point to ponder…

point to ponder… In Jan 2001 when George W. Bush took office, crude oil was $23.59 a barrel. Shortly before Bush left office, crude hit a record high of $128.02 per barrel. Gasoline prices hit record highs and people didn’t have any money in their pocket to by anything extra and we were in a recession. Of course Bush and Cheney are oilmen and how better to pad your bank account than to have some control of prices while holding a government office.

At the beginning of Jan 2007, crude prices were $46 per barrel. When the official start of the recession began in December 2007, crude had almost doubled to $85.52 per barrel. In one year, crude prices increased 39% causing gasoline prices to increase.

Combined with the uncontrolled greed of a decade in the banking and insurance industries and lack of oversight on Wall Street along with the political greed, people didn’t have any extra money in their pocket because of the high gasoline prices and with 2/3 of the economy dependent on consumer spending, I think it all came to a head causing the collapse. They say there are some signs the economy may be improving as spending this Christmas is up and the economy hasn’t shed as many jobs so once again this speculation causes oil to increase on the commodities market back to a two year high. We have already seen the increase at the pump and it appears more increase will follow as gasoline prices on the market has increased faster than crude.

I believe that government shouldn’t stick their noses in places it doesn’t belong, however, I feel the government should do something about speculators on the market driving prices. These people buy and sell but do not accept delivery of the product at all. If they buy, they should have to accept delivery of the product before selling. In a sense it would be like them buying up a large number of cars, leaving them on the lot in Detroit never accepting delivery but holding them to drive up the price of them before selling them to a dealer. I don’t understand the concept other than to make money at the expense of the consumer. Manipulation of crude and gasoline on the commodities market is rampant. They can control whether the prices goes up or down, mostly up, just by the release of a government statistic, the threat of a storm that may or may not make landfall or any other world news event. I know our country was founded on freedoms such as free markets but to me, due to its importance in everything, from the making fr plastics to the running of power plants, manufacturing plants and automobiles, it should not be open to the dangers of speculation that is so prevalent on the futures market.

There is little doubt in my mind that gasoline and crude price is one of the main, if not the main, driving force of the recent recession and with prices increasing again, I look for a “double-dip” recession, if not a depression, very soon.

I still do not understand how crude oil prices could remain constant in the teens from 1978 to 1999 ranging from $13 to $19 per barrel and in the low $20s in 2000 but almost quadruple in price under a President who also happens to be an oil man. Something just doesn’t seem right there. Maybe I am way off base but it doesn’t seem fair to those of us who try to eek out a living struggling to make ends meet while the rich get richer and the oil companies continue making record profits at the expense of the little person, the working person, the consumer.

Attacks on our rights CNN Fakes Gun News

Attacks on our rights CNN Fakes Gun News.

History Myth: Gun Control Reduces Crime

History Myth: Gun Control Reduces Crime.

Oil Should Be Around $10 a Barrel: Analyst – CNBC

Oil Should Be Around $10 a Barrel: Analyst – CNBC.


Oil Should Be Around $10 a Barrel: Analyst

Published: Monday, 30 Aug 2010 | 8:07 AM ET

By: Robin Knight
CNBC Associate Web Producer

The price of a barrel of oil would be closer to $10 if the commodity wasn’t traded as an investment instrument, given the record-high levels of U.S. oil inventories, Peter Beutel, president of Cameron Hanover, told CNBC Monday.

“I honestly think that if there were no investors using oil as an asset that the price of oil right now would be $10 or $15 or $18, but it wouldn’t be anywhere near where it is,” Beutel said.

“We have so much oil right now, more than we’ve had in 27 years. Why is it 27 years? Because that’s how far our records go back. It’s probably the most in 50 or 100 years,” he added.

Part of the reason the price of oil is currently above $74 // [US@CL.1 74.17 -0.53 (-0.71%) ]// a barrel is because of a belief in the economic recovery, Beutel said.

Comments by Federal Reserve Chairman Ben Bernanke over the weekend gave the commodity a boost as he signalled a willingness to support the fragile economic recovery with additional policy measures.

From a historical perspective, Beutel pointed out that the current level of inventories is even higher than when the price of oil was below $20 a barrel.

“We’ve got 50 million barrels of crude more than we had two years ago. We have 176 million of distillate,” Beutel said. “When I started in the business back in 1980 we used to think to ourselves: “Gee, we would love it if we had 140 million barrels of distillates to start the winter.”

Not all market watchers agree that the price of oil should or will go lower. Jonathan Barratt, managing director at Commodity Broking Services, told CNBC that he thinks oil will rise to between $82 and $85 a barrel.

© 2010 CNBC.com

Newt Gingrich quote

“As an American, I am not so shocked that Obama was given the Nobel Peace Prize without any accomplishments to his name. America gave him the White House based on the same credentials.”
Newt Gingrich

Eric Cantor and YouCut

This is awesome. Everyone needs to visit this website and vote. Be sure to watch the video, too. Great Job and Kudos to Eric Cantor. I’m glad someone has some sense in Washington !