Gas prices: There's not much that presidents can do about them

[PaceAdvantage]

OH SHIT! NO! REALLY? You're kidding me...and from Jan 2001-Jan 2009 all I kept hearing was how the high price of oil and gas was mostly Bush's fault...I tried telling people otherwise, like in this article, but they wouldn't listen.

Or maybe the headline is wrong? Maybe it should read "Gas Prices: There's not much that presidents (except George W. Bush) can do about them"

http://economywatch.nbcnews.com/_new...ite&ocid=msnhp

PS. The above can be seen as another clear case of the main stream media stroking Obama for the masses...BLAME GWB when he was prez, but now that the big (D) is sitting next to Obama's name, now all of a sudden, Presidents have little say over the price of gas...no...no bias to see here...

[Tom]

I am surprised Romney never pointed out the ridiculously high gas prices in California, thanks to the Green Meanies out there. The huge point I took away from the debates last night is that Obama doesn't care at all about energy prices - only green crap. Just imagine what this maniac will do in second term, given the stupid stuff has said in the first one.

[rastajenk]

Well, he'll have more flexibility.

[ElKabong]

"Bush is invading Iraq to steal their oil for his Texas oil buddies,, then he's gonna drive the price of gas down right before the election to get re-elected".....

[TJDave]

Originally Posted by Tom

I am surprised Romney never pointed out the ridiculously high gas prices in California

Dude, HELLO, it's California. We all drive Priususses...es. Besides, it's all Bush's fault. Me and the Mackster are the only two people in the State voting for Romney.

[fast4522]

Before Steven Chu became Energy Secretary, he said things that were in line to become part of this administration. Many here will say bullshit to that statement to defend a failing administration, but higher gas prices was exactly what the Bilderburg Group wanted inside their annual meetings. You guys write off policy too damn fast as having any effect on the price we pay for anything.


http://news.yahoo.com/blogs/ticket/e...220831499.html

[rastajenk]

The One, The Savior, the President said the other night that gas prices rise and fall with other economic factors, thus higher prices means a stout recovery. So we should be grateful for this massive redistribution of resources.

Who can argue with that?

What an absolute maroon.

[highnote]

Originally Posted by rastajenk

The One, The Savior, the President said the other night that gas prices rise and fall with other economic factors, thus higher prices means a stout recovery. So we should be grateful for this massive redistribution of resources.

It is true that prices rise and fall due to economic factors. Inflation will cause prices to go up. Limited supply due to excess demand will make prices go up. Excess demand due to a economic recovery will make prices go up.
Limited supply due to too few refiners being able to produce enough to meet demand (which is a major factor now) will cause prices to go up. Inefficient distribution systems will make prices go up (this is also a big factor now). Those are all economic factors.

I don't know about a stout recovery, however, during the financial crisis the highways were nearly empty where I live. Now, they are full again. I see a lot of truck traffic. Someone is buying what those trucks are shipping.

The one thing this admin and the federal reserve want to avoid is deflation. Deflation signals weak demand and is a cause/symptom of a depression.

[Valuist]

Originally Posted by highnote

It is true that prices rise and fall due to economic factors. Inflation will cause prices to go up. Limited supply due to excess demand will make prices go up. Excess demand due to a economic recovery will make prices go up.
Limited supply due to too few refiners being able to produce enough to meet demand (which is a major factor now) will cause prices to go up. Inefficient distribution systems will make prices go up (this is also a big factor now). Those are all economic factors.

I don't know about a stout recovery, however, during the financial crisis the highways were nearly empty where I live. Now, they are full again. I see a lot of truck traffic. Someone is buying what those trucks are shipping.

The one thing this admin and the federal reserve want to avoid is deflation. Deflation signals weak demand and is a cause/symptom of a depression.

The gold market is telling us inflation, not deflation, is the worry. And it will kick in hard at some point. I see no difference in traffic on the roads. Most traffic is for people getting to and from work, and since more people are unemployed now, there's probably less people driving now.

Other thing that wasn't mentioned was the increased demand from India and China. Years ago, they had very little impact on the oil market. You add 100,000 people getting drivers licenses every week and it becomes more than just US supply and demand.

[highnote]

Originally Posted by Valuist

The gold market is telling us inflation, not deflation, is the worry. And it will kick in hard at some point.

Deflation is a concern as John Mauldin points out in this June 2012 article:

http://www.businessinsider.com/john-...es-next-2012-6

Originally Posted by John Mauldin

I expect we will first see deflation and then inflation, but the key is the timing. Today we will examine that question in more detail, as we look at how interest rates could actually be negative (!!!) this week in German and Swiss bonds and why the US ten-year has dipped below 1.5%. The very poor May employment number needs some analysis, too, and we'll check the prospects of a synchronized global slowdown. Rarely have I come to a Friday with so much data that simply begs for a more thorough look, but we will try to hit at least the most important topics.

I see no difference in traffic on the roads. Most traffic is for people getting to and from work, and since more people are unemployed now, there's probably less people driving now.

Before the financial crisis I took me about 90 minutes to drive into the city due to all the traffic. After the crisis I could do it in 45 minutes. Now it is back to 90 minutes. Different parts of the country probably recover at different rates. I see a big difference where I live.

[highnote]

Originally Posted by Valuist

The gold market is telling us inflation, not deflation, is the worry. And it will kick in hard at some point.

We are actually having deflation and that is the reason central banks all over the world can get away with printing so much money. Inflation and deflation have to do with the velocity of money. If the economies around the world were strong and the banks printed trillions of dollars then inflation would be through the roof. However, inflation is barely budging. That tells us that the velocity of money is slow because consumers aren't spending, businesses are hoarding their money. How much cash is Apple sitting on, for example?

Because of the severe recession, the central banks are using quantitative easing to jump start economies. If they did not print money we would see 1930s style deflation and probably another depression. No one wants to relive 1930. The central banks will do everything they can to prevent a depression.


from John Mauldin:

First Deflation, Then Inflation
As noted above, recessions are by definition deflationary. Deleveraging events are also deflationary. A recession accompanied by deleveraging is especially deflationary. That is why central banks all over the world have been able to print money in amounts that in prior periods would have sent inflation spiraling upward. This drives gold bugs nuts as they see the money being printed, but they are not factoring in the velocity of money. If the velocity of money were flat, inflation would be quite significant by now. But velocity has been falling and is going to fall even further. The US Fed and the ECB are going to be able to print more money than we can imagine without stoking inflation ... at least for a while longer.


Read more: http://www.businessinsider.com/john-...#ixzz29fZbZW5r

[Valuist]

Filled up last Friday, paying $3.98/gallon. This morning, filled up, same area, $4.20/gallon. Seems odd, seeing that oil hasn't had a spike in the past few days.

[thaskalos]

Originally Posted by Valuist

Filled up last Friday, paying $3.98/gallon. This morning, filled up, same area, $4.20/gallon. Seems odd, seeing that oil hasn't had a spike in the past few days.

I paid $4.20 too. We must have gone to the same place.

[Robert Fischer]

still suffering high oil and gas prices from Bush

[jdhanover]

Gas/oil prices are fundamentally driven by world supply/demand as well as US refinery capacity & other factors. A lot of folks make this political but really there is a lot more to short (and long) term price movements and politics has little to do with it. Overall levels are impacted by taxes of course, but the price movements are due to other factors.

This seems to come up a lot....many are misinformed.