5 votes

Why are gas prices falling?

With all of the QE3's ($40 billion to buy MBS) and QE4's ($45 billion to buy U.S. Treasuries) coming out these last 6 months, I would think that gas prices would rise. My friend keeps using falling gas prices to say that the CPI is not as bad as I keep saying it is, and that the creation of money from the Fed is not really affecting our everyday lives. I see prices rising everywhere, but gas prices are decreasing dramatically. Can you educate me on this?

I also remember reading that CPI is luckily not increasing that much as of now because the banks are just bloated with reserve money and the money is not moving anywhere, because there's no incentive for them to loan out that much. Is this why CPI is not rising so rapidly? If so, what event will trigger the spilling of bank reserve money and therefore much higher prices for everything?

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You can't

look at it on a short term basis like that - there are natural cyclical swings in prices of everything - and supply and demand DOES affect oil and gas prices on the short term in a cyclical fashion. But all you have to do to prove your point to him is show him a graph of gas and oil prices vs the money supply which gives a picture of the long term...here's a great site that shows this:

http://www.hmscoop.com/MoneySupplyvsCommodities.html

Another way you can show this is by comparing oil prices in gold (because gold is a currency whose supply can't be manipulated). If you look at oil in the price of gold - it's actually cheaper right now than its 100 year average...which is what happens with a stable currency. While oil priced in dollars is way over its 100 year average (not even close). I have the spreadsheets for this data if you want it.

You may want to sit down.

http://www.atimes.com/atimes/Global_Economy/GF16Dj01.html

Many sources can be linked in the attempt to convey a competitive, accurate, answer to the question. I will make this as short as I can, reasonably, and link that one source above because China has to be factored into this answer.

Natural economic price swings occur in any case where many people are trading. Then that natural tendency for price swings can be manipulated in cases were power products like Legal Money, Oil, Electricity, Food, Water, Land, and People Hired to Lie, People hired to Threaten, People hired to Torture, and People hired to Mass Murder, any Power Product (or service) is Monopolized to any significant degree, when that happens, as history proves over and over again, the few who gain that power to manipulate those price swings do so, and the swinging of prices is energized, expanded, increased, as if the sine wave of up and down prices was hooked up to an amplifier and the highs go much higher and the lows go much lower, and the peaks and valleys happen on a known, predictable, understandable, schedule, called The Business Cycle.

Ron Paul was especially keen on cluing anyone who would listen on the power of The Business Cycle which has been commanded by immoral people such as the people in control of the Central Banks - The Federal Reserve here in America.

Oil Prices are going down because the demand for oil is lower relative to the ready supply of oil - for many reasons.

One reason, clearly, is the build up for War with China.

As with the build up for War between England, America, Russia, and the "Enemy" at the time, which was Japan, Germany, Italy, or the Axis of Evil, as with that case, this new case, is a case of subsidy.

So the answer to the question includes the REASONS for the supply of oil becoming greater than the demand for oil, so as to cause the price to fall.

HOWEVER

The question asked is half of a question, and the other half of the question is the same question turned around to measure the rise and fall of the price of the ONE LEGAL MONEY UNIT that infects each duped brain that is infected with a false belief in the legitimacy and necessity of thinking in terms of only ONE LEGAL MONEY.

So the question is not merely a question about the rise and fall of the price of ONE powerful supply of POWER, which is Oil, the question is also a question about the rise and fall of the price of the ONE powerful supply of LEGAL FRAUD MONEY, which is The Dollar Hegemony Money, or Dollar, or Federal Reserve Note, so the question about Oil cannot be answered without answering the question about The Dollar, unless the person asking the question has a different, specific, unit of purchasing POWER in mind, other than the Legal Fraud Federal Reserve Note.

So...

1.
Why is oil prices falling relative to Federal Reserve Note prices?

A.
Because demand for oil is currently growing lower relative to the ready, current, supply of oil that is readily available to those who trade oil for Federal Reserve Notes.

B.
Because demand for Federal Reserve Notes is currently growing higher relative to the ready, current, supply of Federal Reserve Notes for those who trade Federal Reserve Notes for oil.

The answer is who cares?

The people who own most of the oil supply, and the people who own most of the Federal Reserve Note supply only care about those price changes if those price changes price them out of the market.

China versus who?

The Dollar Hegemony (which includes any POWER denominated in Federal Reserve Notes, such as The World Bank, The United Nations, The International Monetary Fund, the Federal Reserve, The Internal Revenue Service, Wall Street, Goldman Sachs, Halliburton, The Pentagon, Washington, Ford, Amazon.com, etc.) is being raided.

OK, so you may not be sitting down, and you may think I am a nut case, and that is fine, but some people do read, and some people do listen, and some people actually want to know.

U.S.A. Inc. (LLC) or The Dollar Hegemony, is being raided, as in "Corporate Raiding", or also known as the Pump and Dump, and when the raid is over all that is left is an empty shell of it's former self, and the raiders move onto the next target.

The next target is China.

World War III is well under way, and the concept of war is merely a cover story for actions that are required in order for the few most powerful people working effectively to maintaining their power to be the few most powerful people.

They steal power through a device known as a Central Bank and then they make their Central Bank more powerful by using the stolen money to buy things like a Direct National Tax Collecting Service, payable only in the ONE MONEY, and they steal even more by raiding competitive enterprises, like Oil Businesses, and Military businesses, subsidizing production, and incorporating the many competitors into one homogeneous whole - now known as The Dollar Hegemony.

Meanwhile, the same people, the same few people, are as busy in other places, doing the same things.

Then the few people agree to have a battle royal, so as to keep the victims who grow restless, less powerful relative to the few at the top, and those battle royal events are known as World Wars.

I can leave here, cutting this very short, with two final links, and you can read through them, or you can read 1984 by Orwell, or go on about your business working for Federal Reserve Notes as just another employee of The Dollar Hegemony. Why should I care?

http://www.reformed-theology.org/html/books/wall_street/

http://reformed-theology.org/html/books/bolshevik_revolution/

So...the answer to the "why is the price of oil lowering" question is such that at this time POWER is being sent to all the places where World War III has to go off on schedule.

Armies do not move without a ready supply of power.

Keep giving up your power and you will get what you paid for.

Edit:

http://www.businessinsider.com/north-dakota-shale-oil-boom-s...

A more rapid expansion of the liquidity of oil power.

Joe

.

US gas prices fall when the US dollar falls.

"OH NO! He has a SON?" Neoconservatives and Liberals EVERYWHERE!

Rand Paul 2016

Yeah, don't try to read to much into this.

Oil, gas prices are manipulated. Gas prices go down every year at this time so as to transfer consumer funds to the retail sector in celebration of the birth of Jesus. Within a week after this holiday, gas prices will start to rise again.

USA produces more than they need so they try to export

No other country wants the petrol dollar with hele ben unlimited digitizing of the curency as a compounding debt that will never be paid. The fact that Russia China and others are no longer pegging their oil trades to the dollar. Supply has outpaced demand so they are dumping into the USA market the over spill.

Its near the time of the intentional Rothschild planned world financial collapse.

sovereign

Velocity and global tensions too

There are several comments that all partially explain the phenomenon you are describing. Here are a couple more.

There are two main factors that determine the value of money. The supply quantity and how "quickly" it is trading hands. The latter is often called money's "velocity," and there are many good ways on how to measure that. It is very rarely talked about. When people/banks are not spending/loaning as much money, but are instead saving, the velocity is low. Prices then tend to drop somewhat When people are trying to get rid of it quickly in exchange for tangible goods out of fear that by tomorrow, it will buy less, prices rise rapidly.

As for gas specifically, we also tend to forget that the price is also partially driven by the futures market, and that has lots of factors, many of which are emotional. Lately the news media has not been putting much emphasis on the saber rattling of the US government in regards to Iran. But every time they come up with a new "major threat" of blocking the Persian Gulf, prices jump.

Refinery capacity, and hurricane season. Refineries are huge, expensive and complex. When they change over to do maintenance, or are shut down due to weather issues, etc. prices will jump. When most of the big boys are at full capacity, prices tend to come down.

Just...

a guess, but I would say demand has dropped off...

When Fascism goes to sleep, it checks under the bed for Ron Paul!

Technological breakthroughs :^)

Via fracking, horizontal drilling, you can thank the free market / American know how for that. The US will be a net exporter of hydrocarbons by 2020, if not sooner. It is spite of the Feds, certainly not because of them...

Obama elected

the perception is that there won't be war with Iran. Gas would have gone up with Romney. just my guess . .

Gas prices are not included

Gas prices are not included in the CPI. It was conveniently taken out of the index during the Greenspan years. The price of fuel reflects the decisions made by privileged and monopolistic speculators controlling the supply(including the reserves). So, when the monetary base is expanded, it doesn't necessarily mean prices will go up if the supply of fuel is dumped into the market at the same time. The Fed controls the reserve currency, and reserve status means much more 'safe' printing power than we tend to think it does sometimes. Opportunist investors(including other governments) will prop it up, as it loses value during QE, then gains in value again later (especially when land prices increase in other countries) because other currencies peg themselves to it due to the labor market across the planet. A lot of folks tend to believe that these other governments have a lot of power over the U.S. for that reason, but it's not true. They invest in dollars, because the investment is better(almost as if they have to) as the (slave)labor market will go back to the U.S. if dollars are devalued.

Obviously

Fuel prices are more and more not being set by market forces imo.

Why are all fuel stations basically the same price in a region?

It is most likely the calm before the economic storm. :(

donvino

The banks are not loaning out

The banks are not loaning out money for many reasons. They say that it is because demand for credit is low. Many economists say it is simply because there is nothing promising to invest it.

The banks are also loaded with a ton of liabilities. They need the money the Federal Reserve gave them just to be able to pay some of those off.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

I think its because although

I think its because although the supply of money is increasing the velocity of the money is very low because it is propagated through the banks. If ben bernanke were to distribute that 40 billion to regular average americans theyd be out buying things and prices would skyrocket. Demand could have dropped and supply could have increased of oil.