Wednesday, December 28, 2011

The price of the free market continues to surge

The stock market took a big dip today on reports that the European banks are hoarding the cash they were recently provided by the European Central Bank to keep them solvent. A failure to loan money will reinforce the austerity death spiral that Europe is already undertaking. If these reports are accurate then Wall Street took it rather calmly, it should be raining stock brokers. Oh wait, they only lose your money.

Threats from Iran to block the Strait of Hormuz cutting off 20% of the world’s oil supply came in response to new sanctions against anyone who trades with Iran. The oil market hasn’t reacted to the threat yet but the US corporate media is talking it up on one hand and dismissing it on the other, but they’re talking $5 gasoline by summer just the same. Under the new sanctions, it could in theory become difficult for any country to buy oil from Iran.

It was a year of records for gasoline in the US: record low demand; record high consumer expenditures for gas; and record high exports of gasoline and diesel out of the United States. That’s the so-called “free market” for you, it’s only free for billionaires who are free to take as much as they can gouge out of you.

For those of you too young to remember before the unchecked spree of the Bush Crime Family: gasoline was under a dollar; the ten year embargo on Iraq oil exports was about to end, potentially flooding an already glutted world market with really cheap oil; and Al Gore was elected President.

Under Bush we saw oil go from $18/barrel to $140/barrel. It did fall to half that when the Wall Street banks were temporarily forced from the market, but has since reclaimed the $100/barrel level, and could surge again with the Iran war. The Dodd-Frank Act specifically bans banks from this sort of trading but the Republicans dominate the Federal commissions that are effectively gutting the law. Obama is being blocked from making appointments by the Senate, and from making recess appointments by the House whose permission is required by the Senate to adjourn.

When will the 99% stop giving everything to the one percent on the “free” market, and then letting the one percent charge us for it?


Ronmac said...

I was thinking the other days that it was exactly 100 years ago on Xmas day 1911 when maybe somebody opened an envolpe under the tree and found two first class tickets for the maiden voyage of the S.S. Titanic.
I bet they were pretty excited.

Speaking of titanics I keep hearing about these trillions in bogus derivatives that are supposed to come due this year -probably as we get closer to election day in November.

Is this the making of another round of bailouts?

Anonymous said...

Part of the loser 99%. Yet, I made a bunch of $$$ buying Brigham Exploration for average $2.00 per share 3 years ago. ... Company bought by Statoil for $36.50 this year. ... so even us losers can play the investing game. It is open to anyone with a few dimes, knowledge and balls to play. Yes, you can beat the big boys. My account up 18.6% this year, crushing the flat S&P 500. Don't let anyone tell you different, Losers.

Anonymous said...

There's a reason why they are called "brokers". Could it be they make you "broker"?

Anonymous said...

Re:Barton Biggs and other millionaires who sling this bull-I just can't help it. For Barton to sit up there and talk about the "Greek profligates" apparently he's never been to a party of the Lear Jet crowd. Hasn't he seen the movie Inside Job? Give us a break!

Barton wants us all to admire his phoney attempt to sound like a good guy. Everyone loves a rich guy who wants to "tax the rich."

But thousands of US corporations all have PO boxes in the Camen Islands and will never pay taxes no matter how loud the people scream about it. No way in hell. I can't believe Biggs doesn't know that.

In my opinion, he doesn't have the guts to admit that the Welfare Queens at Chase,US Bank,Goldman "Sacks", Bank of America and Wells Fargo, who stole 16 Trillion from the welfare bail-out the American taxpayer gave them
and are now sitting on the money, should be frog marched out of their offices in orange jumpsuits and thrown in the slammer.

Barton thinks they should be "taxed." Who's gonna' tax 'em Barton...Nancy Pelosi?

Anonymous said...

Rex Tillerson the CEO of Exon-Mobil Testified to the US Congress he could deliver a barrel of oil to anywhere for $60 a barrel. The commodity market price for that day was over $100. We are paying a 40% tax to investment bank hedge fund speculators for their services of skimming money from us. There is also no such thing as domestic oil production. The proof is refined products are being exported from the US daily including gasoline and diesel fuel to keep domestic supplies tightly controled to maintain high prices. Remember BP was pluging the Monconto deep water well with no intent to produce any oil when it blew up. They intended to keep the oil field as an asset whose value increased as they speculated in the iol markets.