Politicians and media commentators have always been railing on the ways that the free market is to blame for the spike in oil prices- particularly the greedy oil companies and their executives. But recently they have been assaulting a more obscure and lesser known product of the free market- oil speculators.
Democrats and Republicans alike have been calling for an end of speculation in the oil and commodities market.
Can't they see that the spike in prices across the board is largey and wholly a result of the Fed's inflationary monetary policies?!
After close to 20% inflation over the past 8 years, its not so hard to figure out why commodities are spiking, reminiscent of the 1979 spike in oil prices, a direct result of the inflationary period after the abandonment of the gold standard.
Whoever wants peace among nations must seek to limit the state and its influence most strictly. -Ludwig von Mises
Politicians and mainstream media commentators are almost 100% propaganda artists. They are *NEVER* going to say "The blame for rising oil prices lies with the Federal Reserve and money supply inflation."
The Fed Funds Rate is currently 2% while inflation is 20%-30%. Therefore, it is profitable for speculators to borrow at the Fed Funds Rate and buy oil. The "greedy speculators" are acting in their rational self-interest, given the context of a corrupt monetary system.
If you look at "price of oil" divided by "price of gold" or "price of silver", then the price of oil isn't increasing by much.
If you don't like what politicians and mainstream media commentators are saying, then why are you wasting time listening to them? I find it amusing to watch, looking for the obvious lies and propaganda.
I have my own blog at FSK's Guide to Reality. Let me know if you like it.
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