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Hedging the price of gas, courtesy of the Gramms

July 22, 2008

Stating once again, economics is not now, nor has it ever been, my strong suit. In the red is bad, in the black is good. Aside from that, I read and try to understand. I read more than I can keep up with. I check, re-check, and check again. It’s enough to keep my head spinning for the “next 100 years”.

The price of gas – we all complain about it. Sorry, I forgot…we whine about it. Wouldn’t you know it, it all goes back to those dreaded 5 letters: E-N-R-O-N. You thought that I was finished on that topic, didn’t you? Oh no. Enron screwed a lot of people, and in a sense, they still are. I’m oversimplifying here, but the high prices that we’re paying at the pump? Go back to Enron was just the beginning.  The deregulation of the banking industry – the Gramm sponsored Commodities Futures Trading Act.

So, think of Wendy & Phil every time you put gas in your tank. It’s not just foreclosures, it’s not just about the price of oil. It’s about the rules of the game. Or rather the lack of rules. This is your Bush Administration at work against you. This is the global economy of Phil & Wendy, George, Dick, Rice, et al. I’m certain that by now you see the bigger picture.

Now, go here. For those unwilling to click without a preview, here’s a juicy morsel for you to chew on:

The price of crude oil today is not made according to any traditional relation of supply to demand. It’s controlled by an elaborate financial market system as well as by the four major Anglo-American oil companies. As much as 60% of today’s crude oil price is pure speculation driven by large trader banks and hedge funds. It has nothing to do with the convenient myths of Peak Oil. It has to do with control of oil and its price. How?

I promise you, this is well worth your time. And after you finish digesting that, read what Mr. Engdahl has to say about Freddie, Fannie, & mortgage debt.

A hale and hearty farewell with a metaphorical boot to their asses when the bastards are ousted in January. That is, unless they refuse to go.

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2 comments

  1. Hello.

    I like your site and wanted to know if you would be interested in exchanging blogroll links.

    Thanks in advance


  2. Most definitely, Josh!



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