How Wall St Speculation Drives Up Gas Prices

Robert Pollin: From the price of food to gas at the pump, research shows how speculation raises price

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[TallFastLoud]

@billychen13

also, a final correction -- inflation is very low right now (as I pointed out earlier, this is because much of the QE money is not actually circulating atm). if it were inflation, we would see a rise in all goods and services, but instead we only see it in certain commodities. you keep going back and forth! first you admit speculation exists but blame it on the Fed and then you deny that any speculation exists and blame it on inflation. which is it?

[TallFastLoud]

@DavidAKZ deflation makes financial assets worth more, not less. if there's less financial wealth floating around but the same amount of real wealth, then the money is worth more because it will still have to purchase that same pool of goods and services, even though there is less of it. you have gotten this entirely backwards.

[TallFastLoud]

@billychen13 a further correction -- first of all, the Fed had nothing to do with the stimulus package, which was fiscal stimulus (the Fed can do monetary, and only monetary stimulus.) Second, employing unused capacity (which is what stimulus does) is not inflationary. if you create real wealth (say, by building infrastructure) and then create financial wealth (i.e. money) to match the increase in real wealth provided by stimulus (goods worth money) then there is no inflationary effect.

[TallFastLoud]

@billychen13 first, you are incorrect about the definition of inflation. inflation is a general rise in the price level. second, the velocity of increased money supply hugely affects the inflationary effect. if the Fed prints a trillion dollars and then puts it all in an empty warehouse, do you honestly think that will create inflation? you're evincing some confusion about basic economic concepts here. 

[Licmycat]

What do you expect when your ugly republicans destroyed law and order??? They love FILTH and MONEY and POWER.

[Licmycat]

They are just gouging us and NONE of the people in office are doing diddle! They are ALL gangsters!

[rring88]

@Budguy68 don't explain why i am a fucking idiot, just call me one...

[Budguy68]

@407buddy

You being born is nefarious. Maybe you and youyr whole family shoudl eat shit and die.

[Budguy68]

@rring88

You're a fucking idiot. Idiots like you should eat shit and die. 

[NAes12]

Good lord, the price of oil should be much higher than these speculators make it if humanity was rational. Wasn't there some book written about how the IEA was pressured into downplaying the reality of peak oil by the US? Well either way their energy supply/demand predictions are lunatic. Really Bob, we have another 42 years worth of oil left? lol economists are so detached from physical reality... they just think they know whats goin on because the compare themselves with poli sci folks.