Posted on 09/18/2013 12:43:11 PM PDT by DallasBiff
More pain at the pump for the middle class, but according to Wall Street this is a good thing.
it is all pure insanity and the complete turning of the economy into a bad fantasy script. We are so screwed.
I don’t know. My energy funds are barely up 12% YTD, whereas my heath funds are up over 30% YTD. Most everything else is high 20’s gains YTD. So I wouldn’t say oil is overpriced. Although individually, my HAL is doing gang busters. :)
Because the left thinks a growing stock market and low interest rates are sufficient to keep the masses happy until they finish their Cloward & Piven plan to implode the nation’s economy.
It keeps OPEC—and the Saudis in particular—as backers of the USD. The game is that we protect the OPEC governments and permit the price of oil to rise as much as needed to satisfy OPEC, and in return they keep using the USD to set oil prices.
It all has to do with maintaining power over the people and has nothing to do with economic considerations.
Remember that there are influential people and companies who invest in windmills and ethanol. On an even playing field, these propellors would not make economic sense when compared with oil and gas and ethanol would only be used for adult beverages.
The want the economy to be slow or shrinking to meet their CO2 emissions goals to save the planet.
Besides at near $4.00 a gallon is the majic number where people seem to stop using their boats and cars, opting for mass transit.
The more who ride mass transit the more potential victims for Obama’s sons to prey on.
A win, win, win, for the democRATS.
“....only be used for adult beverages and feedstock for the chemical industry.”
Where do you get this idea? Rising stock prices mean that investors are losing confidence in the dollar. They recognize that the dollar is being trashed and are looking for ways to dump it. Purchasing stock is one of the ways.
Wall Street also knows that the day QE ends will also be the day that interest rates climb into the double digits. The one and ONLY purpose behind QE was to finance Obama Administration debt. Once that ends, our federal government will then be in the market to purchase over $1 trillion through the sale of bonds. $1 trillion is a heck of a lot of money, and in order to draw in this amount of cash, interest rates will have to be quite generous. And if that isn't bad enough, this exercise will be repeated again and again and again year after year after year.
no one is keeping oil artificially high
The economy has nothing to do with it. QE has allowed investors to leverage their stock purchases causing the stock market to rise. If interest rates were to rise, the Bernanke Bubble would pop and the whole thing would come tumbling down causing the wealthy to suffer the way everybody else has in this depression.
Their will be a quiz tomorrow..
I agree with just about everything you said...but alleged ‘Wall Street Experts’ really do think this is a good thing. If somebody suggests the economy is bad, these ‘Wall Street types’ just point to the gains in the stock market...and proclaim that everybody’s 401k has ‘come back’.
And any suggestion that this massive infusion could possibly, maybe down the road, if the economy ever started growing at a decent rate again, just might cause INFLATION, is met with ridicule and haughty laughter.
It’s good for the Dakotas and our friends in Canada where they’re going after oil that’s relatively expensive to recover.
You seem to forget that when those in control say “for the good of the country”, they always, always mean for the good of themselves.
Yeah, but a guest on Bill Bennet's show this morning, stated that fracking and oil companies could make a lot of money at $70 a barrel.
Also he stated that Putin is scared to death of America becoming an energy power.
The QE machine is kept going because of weak consumer confidence, high unemployment, weak retail sales, and abnormally low monetary velocity. Through QE, the Fed is using its best available tool — money creation — to remedy the ill effects of current federal tax, spending, and regulatory policies by Obama. Bernanke, an expert in the Great Depression, is trying to prevent the US economy and the world from sliding into a full blown depression. I suspect that in time, Bernanke will be credited with having done just that.
My guess is interest rates have been going up which means higher auto and mortgage loans. Mortgage originations have dropped off quite a bit since the spring. That is not good for big institutional investors that need to flip out of their current positions.
This is a very good question and a matter of trade offs. Because the QE’s don’t threaten to kill the dollar. All they’re doing is keeping the dollar from going straight up.
I want the USA to become oil independent first. And then once that’s accomplished I want the price of oil to be crushed.
Baaken oil right now costs something like $80@ barrel to extract and gulf oil costs something like $60@ barrel to extract. However, in three years the costs of extraction are likely to fall.
A fast rising dollar would quickly choke off the baaken by killing price of oil (and gold). US oil drillers would go elsewhere around the world to do their drilling.
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