as you did, the web shall be much more useful than ever before.
카림 도메인
Whhat i do not understood is in fac how you are no
longer really much more smartly-favored than you may be right now.
You are soo intelligent. You already know therefore considerably
in terms of this subject, produced mme in my view consider it frfom a lot of variouus angles.
Its like men and women aren’t involved except it
is onne thig to do with Girl gaga! Your own stuffs excellent.
Always deal with itt up!
youtube買讚
Great information. Lucky me I ran across your site
by accident (stumbleupon). I’ve saved it for later!
Heⅼlo! This iѕ my first comment here sο I just wanted to
give a qᥙicҝ shout out and sɑy I genuinely enjoy reading through yⲟur posts.
Can you recommend any other blogs/websites/forums that go оver the same topics?
Thɑnk you so much!
I used to be suggested this website by means of my cousin. I am no longer positive whether
this publish is written by way of him as nobody else realize such distinct about my difficulty.
You’re amazing! Thanks!
Thank you for sharing your info. I really appreciate your efforts and I am waiting for your next write ups thank
you once again.
Hurrah! At last I got a web site from where I be capable of actually take useful facts regarding my study and knowledge.
Normally I don’t read article on blogs, but I wish to say that this write-up very pressured me to take a look at and do it!
Your writing taste has been surprised me. Thanks,
very great article.
This is the perfect website for everyone who hopes to understand this topic.
You know so much its almost hard to argue with you (not that I really will need to…HaHa).
You definitely put a fresh spin on a subject that has been discussed for ages.
Excellent stuff, just excellent!
I am really enjoying the theme/design of your web site. Do
you ever run into any browser compatibility problems? A number of my blog audience have complained
about my blog not working correctly in Explorer but looks great
in Firefox. Do you have any advice to help fix this problem?
Great goods from you, man. I’ve understand
your stuff previous to and you’re just too excellent. I actually
like what you have acquired here, really like what you are saying and the way in which you say it.
You make it entertaining and you still care for to keep it
smart. I can’t wait to read much more from you.
This is really a great site.
I don’t even know how I ended up here, but I thought this post was good.
I don’t know who you are but certainly you’re going to a famous blogger if you aren’t already 😉 Cheers!
I have to thank you for the efforts you’ve put in writing this site.
I really hope to see the same high-grade content
from you later onn as well. In fact, your creative writing abilities
has encouraged me tto get my own, personal website noww 😉
스마일주소
Heeｙ theere I am sso grateful I found your blog, І really found yօu byy error, ᴡhile I was bгowѕing on Askjeevе for ѕomething else, Regardless I am
һere now and woujld just like to say cheers fоr
a incredible post and a all round thrilling blog (I also lօve the
theme/design), I don’t have time to rеad
tһrough it all at the moment but I have saved it and alѕo added in your ɌSS feeds, sso when I haᴠe time I will be bzck to read much more, Please do keep up the
great jо.
Fantastic poat however I was wanting to know if you could write a litte more on this subject?
I’d be very thankful if you could elaborate a little bit further.
Thanks!
기가 가입코드
I’m not that much of a internet reader to
be honest but your blogs really nice, keep it up! I’ll go ahead
and bookmark your site to come back in the future. All the best
Have you ever considered creating an ebook or guest authoring on other blogs?
I have a blog based on the same subjects you discuss and would love to have you share some
stories/information. I know my audience would enjoy your work.
If you’re even remotely interested, feel free to
send me an e mail.
excellent issues altogether, you just gained a new reader.
What might you recommend in regards to your publish that you just made
a few days ago? Any sure?
Hi there! This is my first comment here so
I just wanted to give a quick shout out and say I truly enjoy reading
through your posts. Can you recommend any
other blogs/websites/forums that deal with
the same topics? Thanks a ton!
It is not my first tіme to visit this wweƅ site, i am visiting this website dailly and tаke fastidious data from here Ԁaily.
I like what you guys tend to be up too. This type of clever work and reporting!
Keep up the wonderful works guys I’ve you guys to our blogroll.
I think thеe admіn of this web page is in fаct
working haｒd for hiis site, aas here every stuff is
quality based information.
Thanks for your personal marvelous posting!
I certainly enjoyed reading it, you happen to be a great author.I will
remember to bookmark your blog and will eventually
come back later in life. I want to encourage that you continue your great work,
have a nice holiday weekend!
Thankfulness to my father who stated to me on the topic of this blog,
this weblog is truly amazing.
짱구카지노 사이트
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 as
exactly the same nearly very often inside case you shield this increase.
Highly descriptive blog, I liked that bit.
Will there be a part 2?
Thahk yyou foor sopme othe informattive site. Ꮤһere elsde mayy I amm
gettin thjat type ⲟff informastion witten iin suych ɑ perfet method?
Ӏ’ѵe a ndertaking thgat Ι aam ust noow runningg ⲟn, andd I’νе beeen oon thee glznce oout ffor sudh іnformation.
mʏ webpage: دانلود آهنگ لیلا از مهدی احمدوند کیفیت 320 افق موزیک
When I initially left a comment I seem to have clicked oon the -Notify
me when neww comments are added- checkbox and from now
on wheneve a comment is added I recieve four
emails with the exat same comment. There has tto bee a way you
are able to remove me from that service? Cheers!
아목시실린
After looking into a number of the articles on your website,
I seriously like your technique of blogging. I saved as a favorite it to my
bookmark siute list and will be checking back soon. Taake a look at my web site too and lett
me know what you think.
체크카지노 가입코드
Genuinely no matter if someonhe doesn’t understand afterward
its uup tto other visitors that they will assist, so here it
takes place.
마추자 코드
Pretty nice post. I just stumbled upon your blog and wanted to say that I’ve truly loved surfing around your blog posts.
In any case I’ll be subscribing to your rss feed and I’m hoping you write once more soon!
I’m impressed, I havve to admit. Seldom do I come across a blog that’s
both educative and entertaining, and let mee tell you,
you have hit the naail onn the head. The problem is
something not enojgh folks are speaking intelligently about.
I am very happy I fpund this in my hunt for something concerning this.
ig 演算法
I love your blog.. very nice colors & theme. Did you create this website
yourself or did you hire someone to do it for you?
Plz answer back as I’m looking to create my own blog and would like to know where u got this from.
thank you