Posted on 05/09/2009 8:11:24 AM PDT by Rufus2007
Simply put, another round of $4 gas is the end for the American Economy as we’ve known it.
And Obama WANTS it there, bytax or by fiat.
WE ARE SO SCREWED.
I always knew Obozo was a part of “big oil”!
“$4+ gas and double-digit unemployment... enough to get We the People to march on Washington and take our country back??”
Probably not, but it may be enough to get the sheep to accept Totalitarian Socialism.
Not to mention factory workers who make the car parts. + other jobs associated with them.
Of course the recent decline by 11.1 Billion in Consumer Borrowing is touted as ‘Saving’ when in fact it is a combination of write-offs, reduced lines and reduced consumption.
In my last rant I neglected to mention Consumer Debt as yet another problem that likely is accelerating.
If we do nothing about increased production, what should we expect if there is a recovery? Never forget, Alternative Energy really means Arab Oil.
Pray for America
Here in Michigan we have lots of low grade oil but we burn off natural gas at the wellheads.
We have over 100 years of natural gas that is untapped. Out coal reserves can produce enough product, converted to gas and oil to last 400 years and Oil shale in the Green River holds about 1.2 TRILLION barrels of oil!
Oil Shale Resources
http://ostseis.anl.gov/guide/oilshale/index.cfm
Location of the Green River Formation Oil Shale and Its Main Basins
“..While oil shale is found in many places worldwide, by far the largest deposits in the world are found in the United States in the Green River Formation, which covers portions of Colorado, Utah, and Wyoming. Estimates of the oil resource in place within the Green River Formation range from 1.2 to 1.8 trillion barrels. Not all resources in place are recoverable; however, even a moderate estimate of 800 billion barrels of recoverable oil from oil shale in the Green River Formation is three times greater than the proven oil reserves of Saudi Arabia...”
If big time inflation hits the dollar, then the price of oil will go up everwhere oil is traded in dollars. The concensus is that inflation is a lead pipe cinch in another year or two.
When that happens, the purchasing price of the dollar falls swiftly, and the price of oil would rise almost in inverse proportion, until the powers-that-be decide the world will price oil in some other way.
You'd want to be getting long oil, long ETF's, etc. If nothing else it will turn out to be a great inflation hedge.
Just sayin'........
“When that happens, the purchasing price of the dollar falls swiftly?” Obama ia screwed!
**Return of High Oil Price Predictions: CNBC Segment Warns of $300 Oil**
I agree. Thanks to Obortion Obama and the dumb dimocrats who don’t want any new drilling or refining in the U. S.
The market and oil - I wonder if it is nothing but inflation caused by the massive amounts of money created out of thin air by the FED finally making it into the system.
NYMEX RBOB gasoline futures are on a serious swing up in price with demand remaining flat at best. There was a 7.1% drop in gasoline in the US from 2007-2008.
I am not too convinced that demand is increasing at this time neither as unemployment surges. Once source says it is declining and another says it is increasing. Someone's wrong.
IMHO this is happening due to speculation in those futures as the Memorial Day weekend approaches. I will not be surprised in the least if we have $3 gal gas by then here in the US.
I also found this:(2) When the CFTC was forced to correct its commitment of traders’ data last summer, after misclassifying some positions, it revealed one trader held more than 320,000 contracts for light sweet crude oil. Not only was that far above the 20,000-contract accountability level, it amounted to more than 10 percent of the entire open interest in one of the world’s most important commodity markets.
March 9th, 2009 - Should there be limits on commodity investment?
IF one reads enough, one will find Goldman Sachs was deep into these transactions.
So, yes, you can bet, like food prices, gasoline prices this summer will be bidded up as these are 2 necessities in our shrinking economy. There is pressure for the combo investment / holding banks to show profits and they themselves will be supporting 'the clients' to run the numbers through their books.
They do not care how many people are unemployed and on very tight budgets....it's all about investing money somewhere now where immediate returns (3-6 months) can be made.
So guess what sectors are in the cross hairs?
That is next on the agenda, after banks, autos, and healthcare are all securely stuffed into the bureaucratic bag. Energy will be King Obama's biggest crown jewel.
Kudlow is the house economic conservative at CNBC. He has been associated with National Review for decades.
Then mass revolt.
Why isn’t Michael Moron accusing Obammy of Blood for Oil in Afghanistan (remember the whole pipeline deal-io in F911 (didn’t watch it, just read transcripts) - moronic hypocrites...
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