Oil reserve found.

[thorne]

http://www.bloomberg.com/apps/news?pid=20601170&refer=home&sid=ayj1uo_gdNI4

 

I had not seen this till today.

[Stanello]

The first I've heard as well.

[Putty]

News to me.

[Science Abuse]

The reason you never heard about it is because it's not Alaska and no one wants to drill there:

-The dakota deposits are on private property, you have to pay to put a well there. They also have to engineer a means to get it (we're giving exxon alone $1bil of our taxes a QUARTER to stimulate such research).

-Alaska's reserve is on public land, drilling there would be free, and they could probably get the gubmint to pay for some of the construction.

 

There's less money to be made off of it.

 

Funny thing is, they could open the taps on all of it magically and the price gas wouldn't go down.

[HAOLE]

It wont help the gas prices. Gas high because the dollar is becoming worthless.

[Science Abuse]

Gas prices are high because they can be.

[zeitgeist57]

Gas prices are high because investors worldwide are SPECULATING that oil and other commodities should be high.

[thorne]

Gas prices are high because investors worldwide are SPECULATING that oil and other commodities should be high.

amen

[BDHG940]

Gas prices are high because investors worldwide are SPECULATING that oil and other commodities should be high.

+1

[Science Abuse]

I submit that the worlds largest untapped source of refinable oil exists not underground, but under Harleys and anything made by British Leyland.

[SpaceGhost]

I submit that the worlds largest untapped source of refinable oil exists not underground, but under Harleys and anything made by British Leyland.

 

Or on the ground under 2JZ rear main seals.

[HAOLE]

Gas prices are high because investors worldwide are SPECULATING that oil and other commodities should be high.

Only a small part of the issue. The value of the dollar hase declined by about 50% in the last four years. This has given rise to new price levels that have been unseen before. No one is speculating at the Grocery store when you by the gallon of milk that rose about 50% in the last four years.

 

You are buying into the governments story. They print more money, each dollar becomes worth less, therefore prices rise.

The main cause of hyperinflation is a massive and rapid increase in the amount of money, which is not supported by growth in the output of goods and services. This results in an imbalance between the supply and demand for the money (including currency and bank deposits), accompanied by a complete loss of confidence in the money, similar to a bank run.

^^^^ This is where the US nearly is at this point. We produce almost nothing but we consume and spend money like drunken saliors. Then the Fed prints more and more money to loan to our Government at interest. That is a called a back door tax on you. Inflation. Now before you go and say "Our inflation has remained at 4-6% for years", it has not. The Government has manipulated the calculation for inflation several times in the past 30 years. If we used the method for calculation inflation that we used in the late 70's and early 80's our current inflation is between 11 and 13%.

[HAOLE]

Or on the ground under 2JZ rear main seals.

Been there done that!

[ImUrOBGYN]

Scenario 1:

I proclaim they knew all along and wanted to wait and use everyone else's oil first. Now, we have all the oil and can charge what we want. Oh, and pay cash guys (other countries), when we wanna see the presidents.

 

 

Scenario 2:

It's not a super highway they're building through the Americas. It was just equipment to build a secret pipeline. The Dakotas aren't the original oil deposit, it's the end of the line and secret storage for the oil. SUPRISE VENEZUELA! U.S. can haz ur oilz?

[LJ]

Bakken has been talked about heavily for at least 4 months now.

[T Rex]

Only a small part of the issue. The value of the dollar hase declined by about 50% in the last four years. This has given rise to new price levels that have been unseen before. No one is speculating at the Grocery store when you by the gallon of milk that rose about 50% in the last four years.

 

You are buying into the governments story. They print more money, each dollar becomes worth less, therefore prices rise.

 

^^^^ This is where the US nearly is at this point. We produce almost nothing but we consume and spend money like drunken saliors. Then the Fed prints more and more money to loan to our Government at interest. That is a called a back door tax on you. Inflation. Now before you go and say "Our inflation has remained at 4-6% for years", it has not. The Government has manipulated the calculation for inflation several times in the past 30 years. If we used the method for calculation inflation that we used in the late 70's and early 80's our current inflation is between 11 and 13%.

 

I need some eduacation here... Ive only brushed the surface on learning this subject...

 

We pay (in income tax) the federal reserve to print money... correct?

It is written in the constiution that the USA can print its own money, free of charge from the federal reserve?

 

Only two Presidents have ever tried to do so (Lincoln and JFK)? Both of whom have been killed while in office!

 

I know this doesn't have much to do with the decline in the dollar value, but I understand the need for such a thing as the Fed (even though they are not a government entity), however, I dont understand why we are being taxed for something we can produce (ha) for free. Am I correct at all?

[HAOLE]

I need some eduacation here... Ive only brushed the surface on learning this subject...

 

We pay (in income tax) the federal reserve to print money... correct?

It is written in the constiution that the USA can print its own money, free of charge from the federal reserve?

 

Only two Presidents have ever tried to do so (Lincoln and JFK)? Both of whom have been killed while in office!

 

I know this doesn't have much to do with the decline in the dollar value, but I understand the need for such a thing as the Fed (even though they are not a government entity), however, I dont understand why we are being taxed for something we can produce (ha) for free. Am I correct at all?

 

Inflation is causes by rampant printing of the dollars is a back door tax on the American people. you work harder to earn money while prices go up and the bank pay the original face value of the debts

[Conesmasher]

I need some eduacation here... Ive only brushed the surface on learning this subject...

 

We pay (in income tax) the federal reserve to print money... correct?

It is written in the constiution that the USA can print its own money, free of charge from the federal reserve?

 

Only two Presidents have ever tried to do so (Lincoln and JFK)? Both of whom have been killed while in office!

 

I know this doesn't have much to do with the decline in the dollar value, but I understand the need for such a thing as the Fed (even though they are not a government entity), however, I dont understand why we are being taxed for something we can produce (ha) for free. Am I correct at all?

 

I think that the idea that we "print" money has been largely misunderstood. It's better to call it money creation. They create digits, figures, in banks. But they truly don't "create" money, they merely borrow it from the people.

 

The Fed wants to inject money into the economy, they make the choice and get the money from the federal gov't. The federal gov't get's their money from one of two places. Either tax revenues, or in the form of debt. The taxes have already been paid and/or the debt will be paid with interest....in the future.

 

However.....with the reduction in home values, it has put our dollar in a tailspin. Reduced home prices make write downs at banks, now forced to into a cash crunch. This makes our country seem unstable..........basically, our dollar is doing the opposite thing that oil is doing. Sprinkle over supply with lower demand, add a dash percieved government instability, with a heaping cup of speculation............and now you have a falling dollar.

[HAOLE]

I think that the idea that we "print" money has been largely misunderstood. It's better to call it money creation. They create digits, figures, in banks. But they truly don't "create" money, they merely borrow it from the people.

 

The Fed wants to inject money into the economy, they make the choice and get the money from the federal gov't. The federal gov't get's their money from one of two places. Either tax revenues, or in the form of debt. The taxes have already been paid and/or the debt will be paid with interest....in the future.

 

However.....with the reduction in home values, it has put our dollar in a tailspin. Reduced home prices make write downs at banks, now forced to into a cash crunch. This makes our country seem unstable..........basically, our dollar is doing the opposite thing that oil is doing. Sprinkle over supply with lower demand, add a dash percieved government instability, with a heaping cup of speculation............and now you have a falling dollar.

I agree some what, but more explanation of "debt" needs to be explored. Debt can be from money being borrowed from individuals or governments. The biggest creditor to the US is the Federal Reserve. The Fed reserve act of 1913 gave power to a group of banks that own the Fed to print money with no basis for the currency, then it loans that money to the US and collects interest on the money that it creates out of thin air.

 

It does not matter if the money is printed on paper or created as digital 0's on a computer screen, the effect is the same.

 

Did you ever notice that the crude oil is traded in Dollars? At this point Opec is beginning the process to start trading in Euros. They are smart, they see the fall of the dollar and want to get away from it.

[Conesmasher]

I agree some what, but more explanation of "debt" needs to be explored. Debt can be from money being borrowed from individuals or governments. The biggest creditor to the US is the Federal Reserve. The Fed reserve act of 1913 gave power to a group of banks that own the Fed to print money with no basis for the currency, then it loans that money to the US and collects interest on the money that it creates out of thin air.

 

It does not matter if the money is printed on paper or created as digital 0's on a computer screen, the effect is the same.

 

Did you ever notice that the crude oil is traded in Dollars? At this point Opec is beginning the process to start trading in Euros. They are smart, they see the fall of the dollar and want to get away from it.

 

There is always a basis to borrowed money. That....is inflation.

[T Rex]

So then why wouldn't the government want to 'create' its own money based off the gold standard again? I understand it would be a huge undertaking but wouldnt that almost completly elminate infliation and the federal defict?

 

Its no like other Presidents have had a budget that is balanced with a surplus. I think McCain is purposing a balanced defict by 2015 or something?

[Trouble Maker]

I didn't read that article, so I'm not sure how much it speculates is down there. But I read about this reserve a few months ago. We really have don't know how much is down there. From what I remember of the articles I read before, the very high numbers were a little old. Those numbers were enough for us to use for years (maybe 10-15 years at current use rates). The more recent numbers for what they think is down there show a pretty small extractable amount.

[RangerTurbo]

FWIW with the worth of the dollar issue: I left for Europe and checked the exchange rate last week and it was 1.56. Yesterday exchange rate had fallen to 1.47.

 

Not a huge change, but, not a completely floundering dollar.... yet.

 

Oh, and everything is expensive as Fuck over here, sheesh.

[kinkinhood]

If I remember correctly something around 60% of the current crude oil price is pure speculation. With the issues with oil prices in Europe I would think that most of the issue lay in speculation rather then the value of the dollar

[Conesmasher]

So then why wouldn't the government want to 'create' its own money based off the gold standard again? I understand it would be a huge undertaking but wouldnt that almost completly elminate infliation and the federal defict?

 

Its no like other Presidents have had a budget that is balanced with a surplus. I think McCain is purposing a balanced defict by 2015 or something?

 

Tony, the whole thing with the gold standard is crap.....at least the way it used to run. People think it's great because the government basically can't create money as they see fit.....there is a set amount of money and to "create" more, you have to find more gold.

 

Unfortunately, the government would basically say....here is our dollar is worth x amount of gold. Then if they needed to.....they could change the value next week, but typically the dollar is pegged and doesn't operate on a float like the dollar currently does with other currencies.

 

The gold standard in theory......works.....in practice......doesn't, because too many brilliant people think they have a way to manipulate it to make it better/easier/beneficial.

 

Inflation would continue to exist under the gold standard, due to the fact that gold is constatly mined. What if the ice caps melted and we found HUGE reserves of gold.....inflation would be crazy. There is no fixed amount of gold in the world, and no one knows how much there really is.

 

The federal deficit is another story. Obama, vows he wants to reinstate PAYGO rules for federal budgets. Which means that no new programs can be in place unless actual tax revenues are created to pay for them. In essence, nothing new unless it's paid for. The biggest problem with the federal deficit is the fact that congress and the president spend more than they take in. No real politician wants to talk about it because they think it's a non-issue............some people don't think of it in terms of debt, they think of it in terms of an interest payment.