JimBollman
Upstate NY
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Joined: 08/31/2006
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I have read in several places that the price is mostly being driven by speculators and several big investment groups, JP Morgan being one of them. Some having huge tank farms around the world to absorb spot drops.
I read about this a few weeks ago and who steps up and said crude will be at $150 by the 4th of July when there was a small dip in price. Yep JP Morgan. Could be the next investment bubble.
Seems like we would se the occasional out of gas for the day sign if there was a real shortage.
Jim...
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Raften
Northern Calfornia
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Joined: 01/27/2003
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I don't think there is a shortage, just a big demand. You can't help but wonder how a large family that has a large vehicle to move people can deal with the daily price increase in fuel.
* This post was
edited 06/10/08 12:13am by Raften *
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anthonyca
california
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Joined: 11/03/2007
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Everyone talks about supply and demand or more commonly greedy speculators. Most people never talk about the money supply as oil is bought with the "reserve currency" US dollar which is not backed by anything but the faith in the US govt and is being inflated at an astonishing rate of how much we can't see anymore due to M3 (total money supply) no longer being reported by our fed reserve. The world knows we have over $70 trillion in "off balance sheet future obligations" and a huge deficit paid for by more inflation. There have been over 30 hyper inflations since 1900, Germany,China,Hungry,Brazil ect. Why does everyone think it cant happen to us when we are just repeating what has happened to EVERY paper currency in the history of the world? Add to this growing wealth by China and India and tier demand of billions of people wanting to live like us and this is the result. We are a huge over extended consumer now begriming to pay the piper.
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WayneAndPaulette
NW Ohio
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Joined: 11/01/2006
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anthonyca wrote:Everyone talks about supply and demand or more commonly greedy speculators. Most people never talk about the money supply as oil is bought with the "reserve currency" US dollar which is not backed by anything but the faith in the US govt and is being inflated at an astonishing rate of how much we can't see anymore due to M3 (total money supply) no longer being reported by our fed reserve. The world knows we have over $70 trillion in "off balance sheet future obligations" and a huge deficit paid for by more inflation. There have been over 30 hyper inflations since 1900, Germany,China,Hungry,Brazil ect. Why does everyone think it cant happen to us when we are just repeating what has happened to EVERY paper currency in the history of the world? Add to this growing wealth by China and India and tier demand of billions of people wanting to live like us and this is the result. We are a huge over extended consumer now begriming to pay the piper.
I am in total agreement with this statement. But how in the world are we going to get out of this mess? And why would anyone in their right mind want the top position in the country and take it on??
2003 F350 PSD DRW King Ranch CC,LB,Happijac tiedowns
'92 Lance Squire 10'9" wayneandpaulette.blogspot.com
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46 Woodie
Elfin Forest, CA 92029
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Joined: 01/17/2008
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I think that the federal reserve is the key element in this oil problem. If the world were to see the prime rate begin to rise oil prices would start to decline. I am really surprised that there has not been many news articles about this cause and effect relationship. The media has discussed every which way to Sunday what has influenced the increase in oil prices. Many factors have been discussed,from other emerging nations increases in their need for oil, speculators, refinery issues, oil company excess profits and the declining value of the dollar. So, other than the decline of the dollar what has changed so dramatically in the world within the last year? During the last year the discount rate/prime rate have gone to historical lows, and I think after a point a lower rate has exponential negative ramifications. Over generalizing, our real estate market took a dump and the federal reserve tried to fix it with lowering the prime rate. For various reasons lowering the prime rate does little to solve the housing issue. But these large drops in the prime do directly decrease the value of the dollar which then can cause oil prices to rise. Think about it. What direct positive impact has the low prime done for you personally? But, indirectly it has had a very, very negative impact on every one of your daily purchases.
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snowranger
sf
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Joined: 04/12/2007
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46Woodie and anthonyca at least get it. The general concept of fiat money is something that is not covered in high school or college. Why that is I do not know. In any event, the Fed and other Central Banks are trying to walk a fine line between deflation and inflation. Deflation is the worse outcome as most people are net debtors.
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Solarfry
Ft. Lauderdale, FL
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Joined: 04/12/2004
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So. Florida fuel prices:
Gasoline $4.09/ Gal
Diesel $5.19/gal
04'Chev 2500HD 9200GVWR ExtCab LongBed 6L GAS tow pack
04' Lance 815, CP, AC, FF, MW, RE, ElectAtwoodjacs, loaded.
13.2mpg/w TC @ 55MPH tow'g 15' boat, 12 mpg @ 65-69 mph.
10@70mph. 8@75. Stock over 26k miles. All mileage before ethanol mandate in FL.
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jsmmv
California
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Joined: 06/16/2005
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gm412 wrote:In the SF Bay Area you will not find diesal for less then 5.25. In a month it will be 6.00. Tell congress to drill and create many nuclear power plants now. I just got some last Sat. for $4.96 a gal. at a Chevron station in Mill Valley.
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