Posts Tagged ‘oil 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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Real Clear Politics
August 5, 201

President Obama prefaces his comments on July jobs numbers by noting that 2011 has been “tumultuous year” thus far. Obama mentioned the Arab Springs across the middle east, oil prices and the earthquake and tsunami in Japan as reasons that halted economic growth in the United States and worldwide. Obama also used these instances to explain the disappointing number of jobs created in July.

“We’ve weathered the Arab Springs effect on oil and gas prices. The Japanese earthquake and tsunami’s effect on supply chains. The extraordinary economic uncertainty in Europe and recently markets around the globe have taken a bumpy ride,” Obama said this morning.

Read more

 


Kurt Nimmo
Infowars.com
March 8, 2011

On Monday, Atlanta Fed boss Dennis Lockhart said that if oil prices continue to climb the Fed will make a new round of asset purchases, in other words it will kick off QE3.

“If [the rising price of oil] plays through to the broad economy in a way that portends a recession, I would take a position we would respond with more accommodation,” Lockhart said at the National Association of Business Economics in Arlington, Virginia.

Lockhart said the magic number for the price of oil is in the range of $150 per barrel. “I think at the $120 range … it’s a manageable level,” he said. “Around $150 it becomes a much more serious concern.”

Lockhart “echoed widespread concerns that surging oil prices would put the brakes on a recovery that only just seems to be taking hold,” reports the Wall Street Journal. “With Brent crude hovering at around $115 a barrel, having made at stab at $120 over recent sessions, investors are looking back to the summer of 2008 when oil made a run at $150 a barrel.”

In response to the unfolding economic depression last November, the private Fed announced plans to buy $600 billion in long-term Treasuries, known as quantitative easing. QE2 – and now possibly QE3 – do nothing for the broader economy, however.

The provided excuse for cranking up the funny machines and printing a ton of fresh new fiat dough is that it boosts the economy. In fact, the scheme does nothing for the larger economy or the nation as a whole – infrastructure projects, education, health care, business development, etc. – as you might expect (if you follow the Fed’s reasoning). Instead, it is a gift for the financial industry and the banksters. The excess paper money flows into the stock market and creates dangerous asset bubbles around the world.

Even establishment economists like former Clintonite Robert Reich warn that the rapid in-flow of funny money will simply create another stock market bubble. It is a classic Ponzi scheme designed to reach dizzying heights and then crash.

Some financial experts say QE2 was not designed to terminate. It was engineered to go on forever, or at least until the entire economy explodes. According to these experts, there was no QE1 and there is now no QE2 – there is simply one long “accommodation” that will eventually spell disaster.

“The Fed never said that QE2 would end,” notes finance expert James Rickards, “that’s a popular misconception but they never said it. What they said was that they would buy $600 billion of intermediate term Treasury securities by June 2011. They never said that was all they would buy. They never said they would stop. The comments were carefully worded so that $600 billion by June was a targeted minimum but they never said anything about a maximum; technically there is no maximum. The first QE program ended in 2010 and the economy immediately began to fall into a double dip.”

Bernanke and the Fed are not finished attacking the dollar. They are determined to kick off another round of debilitating inflation, the ultimate result whenever the money supply is artificially expanded. It is a scientific process, as Congressman Charles Lindbergh said after the Federal Reserve was created in 1913.

QE is forever.


U.S. CRUDE FUTURES SETTLE UP $7.37, 8.55 PCT, AT $93.57/BBL


By Agence France-Presse

Rawstory

LONDON – Brent oil prices soared above $105 per barrel on Monday, striking a fresh two-year peak as deadly violence in Libya fuelled concerns over spreading unrest in the Middle East and north Africa region.

Read Full Story

http://www.rawstory.com/rs/2011/02/21/oil-soars-past-105-on-libya-violence/