June 25, 2009
The Great Gasoline Heist

While we’re on the subject of disgusting greedheads (see previous posting), let’s take a look at what the banksters are up to as well. You knew the current run-up in gas prices wasn’t plain old Econ. 101 stuff, didn’t you? A simple case of supply and demand?

Here’s why you were right. The excerpts are from McClatchy Newspapers, which have been out in front of the MSM on this story, as on so many others.

June 12: Oil prices shot past $72 a barrel this week, and a growing number of experts point to Wall Street speculators as a key reason why Americans are suddenly paying a lot more for oil and gasoline…

May 20: …This turns oil futures contracts into a way for investors to hedge against inflation at the expense of American consumers, who have to pay more to fill their gas tanks as oil and gasoline prices rise.

Masters and other critics say this speculative flow of money into commodities markets is a self-fulfilling prophecy that’s distorting the usual process by which buyers and sellers set prices and is driving up the prices of oil, gasoline, grains and other essentials…

And for facts and figures, see the PDF from which the following summary comes:

In our new world of trillion dollar Wall Street bailouts, $110 billion does not seem as shocking as it once did, but this number must be put it in perspective. The U.S. Congress and President Bush passed the Economic Stimulus Act of 2008 in February of last year. It called for tax rebates of between $300 and $600 per person. By the time this stimulus finally reached the average American, the high cost of energy and food prices had nearly canceled out the entire economic benefit of the bill. At that point, the Stimulus bill simply helped Americans pay the “excessive speculation tax” levied on energy and other commodities…

Once again we have William Jefferson Clinton, Wall Street’s BBBB (Butt Boy Before Bush), to blame for this disaster. Him and his Treasury Secretary, the sainted Robert Rubin of Goldman Sachs. Here’s Jim Hightower on this point:

Why is this allowed? Because the Commodity Futures’ Modernization Act of 2000 included a provision that was quietly tucked into the law by then-Sen. Phil Gramm, R-Texas, specifically prohibiting any regulation of such commodity-based derivatives. Among the enthusiastic backers of this legalized thievery were Robert Rubin, the Wall Streeter who was Bill Clinton’s treasury secretary, and his protege, Larry Summers, who is now Barack Obama’s chief economic advisor.

This bipartisan cabal created a speculative mechanism that’s presently sucking money out of your pocket with every gallon of gas you pump. Meanwhile, every dollar that Goldman, Morgan and the rest use to inflate oil prices is a dollar they are not investing in real economic activity that could create middle-class jobs…


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Posted by Jerome Doolittle at June 25, 2009 04:48 PM
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This has been going on for decades, worldwide. Just buy more economic cars. Gasoline prices will soar and eat up all the money you saved. Marketing geniuses will tell you to buy even more economic cars to counteract the rising cost. Hybrid cars and similar hightech bullshit.

Fifteen years ago Greenpeace remodeled a standard Renault Twingo with no effort at all so it consumed only 3,3 liters per 100 km (that's about 85 mpg).

Demand and supply? Forget it. A capitalistic myth. We are living a planned economy at its worst. And the problem is neither government intervention nor the free market. It's global monopoly.

Posted by: Peter on June 26, 2009 9:42 AM

To put it ito perspective - there are ten to the thirteenth stars in the known universe, roughly a hundred and ten billion. We used to think of these numbers as "astronomical", today they are merely economic.

Posted by: Ten Bears on June 26, 2009 11:58 AM

I'd like to gut me some "bipartisan cabal."

Posted by: John Gall on June 26, 2009 2:17 PM
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