I LOVE STORYLINES

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Posted on 24th May 2013 by Administrator in Economy |Politics |Social Issues

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Below are two charts that blast a gaping hole in the Energy Independence Storyline being peddled to the willfully ignorant masses by the MSM and government drones. Please notice that gasoline usage in 2013 is at the same level as 2002. This is not due to more efficient cars. Over 70% of all vehicles sold over the last 10 years are pickups, SUVs, Minivans, and large luxury vehicles that get 20 mpg or less. That storyline is complete and utter bullshit. We are using less gasoline because our economy continues to be in a recession. We are using 10% less gasoline than we were at the housing bubble peak.

When I took Econ 101 the law of supply and demand was pretty clear. If demand is down and supply is up, the price will go down. Pretty simple. Even an idiot like Paul Krugman or Barack Obama would agree.    

But let’s look what happened in the real world. Remember the good old days of 2002 before George W. launched his War on Terror? Oil was selling for $25 per barrel and you were paying $1.35 for a gallon of gas. Recall from the above chart that gasoline usage was exactly the same as today. The neo-cons and now the Obamanistas claim our war on Middle East terror has been a huge success. Iraq is a Democracy. Right? We’ve liberated Libya. Right? We’re going to declare victory in Afghanistan and leave next year. Right? OPEC is supposedly pumping record amounts of oil.

And everyone knows the Bakken oil shale is the new Saudi Arabia. The US is now producing more oil than it has in years. The pundits tell me we’ll be exporting oil in the near future, even though we import over 8 million barrels per day. Obama says we have 100 years of oil under our feet. Glory be to God. With all this supply and demand at 2002 levels, I can’t wait to pull up to the pump tonight and pay $1.50 per gallon.

But wait. If I pull up to the pump tonight I’ll be paying $3.60 per gallon??? WTF. 

Is it those dreaded speculators?

Is it the dreaded oil companies that don’t control the oil?

Bernanke tells me inflation is well contained, so I’m sure his money printing has nothing to do with it. My friends at the BLS tell me that inflation is ONLY up 29% since 2002. That would account for a price of $1.75 today.

I’m baffled. Of course, if inflation has really been three times higher than what the drones at the BLS have reported, the price would be $2.50 per gallon. And if the storyline about abundant supply was adjusted to the truth that we reached peak worldwide oil production in 2006, that would account for the additional $1.10 in price. But that couldn’t be true because the people on TEE VEE tell me differently.

I sure am glad I have experts, TV talking heads and government drones to keep me informed about why I’m paying $3.60 per gallon of gas when usage is at 2002 levels when prices were $1.35 per gallon.

SO MUCH FOR THAT WINDFALL

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Posted on 20th May 2013 by Administrator in Economy |Politics |Social Issues

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Oil hit $97 per barrel today. That is close to a two year high. The MSM had been crowing about all the money going back into the pockets of consumers from the drop in prices since February. The “plunge” in prices from $3.74 per gallon to $3.49 per gallon over two months has been virtually wiped out in a matter of three weeks. The price has risen by 19 cents in three weeks and will be headed higher if oil remains at $97 per barrel or higher.

For some perspective you won’t get from the MSM propaganda machine, let’s look at a four year chart. Here is the average price of a gallon of gas you’ve paid on May 20 over the last four years:

2013 – $3.68

2012 – $3.69

2011 – $3.86

2010 – $2.82

2009 – $2.37

You are paying 18 cents less than the all-time highest price for a gallon of gasoline on this date in May. Does that sound like a windfall for your pocketbook? You are paying 64% more for a gallon of gas than you were in 2009. You are paying 30% more than you did in 2010. Aren’t you glad Bernanke has inflation well contained? If we are on the verge of energy independence, why is the price exactly where it was one year ago. I thought the Bakken oil was flowing like honey. Doesn’t massive new supply result in lower prices?

It’s amazing what perspective and facts reveal.

BEND OVER – HERE IT COMES AGAIN

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Posted on 27th March 2013 by Administrator in Economy |Politics |Social Issues

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Amidst all of the hoopla about record stock market highs, a little thing that impacts the bottom 99% a little more has been conveniently overlooked by the corporate MSM. In the last three weeks the stock market has SOARED by 400 points and the pundits on CNBC have been cackling and rejoicing. This was a 2.7% increase in three weeks.

Meanwhile, in the real world, oil prices have gone up from $91 a barrel to $96 a barrel over this exact same time frame. For the math challenged, this was a 5.5% increase, or double the increase in the stock market. Thank you Ben Bernanke.  

Which of these increases has a bigger impact on the lives of average Americans?

The chart below reveals the lag between oil price changes and gasoline price increases. With gas prices still above $4.00 per gallon in major metropolitan areas, you are about to get it up the ass again. Gasoline prices will be rising back towards their February peaks in the next few weeks. This isn’t the story you will be hearing in the MSM. All is well. Buy stocks. We have 100 years of oil right here in America, even though we import 10 million barrels of oil per day. Don’t question the official storyline.

 

GOVERNMENT LIES ABOUT INFLATION ARE BEYOND LAUGHABLE

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Posted on 20th February 2013 by Administrator in Economy |Politics |Social Issues

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The government reported the Producer Price Index this morning. They have the balls to report that the PPI went up by only 0.2% in January. Now here is the kicker. These government drones have the cajones to actually report that energy prices FELL by 0.4% in January. That’s right. FELL!!!!!

I direct you to the chart below. The chart below reflects the ACTUAL FUCKING COST OF ENERGY!!!! Not the bullshit excel spreadsheet, seasonally adjusted crap that is fed to the sheeple from the government. For the dimwitted out there (you know who you are), I’ll calculate the ACTUAL increase in energy costs in January:

  • Oil prices rose from $90.50 per barrel to $97.50 in January. That is a 7.7% increase in one fucking month.
  • Gasoline prices rose from $3.27 per gallon to $3.49 per gallon in January. That is a 6.7% increase in one fucking month.

Can someone from the Federal Government please drop by TBP (maybe DHS can call the Labor Dept) and explain to us all how the fuck you can report a 0.4% DECREASE in energy costs in a month where ACTUAL energy costs rose by 6.7% to 7.7% percent?

This propaganda bullshit is enough to make my fucking head explode!!!!

 

More expensive vegetables push up PPI

Spike in food drives first increase in wholesale prices in four months

By Jeffry Bartash, MarketWatch

WASHINGTON (MarketWatch) — U.S. wholesale costs rose in January for the first time in four months because of a spike in vegetable prices, but inflation at the producer level was generally muted.

The producer price index rose a seasonally adjusted 0.2% last month, the Labor Department said Wednesday. Economists surveyed by MarketWatch had predicted a 0.4% increase.

The cost of food advanced 0.7% to account for more than three-quarters of the increase in producer prices. Vegetables soared 39% — the biggest gain in almost one year — to drive up food costs.

Energy prices fell a seasonally adjusted 0.4%, but the index failed to capture the surge in gasoline costs that started shortly after the new year began. Higher fuel costs are expected to show up in the February PPI report.

Even with higher food prices and gasoline on the rise, inflation at the wholesale level is still subdued. The increase in producer prices over the past 12 months totaled just 1.4%, barely changed from the prior month.

Minus the volatile categories of food and energy, so-called core wholesale prices also rose 0.2%. That matched the MarketWatch forecast.

The biggest increase in wholesale costs outside the food category occurred among pharmaceutical products, precise industrial instruments and communications-networking equipment. Car prices dropped.

Over the past 12 months the gain in the core rate fell to 1.8% from 2.0% in December, marking the first time it’s slipped below 2% since February 2011.

Investors pay close attention to the core rate because it’s viewed as a more reliable barometer of short-term inflation trends. With inflation quiet, the Federal Reserve won’t feel in any rush to alter its massive bond-buying program designed to reduce interest rates and make loans for consumers and businesses easier to come by.

Meanwhile, the price index of intermediate goods such as cloth or rolled steel was unchanged in January. The cost of crude goods climbed 0.8%, however.

Steady increases in wholesale costs can squeeze profits and eventually translate into higher prices of consumer goods and services, but the relationship is not precise. Companies raise or lower prices for a number of reasons.

Lower wholesale costs can boost earnings and ease pressure on companies to raise prices on consumers. In some cases, businesses will even trim prices, especially for goods such as gasoline that are sensitive to ups and downs in commodity costs.

A measure of whether Americans are paying more for goods and services, the consumer price index, will be released Thursday. Economists surveyed by MarketWatch project the CPI edged up 0.1% in January.

Unlike the PPI, the consumer price index also measures changes in the cost of services — things like hair cuts, doctor visits or day care. Wholesale prices only reflect the cost of goods.

ALL TIME RECORD HIGH GAS PRICES FOR FEBRUARY

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Posted on 2nd February 2013 by Administrator in Economy |Politics |Social Issues

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 As the MSM attempts to work the masses into a stock buying frenzy, even though 90% of the population owns virtually no stocks, another record is being set. Gas prices will reach the highest level in U.S. history for the month of February. So, for that median family making $50,000 per year their weekly budget will be taking another hit. We know that real wages actually declined in 2012. This family also just got nailed with a $1,000 tax increase on January 1. We know that Obamacare is already increasing healthcare premiums by 10% or more. We know there are 250,000 less people employed today than there were in September.

I think your only choice is to take out a loan on your credit card and put it all into Facebook stock. Either that, or invest in a gasoline or oil ETF. The stock market gains YTD look puny next to the double digit gains in oil, gas and ethanol. This is great news for the economy. Right?

I’m sure glad this won’t have an impact on food prices or anything else that has to be transported. Bennie tells me inflation is well contained.

 

Gasoline prices rising, getting an early start on spring surge

National, international factors bring spring surge earlier than usual

Gasoline prices are getting an early start on their annual spring march higher.

The average U.S. retail price rose 13 cents over the past two weeks to $3.42 per gallon, and within a few days it likely will set a record for this time of year.

Regular unleaded self-serve gasoline in the Richmond region rose 10 cents in the past week — including jumping 4 cents Friday from the day before, according to AAA Mid-Atlantic. The region’s average price Friday stood at $3.30 per gallon.

“The double-digit weekly spike, combined with various national and international factors, leads AAA analysts to believe the national gas price average could rise to $3.50 per gallon in February,” said Windy VanCuren with AAA Mid-Atlantic in Richmond.

The culprits: rising crude oil prices, slowing output at refineries that are undergoing maintenance and low supplies of gasoline.

These are the kinds of factors that push gas prices higher every spring after what is normally a lull in the late fall and early winter. But a heavy schedule of January maintenance at West Coast refineries has led to sharply higher prices there. Meanwhile, low inventories have pushed prices higher on the East Coast.

And rising crude prices have pushed the cost of gas higher throughout the country.

“I’m not surprised at what I’m seeing, but I am surprised it’s coming early,” said Tom Kloza, chief oil analyst at the Oil Price Information Service.

Hopes of stronger economic growth in the U.S. and abroad helped push the U.S. stock market to a five-year high in January and sent crude prices up. When economies expand, more gasoline, diesel and jet fuel are consumed by shippers and travelers.

“We may end up seeing less fuel consumption,” Virginia Transportation Secretary Sean Connaughton said. “That has the potential to further deteriorate the state’s transportation funding situation,” which depends heavily on the tax on gas sales.

Crude oil has risen 14 percent since mid-December, to $97.49 on Thursday. Brent crude, the benchmark used to price oil that most U.S. refineries use to make gasoline, is up 9 percent since then to $115.55

But gasoline wholesale prices are rising even faster. That’s the price distributors and service stations pay to buy the gasoline that they then sell to drivers.

U.S. retail gas prices have risen for 14 days straight, according to AAA. The average price for the month of January was $3.32, the second-highest January average ever, although a nickel cheaper than last year’s record.

In each of the past two years, gas prices rose sharply at the beginning of the year because tensions in the Middle East raised fears that oil supplies would be disrupted. In 2011, it was the Libyan uprising; in 2012, it was Iran’s threat to close a key shipping lane.

“Gas prices did not reflect for a long time that oil was going up for the last almost two months,” said George E. Hoffer, a transportation economist at the University of Richmond.

“Gas prices lagged oil prices,” he said. “Now they have caught up with a vengeance, reflecting the crude oil price increases.”

So far in 2013, gas has been cheaper than it was last year. But that could change by this weekend as stations pass along the cost of their higher-priced gasoline to drivers.

“We’re looking at price increases going on,” said Michael J. O’Connor, president and CEO of the Virginia Petroleum, Convenience and Grocery Association. “Last year, we didn’t see much of a break till April.”

Staff writer Peter Bacqué and The Associated Press contributed to this report.

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