U.S. Consumers Have Big Banks to Blame for High Gas Prices

[DJ13]

by: Dian L. Chu April 03, 2011

There is a bit of irony in that the very same banks that taxpayers bailed out, and saved from going completely belly up, are now making you pay once again in the form of higher Oil prices, and the resultant higher gasoline prices at the pump (Fig. 1). Don`t be fooled by the rhetoric generated in the media by the Big Banks regarding the Middle East.



It All Started With Jackson Hole….

This run-up in oil prices started with Fed Chairman Bernanke`s Jackson Hole speech, where the big banks realized they were going to get a bunch more juice in the form of POMO operations by the Federal Reserve to play around in markets with.

And what did the large financial institutions do with this newly created juice? Instead of allocating the almost zero percent money they are all borrowing to productive activities such as lending loans to small businesses-- which will create jobs and stimulate the economy, the big banks have decided that since the fed is electronically printing money and providing extra liquidity / juice for financial markets, this is inflationary and devalues the dollar.


All Fed Juice Leads to Commodities

And just to make things worse, the big banks have decided to take their cheap capital they borrow at basically zero percent , and invest into commodities, i.e., agricultural futures like Wheat, Corn, and Soybeans, energy futures like Oil and Gasoline (Fig. 2), and industrial and precious metals like Copper, Gold and Silver.

http://seekingalpha.com/article/261544-u-s-consumers-have-big-banks-to-blame-for-high-gas-prices?source=feed

[roamer65]

1. Natural response to an inflationary monetary policy.

The Federal Reserve needs to stop its runaway money creation.

The fault of higher commodity prices lies right at the doorstep of the Fed.

[I Drink Water]

2. This shit has been going on for awhile and it is just not enery, it is also food

The history of food took an ominous turn in 1991, at a time when no one was paying much attention. That was the year Goldman Sachs decided our daily bread might make an excellent investment.
http://theglobalrealm.com/2011/02/04/the-food-bubble-how-wall-street-starved-millions-and-got-away-with-it/

[Kablooie]

3. We know where the shit is. When are we going to find a fan?