Gas Prices Running High: reason according to Dobbs

[FrancisMarion]

First off, I come here to seek information from you well versed people.

In this link Dobbs goes onto say how the mild winter and us selling oil to China (creating less supply here) has caused gas prices to run high when they shouldn't be.

Here is the link: http://www.foxnews.com/on-air/oreilly/2012/02/20/why-are-gas-prices-so-high?page=1

I hate to torture you all with this interview but this is what is being said to millions of people and I think it important to address it. Now we all know that there are factors in the middle east that are setting the price but does this report bear any merit?

 

[narrowphoenix]

Gas isn't going up, your dollar is going down. That simple!

"END THE FED!" - RON PAUL

 

[FrancisMarion]

Gas isn't going up, your dollar is going down. That simple!

"END THE FED!" - RON PAUL

No, if oil was traded in gold, it would cost more gold.

 

[Pericles]

Gas isn't going up, your dollar is going down. That simple!

"END THE FED!" - RON PAUL

Partly true, there also hasn't been a refinery built in the US in the last 30+ years. Its not just how much oil you've got, the oil has to be refined into gasoline.

 

[Brian4Liberty]

Gas isn't going up, your dollar is going down. That simple!

That.

Partly true, there also hasn't been a refinery built in the US in the last 30+ years. Its not just how much oil you've got, the oil has to be refined into gasoline.

And that.

And the export of oil from the US.
And the export of refined products (like gasoline) from the US.
And the consent of the environmentalists who want the price to go up.
And the consent of the neo-conservatives who want it to be an excuse to go to war with Iran.
And the creation of a mini-bubble for commodities gamblers to make some money.
And the willingness of the Petroleum Oligopoly to go along with all of the above and set their prices higher.

Hardly ever is it a single factor.

 

[IDefendThePlatform]

If we somehow pull this out and Ron Paul gets elected President, I'm setting the over/under on gas prices at $2.00 a gallon by the end of his first term.

 

[AFPVet]

While inflation plays a part, speculators are largely to blame. Look at what's going on about Iran....

 

[pcosmar]

While inflation plays a part, speculators are largely to blame. Look at what's going on about Iran....

Yup,
My observation is that the prices go up with the tempo of the War Drums.

Just wait till the Straits are closed. (a predictable consequence)

 

[ForLiberty2012]

Problem is, the price of oil is still more than unit elasticity (inelastic). Therefore, it can still rise higher to maximize profit. The elites know this. And the elites run the world.

 

[moderate libertarian]

Some shocking claims by press tv, it reports oil prices going up because sanctions backfiring on Europe nations:

http://www.presstv.ir/detail/228345.html

 

[The Gold Standard]

While inflation plays a part, speculators are largely to blame. Look at what's going on about Iran....

What do you think they are speculating with? When the Fed creates new money and passes it out to the bankers, they speculate with it. Inflation isn't the only thing affecting oil prices, but it is the most important factor.

 

[The Gold Standard]

If we somehow pull this out and Ron Paul gets elected President, I'm setting the over/under on gas prices at $2.00 a gallon by the end of his first term.

If he could get competing currencies passed in Congress gas might get under $1/gallon, depending on how the Fed would react to that.

 

[wannaberocker]

I saw Bill Oriley quoting DObbs on the issue. It annoyed me because he tried to overly simplify it and acted like the free market was screwing people. He went on an on about "oh we have plenty of supply and exxon has record profits" blah blah.

Every year when the prices for gas go up. THe talking heads pick one aspect of the market to blame last year it was "oh those evil speculators" and this year its "oh those chinese buying our oil".

 

[IDefendThePlatform]

If he could get competing currencies passed in Congress gas might get under $1/gallon, depending on how the Fed would react to that.

Sounds good. I'll put you down for the unders then. Standard $10,000 bet right?

I might need to head over to democraticunderground to get some people to bet the overs.

 

[rockerrockstar]

I found this at http://inflationdata.com/

 

[AFPVet]

I found this at http://inflationdata.com/

Thanks for the chart

 

[Madison320]

No, if oil was traded in gold, it would cost more gold.

What time frame are you using? In 1970 when we were still on a gold standard oil was $4 a barrel, gold was $35 an ounce. That's .11 ounces of gold for one barrel. Now gold is 1770 and oil is 109. That's .06 ounces of gold. So it's almost half the price it was in 1970.

Maybe you were using 1980? Watch out for anyone who uses 1980 and gold as a reference point. Gold skyrocketed up and back down in 1980.

 

[FrancisMarion]

What time frame are you using? In 1970 when we were still on a gold standard oil was $4 a barrel, gold was $35 an ounce. That's .11 ounces of gold for one barrel. Now gold is 1770 and oil is 109. That's .06 ounces of gold. So it's almost half the price it was in 1970.

Maybe you were using 1980? Watch out for anyone who uses 1980 and gold as a reference point. Gold skyrocketed up and back down in 1980.

Maybe I was using a bad example. I see where you are going with this. So, I have a question: If we were buying gasoline at the pump with a gold backed dollar would we not be spending more today than we were in the recent past. In other words, would the price of gas not being going up like it has with a fiat dollar? I think it would be doing the same when you look at value from day to day based on rising or falling percentages.

It seems to me that the great increase in gold is because it is NOT associated with the dollar. Its hedging against a fiat currency.

The thread was asking for the factors of why we are paying more for oil /gas, so we can discredit the fox news meme. In turn we can change people's minds without going into the breadth of a topic like monetary policy.

 

[Kingfisher]

Using Real Constitutional Money(Gold and Silver) gasoline is cheaper now than it was in 1960 and before! Using fiat paper its much higher.
Thanks Federal Reserve!

 

[otherone]

It's called 'fraud'. All the industry has to do to increase profit is to buy more oil futures, artificially raising the price on current inventory, and immediately passing those costs directly on consumers.