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The Real Reason For High Gas Prices?

gretavo's picture
Submitted by gretavo on Wed, 2008-06-18 17:45.

Worth a look see... this is actually part 7 of 8 but is as good a place as any to start...


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gretavo's picture

interesting supplementary discussion on oil prices...

Submitted by gretavo on Wed, 2008-06-25 15:57.

This is particularly interesting because "Yellow" is a professional commenter (i.e. shill) on Alternet who is in charge of 9/11 Truth denying.  Using the 9/11 Razor™ we can deduce that the guy he is arguing against may well be on the right track... 

Clearly, He's saying that oil prices have increased in REAL terms & not only as a monetary function
Posted by: yellow on Jun 22, 2008 1:12 PM   
Current rating: 5    [1 = poor; 5 = excellent]
Crude oil has increased in real terms since its former peak in the 1980s. The so called speculative attacks on gold in the 1990s which brought gold prices below $250/ounce for a short time, were based on trillions of dollars in foreign capital inflows to the US economy in direct investment, corporate and government bonds and corporate stocks. Also US exports continued despite the strong dollar mostly based on falling export prices for manufactured goods which led to falling prices, decreased investment, unemployment, overcapacity, slowed economic growth and the 2001 recession.

Current oil prices are less a monetary function than a direct response to factors such as geo-political security threats to the Persian Gulf, oil futures speculation, constrained output and refining capacity, dwindling reserves, and rising East Asian demand.


 
Your history is wrong as usual
Posted by: ReallyBearish on Jun 23, 2008 10:32 AM   

Gold didn't fall to $250 an ounce in the 1990s due to "direct" investment or "speculative attacks", and it certainly wasn't a "short term" fall. The gold price was forced down due to central bank "selling" (more accurately, dumping). What they didn't sell, they leased out based on some crap notion that gold is a "non-performing" asset. In fact, the lease rate was a joke-- at times less than 2 percent when money markets were paying 5 percent or more.

Leased gold, which they never intended to get back, became "double counted". That is, the bullion banks that leased the gold listed it as an asset (even though they sold it), and so did the central banks. The whole fraudulent scheme started to break down in the late 90s when the scam became too obvious.

All of those moron central bankers who got rid of their "nonperforming asset" sold off at prices under $300. Just how much did they get reinvesting those funds? Did it triple in value (as gold did)?

On top of this, we had gold miners like Barrack forward selling their production years into the future at rates that became too low to pay the costs of mining. (An oz of gold can't be mined for under $300/oz). This came to an end when investors refused to invest in gold miners that forward sold their production in this fashion.

You might want to learn some history regarding the price of gold and central bank flim-flam. Go to gold-eagle.com.

What we have had in the past 8 years is gold reflecting the expansion of world currencies, esp. the dollar. That's why it's a good indicator of inflation and why the central bankers are so afraid of it. It's also why oil isn't going up in terms of gold.

» Rubbish Posted by: ReallyBearish
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dicktater's picture

The Grand Illusion - Gas prices are NOT going up

Submitted by dicktater on Wed, 2008-06-25 18:34.

Lindsey is an interesting character. Here's something short and sweet I found recently.

The Grand Illusion - Gas prices are NOT going up
Written by Marc Stevens
http://www.adventuresinlegalland.com/
Saturday, 31 May 2008

Yet another political illusion diverting your attention away from the real problem. Gas prices are not going up, the Federal Reserve Note is plummeting in value.


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gretavo's picture

yup... and when the Fed Note plummets in value...

Submitted by gretavo on Wed, 2008-06-25 19:36.

you only don't lose if your wealth increases dramatically. If you're still just getting by breaking even from paycheck to paycheck, you're losing money big time! used to be inflation meant it was easier to pay off your debts--but that was when wages actually kept up with inflation. insanely high credit card interest means the masses of poor shmucks who can't or don't pay their balances off are the ones keeping the very few's wealth increasing dramatically so that THEIR standard of living can keep going up even as THEIR fed notes are devalued along with everyone else's.

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