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ChrisGraley (30.30)

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April 22, 2011 – Comments (27)

President Obama has decided to form a commision to investigate the high gas prices.

On the same day the ChrisGraley commision released a statement of their views about the problem.

"You're printing money stupid!"

This has been an evening news break, more news at 11.

 

 

27 Comments – Post Your Own

#1) On April 22, 2011 at 9:46 AM, PeteysTired (< 20) wrote:

Yep.  But a commission sounds good.  He didn't use any ideas from his debt commission, so what is the point of this one?

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#2) On April 22, 2011 at 10:25 AM, alstry (35.21) wrote:

My guess is there will soon be a commission on internal riots and global conflict.

Just as you can't build an housing market on predatory lending, you can't build a global economy/recovery on predatory lending either.

Now we will be forced to learn how to be predators for a while...this will take many by surprise.

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#3) On April 22, 2011 at 12:42 PM, Betapeg (< 20) wrote:

I think inflation is a small part for why gas prices are high. There is a risk premium associated with oil prices, increasing demand, and speculators. 

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#4) On April 22, 2011 at 2:01 PM, L0RDZ (84.09) wrote:

You all have missed the more valid points as to why the price will continue to increase and our leaders are unworthy of command.

 

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#5) On April 22, 2011 at 2:23 PM, davejh23 (< 20) wrote:

"I think inflation is a small part for why gas prices are high. There is a risk premium associated with oil prices, increasing demand, and speculators."

I don't know what the main driver is, but demand is down and crude stockpiles are at all time highs...minor supply disruptions are not affecting overall supply.  Basic supply/demand economics would suggest that prices should be much lower.  The dollar is down huge against some pretty crappy currencies, but I'd guess that we're close to a turning point...up oil, down dollar, up stocks...down economy...up dollar, down oil, down stocks...

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#6) On April 22, 2011 at 2:42 PM, CluckChicken (27.07) wrote:

There is without a doubt some shell games going on in the oil business. The last oil refinery built in the US was in 1976. In 1982 there were 254 operational refineries in the US, in 2010 there were 137. Now those remaining refineries have been getting more efficient as total output capacity in 1982 was 16,103,579 and in 2010 was 16,850,194.

This begs the question, if we are using more oil today then we were 1982 but our ability to convert the crude to usable has not changed at the same growth rate what is causing such high crude prices?

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#7) On April 22, 2011 at 3:06 PM, ChrisGraley (30.30) wrote:

I hate to break it tou you guys but it's not just oil

I wonder what in the world could make the price of everything go up?

 

hmmm....

I'll have to ponder that for a while.

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#8) On April 22, 2011 at 6:57 PM, FleaBagger (29.42) wrote:

Headline News - 

 

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#9) On April 22, 2011 at 9:03 PM, BillyTG (29.78) wrote:

From Terd Ferguson today:

 So I'm flipping through the channels late Wednesday night and I stop on O'Reilly visiting with Lou Dobbs. I notice that they're talking about oil prices so I figured I'd give it a listen.

As the interview dragged on, I was amazed at their points of view.

O'Reilly: Its all the evil speculators, oil companies and OPEC who are at fault. They are driving up the price of oil for their own benefit and screwing the consumer.

Dobbs: It's all Obama's fault. He should be putting the screws to OPEC to force them to pump more oil and bring the price down.

That these guys are apparently so clueless bugged me all day yesterday. In fact, I even discussed this on the phone with Mr. Hyde. How could these guys not get it? Anyone with a brain knows that crude is going up because of concerns of unrest in the Middle East and, more importantly, the rapidly declining dollar. But here are O'Reilly and Dobbs taking 5 minutes in front of O'Reilly's massive audience to construct bogey men for everyone to blame. WHY? Seriously, this really bugged me.

I got my answer yesterday when I saw this:


( RTR ) 04/21 02:30PM OBAMA SAYS HAS ASKED ATTORNEY GENERAL TO CREATE TEAM TO "ROOT OUT" FRAUD, MANIPULATION IN OIL MARKETS THAT COULD HIT GAS PRICES( RTR ) 04/21 02:31PM OBAMA, IN PREPARED REMARKS, SAYS TEAM'S FOCUS WILL INCLUDE OIL MARKET TRADERS AND SPECULATORS( RTR ) 04/21 02:31PM OBAMA SAYS WILL MAKE SURE THAT NO ONE IN OIL MARKET IS TAKING ADVANTAGE OF THE AMERICAN PEOPLE FOR THEIR OWN SHORT-TERM GAIN

And it all began to fall into place. The O'Bottom regime knew that the President was going to be discussing this nonsense yesterday. So, they put out a call to their new buddy, O'Reilly. Remember, O'Reilly owes them a few favors after they granted him the exclusive interview back on Super Bowl Sunday, O'Reilly obliges by gladly staging this interview to give the President some political cover. Adding Dobbs to the segment to criticize Obama gives O'Reilly cover, too. Pretty handy, huh?

Do you now see how you are manipulated? The Fed/TBTF/Govt/Media Complex is desperately clinging to power. Again, anyone with a brain knows that oil is rising because its denominated in dollars. It's the reason corn is rising. It's the reason gold is rising. It's the reason the stock market is rising. The world is awash in dollars, willfully printed by the Federal Reserve, to fund the U.S. government ponzi scheme. If you want to control inflation and bring the cost of crude oil down, you stop printing money and make the U.S. government function on revenues alone.

But that's not going to happen, now is it? Nope. No way. So long as the politicians and their willing accomplices in the media can construct straw men upon whom you can vent your anger, change will never come. Your politicians will distract your neighbors from focusing on the real problem (the politicians) by encouraging them to chase dead ends and ghosts, instead.

 

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#10) On April 22, 2011 at 9:16 PM, BillyTG (29.78) wrote:

Good chart here:  http://www.oftwominds.com/blogapril11/oil-USD4-11.html

 

Even Glenn Beck gets it...good charts in this clip demonstrating the dollar's correlation with oil, Euro, etc.

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#11) On April 22, 2011 at 11:15 PM, ChrisGraley (30.30) wrote:

I never have watched a Glen Beck show before BillyTG, but that was very informative and very appropriate.

Thank you for bringing it to my attention. 

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#12) On April 22, 2011 at 11:54 PM, Betapeg (< 20) wrote:

How does anyone not associated with Republicans or the Tea Party take Glenn Beck half seriously? Anyways...

I think we can all agree that oil prices are fundamentally overvalued. But as the saying goes, "The market can be irrational far longer than you can stay solvent."  

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#13) On April 23, 2011 at 12:43 AM, BillyTG (29.78) wrote:

ChrisGraley, someone on ZH posted that vid and mentioned something similar---that he disliked Glenn Beck, but that this particular show was necessary viewing for people of all political persuasions.

For people who don't want to watch the whole thing, the portion about oil-dollars is at 13:15

 

Betapeg, read everything, watch everything.  You hurt yourself by watching/reading only those things supporting your world view.  It's called confirmation bias.

I disagree about oil being "overvalued."  Get outside your America-centric perspective, and you'll see that the bottled water and coffee you buy at the store cost an order of magnitude more than gasoline.  Read up on peak oil (which may or may not be true, depending on what countries have large, strategically undeveloped oil fields like the US has in Bakken, Prudhoe Bay, et al...but at a minimum, most of the large oil fields in play now have peaked production). Read up on gas prices in the rest of the developed world. Read up on where the largest oil reserves are, and how stable those places are, and how our relationships with those countries are right now.  Read up on energy returned on energy invested, and see how oil from Canada is far inferior than that from Iraq.  Read up on how the petrodollar is steadily breaking down, with coutries like China and Russia trading oil in non-dollar currencies, weakening the dollar monopoly.  Read up on how alliances are forming, such as Iran-Russia-Syria.  And to throw my trademarked "conspiracy theory" twist on things, Lindsey Williams,a chaplain who worked with oil elite in Alaska in the '70s and claims to keep in touch with tham and get regular updates on the "elites'" plans, is predicting oil at $150-200/barrel (crazy, but hey, he's made some very accurate calls these last few years!).

Might we see another drastic drop in oil, like we did a couple years ago? Yep, cutting QE and raising rates would drop oil and the stock market rapidly and deeply. That's why I'm hedging so much right now. Could that same scenario play out again? Yep, it might drop down to $50, before shooting right back up to triple digits, but likely we won't see prolonged cheap prices at the gas pumps ever again. I'd wager we'll see $9/gallon gas before $2/gallon.

 

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#14) On April 23, 2011 at 12:52 AM, Momentum21 (96.83) wrote:

the real question is... 

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#15) On April 23, 2011 at 9:44 AM, rd80 (98.69) wrote:

Bernanke said one purpose of QE2 was to raise prices, which would be manipulating markets.  Prices went up.

Arguably, the massive deficit spending also pushed the 'need' for QE2. 

Should get interesting when AG Holder files charges against Chariman Bernanke and President Obama for manipulating oil markets. 

Failure to file the charges simply proves what we already know - this is nothing more than political grandstanding by a President who doesn't like the unintended consequences of his own policies.

 

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#16) On April 23, 2011 at 12:52 PM, cthomas1017 (72.98) wrote:

betapeg,

nice try.  were you actually to watch that clip of glenn beck than to attack his credibility, you might not come off as such a baffoon with your ignorant statement.  if you'd like to attck the message rather than the messager, then you'd add something to the intellectual discourse.  otherwise, your opinions are empty and meaningless.  go ahead, watch the video and argue the premise or facts which beck presents.  until then you show yourself just how ignorant you are of the facts. 

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#17) On April 23, 2011 at 1:02 PM, cthomas1017 (72.98) wrote:

rd80, why assume that the consequences are unintended?  Neither Austrian nor Keynesian economics would suggest that what is happening now could not be anticipated.  So either obama is so incompetent (as is bernake and as is just about every member of congress) to be a major mistake of the electorate.  Or he has chosen advisors who are incapable of understanding the most basic economics.  Or the consequences are intended, which might be the scariest thought of all.  

It's understood that the American electorate has been dumbed down terrifically, particularly when it comes to understanding economics.  Add to that the complexity of the policies and international manipulation by the central banks, and it's no wonder the ship is headed for an iceberg while we rearrange the chairs.

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#18) On April 23, 2011 at 1:35 PM, rd80 (98.69) wrote:

rd80, why assume that the consequences are unintended?

I thought about that right after posting.  Maybe 'undesired' would have been a better word choice - or that the President doesn't like the heat he's taking for the consequences of his and Bernanke's actions.

I agree this was predictable and, in fact, inflation was one of Bernanke's goals with QE2.

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#19) On April 23, 2011 at 2:03 PM, ChrisGraley (30.30) wrote:

And we form a commision so we can point the finger of blame at "those evil speculators"  and draw attention away enough for QE3 to start on schedule.

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#20) On April 23, 2011 at 3:06 PM, Betapeg (< 20) wrote:

BillyTGBetapeg, read everything, watch everything.  You hurt yourself by watching/reading only those things supporting your world view.  It's called confirmation bias.

Confirmation bias? No...I just choose to hear the other side of the debate from reasoned moderates and not from an anti-semitic fundamentalist evengelical Christian conspiracy theorist.

As for the valuation of oil, it is certainly overvalued over the long-term, and I'm not one to be a contrarian on it. I just think it's overvalued short-term. That's more of a hunch. So if I were to make a trade on it, I'd definitely want to hedge myself, as I can't say one way or the other where it goes in the next year. Over the next 10 years? Most probably up.  

cthomas1017, nice try.  were you actually to watch that clip of glenn beck than to attack his credibility, you might not come off as such a baffoon with your ignorant statement.  if you'd like to attck the message rather than the messager, then you'd add something to the intellectual discourse.  otherwise, your opinions are empty and meaningless.  go ahead, watch the video and argue the premise or facts which beck presents.  until then you show yourself just how ignorant you are of the facts. 

What credibility? Glenn Beck doesn't have credibility. Only his fans believe he does. You either love him or you hate him. I am personally diametrically opposed to almost everything he believes. And intellectual discourse? I didn't know Glenn Beck was an intellectual, that's news for me. He's an entertainer. We can debate the subject matter (I rather enjoy it), but citations of Glenn Beck are absolutely laughable. Even when I agree with what he says (very rarely), citing him is like citing wikipedia on a PhD thesis. Obviously, you love Glenn Beck, and I don't. Let's leave it at that and move on. I'm certainly open to discussing the topic at hand, not some idiot on television. 

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#21) On April 23, 2011 at 8:25 PM, cthomas1017 (72.98) wrote:

So beta doubles down on personal attacks with no substance.  No one really cares about your opinion about Glenn Beck, especially when the video of him was factual and reasonable.

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#22) On April 23, 2011 at 8:41 PM, Betapeg (< 20) wrote:

You caring is irrelevant. I posted my opinion. Deal with it. I said we could agree to disagree and move on. So why don't you just move on? 

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#23) On April 25, 2011 at 2:41 PM, ChrisGraley (30.30) wrote:

Come on guys!

It's betapeg's choice to cover his ears and go "La, la, la, la, la" if he wants to.

It takes a special person to dismiss an argument before he hears it and if there is one thing that describes betapeg, it's "special".

 

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#24) On April 25, 2011 at 5:54 PM, Betapeg (< 20) wrote:

Cover my ears from the utter idiocy that is Glenn Beck? Gladly. At least I'm not bowing down at the alter of Glenn Beck. I say one comment and you guys start foaming at the mouth. One thing is for sure. Glenn Beck fans shouldn't be allowed to call people "special" because it takes a really dumb idiot to agree with Glenn Beck, even when he occassionally says something sane.

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#25) On April 25, 2011 at 7:14 PM, ChrisGraley (30.30) wrote:

because it takes a really dumb idiot to agree with Glenn Beck, even when he occassionally says something sane.

 That's just priceless.

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#26) On April 26, 2011 at 12:46 PM, Betapeg (< 20) wrote:

I guess if any idiot can say one good thing in the midst of a million stupid things, we should all listen. Have fun with that. I choose to listen to moderates on both sides of the political spectrum. Not wing nut fringe conspiracy theorists. What's priceless is you giving this man a shred credibility at all, especially given his anti-semetic, conspiracy-laden rants on cable television and AM radio. I find it rather amusing at how butt hurt you people are over one sentence criticizing the man.  

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#27) On April 27, 2011 at 10:20 PM, HarryCarysGhost (99.74) wrote:

For anyone who does'nt know the story behind Momentum's link-

http://ask.yahoo.com/ask/20010619.html

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