Posts Tagged ‘gas prices’


Kurt Nimmo
Infowars.com
March 28, 2012

Federal Reserve boss Ben Bernanke told ABC’s Diane Swayer on Tuesday that gas prices will continue to skyrocket through the summer.

Bernanke told Sawyer gas prices “are a major problem” and he admitted they are “a hardship for lots of people.”

During the interview, he tried to pawn off the fallacy that gas prices are responsible for inflation, which he said will escalate over the next few months.

By inflation Bernanke means price increases. As Ron Paul notes, blame for this can be placed at the doorstep of the Federal Reserve.

“Most economists fail to understand that inflation is at its root a monetary phenomenon,” Paul wrote last March. “There may be other factors that contribute to price increases, such as famine, flooding, or global unrest, but those effects are transient. Consistently citing only these factors, while never acknowledging the effects of monetary policy, is a cop-out.”

Bernanke also claimed the rise in gas prices can be attributed to Iran and troubles in the Middle East. “The Middle East is very unpredictable — lots of things happening with respect to Iran and so on, so you know, we obviously — need to be — very attentive to that,” he told Sawyer.

Bernanke did not bother to explain how the Federal Reserve creates monetary inflation. It is really quite simple. More money equals less value.

The Federal Reserve is currently doing this through quantitative easing – increasing the money supply and flooding financial institutions with capital. Economists note that the problem with this is that although there is more money in the economic system, there is still a fixed amount of goods for sale.

Bernanke “admits he doesn’t understand why the economy is the way it is. Reality doesn’t fit his theory,” writes Zero Hedge. “So, what do you do when you are the head of the world’s biggest printing press, and don’t know what else to do? Why QE3 of course.”

On Tuesday, Bernanke hinted that QE3 may be right around the corner. He said more dilution of the money supply will be required due to vexatious unemployment.

High unemployment is directly related the the Federal Reserve and its engineering of boom and bust cycles through monetary policy. The Fed – as Bernanke has sheepishly admitted – was responsible for the so-called Great Depression and its staggering unemployment. It’s the same today.

Ben Bernanke is simply reading his bankster script, as instructed. If he was sincere, he would admit that rising oil prices do not create inflation. Oil prices are a reflection of a devalued dollar.

In an interview last year, ShadowStats editor John Williams said “the dollar’s weakness is doubly inflationary. It is the biggest factor behind the ongoing rise in oil prices.”

It’s not greedy oil baron in the Middle East or Iran threatening to close down the Strait of Hormuz in response to an attack.

It’s the Federal Reserve and the central banks.

 

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Kurt Nimmo
Infowars.com
December 28, 2011

For the second time in two days, Iran has threatened to shut down the Strait of Hormuz if new sanctions are imposed in response to its nuclear program.

Vice President Mohamed Reza Rahimi threatened on Tuesday to close down the strait and cut off oil exports if the West imposes sanctions on his country’s oil shipments.

“If they impose sanctions on Iran’s oil exports, then even one drop of oil cannot flow from the Strait of Hormuz,” Rahimi said.

“Closing the Strait of Hormuz is very easy for Iranian naval forces,” Admiral Habibollah Sayyari told Iran’s state-run Press TV on Wednesday. “Iran has comprehensive control over the strategic waterway.”

Sayyari is head of Iran’s navy and is currently overseeing a military exercise in a 2,000-kilometer stretch of sea from the Strait of Hormuz, at the mouth of the Persian Gulf, to the Gulf of Aden, near the entrance to the Red Sea.

“Iran’s military and Revolutionary Guards can close the Strait of Hormuz. But such a decision should be made by top establishment leaders,” he said last week.

The Tehran Times reported on Monday that the “war games” are different from previous ones in terms of the vastness of the area of action and the military equipment and tactics employed. Submarines, warships, missile-firing destroyers, coast-to-sea missile systems, drones, and electronic warfare equipment will be tested during the exercises, according to the newspaper.

The Strait of Hormuz is the only access for eight Gulf Arab states producing oil for foreign markets. It is “the world’s most important oil chokepoint,” according to the U.S. Department of Energy.

Despite the fact an oil embargo imposed on Iran will raise the price of oil in the United States, Congress went ahead and approved the new sanctions last week.

“Congress’s point of view is that we may be running a risk that this will increase the price of oil but that compared to [the risk of ] Israeli or U.S. military strikes on Iran or a nuclear-armed Iran, the oil market impact of these sanctions will pale in comparison,” Mark Dubowitz, executive director of the Foundation for the Defense of Democracies, a neocon think-tank, told NPR.

 


The Economic Collapse
April 7, 2011

The following is one statement that you should get used to seeing: “The price of gold set another record today.”  Today, spot gold reached a new all-time record of $1461.91 an ounce before settling back a little bit.  Silver is also skyrocketing.  At one point today silver hit $39.75 an ounce.  It seems inevitable that at some point we are going to be talking about $50 silver.  The price of oil is also continuing to relentlessly march upwards.  At last check U.S. oil was at about $108 a barrel.  All of this is great news for those that are investing in gold, silver and oil, but all of this is also really bad news for the U.S. economy.  Why?  Well, because when these commodities go up in price it is a sign that the U.S. dollar is dying and that our country is getting closer to economic collapse.

Traditionally, there has been an inverse correlation between the price of gold and the value of the U.S. dollar.  Usually when the U.S. dollar goes down, the price of gold goes up.

One of the main reasons why gold has been so strong over the past year is because the U.S. dollar has been rapidly losing value.

So why is the U.S. dollar declining?

Most economists point to all of the quantitative easing that the Federal Reserve has been doing.

So exactly what is quantitative easing?

Well, it is basically like playing Monopoly with someone that reaches under the table and pulls out a bunch of extra money when they are almost broke.

The Federal Reserve has been creating huge amounts of money out of thin air and has been pumping it into the financial system.  It is essentially cheating, and it is highly inflationary.  The rest of the world has not been amused.

But quantitative easing is not the only issue.

The truth is that whenever the U.S. government goes into more debt, more money is created.  The U.S. has been running trillion dollar deficits for several years now, and this has created a lot of new money.

This is another reason why it is so important to get the U.S. government debt situation under control.  The Obama administration is projecting that the budget deficit for this fiscal year will be about 1.6 trillion dollars.  This is highly inflationary and it will continue to destroy the value of the dollar.

In addition, the rest of the world is beginning to have serious doubts about the sustainability of U.S. government debt.  They are starting to lose faith in the U.S. dollar and in U.S. Treasuries.

In fact, investors are losing faith in paper currencies all over the globe.  The euro is on the verge of a massive crisis.  On Tuesday, Moody’s downgraded Portuguese government debt for the second time in a month.  Portugal needs a bailout, but they are far from alone.  A half dozen European nations are experiencing a financial meltdown and the European debt crisis could spiral out of control at any moment.

Because of all of this financial instability, investors have been seeking some place safe to put their money.

For many investors, precious metals and commodities have been the answer.

In fact, silver has been doing even better than gold lately.  On Wednesday, silver set a new 31-year high for the third day in a row.

People are even starting to talk about the possibility of $50 silver.  Most analysts would have considered such talk complete nonsense a year ago.

But now nobody is laughing.

The price of oil is also soaring.  Some of that is due to inflation, but not all of it.  The truth is that when it comes to oil there are other factors at play.

Unfortunately, a high price for oil is far more damaging to the U.S. economy than a high price for gold is.

The U.S. economy has been designed to use massive amounts of cheap oil to transport massive quantities of goods over vast distances.  When the price of oil goes to $100 or $150 a barrel, it fundamentally changes the dynamics of our economic system.

Nobody has ever been able to prove that the U.S. economy can successfully handle a price for oil over $100 for an extended period of time.

Do you remember what happened back in 2008?  The price of oil hit a record high in June and then the entire financial system came unglued just a few months later.

The price of oil affects the price of almost everything else.  Almost all forms of economic activity use energy.  Almost all goods have to be transported a significant distance.

When the price of oil goes too high, some types of economic activity simply become unprofitable.  If the price of oil stays this high from now on, there are many businesses across America that will be forced to close.

A high price for oil is also going to hit U.S. consumers really hard.  According to AAA, the average price of a gallon of gasoline in the United States is now $3.70.

Many are convinced that the average price of gasoline is going to shatter the all-time record of $4.11 that was set back in July 2008.

So how much did a gallon of gas cost a year ago?

One year ago the average price of a gallon of gasoline was just $2.83.

Over the past 12 months the average price of gasoline has gone up about 30%.

So has your paycheck gone up by 30% over that time?

The truth is that wages have been very stagnant in the United States for a long, long time.

That means that U.S. household budgets are being increasingly stretched.  People have to fill up their cars so that they can get to work or to school.  Americans can cut back on pleasure driving to save money, but most of the driving that all of us do is to get to places that we have to be.

So if gas costs more that means that consumers are going to have less to spend other places.  Consumer spending accounts for approximately 70 percent of the U.S. economy, so any slowdown in U.S. consumer spending would be extremely significant.

Already a substantial percentage of the American people are feeling quite stressed about gas prices.

According to a recent Associated Press-GfK poll, approximately two-thirds of the American people believe that rising gasoline prices will cause significant hardship for their families over the next six months.

We are heading for some really difficult economic times.  As I wrote about recently, this economy has millions of Americans feeling depressed, but that is not the appropriate response.

Rather, once we understand how bad our economic problems are we should feel empowered because then we can start focusing on real solutions.

And somebody really needs to start focusing on solutions because panic is starting to abound.  Many top corporate insiders are selling off stock like there is no tomorrow.  The biggest bond fund in the world, PIMCO, has been getting rid of all of their U.S. Treasuries.  When Wall Street big shots start freaking out you know that the hour is late.

It certainly doesn’t help that the Middle East is in a state of chaos and that the Japanese economy is falling apart as a result of the recent disasters.

In these uncertain times investors are seeking something safe.  They are turning to real “global currencies” such as gold, silver and oil.  Paper currencies are rapidly losing favor and rampant inflation is on the horizon.


Kurt Nimmo
Infowars.com
March 24, 2011

Oil industry experts warn that the price for a gallon of gas will reach $5 before summer. They blame the unfolding conflict in Libya and across the oil-producing Middle East for exploding prices.

The price for a barrel of oil rose 31 cents to $106.07 today.

Oil prices do not follow the classic laws of capitalist supply and demand. Despite the fact the Energy Department reported a 2 million-barrel rise in crude oil supplies for the week that ended March 18, according to a survey by Platts, the energy information arm of McGraw-Hill Cos, the price of gas continues to rise. The increase represented 970,000 barrels.

Supply and demand is an irrelevant theory under globalist mercantilism.

“Supply and demand mean nothing to the oil industry. Basic economics teaches that if supply goes down, prices will go up. If demand goes down, prices go down. The inverse of each is also true, unless you are in the oil industry,” writes The Mercury in an op-ed. “Previous excuses for price increases of gasoline have been damage to refineries by Hurricane Katrina, a pipeline leak in Alaska, the increased cost of refining for the summer time driving season, the war in Iraq, and most anything that can be associated with gasoline.”

Confronted with an overall supply increase, the industry expects gasoline supplies to decline by 2 million barrels, distillate stocks to shrink by 1.5 million barrels and refinery utilization to increase by 0.3 percentage point to 83.7 percent according to Bloomberg.

Nielsen Wire reports that a 50-cent increase in gas prices would cost the typical U.S. household about $52.50 per month, and if prices were to rise two dollars, that would mean $210 a month, or more than $2,500 a year.

In December, former oil industry chaplain Lindsey Williams said the price of oil would skyrocket to between $150 and $200 a barrel this year. Williams became a friend and trusted confidant of oil industry executives while he served as chaplain for them and their construction crews building the Alaska pipeline during the 1970s.

Williams believes the global elite plan to kill the dollar and bring the once great United States to its knees and reduce it to third world status.