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  1. #1
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    Local and state politicians love gas prices going up

    Local and state politicians Play game telling the people there will look into why gas prices keep going up,put in reality they love it as the tax on each dollar goes up,you don;t see them capping the tax do you.HA HA

  2. #2
    Member Riven37's Avatar
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    Stop, stop, just stop …. Don’t you get it they don’t care the main goal is to get America to be like Europe with $ 9.00 per gal. The quicker you understand this the less you will bitch about the politicians.
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  3. #3
    Member FMD's Avatar
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    The reason gas is so expensive is due to the banks. 80% of the activity in the Oil Markets is being done by mega banks.
    Willful ignorance is the downfall of every major empire in history.

    "Political power grows out of the barrel of a gun." - Mao, 1938

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    Quote Originally Posted by FMD View Post
    The reason gas is so expensive is due to the banks. 80% of the activity in the Oil Markets is being done by mega banks.
    banks arent investing in oil, in simple terms, they are helping futures dealers (imagine a stock market for oil) to manage risk positions for the oil companies (supply) and big oil using countries (Demand). the middlemen are the dealers in the futures markets who help both sides offset their market risks..because participants in those markets want to sell their supply at different times, and different quantities (again, imagine the stock market, diffeent size orders, trades at different times of day ..different days of week, etc), and the buyers of the oil want it at different times and quantieis also. The "speculation" is really just the middlemen assisting those market participants (the suppliers and the demanders) to manage their financial risks. It actually helps make the markets more liquid and viable. It's not a whole bunch of speculators doing a buy and hold hordeing that would restrict supply. Supply restiction would be more rooted at the actual point of supply origination...which, is in the oil producing nations.

    Consider the stock market example. ALL of the transactions that occur in the stock market are processed via clearinghouses that use banks to process the funds to settle the buys and sells for the day. going back to your original point about banks being the big speculators in oil (and driving up the prices), that would be the same thing as saying that "it's the large banks that do 100% of all the price movement (speculation) in the stock market". Sure, the funding and the risk management is facilitated via banks, but its primarililty the macro supply side and the demand side of the commodity that actually drives the prices.

    im not criticizing your post, just putting the speculation term in perspective. Owners of oil want to manage their risk (via futures markets) in case the price goes down before they get a chance to sell it into the market to willign buyers). Buyers of oil want to manage their risk as well, and lock in prices (also via futures markets). It's the dealers in those futures markets that also have risk. All that risk..both the positive and negative, needs capital in order to keep those markets fluid (no pun intended) on a daily, weekly, monthly basis. Ultimateley, yes, its banks that provide the capital for the oil dealers (both the buy side and sell side dealers) as well as the futures/risk management dealers (buy side and sell side also). To that extent, yes, its the big banks providing the capital for the market participants, but the banks aren't specifically buying oil and oil futures for price appreciation as an investment per se , but more so to faciliate the activities of the oil producers, dealers, and demanders of oil. I hope that makes some sense.

    "banks are the oil speculators" Its sort of like saying that because people take out mortgages (from a bank) to buy a home, that home prices are a result of the banks which make up 100% of the funding in the market. The real demand comes from home buyers, and the real supply comes from home sellers and builders. The banks just proivide the funding...the liquidity, that heps keep the home buying markets going, no matter what day or month that someone wants to buy or sel la home. Again, i hope that makes some sense. its oversimplified yes but i htnk the example is pretty close.

    but, of course. make no mistake: the politicos privaely LOVE the rising gas prices because the fed and state taxes are a % of the total sale. and they can easily blame everyone else for the rising prices...BUT..why don't politicos take action to help taxpayers..by reducing the tax % when the underlying comodity starts becoming to expensive for consumers? Why not ? because politicos are PIGS.

  5. #5
    Member granpabob's Avatar
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    could the price we pay for gas have anything to do with the falling US dollar. the Dollar is worth less so it takes more of them to buy gas. If we Want lower prices our economy has to improve so the Dollar buys more
    One good thing about growing old is your secrets are safe with your friends they can't remember them either

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    Member Mr. Lackawanna's Avatar
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    Put the blame on Obama. His policies are the reason for our falling dollar.
    As the dollar goes down gas prices will go up.
    Russia didn't make me vote for Trump, Hillary did.

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