How so you might ask? Simple - they are absolutely close-mouthed on any hints of further monetary stimulus to electrify the paddles on the defibulator that is now needed to stave off the contagion effects from the woes besetting the Euro Zone. As the entire commodity sector gets hit by the risk off trades, we hear dead silence from our illustrious money masters.
They know full well what will happen the moment the speculative community becomes convinced that the next round of QE is on the way.
With this is mind, note the following press release from the EIA (Energy Information Agency) that came down the wires this morning.
*DJ EIA Estimates US Retail Gasoline Won't Top $3.90 For Any Month In 2012
*DJ EIA Previously Estimated US Retail Gasoline At $4.01 For May
*DJ EIA: US 2012 Gasoline Use Seen At 8.67M B/D, Lowest Since 2001
Just what the doctor ordered for Mr. Obama who will no doubt crow like a rooster about how his "policies" are working to lower gasoline prices for the "working men and women of this great nation". Actually I think I just inadvertently cut a campaign commercial.
The point to bring away from all this is quite simple - the economy stinks to high heaven, in spite of what the RA-RA squad keeps trying to convince the nation. If it were actually in decent condition, gasoline demand would be higher. (There will be those who attribute all of this to Americans driving more energy efficient cars). The truth is Americans are cutting back on driving because they cannot afford to fill their tanks especially those who are out of work or underemployed.
So, the money masters have figured out that they can get the hedge fund computers to take the price of gasoline lower, along with the rest of the commodity world, to where it reaches a level that once they do decide the pull the trigger on the QE front to slam the stock market higher ahead of the election later this year, that gasoline will then get levitated from a much lower level.
The problem they have is if they wait too long and do not act, those same speculators are liable to unload on the equity markets which will then set off another whole set of issues for these plate spinners to deal with.
My forecast has been (since 12/2011) that Obama will be reelected in November. Why? because their strongest enemies (China, Russia and a lot bunch of "democratic" countries like Venezuela and Iran) can not believe how naive (I try to use politically correct language!!) this guy is and will do whatever in their power to get him reelected. The second reason is that American are now so dead (zombies would be the right idea)that anything done to them has no impact except the price of gas. This is understandable because they have lost everything else like homes, jobs... and driving, in the hope that they will find a job hidden somewhere, is the only thing left...therefore the price of gas is now Number 1 Priority in The United States Of America.
ReplyDeleteGod has mercy on all of us.
dan, you're completely right about everything......but.....man could you keep obozo's name out of it.....after all, he's for the little guy.....the common folk......i mean-if everyone was just nice to each other in this world, everything would be fine......thats what i've figured out as i sleep on the couch again, as my wife talks to someone on the phone in our bedroom......and as i figure out how to stay dry riding my son's bike to work in the rain.....while he drives my prius to school.
ReplyDeletenot.