The big headline on the corporate news this morning was that gasoline is near an all time record high. It is in fact still well short of the price peak from before the Bush crash. They run through a list of possible causes like the rising price of crude oil, but oops, oil isn't anywhere near it's high and is going down. Refinery shutdowns is another, never mind that we export 30% of refinery capacity. China is using more oil, we'll come back to that. And oh yeah, speculators... Do we need to go through that one again?
Wall Street makes a ton of money driving up the price of gasoline, they make money when it goes down too. Wild price swings allow the Wall Street banks to sell derivatives contracts based on the 'futures' price to the tune of hundreds of trillions in order to shave hundreds of billions from the economy without doing anything, or even putting up much money themselves. Did I mention that the Dodd-Frank Act made this illegal? There's been a small problem with enforcement of the Act with Republicans blocking the 'rules' it would take to actually enforce the Act. It's the sort of 'decriminalization' that has been en-vogue ever since Reagan began dismantling the New Deal.
Let's go back to China, the People's Republic now owns outright enough oil production outside its borders to rival the United Arab Emirates and match that of Kuwait. They don't really loan money to the US to fiance the debt like conservatives constantly chant, they spend their USDs buying up real wealth everywhere and anywhere that they can. Not that they're really driving up the price of gas, crude oil is in fact going down. China actually sells most of its foreign oil rather than shipping it back to China, it's just flexing muscle in the markets.
China continues to enjoy a rate of growth year in and year out that the US hasn't seen since the New Deal was fully in effect, China does this pretty much by following FDR's policies. The US instead continues to favor Reaganomics while we decline into third world status. We give a huge slice off the top of our economy to the extremely wealthy in return for them selling our wealth creating capacity to China. Anybody in China that gets caught engaging in the sort of traitorous behavior that is routine business here can expect to be shot and his organs sold. But hey, they're communists, and are kicking our ass at capitalism. We're 'capitalists' that believe in Reaganomics also known as the cult of economic royalty. And we also believe in the creation of poor people, the one thing we're good at.
There are 400 million middle class people in China, more people than we have population. There are more English speakers in China than in the US. They graduate twice as many engineers every year, as the US does. They have thousands of miles of 250 mph high speed rail, and we have... well none. They launch astronauts into space, and we don't. Their economy is about to become the biggest in the world while ours barely holds its own. I get email from conservatives pointing that they steal our technology, they sure do, but mostly they just buy it cheap from US companies. We could learn from China, except they are copying us. We just don't learn from our own experience, we believe the right-wing talking points instead. www.prairie2.com