Posted on 04/26/2011 12:15:14 PM PDT by rightistight
Clearly Nancy Pelosi has never heard of "supply and demand." It's a simple concept, really: the less of something you have, the more expensive it is because of its scarcity and vice versa.
Apparently no one ever told this basic concept to disgraced Democrat Representative Nancy Pelosi. Taking to Twitter, she exclaimed yesterday:
The problem is, as usual, the facts simply do not agree with Ms. Pelosi.
You might notice that she linked to an article from CNN. As is often the case with CNN, their facts are muddied as well. In fact, even in their own story they admit to over-selling their headline, which was "Drill baby drill won't lower gas prices."
(Excerpt) Read more at punditpress.blogspot.com ...
Keep devaluing the dollar and see what happens to the price of oil.
BTTT
It isn’t just about the price of oil, Ms. Pelosi. It’s about thousands of high paying American jobs.
Priced in Silver, gasoline is getting historically cheap.
I agree with that. But the biggest current driver of high commodity prices is the lowered purchasing power of the dollar. Oil is traded in dollars, as is gold.
Speculators who use large amounts of oil and expect the dollar to keep losing value use the futures market to "lock in" the current price of oil for future delivery. And there are futures market gamblers who do the same. If they're wrong they can lose big!
Historically the price of an ounce of gold divided by the price of a barrel of oil has shown a ratio of about 15.5. Currently, using WTI Crude priced at $112 bbl, an ounce of gold at today's price of $1,502 will buy about 13.4 bbl. The ratio fluctuates day to day but is currently well within the historic average.
That’s certainly the positive way to look at it.
Hey Nancy, When is the last time you sat in a line at a gas station? There’s a glut of oil on the world market right now you dimwit. The reason gas is high is because the dollar is down. Oil is still traded in US dollars. Since Bernanke is going to keep walking it down gas is going to continue up.
True, solid evidence that we are in deep sneakers. When comparing commodity prices to PM, one sees deflation. When comparing them to Dollars, inflation is up over 30%.
And the Government thinks we won’t notice when they take Gas/fuel and food prices out of the inflation statistics.
Even more sickening, over 50% of the population believe inflation is not so bad.
-- Nazi Peelousy
Does she have even one brain cell that functions?
Dear Nancy: Just like when you hire illegal Mexicans because they are over abundant and you get them cheaper than Americans for your Hotels and Vinyards, oil supply works the same way.
Pray for America
I still can’t understand how somebody so utterly stupid got elected into the House of Representatives. This woman is a moron.
The cost of things has a lot more to do with the Fed and their meddling that is driving down the value of the dollar than anything else right now.
As they continue to cripple the value of the dollar with their insane QE policy coupled with insane out of control spelling it only means one thing.
The US dollar is toast and once they try to take all that “new” money out of the system inflation coupled with a nice dose of stagflation is going to make the Carter years look like the roaring 20’s.
When will America learn it is ALWAYS the reckeless and dangerous ideas of progressives that always hurt America.
Where are those honest and wise men that George Washington foretold of; that will rise and restore the Republic once it had been damaged by the reckless miscreants...
Allen West?
It's both supply/demand and the dwindling dollar. The effect of a weakening dollar is probably a larger issue than overall supply at this time. BUT - but, that is because a substantially large part of our supply comes from foreign countries. Raising the proportion of our own supply vs. foreign supply would reduce the effect of our weakening dollar on overall oil prices. It would also reduce the leverage that entities like OPEC have on our supply.
He will take America wherever to consolidate MB gains instead of whacking Iran/ Syria/Pakistan. All his pro Islamic moves are all masked under his islamic outreach program.... “ to restore Islam to its previous glory”...
Even though actual oil will not flow for years unless there is an urgency placed on the orders, the speculators will drive the price down just like the price is being driven up by no drilling prospects.
Even at that, you have to start to accomplish something before you can have success. Better to start late than to not start at all.
Besides, many companies are sending their resources to other countries where there is drilling going on and it will take longer to reallocate those resources as time goes on. The longer we wait, the longer it will take to restart the process of drilling.
Just trying to point out that doing so won't necessarily have much effect on prices, since the supply (and therefore the world price) is increased or decreased for political not economic reasons and the US price is controlled by the world price.
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