How Obama Is Driving Up Gas Prices

1. 61

   lady_love158posted 13 years ago

   http://blog.heritage.org/2011/03/03/mor … es-higher/
   
   The worst of his policies by far is the subsidizing of ethanol! Its bad for the consumer raising prices on energy and food while damaging the environment! The sole purpose for thus, Obama's main motive??  His own selfish desire to be re-elected! He's pandering to Iowa farmers trading taxpayer dollars for votes and intentionally causing damage to consumers and the environment to satisfy his own ambition! I can't believe anyone would reelect this guy!!

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   1. 68

      bgamallposted 13 years agoin reply to this

      The banksters drive oil prices up by the use of churn and commodity prices. I recall oil reached a peak under Bush. Or don't you remember?
      
      The Fed buys treasuries at an inflated price from the dealer/brokers. Goldman, JPM, and others use this money to speculate. That drives up the prices of lots of things.
      
      In 2007 people starved in Africa because the banksters drove prices up on some commodity food prices when those commodities were traded like oil futures. The commodities that were not so traded did not see the rise. 2007 was when oil want to 147 dollars per barrel as well.
      
      This is the financial system, under both parties, swallowing up all other money flows. It is like an out of control snake in the grass.

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         wormdoposted 13 years agoin reply to this

         All true. The banks rule the world and the politicians let them get away with it.

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   2. 62

      I am DB Cooperposted 13 years agoin reply to this

      I actually agree with you about something! Politicians need to stop pandering to Iowa farmers. Every major presidential candidate does it, and it's damaging our nation's energy policy and the economy. I would love to see just one candidate say "screw Iowa, I'm standing up for the rest of America".

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         ShortStoryposted 13 years agoin reply to this

         Why would you want to screw farmers? You don't like to eat?

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         Ron Montgomeryposted 13 years agoin reply to this

         Senator Richard Lugar (a farmer) of Indiana has done just that.  It's reasonable positions like this that have the teabaggers gunning for him in 2012.

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   3. 84

      kerrygposted 13 years agoin reply to this

      I agree that subsidizing ethanol is idiotic, but let's not point the finger at Obama alone. Bush is the one who started the program in the first place, and it has plenty of support from both sides of the aisle in Congress. Big Ag is a tremendously powerful lobby for Republicans and Democrats alike.

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   4. 60

      dutchman1951posted 13 years agoin reply to this

      Lady Love..? Obama is not influencing the Market, it is manipulation at the Futures level. If he is guilty of anything it is not inforcing stricter investment laws already in-place.
      
      can futures market manipulation affect the true
      cash or spot price of oil? It can if, for instance,
      suppliers believe the futures price movements truly
      reflect the “correct” market and horde their oil in the
      hope of higher profits later. This lowers supply and/or
      raises price in the cash market. Or if those in the
      supply chain become convinced that their costs will
      really be higher and they need to raise current prices
      in anticipation of this. So if futures market
      manipulation influences spot market participants to
      take real action, then perhaps the futures market
      manipulation can affect spot prices, and affect the
      lives of the everyday consumer. At least these have
      been suggested scenarios.
      
      Any scenario such as this is market manipulation. Of
      course, at some point prices should return to their
      supply/demand equilibrium, although it may take a
      while. Why? Because even if some investors, Governments, buying blocks have
      enough money to artificially drive up prices in the
      futures market, at some point in the future, buyers will
      know whether the previously assumed supply and
      demand conditions are true or not. In addition, if the
      price was manipulated upward, suppliers may have
      taken steps to increase production. This may lead to
      overcapacity, which may well lead to prices lower than
      they were initially. So this market manipulation can
      lead to a bubble and burst phenomenon. Some
      believe this is what happened in the run-up of oil
      prices from 2004 through mid 2008 and their
      subsequent crash by the end of 2008.
      
      Remember something please. Any new governments formed from revolution, still need income. Oil will still be sold, we are being miss-informed to cause panic and an unstable mind set. Its easy to blame un-rest, but it is not factual to say it is a direct cause. The key words the US government officials use are; “It Could affect…”  not “it is a guarantee it will.”
      
      Oil is an asset commodity, being allowed to be manipulated at the futures level by big  money block investors. This is where the trouble really comes from for us. We are being lied to folks, bad. A short shortage of oil from unrest causing tankers not to load at certain terminals in the world is not a reason for world wide economic crisis. But the underhanded manipulation of the dollar by Governments and manipulation of block purchasing allowed by Future Traders is. Oil goes to China and places other than the US because they flood the Futures Holders with big cash. They jump at it, and the purchasers of Raw crude here in the US have to pay higher to compete and get it. Thus we buy less and the Price goes way up. With the Dollar being over printed and the US Government buying its own Bonds, we are lowering the value of the dollar and thus causing Oil buyers to take more dollars to purchase the same Oil lots to keep up with US Internal demands.
      
      We, in short, are doing it to ourselves.

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      1. 61

         lady_love158posted 13 years agoin reply to this

         You say Obama isn't influencing the market but your last statement contradicts that contention:
         "With the Dollar being over printed and the US Government buying its own Bonds, we are lowering the value of the dollar and thus causing Oil buyers to take more dollars to purchase the same Oil lots to keep up with US Internal demands."
         Whose policy is it that has the treasury printing money to buy our own bonds?
         Sure speculation plays a role as well but these aren't just people manipulating a commodity for profit its also big players like the airlines trying to control their fuel costs.

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            dutchman1951posted 13 years agoin reply to this

            Obama is setteling, compromising for that Lady, he has stated he is accepting the idea, He has stated before that he suposidly  is not believing that totaly, yet he allows it. .
            
            By Big players , i was infering the actual Market manipulators causing the price to rise. The Airlines are market users, thet reflect what is being done. they are laging indications of fact that something is wrong, not controlers. They just cop out and pass the price increase to us.
            
            He has accepted his advisors advice to print monies, he has no clue what it Affects. He is in-effective as a CEO, and his arrogance is not allowing him to admit it to himself.
            
            All I mean by all this Lady is He is not an evil plot to destry the US, just an idealist, a harvard elietist with unproven ideas, and he will not listen to real facts. He is all opertunist, not good for a Chief executive.
            
            but he is still a moral Guy and decent, there is a difference between evil plot and just nieve exhistance. I just wanted you to tone it down a little, we have enough confusion in the US as it is.
            
            the Next election, hopefully he will be a one hit wounder, there is hope Lass. there is hope.
            
            I am on your side, but Obama is not the sole source of this, and with our congress and senate for sale, we will never address the real issue wich is possible illegal activity of future's investments. And we dare not address China's manipulation of the Oil supply and or counter it for protection of US People, nope they can not do the right thing at all it seems. It's just not in them I guess.

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   5. 0

      Onusonusposted 13 years agoin reply to this

      Looks like he's ready to waste a bunch of money sending our forces into Lybia too.

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   6. 65

      Ralph Deedsposted 13 years agoin reply to this

      I agree that ethanol subsidies ain't the greatest idea and that Obama's motives are, in part, political. However, if memory serves the subsidies were signed into law by none other than George W. Bush after it was passed by red state senators and congressmen. I haven't checked this, and my feelings won't be hurt if somebody corrects me.

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2. 61

   lady_love158posted 13 years ago

   You're ignoring the stimulus which was Obama asking the treasury to print money. Speulators speculate that's what they do but they have to also account for the value of the dollar. Banks don't do this on their own.

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   1. 68

      bgamallposted 13 years agoin reply to this

      We live in a fascist society, where profits are privatized and losses are socialized. In communism, profits go to the party. In fascism, profits go to the banksters.
      
      Until you understand that you won't be able to see what is going on. Yes there is a new financial order, but it is not, as Beck wrongly says, communistic. That is an old John Birch society talking point, blame everything on communism.
      
      Communism failed, but capitalism is wrecking mainstreet because it is a crony capitalism.
      
      I guess you haven't learned that the Federal Reserve is a private bank. Understanding that will go a long way in your understanding of who really is in charge.

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         Jim Hunterposted 13 years agoin reply to this

         "I guess you haven't learned that the Federal Reserve is a private bank. Understanding that will go a long way in your understanding of who really is in charge."
         
         It is not a completely private bank.
         
         Or didn't you know?

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         1. 50

            ShortStoryposted 13 years agoin reply to this

            For people of a certain political persuasion it has become the easy and thoughtless refrain to cry "bankers and big business!" as the universal 'political opinion' that makes them look sufficiently liberal to be invited to cocktail parties without the bother of actually thinking about anything.

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            1. 61

               lady_love158posted 13 years agoin reply to this

               Lol!! OMG!!  That was funny! I have to invite you to my next cocktail party!!

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               1. 68

                  bgamallposted 13 years agoin reply to this

                  No banksters are robbing us. When the ponzi housing scheme was cooked up at Basel 2, the NY Fed did nothing to stop easy money lending. Remember the guy who was homeless who got 4 mortgages? It had nothing to do with sound underwriting. It was an attack on mainstreet with loans doomed to crash and burn.

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                     ShortStoryposted 13 years agoin reply to this

                     As I was saying..............

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         2. 68

            bgamallposted 13 years agoin reply to this

            Sorry Jim, you are wrong. This court case proves you have no clue about this: http://www.globalresearch.ca/index.php? … p;aid=8518
            
            Even Bernanke's salary, though he is appointed by the president, is not paid for by the government.

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            1. 60

               Jim Hunterposted 13 years agoin reply to this

               The Federal reserve was created by the federal government.
               
               And the 9th circuit court of appeals is hardly the final say on what the Federal reserve is.

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      2. 60

         Jim Hunterposted 13 years agoin reply to this

         "We live in a fascist society, where profits are privatized and losses are socialized."
         
         So keep voting for the democrats, they'll save you 

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   2. 65

      Ralph Deedsposted 13 years agoin reply to this

      The stimulus is what averted a depression and is slowly pulling us out of a deep recession. Suggest you take Econ 101.

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3. 60

   mikelongposted 13 years ago

   It is not that it is easy to do so....it is the reality...and this is nothing new...
   
   As for oil prices....it is important to remember that refiners...not the producers (like Saudi Arabia, etc.) play an enormous role in setting prices for fuel...
   
   In fact, the Seven Sisters (look them up if you don't know this term) are far more powerful than OPEC, or even (I'd wager) a president's policies...
   
   Beyond increasingly limited supply for an exponentially increasing demand, it is the hold that these seven companies have over the production of consumable fuel that drives up costs...
   
   Remember, the fuel we are using now was refined months ago....so when you are paying (as I am) almost 4 dollars a gallon, the oil used to make that fuel was a heck of a lot cheaper.. (therfore their profit margin is that much greater)...

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4. 76

   Hugh Williamsonposted 13 years ago

   Ethanol is really just a "bridge technology" and is too inefficient to survive long term as the newer energy technologies arise. However, right now, it's what we have and it does stretch oil supplies.
   
   Consider -- speculators drive up the price of oil and corn while contributing nothing to the value of these commodities. Only producers and processors should be allowed to hedge (not speculate) in these commodities. This would promote more stable prices and more predictable supplies.
   
   We can drive down energy prices right now by regulating speculators -- like FDR did, and it worked well for decades. Of course, we've since deregulated and prices soar when speculators jump in. They get rich and consumers foot the bill.

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      lady_love158posted 13 years agoin reply to this

      So you're telling me that diverting a large portion of our corn crop to make fuel doesn't affect the price of food at all and increases in food is driven by speculators?
      Even Gore as rejected ethanol as an alternative to gas.

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      1. 76

         Hugh Williamsonposted 13 years agoin reply to this

         The demand for corn is increased by ethanol production, that's a given. As I said, economics will eventually kill off ethanol as a motor fuel.
         
         Ethanol subsidies, which were extended thru 2012 are unneeded because speculators have driven the price of both oil and ethanol (corn) so high. I grow about 90 ac. of corn which I market for livestock feed, so I try to keep up with the markets as best I can.
         
         The subsidies were extended thanks to senators on BOTH sides of the aisle who received campaign donations from the industry. Oh, and oil companies are getting into ethanol in a big way, such as giant Valero. Their motivation, I'm sure, is to make your fuel cheaper.
         
         http://www.opensecrets.org/news/2011/01 … -foes.html

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5. 67

   Flightkeeperposted 13 years ago

   I really wish our legislators would stop subsidizing corn for ethanol purposes.  It is driving up food costs for people in the third world who subsist on the most meager resources.  Farmers are more willing to sell their crop to ethanol producers than the local market for food consumption.  In addition if the weather doesn't co-operate, what happens if the corn crop fails?  That would not only mean that more people can't afford to eat, but the price of ethanol gas would go up as well.  These difficiencies were talked about, yet nobody wants to listen. Ethanol is a stupid idea.

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6. 77

   lovemychrisposted 13 years ago

   Well, I see one big problem right where I live....
   
   People drive these huge suv's, pick-up trucks, hummers and vans.
   
   We want what we want and don't want to have to pay.

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7. 60

   dutchman1951posted 13 years ago

   Lady..? Obama is not manipulating the Futures Markets. Big Investment Block handelers are. If anything he is guilty of not enforcing stricter investing laws already in place for years.
   
   He has economic professors making theoristic suggestions to him, and his advisors have never had to run Investment Banks for profit. They have no practicl experience, to really see the system except in text-books.
   
   Ask yourself, can futures market manipulation affect the true
   cash or spot price of oil? It can if, for instance,
   suppliers believe the futures price movements truly
   reflect the “correct” market. Obama's folks believe this because they have no practical experiences, they are easily decieved. China and European Block investors are allowed to skew the precieved value of the Oil. The Future Holders are money Hungry. They dive at the big blocks of cash, and thus manipulate future price. Obama see nothing in this a economicaly harmfull.
   
   Then those in the supply chain become convinced that their costs will really be higher, they see the Future prices skyrocket, and they raise current prices
   in anticipation of this. So if futures market
   manipulation influences spot market participants to
   take real action, then perhaps the futures market
   manipulation can affect spot prices, and affect the
   lives of the everyday consumer. At least these have
   been suggested scenarios by Bsiness CEO's in the Oil Business.
   
   Any scenario such as this is market manipulation. Of
   course, Obama is being advised that Textbook theories of supply and demand will always hold up, as they are laws of economics (Harvard crap!) and at some point prices should return to their
   supply/demand equilibrium, although it may take a
   while.
   
   Why? Because even if some investors, Governments and european buying blocks have enough money to artificially drive up prices in the futures market, at some point in the future, buyers will know automaticaly, in some magical way, know whether the previously assumed supply and demand conditions are true or not. Its all theoritical B.S. It flow's as big money flows. Big cash buys it up and hordes it for the price they want. 
   
   In addition, there good guy economics theory is that if the price is manipulated upward, and oil horded, then suppliers may take steps to increase production. This may lead to overcapacity, which may well lead to prices lower than they were initially. So this market manipulation can
   lead to a bubble and burst phenomenon. Hardly
   
   Some of his so called noted experts,
   believe this is what happened in the run-up of oil
   prices from 2004 through mid 2008 and their
   subsequent crash by the end of 2008. The Saudi's all of sudden realised the world was in trouble and began to produce more!
   Santa Clause is real to I guess.
   
   No. The Saudi;s incrased production to gain more monies from the Big Block buyers and thus made oil supply plentyfull again, and drove the prices down to hold their Money position in the world. They did it after an under the table deal with the US came about for arms and they gained needed cash to keep up with food price corrections. So they could off-set an uprising because of increasing food prices, by their people.
   
   Remember something please. Any new governments formed from revolution, still need income. Oil will still be sold, we are being miss-informed to cause panic and an unstable mind set. Its easy to blame un-rest, but it is not factual to say it is a direct cause. The key words the US government officials use are; “It Could affect…”  not “it is a guarantee it will.”
   
   Oil is an asset commodity, being allowed to be manipulated at the futures level by big  money block investors. This is where the trouble really comes from for us. We are being lied to, bad.
   
   A short shortage of oil from unrest causing tankers not to load at certain terminals in the world is not a reason for world wide economic crisis. Just a crisis for that particular Country.
   
   But the underhanded manipulation of the Oil Inventory and the dollar by Governments and the allowed manipulations of Euro block purchasing allowed by Future Traders is.
   
   Oil goes to China and places other than the US because they flood the Futures Holders with big cash. They jump at it, and the refiner's of Raw crude here in the US have to pay higher to compete and get it. Thus we buy less for more dollars and the Price goes way up.
   
   With the Dollar being over printed and the US Government buying its own Bonds, we are lowering the value of the dollar and thus causing Oil buyers to take more dollars to purchase the same Oil lots to keep up with US Internal demands.
   
   We, in short, are doing it to ourselves. Obama is only guilty of being a lousy Business man who can not pick an effective team of advisors. and That thank god is correctable by our election process!
   
   Remember Great Lawyers, do not necessarily make great CEO's.

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