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What they don't tell you

by escaping slave
on 7/7/2008 @ 11:19am
Senator Cantwell targets oil price run-up:
One oil-and-gas industry analyst recently told Congress he couldn’t think of any reason to explain the run-up in crude oil prices besides “excessive” speculation. Of the $4 and change you’re paying per gallon, a consumer group estimates at least $1 is the result of speculation. Even the Saudis are blaming it on the speculators.

Do you want to know why gas costs over $4 a gallon? Check out this video on YouTube: Grand Illusion - Gas prices are NOT going up,

Gas is not going up. The value of the Federal Reserve Note is going down. Oil continues to be found, so there is no shortage.

The value of fiat money relies on confidence and expectation. So as we continue to increase twin deficit bubbles and as long as consumer debt keeps rising, our fiat money will eventually lose value. Gold, in comparison, has tangible value based on real market forces of supply and demand.

If you're interested in gold and metals, check out Goldmasters USA on 6th Avenue. Support your own local economy while protecting your money!

If you're interested in another way of getting around town, this guy was at the Freedom Fair. Maybe you saw him?
There's no pictures on his site, but he can send them to you.

It's great to see that people are taking matters into their own hands and creating alternatives that work.

by NineInchNachos on 7/7/2008 @ 11:30am
kunstler has good rants about the phenomenon too.

I think the 'plenty of oil' argument is pretty weak.

by NineInchNachos on 7/7/2008 @ 11:33am
this guy also says there is plenty of oil. he is dismissed as a quack by sane people.

by NineInchNachos on 7/7/2008 @ 11:34am
the issue here is not the quantity of oil the earth has. it is the cost required to get at the oil cheaply.

we're running out of the cheap easy oil.

by fredo on 7/7/2008 @ 7:39pm
Anybody can speculate in the oil market. How much money could you afford to lose if prices went in the wrong direction? Somebody's making a killing but I doubt that even Senator Cantwell, with the noblest of intentions, is going to gain control of the oil market.

by AngelaJossy on 7/7/2008 @ 8:50pm
This may be of interest to you:

It has a pretty in depth explanation of Peak Oil in easy to understand language.

by Erik on 7/7/2008 @ 9:09pm
Good link to Kunstler RR:

We've spent sixty years ramping up a suburban living arrangement that has suddenly entered a state of failure, and all its accessories and furnishings are failing in concert. The far-flung McHouse tracts are becoming both useless and worthless in the face of gasoline prices that will never be cheap again.

Cantwell may well be right that some speculation is driving oil prices up. However, that just changes the demand curve a bit. Oil is a very finite resource and other countries like China are greatly increasing their use of it.

On a practical level, we should decline to build another massive suburban subdivision extender known as "Cross Base Highway" and rebuilt Tacoma streetcars. I don't we are going to ever see gas under $2.50 again.

by fredo on 7/7/2008 @ 9:11pm
Erik@ Agreed