Seriously though, there is a danger lurking in these stats.
The general public will look at this vs. the skyrocketing cost of gas, and come to the conclusion that the Law of Supply and Demand is not working anymore.
And from there, it’s only a short hop and a jump to the modern Leftist’s argument that “Capitalism has ceased to function, and it’s time it be replaced with something else”.
I finally saw something that made sense as to why the price of oil is going up - namely, that Japan has just about all of their nukes shut down post-earthquake and has to buy oil to make up for much of the lost electrical generation capacity.
Economies of scale go in reverse when you decrease production.
> The general public will look at this vs. the skyrocketing
> cost of gas, and come to the conclusion that the Law of
> Supply and Demand is not working anymore.
I disagree.
Gas prices have been climbing steadily for a while now, since Jan 20, 2009, IIRC. And even when prices dipped for a few months late last year, people continued to find ways to save gas.
Our household stated implementing gas austerity program shortly after prices began to rise noticeably in 2010. We don’t do much discretionary driving, we have been consolidating shopping trips, and I have been working from home a lot more.
It means less time with extended family, but at least we still have Skype video calls.
If the US Fed keeps printing money, and since purchase of oil is done in dollars, more dollar printing, the higher the price of oil because it will take more devalued dollars to purchase one barrel of oil even in a depression when price of oil/gasoline should be dropping due to lower demand.
The influence on prices is not just demand right now. Ultimately, a lot people are going to get caught short, but right now things are upside down.
Similar situation in the corn market. Corn is to high to be used. So high Cargil and ADM are LAYING OFF (never happened in my memory). Livestock producers are cutting way back, because they can't afford the feed. Yet prices keep going up.
It isn't because of the end user demand.
I got news for you. With regards to oil and gasoline, supply and user demand fundamentals don't apply. In fact they haven't applied for at least the last 6 years. They have been trumped by big house investors who set price by the demand for paper title of of oil and products. Consumers are now irrevelent; if real demand for gasoline drops either refineries are closed or products exported. The consumer cannot win no matter what he does. He pays more if he uses more and he pays more if he uses less.
Mike
The Leftists make this argument because they BELIEVE that the 'something else' is THEMSELVES.
They are only the ENABLERS of the 'invasion' (by socialists/marxists/communists). During the 'normalization' phase of the invasion, these enablers will be purged. The NEW ORDER cannot trust them. After all, they turned against their own once already. They have proved they cannot be loyal.
Leftists are also blind to the fact that Capitalism is the RULE around the world. ALL COUNTRIES participate in the capitalistic market. ALL.
The difference between THEM and US is that all citizens here are allowed to participate/profit in the procedure. In communist/socialist/dictator governments, only the ‘elite’ are allowed to participate/profit.
I read a while back that we're exporting as much gasoline as we consume. If we keep it here, wouldn't this roughly cut the price by anywhere from 30% to 50%?
Here is a excerpt from the link below indicating what this terrible government intend to do:
Compared to a year ago, exports of gasoline have tripled – at a time when the price of gasoline is 42 cents a gallon more expensive at the pump.
http://www.csmonitor.com/USA/2012/0223/As-gas-prices-rise-should-US-oil-industry-stop-exporting
Fee is right about the dollar. Next time someone cries about capitalism inform them of the weakened dollar, and the resulting fuel prices—the part of the equation they didn’t see when they thought only the rich would pay for Obama’s spending plans. They’re paying for it now... we all are.