How Oil Speculators Have Helped Obama Impoverished Americans


Do you really want to know how the election is going to go in November?  I suspect we need to watch gas prices at the pump.  Right now, oil prices were up then down.  The price of gas here where I live is a good is a good 25 cents a gallon more than other places.  I found a rather fascinating piece about oil prices.  Are they about to collapse.  Currently, the cost of international shipping for such things is so low, big tanker companies are paying the oil companies to ship their product.

Then there is the price of propane.  Because I’ve had a heat pump for for at least 15 years, I’ve never paid much attention to the cost of propane.  Then I began paying bills for my parents.  I was shocked.  In 2008 or so, there was a major change in the price of propane and the efficiency of electric.  I ought to know.

Around 2009 I put in a new heat pump.  I was told it would take about two years for the new system to pay for itself.  My electrical savings were so great, the new system paid for itself in about fourteen months!  I started looking in to electric vs. heat pump for my parents.  The are currently paying close to about $5000 a year for power/gas.  If we invest about that much, removing the old gas heater, putting in a new heat pump air system, forcing the electric co-op to put a new meter on the house, and add one of those small windmills (they have a tremendous amount of wind where they live), the outlay will be about $5000.  From my calculations, within two years, we are going to see that pay off.

The bottom line here is that oil speculation is impoverishing the average American.  When it comes to those who have been living off propane, they have seen their costs literally double in the past few years, due to oil speculation.

George Soros thinks the US is going to have serious problems with a class war.  The Pink Flamingo is beginning to think he is correct.

“…Understanding, he says, is key. “Unrestrained competition can drive people into actions that they would otherwise regret. The tragedy of our current situation is the unintended consequence of imperfect understanding. A lot of the evil in the world is actually not intentional. A lot of people in the financial system did a lot of damage without intending to.” Still, Soros believes the West is struggling to cope with the consequences of evil in the financial world just as former Eastern bloc countries struggled with it politically. Is he really saying that the financial whizzes behind our economic meltdown were not just wrong, but evil? “That’s correct.” Take that, Lloyd Blankfein, the Goldman Sachs boss who told The Sunday Times of London at the height of the financial crisis that bankers “do God’s work.”…”

Mitt Romney is on a mission to blame Newt Gingrich for the housing collapse because he worked with Freddie/Fannie.  Perhaps he would be better served to be little honest about why this nation is in such a mess:  High Oil Prices.

Market Watch

Back in the summer of 2008, The Pink Flamingo wrote, repeatedly, that the economic crises we were beginning to see was based on the high price of oil. In 2011, a barrel of oil is at least $27 higher because of speculation.

“…Even Goldman Sachs concedes that at least $27 of the price of crude this year has been a result of rampant speculation, not supply and demand. Other experts contacted by ThinkProgress have said the number is closer to fifty dollars. To read our report about Koch Industry’s long and sordid history in the oil speculation business,…”

Unfortunately, we all know who is the worst offender.

“…Commodity Futures Trading Commission (CFTC) commissioner Bart Chilton recently explained that rampant oil speculation, which is at its highest level on record in 2011, is to blame for current prices.

A commodity market is said to be in “contango” when demand is expected to outstrip supply and future prices are expected to rise. Big banks and companies like Koch employ a contango strategy by buying up oil and storing it in massive containers both on land and offshore to lock in the oil for sale later at a set price. Sort of like the Wal-Mart of Wall Street.

What most people do not know, however, is that Koch Industries occupies a unique role in manipulating the oil market and is one of the top five largest distributors of gasoline and oil that engages in the practice. Koch Industries, unlike well-known oil companies, has little involvement in the extraction process of procuring crude oil. Instead, the conglomerate focuses on shipping crude oil, refining it, speculating on the future price, and then distributing it to retailers….”

CNN - 2008

Follow the money via Koch, Murdoch, Rove, etc…. Do they own the Governor of New Jersey?

“…Regardless of the actual trading strategies, the volume makes clear that not only were Goldman Sachs and Morgan Stanley, as well as pension and sovereign wealth funds, among the top participants in the oil speculation bubble, but so were politically connected hedge funds. Elliott Management, one of the top hedge funds revealed by the documents, is led by Paul Singer, a billionaire investor and a major donor to Karl Rove’s network of attack groups and to Republicans on the Financial Services Committee.

As we have discussed on this blog, “all the major oil companies (Shell, BP, Occidental, etc) operate like Wall Street investment banks and use their privileged position in the oil market to make speculative bets on the price of oil.” An accidental leak of private Chevron data two months ago confirmed that the company relied on sophisticated speculation strategies, just as much as drilling and refining oil, to make a profit. This data seems to confirms that Koch Industries — a conglomerate that has admitted that it is among the top five oil speculators in the world — participates in the oil speculation market on the level of big banks….”

Think Progress

When you add the speculation to what Obama has done, we have a serious crises.  With Obama’s continued assault on oil, drilling, gas, etc, no wonder our economy is in the tank.

“…Since President Obama has taken office, the price of a gallon of gasoline has nearly doubled. However, our loss in treasure is not limited to the cost of gasoline. His assault on oil is costing us jobs. Job loss estimates for the Keystone pipeline have been bantered about in the neighborhood of fifty thousand. This number is dwarfed by the losses in the Gulf, upwards of 160,000.  Along with losing jobs, capital investment has also declined. In the Gulf, investment in deep water drilling has declined by $24 billion and capital being capital; it will always find a home. Where did this money go? Well, eleven of our deep water rigs (representing a $21 billion investment) have ended up in Brazil, Egypt and Angola; you can kiss that money goodbye.

We have an administration that is bent on changing our nation from our individual freedoms to how we live our day to day lives. It will employ any tactic to see its mission through. We are slowly being strangled and if we do not fight back now, we will not have any breath later to do so.  …”

We have a very simple bottom line here.  I’m going to step out on a limb, which is something The Pink Flamingo never does, right (cough).  I think this is about either pushing Obama out of office or getting him re-elected.

Gas prices are controlled by the price of oil.  Oil prices are controlled by OPEC, current events, and out of control speculators who are driving the cost up, to pad their pockets.  It’s a two-fer.  By padding their pockets, they make billions.  They don’t give a damn about the average American who is being forced into a lower standard of living by their unabated and unchallenged greed.  They can also control who is elected POTUS.

As I have repeatedly stated, we no longer live in a free country.  It is ruled by a very few super rich individuals who can literally destroy our economy by speculating the price of a single commodity so far above our grasp that we are broken.

And – they have broken us.

Just what is your dollar buying today?

Have you gone shopping lately?  The price of food is breaking us.  If your standard of living  has not dropped since this over-the-top speculating began in 2008, then you are fortunate.    I don’t know of anyone who is living as well as they were in 2008.

Oil speculators are sucking the very life’s blood out of this nation.  If you suggest they be stopped, you’re a blasted socialist.  Sorry, but I don’t buy into the libertarian poison.  I think speculation like what people like the Koch brothers do with oil should be made illegal.

They are hurting everyone, but wait – they have a right to do it.

Don’t they?

It may be legal, but is it moral?