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View Full Version : Grand Illusion: Gas Prices Are NOT Going Up


LORD ZERO
06-22-2008, 10:17 PM
LEsEvb1WsIY (http://www.infowars.com/?p=2761)

diggy
06-22-2008, 10:41 PM
Something told me there was some type of scam going on, but I didn't know exactly what it was.

But maybe the "oil men" are involved, otherwise why don't they say that the reason people must pay more is cuz the dollar is losing it's value?

Who is setting the oil prices?

TSA
06-23-2008, 12:15 AM
oh? so all the increasing of oil prices and additional money i've been paying was a charade.

i actually paid 35 to fill instead of damn near 50?


ooooooooooooohhh.

Giflord
06-23-2008, 12:56 AM
one word: inflation

it accounts for what the video said, more people on the planet are wanting more shit, it was all gravey when we were the only ones on the block with SUVs n shit but now the chinamen and indians want to drive too, we have to share our precious oil (and many other commodities) so it pushes the price up.

yes the dollar has also gone down, this is another factor why oil has gone up (as well as other dollar denominated commodities)

this shit is not a secret its just real life economics, no conspiracies as far as i can cee

SHEEPISH LORD OF CHAOS
06-23-2008, 12:57 AM
one word: inflation

it accounts for what the video said, more people on the planet are wanting more shit, it was all gravey when we were the only ones on the block with SUVs n shit but now the chinamen and indians want to drive too, we have to share our precious oil (and many other commodities) so it pushes the price up.

yes the dollar has also gone down, this is another factor why oil has gone up (as well as other dollar denominated commodities)

this shit is not a secret its just real life economics, no conspiracies as far as i can cee

you damn right man

Trismegistos
06-23-2008, 02:28 AM
Yes the US dollar is depreciating BUT the Euro has been getting stronger and prices of fuel have increased significantly in the EU.

Similar in Australia, our dollar is near parity with the US dollar and our prices have been steadily increasing.

The is more to fuel increases than solely the depreciation of the US dollar.

Longbongcilvaringz
06-23-2008, 05:01 AM
erm...

OPEC set oil prices to whatever level they want...

and gas prices are going up.

no i did not watch the video.

DUMBO
06-25-2008, 03:52 AM
opec doesn't set the price; they set the supply volume.

the problem is demand is inelastic, and growing.

Longbongcilvaringz
06-25-2008, 05:06 AM
yeah, microeconomics is FAR from my strong point.

uh, but anyway.

OPEC controlling supply does mean they effectively control price, correct?

TSA
06-25-2008, 06:55 AM
^yeah.

the price is set by the market, but since they decided how much will be put i the market, my basic understanding of the subject will be that they do cause supply n demand

Longbongcilvaringz
06-25-2008, 07:08 AM
yeah, they have agreements limiting the production of each country in order to obtain an optimal price for all.

but countries with higher quotas break the agreement in order to extort cream.

i still havent watched the video though, whats it about?

BTTR KNG KOOL
06-25-2008, 08:02 AM
Opec is a factor..

All that shit is so complex with all kinds of people around the world buying the Oil.

U got people buying the Oil faster than the Pumps are pumping it. And then u have Futures which are about buying Oil that hasnt even neccesarily been Pumped yet.

DUMBO
06-25-2008, 08:28 AM
opec regulates about 40% of global production which does have a bit of an impact on prices. however they have not really constrained supply lately. in fact, opec countries are generally producing at their maximum. but opec is an easy political target because they are 'foreign' and a cartel.

however, much less is said about the top 5 oil companies which also limit supply by avoiding new investments in refinery etc.

and fewer still mention the role of future market speculators. in the current crisis, i would say the speculators are the big problem. tons of surplus capital has been funneled into future markets driving up prices because of higher returns in this market compared with interest rates (which are low in the US and several other wealth countries)

DUMBO
06-25-2008, 08:37 AM
a final point, opec does not have any significant effect on demand (other than by discouraging or encouraging more use of cars or heating fuel from their limited influence on prices - generally energy use is inelastic, at least regarding fuel for transportation. however, the top oil companies are heavily involved in the automotive industry which (surprise surprise) continues to half-ass innovations in alternative fuel engines. second they are key investors in transportation infrastructure such for example the interstate highway system in the US.

and finally, opec is really about supply. for example Chavez venezuela is a key opec country yet he sells gas to Caribbean and LA states at a very good price out of his politics. for example I was in jamaica last week and gas prices there are cheaper than in Canada because of their deal with Chavez- meanwhile Jamaica is a perfect example of a place where the gas prices should be through the roof (import dependent, with high transportation costs for bringing fuel into the region).

Longbongcilvaringz
06-25-2008, 08:50 AM
Thanks for the informative posts.

You seem to be well versed in economic theory "..."

Have you studied economics or does your work just require it.

Or is it just general knowledge.

DUMBO
06-25-2008, 09:13 AM
i'm doing a phd in economic development. and i have paid some attention to commodity prices since my area of research - Jamaica - is especially vulnerable to global commodity trends. the country has a severe import deficit.

Longbongcilvaringz
06-25-2008, 09:46 AM
Ok, cool.

I have extreme troubles with microeconomics in my studies.

Best of luck with your doctorate.