The Conservative Cave
Current Events => Economics => Topic started by: Flame on October 23, 2009, 06:36:55 AM
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I've been news deficient the past week or so, but noticed the gas prices here went up 20+ cents in about 2 days, and saw a blurb that oil was up to something like $89 a barrel. Anyone know why? Its it just the winter time jump? If so, it seems early, and extreme to me.
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I've been news deficient the past week or so, but noticed the gas prices here went up 20+ cents in about 2 days, and saw a blurb that oil was up to something like $89 a barrel. Anyone know why? Its it just the winter time jump? If so, it seems early, and extreme to me.
That's part of it, for sure. It is early but winter is also coming early and hard this year. The dollar's value is also getting hammered, and it's the primary currency on the oil market. A lot of this rise is artificial for that very reason, but the pain is real.
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I think some of it is increased consumption due to the recovering economy, particularly in China. Increase the demand of any commodity, the price goes up.
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I think some of it is increased consumption due to the recovering economy, particularly in China. Increase the demand of any commodity, the price goes up.
I dunno. Rail and cargo shipments are down all across the board, month over month and year over year. Despite China's "official numbers," I don't see any recovery anywhere.
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I dunno. Rail and cargo shipments are down all across the board, month over month and year over year. Despite China's "official numbers," I don't see any recovery anywhere.
Are you saying there's some gouging going on? Or that the refineries aren't producing up to capacity? Or that OPEC has slowed production?
If the stock market is any gauge, there is some recovery happening. At least investors are once again putting their faith in the market -- or they're scarfing up stocks at artificially reduced prices.
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Are you saying there's some gouging going on? Or that the refineries aren't producing up to capacity? Or that OPEC has slowed production?
If the stock market is any gauge, there is some recovery happening. At least investors are once again putting their faith in the market -- or they're scarfing up stocks at artificially reduced prices.
No, I'm just questioning whether a recovery is one of the factors in the rising prices, simply because I don't see any recovery.
The rising stock market is a function of the Federal Reserve's Quantitative Easing, nothing more. We've literally been printing money and monetizing our own debt, and the Primary Dealers benefitting from that have turned right around and dumped the majority of it into equity markets. When we find out what the true demand for our Treasury notes and bonds is (i.e. none), the equity markets will in turn "correct" to more representative levels. "Correct," in this case, meaning crash.