Gas prices have been going down. Where I live, as of yesterday the price was about $2.74 per gallon.
Why are the gas prices going down so noticeably? Various theories have been heard. One theory is that the Saudis want to kill competition from so-called “fracking.” There is a break-even point for hydraulic fracturing (fracking). If oil prices go below, say, $70 per barrel, then there stops being profit from fracking. The frackers close down, and Saudi Arabia regains its oil monopoly.
Another theory involves Russia. After the crash of Flight MH-17 in eastern Ukraine on July 17, 2014 (anniversary of the fabled “mass murder in the cellar” of July 17, 1918), economic sanctions were pushed against Russia. Russia sells a lot of gas to Europe, and lowering gas prices could be another, hidden, economic sanction. With lower gas prices, less money is coming in from sales and Russia’s money begins to dry up.
Or maybe lower gas prices come from the end of “Quantitative Easing” (QE). The departed “Helicopter Ben” Bernanke was a big fan of buying treasury bonds by the billions and pumping dollars into the economy. But now Janet Yellen, the new boss of the “Federal” Reserve, has ended the QE. With the disappearance of the monthly pumping-in of dollars, the gas prices begin to decline.
On the “propaganda bullhorn”, “state controlled”, and foreign Russia Today network, there is a financial show, Boom.Bust, hosted by the lively Erin Ade. Her show had guests on these past few days talking about deflation, among other things. Unfortunately, as with all the RT programs, it takes awhile for them to be available on YouTube. The news and ideas broken on the RT network are carried by ox-drawn carts across Siberia and then finally unloaded at the Central Station in Tobolsk. From there, teams of Cossacks on horseback pull sleighs containing the material onward, across the tundra, until it arrives at the Internet upload site. Only then does it reach the Internet. So I am having to work from memory here as to what Boom.Bust had to say.
Deflation was the word these past few days on Boom.Bust. Deflation in Europe and China. Only the United States not yet succumbing to “the big D.” When Ben Bernanke was running the printing presses, the helicopters of dollars never really made it to the average American. The new money falling from the sky all went to bankers and to Wall Street. It never really “trickled down” to the average person. Forget the unemployment rate, the real rate that matters is the labor force participation rate, and that keeps getting worse.
You might think, “This is great! Gas prices are going down!” But here the American “news” – not foreign, not “propaganda bullhorn”, not “state controlled” (supposedly) – steps in to tell us all that prices seeking their own natural level in the market is somehow a bad thing. “Never mind Mother Nature,” they tell us, “the wise economists know best.” The U.S. “news” all tells us that lowered prices means the factories will close (even though we don’t have factories any more in America). But maybe Janet Yellen secretly believes in the market as a natural force which ought not be messed with. “It’s not wise to fool Mother Nature.” And so Yellen has presided over the end of Ben Bernanke’s Quantitative Easing.
Meanwhile, the banks, sitting on piles of Bernanke “helicopter dollars”, don’t know what to do with it all. So they decide to buy stocks and the Dow Jones climbs. But for how long?
There is a dazzling lingo used on all these financial shows, including on Boom.Bust. Sometimes I tune in just to soak in the marvelous language. Don’t worry if you don’t understand a word of it, let it sink in and you will get it by osmosis eventually. Also the wizardly lingo is incantated very rapidly. Erin Ade is up to the task, and is not overwhelmed by the wizardly incantations of lingo flying by. But most viewers just think she has nice legs. This I found by doing a YouTube search on “Erin Ade”, which returned such things as “Erin Ade – Sexy Tight Dress & White Stilettos Boom Bust RT”, and “Erin Ade – Legs Short Skirt Boom Bust RT.” This is all obviously part of a Russian plot to sap the strength of American males, as previously an attack by the Russians on our precious bodily fluids was documented in the movie, “Dr. Strangelove.”