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Thought you guys might find this interesting. IMO, the basis of this analysis is correct.

1) Fed increased money supply and lowered interest.

2) Value of dollar declined precipitously.

3) Investors fled to commodities to hedge against losses.

4) Price of oil goes up because there are people wanting to *invest* in oil, not because there is more demand.

Draw your own conclusions of course, but I think this bubble will burst pretty soon and we'll be blowing smoke with $1.89 diesel again soon.

The Reason for High Oil Prices
 

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:agree2:

I believe oil prices will fall again. Remember, this is a cycle. I also think the Big 3 know something. GM invests $xxxxxxxxx to build the 4.5L(?) Duramax plant. Why? They must know something. Dodge comes out with $2.99 fuel price incentive. You can't combine this with other incentives, $2.99 will be a high price to pay in the future. Then they've actually made money on this "incentive." Ford, well it's Ford, they'll just continue to fund the homosexual agenda (boycottford.com) and have them as sole customers. Plus, Toyota wants in on the diesel game. Just my .02 cents.
 
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Thought you guys might find this interesting. IMO, the basis of this analysis is correct.

1) Fed increased money supply and lowered interest.

2) Value of dollar declined precipitously.

3) Investors fled to commodities to hedge against losses.

4) Price of oil goes up because there are people wanting to *invest* in oil, not because there is more demand.

Draw your own conclusions of course, but I think this bubble will burst pretty soon and we'll be blowing smoke with $1.89 diesel again soon.

The Reason for High Oil Prices

I think all of the above is well proven, the exception being the price of fuel. I doubt we'll see it fall to that level ever again. I've seen several articles noting that the IEA demand forecast is falling each of the past four months running.

What remains to be seen is whether we as a nation will react to the present situation and work towards a mass transit and freight hauling solution that means we burn less oil. Its all well within our ability to do, we just need to commit to it as an energy/domestic policy and get it done. Some people may not like this, but Obama is the only one looking at such solutions.
 
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:agree2:

I believe oil prices will fall again. Remember, this is a cycle. I also think the Big 3 know something. GM invests $xxxxxxxxx to build the 4.5L(?) Duramax plant. Why? They must know something. Dodge comes out with $2.99 fuel price incentive. You can't combine this with other incentives, $2.99 will be a high price to pay in the future. Then they've actually made money on this "incentive." Ford, well it's Ford, they'll just continue to fund the homosexual agenda (boycottford.com) and have them as sole customers. Plus, Toyota wants in on the diesel game. Just my .02 cents.

That website is closed down, and other websites note that the AFA has suspended its boycott. Why they care who Ford spends ad money with is beyond rationalization.
 

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That website is closed down, and other websites note that the AFA has suspended its boycott. Why they care who Ford spends ad money with is beyond rationalization.
Not if you hold certain values. Would you buy from a manufacturer who gives money to Osama bin Laden? I know that it is not an equal comparison but it's the principal.
 

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Somewhere on here or elsewhere I read that we are sending diesel to the EU? Why are we buying oil from the middle east, refining it here and then shipping it across the pond so I can now pay $4.49 a gallon??

I hope the bubble bursts, can't afford to just run down and "fill" the truck up anymore.
 

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Not much can be done about the weakness of the dollar until interest rates climb again.
However, there are speculators who are making huge sums of money while the rest of us suffer. I would hope the Prez would suddenly open up the flood gates at the strategic oil reserve in California and erase a few bilion dollars of speculator's money. Then cclose them until the speculators get complacent and then open them again. Probably a law against doing that, but maybe some hacker could inject a message to that effect into the stock market news channel and get the same results.
 
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The reason the fuel is sold over seas, and the reason why simply opening the SOR won't help consumer prices is because there is no shortage of fuel in this country.

Opening the SOR is a bad idea anyway, since it is the STRATEGIC oil reserve.
 
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