Gasoline Prices

I hadn't heard we're in a recession according to the accepted definition, Reverend. Why fudge like that?

When the Leader and his Leadees speak the truth about our nation not being at war, you know, according to the "accepted definition" of declaring war……then I'll subject myself to the "accepted definition" of recession.

But not before. Deal?

Why not take the high road?

How would bringing more supply to the market not help lower prices?

Come on Ben. You 're a smart guy. There is plenty of supply, everyone agrees, America AND now the world is using less oil….YET…the price is, and has been, going up.

The point is that the market, which conservatives idolize, IS NOT WORKING. It's being manipulated through a loophole for commodities traders.

In addition, honest to gawd, all experts agree that offshore and ANWR….STILL….would make only a negligible change in world supply.

Yes…basic economics says when supply exceeds demand, prices go down. But not when the method of setting future prices on the supply is being rigged and gamed behind unregulated doors.

The first step to lowering oil prices is a harsh takedown of the commodies futures market. Spread the word.

How long do you think demand will be 'down' Reverend? That's a pretty silly idea you keep touting.

And if it's true doesn't that say the market is reponsive to supply and demand since demand is temporarily down (very slightly) because of high prices?

You're arguing both ways again.

Rev,
For a long time now, the financial sector has been permitted to sell paper that is so far removed from any tangible asset, that the commodities markets have become a veritable casino. One danger that receives little press is that as this type of "investing" diverts cash from long term investments, leaving the system even more precarious. I wonder when businesses getting hammered by gas prices like the rest of us will get involved.

As usual, Rev, there is a tremendous amount of disinformation surrounding your main point (i.e., 80% of the Olbermann video is pure bs, like everything Olby says), and you ARE being simplistic by ignoring many other factors at work in the price of oil, but….

I agree with you that speculators are driving up the price. That is pretty obvious.

You can't pretend supply and demand doesn't factor into the equation, however. The speculators wouldn't make money if they were WRONG about future supply and demand in the commodities FUTURES market. The speculators ARE gambling, as you said, but they are gambling based upon forecasts, and ALL the forecasts show supply leveling and worldwide demand rapidly growing. That is the precise environment for a market price increase. If demand decreases or supply increases, those speculators couldn't feed at the trough without risking the loss of all their money.

Even if we assumed you were 100% correct about the price of oil, we should still drill in ANWR and offshore to increase our domestic oil supply, so we won't have to depend on the likes of Saudi Arabia, Venezuela, and Nigeria for our oil. As I said in my post on the subject, it is a national security issue, and the Democrats are traitorously leaving our economic futures in the hands of our enemies, which is a really, really bad idea.

Sweet propaganda from Olbermann though, making it appear as if John McCain is the one responsible for the high price of oil, lol. Maybe a couple doofuses will even buy into Olby's crapola. Olby is a touchstone for the uninformed. His spew sounds good if one has no idea of the actual facts of an issue.

"The speculators wouldn't make money if they were WRONG about future supply and demand in the commodities FUTURES market."

Just as many speculators are wrong as are right…..because as you know, trading is a zero sum game.

Were the gamblers gambling based on forecasts in the Dot.com bubble? How about those real estate speculators?

I'll make a deal. Offshore drilling, no ANWR, in return for closing the Enron loophole.

Mr. King,
I can only wonder what part supply and demand plays in this massive price inflation. I see neither a increase in demand nor a decrease in supply to any degree comparable to the extent and rapidity of the increased price of oil.
The Rev is right about the need to close the Enron loophole. This was engineered by Wendy Gramm, wife of Phil Gramm, McCain's economic teacher and advisor, right before she left her job of regulating the commodities market for a job with Enron. It is one of the actions which has turned the futures market into a poker game where the house always loses and the players can bet $100 while throwing in a $5 chip. The paper being written by the financial services industry is so thin as to be transparent. It was this type of speculative mania which displaced long term investment and led directly to the Great Depression. It should be especially troubling for McCain supporters that he relies on Gramm, the main architect of this fiasco.

Good comment. frank mentions the leverage issue. That's a point I'd forgotten about.

If America…and I'm being deadly serious…..is able to right itself, it will be miraculous.

28 straight years of recklessness in financial markets….that takes a toll.