Energy Prices Drive Inflation

There is not an economic conspiracy forum so here this topic posted here as a current event as "Energy Prices Drive Inflation" is a conspiratorial fact that energy prices do drive inflation, and excuses like unrest in the Mid East are being used to drive up bidding in commodities that set higher prices for commodities namely OIL which drive inflation. At the same time disinformation has been dissimulated over recent years that inflation is caused by "the FED printing money out of nothing." (claimed and termed that it's an "inflation tax") The truth is they do not. They can not. the discount window operates on reserve deposits. The USD is a reserve currency. "The FED prints money out of nothing" is a lie constructed by those like the Koch brothers who pay money for such a lie to be propagated to cover up their activities. THIS> forum.canucks.com... From Ron Paul to Glen Beck the lie is repeated convening millions of people who do not know enough to identify it as a lie. This is what people like the Koch brothers count on. it's how they can earn profits by over charging you in everything you buy which is all related to energy prices, mainly oil. It's where the Koch-s make most of their money. However they will spend money to blame it on Obama's spending, entitlements, the lie that "the FED prints, creates, money out of nothing." That's the lie of monetizing debt....... which is impossible btw unless the FED was a national bank. Propagating higher taxes for the wealthy would destroy the economy Truth is manipulating speculation on Wall Street is the true "inflation tax." It is inflation.

Here are some good articles to read on the subject.

www.thenation.com...

www.thenation.com...

ed.msnbc.msn.com...

trueslant.com...

And Matt Taibbi has written more on the subject recently.


The Koch propaganda machine (their hacks a the Wall Street Journal and alike) would tell you that, "the FED creates money out of nothing" and that more dollars in circulation means more money for speculation. The FED did use money from deposits that they then loaned to the USG for the bank bailout that then gave it to banks, investment banking that then funneled it into speculation on Wall Street driving up energy. See how that works? In that sense money was created out of nothing.


I think this topic would make an excellent ATS radio feature.

Who else thinks so too?

HmmmmmDJK, sounds like a bunch of hooey.

Tell me, if this to be true, everything must be driven by this so called energy thingy. Tell me this is not true, because energy is an amorphous thingy! No one can pin it down, that is why the god emperor has decided to give our energy decisions to Brazil! I know that Brazil is our buddy, but I wonder why Brazil and other countries have decided to vacate the dollar. Can you answer that question? HmmmmmmDJK.

reply to post by HmmmmmmDJK


> How can it be "a bunch of hooey?" I just laid out mainstream information to the contrary.
HmmmmmDJK, sounds like a bunch of hooey.

> Manipulative bidding, as in cornering the the market on bidding of "amorphous thingy"sssssss is the issue. It's not the noun, the physical inanimate thingy, but the verbs involved, actions of individuals manipulating price by cornering bidding on what they sell. LOL

> Quote, "No one can pin it down,"

Like heck it can't. I just did!

> Quote, "that is why the god emperor has decided to give our energy decisions to Brazil!"

Political baiting. I'm not biting. Sorry.


> Quote, "I know that Brazil is our buddy, but I wonder why Brazil and other countries have decided to vacate the dollar. Can you answer that question?"

Their currency is not directly attached, pegged, to the USD's petrodollar recycling dynamic. They're energy independent and thus petro currency independent.

reply to post by LilDudeissocool


Sorry, did I bait you into actually addressing the ISSUE?!
I know I am a new member, I must be a Koch bought individual or sumthin as they say at MM or HuffPo.

Tell me, since the US is not allowed to drill anymore, could THAT have a component of the price of oil? HmmmmmmDJK!?

Could the FACT that the US has MORE oil reserves than ANY COUNTRY in the world yet the US is not allowed to use those resources have ANYTHING TO DO WITH IT!?

Nahhhhhh! Must be those EVIL speculators that think because there is WAR in the ME it must because the rabbits are having a gay old time snogging!

reply to post by HmmmmmmDJK


> Quote, "Sorry, did I bait you into actually addressing the ISSUE?!
I know I am a new member, I must be a Koch bought individual or sumthin as they say at MM or HuffPo."

You wanted to make the issue about Obama. The issue is not about Obama unless he fails to appoint a member to the U.S. Commodity Futures Trading Commission (CFTC) en.wikipedia.org... this June who make the deciding vote to reinstate "position limits." If he fails to do so then he will be directly responsible for any further inflation which is caused by manipulative commodities trading. The old tied lie that "the FED creates money out of nothing" has been debunked, so it doesn't work anymore. People are wising up to what really causes inflation this year. Manipulative commodities trading. The other cause is OPEC production restriction, but they have been pumping oil to the point the world market is a wash in oil. Yes, it is, and demand is down. More proof that commodities are being price manipulated.

> Quote, "Tell me, since the US is not allowed to drill anymore, could THAT have a component of the price of oil?"

Permits are being issued, about a dozen so far this year alone, if you are addressing offshore drilling. In the long term that should impact price, but not when commodities are being manipulated such as Brent especially.

> Quote, "Could the FACT that the US has MORE oil reserves than ANY COUNTRY in the world yet the US is not allowed to use those resources have ANYTHING TO DO WITH IT!?"

We're 14th www.cia.gov... but it has nothing to do with prices. Prices are being artificially set high because the commodity bidding is being cornered.

> Nahhhhhh! Must be those EVIL speculators that think because there is WAR in the ME it must because the rabbits are having a gay old time snogging!

What? That's so incoherent! WTF are you saying there? As far at the ME is concerned, speaking specifically to Libya for example, they only supply the world market with 2% of its oil. OPEC as a whole has more than made up for that with production increases. Such unrest is being used as an excuse to manipulate the New York Mercantile Exchange. It's being manipulated with vast amounts of capital that are being used to artificially bid up futures namely oil. That practice needs to stop. It's causing inflation. The USG JD needs to investigate and back claw any profits being made from it. That is if for example you have a pension fund that's invested in bidding up oil it should be back clawed regarding any gains made from commodities price manipulations and checks made out to everyone who is paying more than what true price equilibrium should be right now for everything. The bill would be in the trillions. That can be figured by simply looking at historic supply and demand equilibrium-s. based on it right now Brent should be trading at less than $80 a barrel. All other prices can be then examined for affected over pricing based on energy price manipulations. If you have a pension fund I would ask them not to invest in commodities speculation. That's for sure! Back claw judgments Back claw judgments. Think about it. Class action based on inflation creation. That could happen.

Energy prices are caused by inflation from the falling Dollar, this in turn increases the price of everything due to oil being a base commodity of the entire economy.. but also due to the depreciated Dollar, which in turn lowers purchasing power.

Energy prices with the depreciated Dollar erode purchasing power at twice the rate as normal inflation, eventually this leads to such a large portion of income, if income does not increase, being allocated to such basic necessities that the Economy as a whole suffers severe Deflation; without a mechanism in place to control inflation, the Deflationary Spiral is formed that almost always leads to a severe recession to depression. This is what caused the crash of 2008.

Originally posted by Rockpuck
Energy prices are caused by inflation from the falling Dollar, this in turn increases the price of everything due to oil being a base commodity of the entire economy.. but also due to the depreciated Dollar, which in turn lowers purchasing power.

The OP pointed out that the source of the inflation driver is in fact the artificial pricing of commodities. If they are being bid up in the effort to create artificial prices then it seems that LilDudeissocool's argument does hold water as that would be the source of the higher prices despite the amount of currency in circulation what you term as a "falling dollar." This based on the idea that the falling dollar is caused by the amount of dollars in circulation. I read the recent article in Rolling Stone pointing out that the bank bailout money is being used to speculate on oil where the bids are made long to drive up the price. LilDudeissocool mentioned this and explained how that would cause inflation. Where do you think he or she is wrong on that point? What do you think is causing the dollar to fall if it's not caused from the artificial bidding up of commodities? Can you offer a detailed explanation? It seems to me that artificial commodity pricing does indeed cause inflation, and results in the affect on the dollar being one that devalues it.

Originally posted by Rockpuck
Energy prices with the depreciated Dollar erode purchasing power at twice the rate as normal inflation, eventually this leads to such a large portion of income, if income does not increase, being allocated to such basic necessities that the Economy as a whole suffers severe Deflation; without a mechanism in place to control inflation, the Deflationary Spiral is formed that almost always leads to a severe recession to depression. This is what caused the crash of 2008.

Purchasing power is being eroded as energy such as gasoline is being over priced. If energy as a whole is being over priced, and wages do not increase accordingly then there is a drain of purchasing power. How do you suggest this should be rectified before a depression hits us?

You say this is what caused the crash of 2008. Inflated markets always lead to crashes. Since the commodity markets are inflated currently don't you think they should be corrected before they create a crash? I noticed LilDudeissocool mentioned "position limits." Do you think that could curb an over priced commodities market? If not what other solutions do you think are in order to remedy an over inflated commodities market that serves to devalue the dollar?

Hey folks, update. You may have seen late yesterday and today that oil tumbled first and then the USD strengthened. Why? Because oil leads the economy. This was due to FED news that the outlook for the economy was still bleak. No demand for oil means no oil money poring into Wall Street maintaining false values in stocks thus stocks take a hit. Then the USD strengthens and precious metals take a hit.


Oil is only worth about $ 2.00 bucks a gallon. Anything more means a false economy and a false economy is due to not having enough enforceable regulations place on the New York Mercantile Exchange such as implementing position limits on furures trading plus not getting tough with OPEC in having sound U.S. forgien policy to break OPEC.


Neo-cons and far left environmentalist are in bed together and want high energy prices which damage the economy.

Wise up folks! Extremist like wealthy neo-cons and environmentalist have the same goals in mind. Those goals are wrecking the middle class and stealing all your money making sure your kids/grand kids will always be poor.


it's all about them and their kids at the expense of you and yours.

All this sounds like a contraction of money.
Well I got than from this video:

Google Video Link

Once or twice in American history the printing of our own money helped.
The looming of free energy, which I know hardly anyone agrees exists,
and the emerging need for a money supply for more prosperity might
be the crux of the matter only a few would care about.
Enron generated profits from nothing more than charging more for energy
just sitting on power lines to be used. Imagine what free energy would do
to the middle man. Actually more money for everyone once the equipment
is developed. That might start inflation the Enron way by way of yearly
increases in the power bills. The coal mines and oil wells would be abandoned
never to be tapped again is a fantasy as the owners of energy will continue
to thwart any alternative energy effort.