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Title: Obama Blames Speculators for Rise in Oil Price, not his own Belligerence and Massive Money Printing
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URL Source: http://coveringdelta.wordpress.com/ ... ce-and-massive-money-printing/
Published: Apr 22, 2011
Author: coveringdelta
Post Date: 2011-04-22 09:53:46 by no gnu taxes
Keywords: None
Views: 1679
Comments: 7
Now that Obama is back on the campaign trail, preparing for his run in 2012, he has decided to increase the populist rhetoric yet again, setting aside the facts in favor of political expediency: “I know that if you’ve got a limited budget and you just watch that hard-earned money going away to oil companies that will once again probably make record profits this quarter, it’s pretty frustrating,” Obama said, speaking before a town hall in Virginia. “It is true that a lot of what’s driving oil prices up right now is not the lack of supply. There is enough supply … The problem is … speculators and people make various bets, and they say, you know what, we think that maybe there’s a 20 percent chance that something might happen in the Middle East that might disrupt oil supply, so we’re going to bet that oil is going to go up real high. And that spikes up prices significantly.” This guy is hilarious. There is “a 20 percent chance that something might happen.” What, like a war? Oh no, wait, sorry, that has already been priced in since you started to BOMB LIBYA. So, I guess now that you are funding a new war in one of the Arab world’s largest oil producers, the risk that supplies could be further disrupted is greatly increased, making further bets of a price rise all the more likely. I guess this is what you mean. Ok, got it. And I’m sure that your support for the rolling bailouts and cash give aways to mega banks is not part of the problem either. I’m sure Goldman’s recent announcement that, once again, its largest profit source comes from proprietary trading is not at all aided by the tens of billions of dollars that they have received in subsidies and free money over the past several years. I’m sure the fact that they are no longer an investment bank specializing in allocating money from savers to investors, but rather a casino gulag, co-locating servers on the exchange to syphon off money through HFT and front-running orders is not a direct result of lax oversight and 0% interest rates. I’m sure that all the free cash that the financial sector gets is not used to speculate on oil future. I’m sure that cheap interest rates are not causing hedge funds to chase yield on high-risk investments that will cause a new crash in equity markets around the world as money flows into junk bonds and other crappy instruments. I’m sure that none of the speculation Obama is talking about is the result of Federal Reserve and government policies to flood the entire banking universe with free money. I’m absolutely positive that this can’t be the problem. Obama is a joke, and so is anyone else who still thinks that this guy has the country’s best interests at heart. The only thing he does consistently is lie egregiously, and he does it right to people’s faces. Who were these people at this town hall anyway? Half of them must have been drugged up on opiates and the other half must have been stuffed dolls, because if anyone with half a brain was sitting in that audience he or she would have either walked out in disgust or told our latest puppet to throw himself in the wood chopper where he belongs.
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#1. To: no gnu taxes (#0)
When Osama, I mean Obama chokes off our oil supply. The "speculators" speculate that oil prices will rise. Duh.
#3. To: A K A Stone (#1)
Hedged funds don't make bets when they are unsure of the outcome even if they need to ensure the outcome. There is something that a lot of people don't understand about the commodities market. It doesn't take a lot of volume to push the market in either direction.
Those evil speculators are sure going to be sorry they didn't believe in Hopey-Changey when community organized magic Green Energy pixie dust fuel comes to market and all that oil they bought turns out to be worthless.
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Replies to Comment # 1. The "speculators" speculate that oil prices will rise.
#4. To: A K A Stone (#1)
The "speculators" speculate that oil prices will rise. Duh.
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