Where is the US economy headed?

@realjohnboy,

The price of gas has risen steadily for the past 3 weeks, I invite rjb to tell us
when PrezBO tapped the reserve and what his stated goal was at the time.

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@H2O MAN,

See my post above.

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@realjohnboy,

Your post does answer when or why.

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One other note to use up as I struggle to clean up my desk. I wrote on Friday or Saturday that the index (CPI-W) used to determine SSAE COLA's tends to suggest an increase of 4.5% in the key 3rd Q. There have been some suggestions that the index to be used might be changed to one less favorable to retirees. I saw some data today saying that one index being looked at might come at for something like 4.2%.
Number crunchers extrapolate that that could translate into some $18K over 20 years.
I can't verify any of that.

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@realjohnboy,

realjohnboy wrote:

I have kind of forgotten about the release of oil from the SPR which was announced on June 23rd. I found a couple of articles on CNN and Fox, which I invited H2O to look at. To no avail. I also found a few very dry articles from oil industry watchers.
A few bullet points:
* Oil today is poised to close at $96/bbl vs $95.40 on 6/23. Down $1.30/bbl.
* Oil fell 5% immediately after the Obama release of 30mn barrels matched by an equal amount from some other oil producing countries.
* For us, 30mn is 1 and 1/2 days consumption.
* Since then oil has fluctuated be $90 and $100/bbl.
* Did you know that (per Fox News on 7/12) the 30mn bbls has yet to actually hit the market?
* Some analysts believe the release was purely political, while others think it was to warn those who speculate excessively that they need to be aware that this was an added risk for them.

Remember this. Everything Obama does is purely political. He is just as political and probably moreso than Bill Clinton, which was a tough standard to beat.

In my opinion, releasing oil from the petroleum reserve for any purpose other than a national emergency, such as a war, is bordering on treason. After all, any action that reduces our ability to defend ourselves is a very serious action to take.In this case, i do not think Obama is smart enough or cares enough about America's national security, so we can just classify it as politically motivated.

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@okie,

Have you bought your socialism survival kit yet? I have been thinking about advertizing them on talk radio! I know I can count on Rush, Shawn and Neil To advertize for me! Maybe I will advertize them once I am out of seeds!

1 Reply

@reasoning logic,

I don't know what your kit would include, but if you need suggestions, include a copy of the Constitution and Declaration of Independence, along with an offer for reading lessons, so that people can read well enough to vote against all Democrats in upcoming elections. A deluxe kit could include a copy of Thomas Sowell's book "Basic Economics."

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@okie,

Cool thanks for the advise I will keep that in mind! I will include some literature to the heritage foundation as well!
Be sure to take advantage of my seeds if you haven't all ready and don't forget about the wife and send her some pro flowers! Wink

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@okie,

I would disagree if the reserves were replaced more or less immediately. Futures trading is an essential means of hedging future prices in many businesses. Pure speculation is destructive. If he curbed speculation in the oil markets, he did good - again, if the reserves are replenished.

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@roger,

Huge users of fuel are active in commodity trading. They can level the cost in that way.

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@cicerone imposter,

I started a thread title Sitting in fear of PrezBO that should shed some light on the US economy.

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"Do you have a degree in economics?"

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@cicerone imposter,

That's really kind of what I said, sort of to distinguish them from the pure speculators I also mentioned. If using the strategic petroleum reserves helped the former and discouraged the latter, I think the President was justified in using it for that purpose.

I also mentioned the need to replenish the reserves used.

Okay?

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@roger,

Did PrezBO's use of the strategic petroleum reserves help? Who did it help and how?

Will it cost the tax payers more money to replenish what was released than if none were released?

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@H2O MAN,

Well, prices are off. There could be other reasons, but it doesn't look like a sudden worldwide surge in production. It could certainly be the case that a barrel dumped on the market affects the futures prices of many barrels. It's the nature of that part of the market to be highly leveraged.

I don't know. If it knocked out the speculative influence, we may be able to buy it back for less. Maybe, of course, means exactly the same as maybe not. Should we only consider the taxpayers' price of replacing it, or should we also consider the economic benefits of lower fuel prices?

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@roger,

Are there "economic benefits" of lower fuel prices? What are they? Who do they benefit?

That they might benefit you, or that you think they do, is neither here nor there.

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@roger,

Okay.

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@spendius,

Suit yourself, my man! Freeze in the dark and wait for the wagon train to restock your stores. When you find out what it costs to feed the oxen that pull the wagons, how little they haul, and how long it takes to get your refrigerated strawberries to the store you will begin to realize fuel prices do indeed affect the economy.

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@roger,

I enjoyed your explanation, roger, especially the visualization of wagon trains pulling into the stores loading docks. Just think of how much it would help the oxen breeders and the hay farmers though!! Maybe the ethanol people could get into oxen and hay?

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Meanwhile, Obama is determined to cross the line and propel this country into it's 2nd depression.

BOHICA

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Where is the US economy headed?

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