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Every week I will be posting new articles, pics, and videos on whats going on in our economy and the ever changing world around us. Along with my personal commentary and tips on what you can do to prepare for the economic fallout that is quickly approaching. God Bless!

Disclaimer: This blog is provided for informational purposes only and does not constitute an recommendation or offer to purchase any security, investment product, or service of Criner Investments, LLC or it’s affiliates. Criner Investments is invested in physical Gold, Silver, mining companies, and precious metal based ETF's.

Wednesday, March 9, 2011

The real reason behind rising gas prices.

A lot of large oil and gas companies will come under scrutiny as they post record profits(yet again) as the gas prices skyrocket.  This is set in the wrong direction in which we target the problem and not the source.  Remember that it's the government who sits idly by and lets all of this happen.  Just like they sat by and watched the large banks rape us, the taxpayer.  If we as America would stand up to the government and real in the Federal Reserve the speculation would implode and commodities along with everything else would fall through the floor.  The Fed is providing the excess liquidity in the market to push the stock market higher, and cause speculation in the market in a flight to hard assets, including oil,  as they debase our currency. 

This is a direct result of their inflationary QE policy in which now that we are on it, they will never be able to end it.  And more and more people are waking up to this fact, and questioning it at the congress meetings with Fed Chairman Ben Bernanke in which he lies about it every time.  He says there is no inflation under oath, even though prices are going up every day.  He should be charged with treason for either lying under oath, or being a total idiot.  And this guy is in charge of Americas future!  Nothing has brought down an empire faster than misuse of its monetary policy. 

If you look at the Dow Jones, and the time lines in which QE was started and then re-initiated, then you can see just how propped up by the program it is.  It was initiated pretty much at the bottom of 2009's market crash.  And remember that QE1 were purchases of over a trillion dollars of Mortgage backed Securities and treasury bonds.  The only thing providing some stability to the market, as its ass was falling out.  Basically it's what has kept this whole ponzi scheme(our government) afloat.  If the Fed had not intervened, the businesses that should have been forced into bankruptcy would either be gone or have to completely change.  There would actually be people in jail for all of the fraud that took part in this whole mess.  And we would more than likely already be on a steady natural recovery.  Which is what we needed, but the system is even more fraudulent now!  And it has put our entire future in jeopardy.

QE2 was initiated after QE1 ended, along with all their other failed programs(cash for clunkers and home-buyer tax credit) and as soon as the market showed some volatility in mid 2010, they leaked news of QE2 in August.  This time severely affecting the commodities market.  Here is a chart here for QE and the Dow's reaction.  http://calculatedriskimages.blogspot.com/2010/10/s-500-and-quantitative-easing.html  Smooth sailing ever since.  And just look at any commodity chart from August 2010 forward, and you will see a direct correlation to the rise in commodities!

Pretty soon we wont be able to afford anything much less than gas, and we have control as the people to stop it, yet we sit idly by and complain about gas prices.  Our government allows all of this to happen in the first place!  And another thing you should focus on is OPEC, they said they wont even consider having a meeting to increase oil production until it's over $120 a barrel!   Why don't we have our hand in this??  We provide foreign aid to almost every oil producing nation!  Rising oil prices is just the start, and we have to focus on why this is happening in the first place.

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