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View Full Version : Who's to blame for oil prices? Check this out.


Preacher
07-05-2008, 03:49 AM
Saw this on another board... actually in a signature...

It fits the current oil problem.

http://media.mcclatchydc.com/smedia/2008/06/26/14/294-06262008Crowson.slideshow_main.prod_affiliate.91.j pg

Galax Steeler
07-05-2008, 08:07 AM
Sad part is that it is the truth.

revefsreleets
07-05-2008, 10:03 AM
Big US oil is nowhere near as powerful as it used to be. I believe US owned oil companies only make up 7% of the industry now. Big Government in Countries like Venezuela and Russia hold more sway now.

It's true, they are all to blame, but it's us little people that get totally effed in the end, and that's all that truly matters.

cakmakli
07-05-2008, 11:18 AM
What I really hate is when they compare our gas prices to Europe. In Europe you don't really need a car. They have a very good public transportation system and really encourage bicycle use. There you can go almost anywhere by train and or bus. Here if you don't have a car you can't do anything.

TackleMeBen
07-06-2008, 09:59 PM
It's true, they are all to blame, but it's us little people that get totally effed in the end, and that's all that truly matters.
:iagree:

In Europe you don't really need a car. They have a very good public transportation system and really encourage bicycle use. There you can go almost anywhere by train and or bus. Here if you don't have a car you can't do anything.
exactly. maybe some of our cities should get better public transportation systems.

Hawk Believer
07-06-2008, 10:06 PM
exactly. maybe some of our cities should get better public transportation systems.


When we try to build public transportation out here, it get fought tooth and nail by conservatives who say its un-American and socialist.

The problem with public transportation (with the exception of buses) is that it costs a bundle of money on the front end. And few people want to pay more taxes for it. A lot of people just want to build more roads instead....

TackleMeBen
07-06-2008, 10:14 PM
i dont to build new roads.. i just want the ones around here fixed. i have busted two tires from freaking pot holes that my sorry governor cant get fixed. the roads in MI are terrible, you have to replace tires and suspensions on your car every other week it seems like.

RoethlisBURGHer
07-06-2008, 11:04 PM
A big part of the problem is our dependancy on foreign oil, aka OPEC.

OPEC is made up of the countries that hate us. They don't like the US being in Afganastan or Iraq, therefore they have jacked up the price of a barrel of crude oil. It costs them no more now than it did 5 years ago to get it out of the ground, but they have raised how much a single barrel of it costs.

The government it's self is another big problem. They don't use the oil we drill for in this country for various reasons and depend upon foreign oil (OPEC) on the beleif that if we stopped buying our oil from the, the rest of the world would go bankrupt because OPEC would raise the price of a barrel of crude oil so high they couldn't posssibly afford it. High ranking government officials also have their pockets lined by big oil, therefore they have no reason to do something to bring the price down. The less money big oil makes, the less they make. They can afford the price of gasoline for their big SUV's and long limo's...who cares of the other people of the country can't afford fuel!

Speaking of big oil companies, they have lost a lot of the power that they used to have in the industry. They also know that they don't have to charge the price they do, but the love their multi-BILLION quarterly profits from it. So they have no reason to do anything to lower the price. The big oil people can afford the price of fuel, so they don't care if we cannot.

The demand is also to blame. The United States uses more crude oil than the rest of the countries combined. All of the above know we cannot live without it, we need it to get to work, the store, the ballpark, school, kids to functions, us to functions. We'll jsut sacrifice other things (entertainment, travel, hobbies) to be able to get it.

TroysBadDawg
07-06-2008, 11:40 PM
I found this article very interesting.



What Higher Oil Prices Are Directly Related To

PROFIT CONFIDENTIAL

July 3, 2008

What Higher Oil Prices Are Directly Related To... Current Loser
Could Become Big Winner... Bears Still Sticking Around...
Between a Rock and a Hard Place

** What Higher Oil Prices Are Directly Related To
-- by Michael Lombardi, CFP, MBA

I've written extensively about how the stock market can only go
down as oil prices rise. In the end, higher oil prices mean less
consumer spending, higher interest rates and a lower stock market.
The government has done nothing to help consumers deal with oil
at $145.00 a barrel, while American oil producers are posting
collective profits of about $50.0 billion a quarter.

It's my belief that the excess from the Greenspan-created real
estate boom that ended in 2005 and the credit crisis is close to
bottoming out. The stock market, and in particular the Dow Jones
Industrial Average, might have been 20%-40% higher than it is
today if it were not for higher oil prices, as the stock market has a
strong distaste for oil over $125.00 a barrel.

While analysts continue to argue about whether the rise in oil
prices is tied to real supply/demand imbalance or simply to traders
bidding up the price of crude, I continue to believe higher oil
prices are directly related to the falling value of the U.S. dollar.

President Bush will soon travel to his last G-8 summit and I'm sure
much of the talk will be about oil prices. Since our President took
office, the value of the U.S. dollar has fallen 40% against the euro,
and I think we have that single factor to blame for the rise in oil
prices.

Imagine if you were a foreign oil producer. Would you take
American dollars for the oil you make when that currency is down
40% and continues to decline? Any sane businessperson would
either increase the price of the commodity he/she produces or ask
for payment in different currency. So far, the price of the
commodity has increased.

If we actually look at oil measured in gold, the price of oil has not
changed. About 10 years ago, an ounce of gold would have bought
seven to eight barrels of oil. Today, an ounce of gold still buys
eight barrels of oil. Hence, my message it that the price of oil has
not risen when measured in real dollars (gold), but has risen
against the U.S. dollar, because the U.S. dollar has fallen so much
against other world currencies.

And until Fed Chief Ben Bernanke takes the dreaded step of
raising interest rates, the U.S. dollar will continue to be a weak
currency and oil prices will remain high. This morning, the
European Central Bank raised its key interest rate by 25 basis
points to 4.25% -- this can only add more selling pressure to the
already fragile U.S. dollar.

Preacher
07-07-2008, 12:50 AM
When we try to build public transportation out here, it get fought tooth and nail by conservatives who say its un-American and socialist.

The problem with public transportation (with the exception of buses) is that it costs a bundle of money on the front end. And few people want to pay more taxes for it. A lot of people just want to build more roads instead....

That is a bit of a perjorative view

It gets fought by conservatives that view a govt. as the biggest wasters of tax-dollars, trying to implement a transportation system that will be less effective than in almost ANY other nation because of our expanses between cities... and the American fascination with cars.

On top of which, I haven't seen a railway station yet where I actually feel safe waiting for the tram/train/bus/etc. to come... and that includes NY, NJ, Seattle, Vancouver, Portland and SF.

On top of all that, the cost over-runs, back door deals, union sweetheart deals, etc. just make it not worth while in many cases.

Build a system that is safe, fast, underbudget, and doesn't devalue homeprices along the tracks.. and I am all for it.

Hawk Believer
07-07-2008, 01:12 AM
That is a bit of a perjorative view

It gets fought by conservatives that view a govt. as the biggest wasters of tax-dollars, trying to implement a transportation system that will be less effective than in almost ANY other nation because of our expanses between cities... and the American fascination with cars.

On top of which, I haven't seen a railway station yet where I actually feel safe waiting for the tram/train/bus/etc. to come... and that includes NY, NJ, Seattle, Vancouver, Portland and SF.

On top of all that, the cost over-runs, back door deals, union sweetheart deals, etc. just make it not worth while in many cases.

Build a system that is safe, fast, underbudget, and doesn't devalue homeprices along the tracks.. and I am all for it.

Financial issues re: the efficacy of public transportation should of course be hotly debated for the benefit of the public. I have no problem with that. But the thing that drives me crazy (and I am not making this up) is when people argue that public transportation is an attempt by liberals to socially engineer Americans out of their freedom. I hear it all the time whenever a debate about public transport comes up. As you alluded to, America is fascinated by cars and that fascination worked out pretty well for most of us in the last century. But that doesn't mean that people who see the benefit of creating a better public transportation system are power hungry Bolsheviks who want to outlaw F-150s and baseball.

Maybe that talking point is unique to the Northwest and I sound a bit off my rocker in bringing it up. But it does drive me a little crazy.

Preacher
07-07-2008, 01:20 AM
Financial issues re: the efficacy of public transportation should of course be hotly debated for the benefit of the public. I have no problem with that. But the thing that drives me crazy (and I am not making this up) is when people argue that public transportation is an attempt by liberals to socially engineer Americans out of their freedom. I hear it all the time whenever a debate about public transport comes up. As you alluded to, America is fascinated by cars and that fascination worked out pretty well for most of us in the last century. But that doesn't mean that people who see the benefit of creating a better public transportation system are power hungry Bolsheviks who want to outlaw F-150s and baseball.

Maybe that talking point is unique to the Northwest and I sound a bit off my rocker in bringing it up. But it does drive me a little crazy.

Growing up in the Great North West...

I know that the Seattle area particularly is an island unto itself...

And heck... up there, I wouldn't be surprised if teh Bolsheviks WERE trying to take over!

Last good democrat governor that state had was Dixie Lee Ray.

verks36
07-07-2008, 03:11 AM
i blame the Arabs

revefsreleets
07-07-2008, 09:18 AM
Public Transportation? My chick lives in Shaker Heights, and about 1/4 mile from the Rapids station. We just took the Rapids downtown (light rail) to an Indians game last week. I felt perfectly safe, the trip took 20 minutes (would have been about the same by car), it cost $1.75 a piece (parking alone would have cost at least $10, probably $15-$20), and we were a 5 minute walk from the stadium. I rarely travel into downtown Cleveland any other way, and have never felt the slightest bit threatened, and I don't need to remind people that Cleveland, as a city, is about as safe as Detroit.

I also thought the Metro in DC was pretty safe, and DC (I'm talking DC proper) is pretty much a crime-ridden shithole.

HometownGal
07-07-2008, 09:25 AM
i dont to build new roads.. i just want the ones around here fixed. i have busted two tires from freaking pot holes that my sorry governor cant get fixed. the roads in MI are terrible, you have to replace tires and suspensions on your car every other week it seems like.

Then you haven't been to PA in a while. PA is the pothole capital of the country, especially in and around the Burgh. Some of 'em will swallow your car whole.

Sure, I'm torqued off about the oil situation and the gobs of money I put into my gas tank each month, but I've come to the realization that B & Ming about it doesn't change the situation. I'm tired of hearing empty promises by our government and politicians who drive around in their fancy schmancy government vehicles and have their gas paid for by who else - us. Unfortunately, this oil fiasco is going to get worse before it gets better - IF it does.

TroysBadDawg
07-09-2008, 08:23 AM
You can buy the same amount of Crude oil for an ounce of gold today that you could 20 years ago.

Why are countries now demanding payment in the Euro and not the American dollar? Because it isn't worth the paper it is printed on anymore with the feds keep lowering the PMI. They need to stabilize the dollar, and then you will see the prices come down and not untill. Bring back the Gold Standard for our money.

revefsreleets
07-09-2008, 09:05 AM
We don't have any gold anymore, either.