Can you feel the rumbling under your feet ??

[kentuck]

Gas prices are reaching a point that is unbearable to many Americans. Food prices are going out of sight. Truckers cannot afford to drive their products to market. People have lost faith in their government and their leaders.

At the same time, we are spending $10 billion a month on an unnecessary war in Iraq. The middle of our nation is covered by water in a 500-year flood. The criminals are breaking the law and getting away with it. On top of all that, we have to deal with killer tomatoes. How much longer before the "big one"??

[Lasher]

1. 5 more months until the general election

Republicans are Custer. We're Sitting Bull.

[Whoa_Nelly]

2. m just waiting for the stock market collapse

[classof56]

3. Reminds me of Mama Cass's song "California Earthquake"

The refrain--"They tell me the fault line runs right through here". Not sure why, it just came to mind when I read your post.

What was the Donny Osmond tune that saved the world in "Attack of the Killer Tomatoes"? Maybe we should all play that really loud, just to be safe! :-)

In answer to how much longer before the "big one", I'm guessing not too long now. Hard to say in just what form but the words "Bush" and "nucular" also come to mind.

Heaven help us all!

Tired Old Cynic

[EnviroBat]

4. Makes me wonder why so many assholes are still buying these...

Every fucking day, I see new versions of these dumpsters on wheels with the temp tags on them. $45,000, 6.0L V8 gas chuggers, and downright obnoxious as hell. Use twice the gas, (30 gal I believe) to go the same distance as a sedan, about 275-300 mi for 10 Gallons. This shit has got to stop. The morons driving these fucking things have to be republicans more often than not. Every time I see one of these on the road, I see Hannity driving it, or Limbaugh. Spreading the bullshit propaganda to the mass stupid that Global Warming is a myth. We should be drilling in ANWAR. There is no fuel shortage... On and on it goes till I can't fucking stand it. These assholes are destroying our future. It's that simple.

[ginnyinWI]

5. they're not buying them as much.

The reason we still see them on the roads is that the resale value of SUV's is terrible. You can't sell one for as much as you owe on it. One guy I saw on the news puts $80 worth of gas in it every three days. He'd sell it, except that he owes 8 grand on it, and could only get 3 grand on it if he traded it in.
GM has cut way back on production of new ones, too. Four dollars was some kind of tipping point and people are taking any action they can to avoid paying it--even to the point of riding the bus. Trouble is, public transportation isn't ready for all the new customers and will have to scramble to accommodate them.

I had an SUV once. Sold it in 1999 because of the rollover threat, and also because I no longer needed it to commute the back roads in winter to a university to finish my degree. A smart decision, since I sold it near the peak of SUV value. A few years later values started to slide. I replaced it with a sedan.

[TlalocW]

11. My boss has a Lincoln Navigator (I think that's what it's called)

He would love to get rid of it too since it costs $90.00 to fill up. I gently teased him about being the connection between his boy, Bush, and gas prices.

The one good thing about the current situation is that necessity is the mother of invention, and kicking and screaming though they may be, auto companies realize that if they don't come up with better fuel-efficient or alternative-fuel vehicles, they'll be as dead as the dinosaurs that turned into oil in the first place. Once an environmentally/scientifically president like Obama gets in the White House, I'm hoping that the research and development currently going on will get a big boost from government grants that Bush would never give out. The oil companies and their henchmen in government are smiling now because of the record profits being made, but if they're all as non-forward-looking as Bush, then they don't realize they're planting the seeds of their own destruction.

Now, the rest of us just have to somehow hang on long enough.

TlalocW

[Terry in Austin]

16. I thought it was the "Lincoln Compensator"

:evilgrin:

[sam sarrha]

6. 60% of the price of oil is looting.. the loss in value of your house was looted, food prices looted

by The ReThuglican Mafia.. plain and simple


the best article yet
http://www.star-telegram.com/ed_wallace/story/659081.html
What’s been happening since 2004 is very high prices without record-low stocks. The relationship between U.S. inventory levels and prices has been shredded and become irrelevant."

Now traders had an officially deregulated market for energy futures. Worse, that bill also deregulated many financial instruments – including the collateralized debt obligations that are at the center of today’s mortgage crisis, which may well cost us more than $1 trillion before it’s over.

All you hear daily is that the world has a severe shortage of oil, or you can buy only 200 pounds of rice at one time, or we will have a gasoline crisis this summer, etc. But it takes only a minute to find hundreds of quotes from highly respected oil and economic analysts, (not to mention CEOs of the major oil companies), that completely dismiss the claim of oil, gas or food shortages that have been headlining the news.

— Jan Stuart, Global Oil Economist, UBS Securities

"What you have on the financial side is a bunch of money being thrown at the energy futures market. It’s just pulling in more and more cash. That’s the side of the market where we have runaway demand, not on the physical side."


video testimony
http://www.c-spanarchives.org/library/index.php?main_page=product_video_info&products_id=205797-1


What caused the Oil Bubble is http://seekingalpha.com/article/80010-greenberger-s-testimony-i-banks-control-the-energy-market?source=news_sitemap



http://www.newenglishreview.org/custpage.cfm/frm/20911/sec_id/20911
F. William Engdahl, economist and author, in Global Research on May 2, 2008 put the blame squarely on oil speculation. In an article entitled: “Perhaps 60% of Today’s Oil Price is pure speculation,” he noted:

The price of crude oil today is not made according to any traditional relation of supply to demand. It’s controlled by an elaborate financial market system as well as by the four major Anglo-American oil companies. As much as 60% of today’s crude oil price is pure speculation driven by large trader banks and hedge funds. It has nothing to do with the convenient myths of Peak Oil. It has to do with control of oil and its price. How?

First, the role of the international oil exchanges in London and New York is crucial to the game. Nymex in New York and the ICE Futures in London today control global benchmark oil prices which in turn set most of the freely traded oil cargo . They do so via oil futures contracts on two grades of crude oil—West Texas Intermediate and North Sea Brent.

All this is well and official. But how today’s oil prices are really determined is done by a process so opaque only a handful of major oil trading banks such as Goldman Sachs or Morgan Stanley have any idea who is buying and who selling oil futures or derivative contracts that set physical oil prices in this strange new world of “paper oil.”

With the development of unregulated international derivatives trading in oil futures over the past decade or more, the way has opened for the present speculative bubble in oil prices.

search... http://www.google.com/search?hl=en&q=+enron+loophole+is+causing+the+gas+bubble&btnG=Search

[kentuck]

8. Congress should pull some of these traders in for questioning...

at Morgan Stanley and Goldman Sachs. They need to get these questions cleared up. And they should be under oath.

[Terry in Austin]

15. No, rilly, there's PLENTY of oil!

It has nothing to do with the convenient myths of Peak Oil.

And it's supposed to be cheap. Isn't that in the Constitution somewhere? We're Americans, darn it -- we're entitled to drive to Wal-Mart every week and buy all that lovely stuff.

It's.. it's... it's a bubble -- yeah, that's the ticket. We don't need no stinking geologists to confuse us with facts!

Now, back to our regular programming...

:patriot:

[kentuck]

17. A lot of experts disagree with you...

And there are no gas lines to back up your claims. So you rilly think this is all a supply and demand issue? There are no manipulations of the market at all?

[Terry in Austin]

19. Not all supply and demand, no

Just mostly.

Back up claims? Fair enough. Let me offer a couple of things.

Yes, gas lines and even rationing have occurred in cases of extreme shortage, such as in the 1970's. However, there are other indicators about supply. Fact is, world oil production has been essentially flat since 2004. EIA numbers tell the story.

I recommend reading at the links I posted, especially the Oil Drum. Also Energy Bulletin, which includes a daily roundup of articles from a wide range of sources.

As far as looking at market fundamentals behind oil price, the Oil Drum has an analysis that's a good place to start. One key factor it examines is the price elasticity of oil. Turns out to be around -.07, which means that in order to bring demand down by seven percent, the price has to increase by 100%. A good deal of demand destruction is necessary, since supply is flat and demand continues to increase. There aren't any supply-side options for taking care of the shortfall.

Risking a walk on the geeky side, if you take the production and demand data for the last several years and http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3317769&mesg_id=3321247">run the numbers using the price elasticity factor, you get a figure close to where oil has been trading recently -- not quite, but pretty close. The rest can fairly be attributed to the speculative bandwagon, "fear premium," etc.

I don't know if that extra bit qualifies as market manipulation. Probably not. I'm sure that the capitalist class would if they could, just as I'm sure that they're cutting corners whenever they can, and would cheerfully gouge us to the fullest extent of their power to do so. However, I just can't help but think that many who cry "gouging" are overestimating that power, and by suggesting dark conspiracies, tend to erode our credibility as progressives.

Worse, perhaps, is that the price-manipulation narrative is a distraction from the looming problems due to oil decline. The shift to a low-energy future is going to be profound and far-reaching, and we've already wasted 25 years. We need to kick the oil habit, and fast.

So -- red pill, anyone?

[MorningGlow]

7. This is necessary

Unpleasant, but necessary in order for everyone in America to finally get off their asses and do something intelligent.

Like, erm, electing a Democratic president, for one thing.

[Divernan]

9. There are already food and gas riots in Europe and Asia.

Fishermen are burning boats in protest; truckers are blocking access to cities.

[ginnyinWI]

13. yes--it's worse there than here.

They're paying something like $8 and $9 a gallon.

And in the developing world, the people don't have cars, but oil prices are driving food costs sky-high. So their children are starving. BBC World News America (BBC America channel) had a heart-breaking report on kids in Ethiopia about this.

[sam sarrha]

18. THAT IS BECAUSE THIS RIP OFF IS WORLD WIDE

http://www.onlinejournal.com/artman/publish/article_3252.shtml
Analysis Last Updated: May 5th, 2008 - 00:42:10

--------------------------------------------------------------------------------

Perhaps 60 percent of today’s oil price is pure speculation
By F. William Engdahl
Online Journal Contributing Writer


May 5, 2008, 00:19

Email this article
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The price of crude oil today is not made according to any traditional relation of supply to demand. It’s controlled by an elaborate financial market system as well as by the four major Anglo-American oil companies. As much as 60 percent of today’s crude oil price is pure speculation driven by large trader banks and hedge funds. It has nothing to do with the convenient myths of Peak Oil. It has to do with control of oil and its price. How?

First, the crucial role of the international oil exchanges in London and New York is crucial to the game. NYMEX in New York and the ICE Futures in London today control global benchmark oil prices which, in turn, set most of the freely traded oil cargo. They do so via oil futures contracts on two grades of crude oil: West Texas Intermediate and North Sea Brent.

A third rather new oil exchange, the Dubai Mercantile Exchange (DME), trading Dubai crude, is more or less a daughter of NYMEX, with NYMEX President James Newsome sitting on the board of DME and most key personnel British or American citizens.

Brent is used in spot and long-term contracts to value as much of crude oil produced in global oil markets each day. The Brent price is published by a private oil industry publication, Platt’s. Major oil producers including Russia and Nigeria use Brent as a benchmark for pricing the crude they produce. Brent is a key crude blend for the European market and, to some extent, for Asia.

WTI has historically been more of a US crude oil basket. Not only is it used as the basis for US-traded oil futures, but it's also a key benchmark for US production.

‘The tail that wags the dog’

All this is well and official. But how today’s oil prices are really determined is done by a process so opaque only a handful of major oil trading banks such as Goldman Sachs or Morgan Stanley have any idea who is buying and who selling oil futures or derivative contracts that set physical oil prices in this strange new world of “paper oil.”

With the development of unregulated international derivatives trading in oil futures over the past decade or more, the way has opened for the present speculative bubble in oil prices.

http://www.star-telegram.com/ed_wallace/story/651928.html

Fiddling While We Burn

There it is in plain sight for everyone to see, exactly what I’ve been reporting for the past few years: Many individuals who are investing in oil and natural gas futures are going out in the media and trying to convince the American public that either we are out of oil or there is a serious supply shortage of crude against worldwide demand. The question is: Does it surprise you to discover that the US Senate investigated the rigging of the oil market by speculators in the summer of 2006 – and concluded that there was no supply and demand problem with oil? Did you know that their conclusion was that speculators were responsible for a 70 percent overcharge in the price of oil in the months leading up to the summer of 2006?

This from page 1 of the Executive Summary of that Senate investigation, there is this one troubling line: "Today, U.S. oil inventories are at an eight-year high, and OECD (Organization for Economic Co-operation and Development) oil inventories are at a 20-year high."

That’s odd because, in 2006, just like today, the media reporting covered the serious international shortage of oil and justified oil’s high price. Even more troubling is that the House of Representatives held a hearing this past December, ominously titled "Energy Speculation and Price Manipulation." How did it pass under the radar that both the Senate and the House studied the issue of price manipulation in our energy markets and both concluded that it was unregulated, massive trading in one futures market that was really driving up the price of oil and natural gas? And given that conclusion, why has Congress done nothing about it?


http://www.star-telegram.com/ed_wallace/story/659081.html
The Love of Money

Record high prices without record low oil inventories, analysts saying that so much money flows into oil commodities that it gives the impression of shortages, when in fact no shortage exists. That mirrors the situation in the commodities market for food, as Bloomberg pointed out in its April 28 article, "Wall Street Grain Hoarding Brings Farmers, Consumers Near Ruin": "Commodity investors control more U.S. crops than ever before, competing with governments and consumers for dwindling food supplies." That’s right; food, oil and gasoline have become an "asset class." No longer are you fighting a neighbor at the supermarket over the last box of Cheerios®; now you’re fighting the futures traders, who are actually determining what you will pay for that cereal.

[kentuck]

10. And the job crisis is just beginning...

I think?

[stillcool]

12. I think this is kind of weird...

http://www.chryslerllc.com/en/refuel/


INTRODUCING THE NEW $2.99 GUARANTEE.

Prices for fuel continue to rise at a seemingly alarming rate. However, the Let’s Refuel America Program helps provide stability to that problem with a simple solution.

Using a special card, program participants pay $2.99 per gallon for a maximum number of gallons (which varies depending on model) of unleaded gas or diesel fuel in each of the next 3 years. So no matter what the price at the pump says, you’ll never have to pay more than $2.99/gallon.

Here’s how it works:

1. When you buy a qualifying new 2008 or 2009 (Dodge/Chrysler/Jeep vehicle) you tell us the Visa or MasterCard credit card you use to pay for your gas.
2. We issue you a Let’s Refuel America card that you will use to buy gas in each of the next three years*.
3. Each time you buy fuel with that card, your credit card will never be charged more than $2.99/gallon – no matter what the pump price may be.
4. It’s our way of helping to refuel America.

[papapi]

14. Shit like this is why you're paying $4.35 a gallon for gas....

rich repugs are the only ones who could afford to buy the 'qualifying vehicle' at this point in time. Then they bank the 'credit' and earn the interest which they use to buy oil futures which drives the price of gasoline up for the average consumer. You can rest assured that a fat cat repug is behind this scheme. Another way for the rich to steal from the poor.

[Sydnie]

20. What they don't tell you in that disclaimer is

which models are the qualifying models ... and I promise you that they are not their most efficient offerings.

[Kansas Wyatt]

21. That rumbling...

Is a giant elephant falling to it's knees and crashing to the floor into a huge pile of shit. Unfortunately, that shit is splattering on everyone and everyone has to wade through it to get around. People now see how evil and stupid Republicans really are, and how much they have fucked everything up.

One truly has to be retarded to ever vote Republican again. No offense to retarded people, because they probably do have more intelligence than Republican voters who gave the green light to this giant BushCo & Republican, Inc. shit stain on America and the world.