NAncy pelosi thinks rising gasoline price is due to speculators
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While other "traders" defend statements like "We need to take strong action to protect consumers from this speculation"?
Thanks, Nancy. We'll let you make millions from your permanent political class rigged games, but please, reign in us evil speculators.
And how do we know it's overreach? Because Pelosi or Exxon say so? Do we really know where oil should be priced in an age of apparently non-ending ZIRP, Middle East tensions, and totally misguided domestic energy policy? The Forbes article was spot-on. Look at oil's price in terms of gold, not printed paper from a bankrupt nation.
If we have another major recession, maybe oil will fall sharply again. But for now, it is what it is. It's up to Pelosi and her ilk to control spending, de-regulate productive energy sources (and stop subsidizing pseudo-science green energy), etc. Speculators are simply pricing in the world we live in and its misguided policies.
Thanks for quoting Gabby on that, no idea why he decides to ask me questions when I cannot see them, but the question lacks basic understanding of the ability the Federal Reserve has to influence commodity prices, which are based in US dollars, by printing and devaluing the dollar.
Devaluing the dollar makes the price of oil in dollars go up, yes. But the flood of liquidity and easing by the Fed, and the ECB, the BoJ, the BoE, etc. is a race to the bottom in currencies. The amount of money sloshing around goes into asset prices. This unprecedented amount of printing has lead to a rise in all commodities. Food, if you recall, was going berserk for the last year and a half. Now it's oil's turn.
