Sunday, March 4, 2012

Why gasoline and food prices are high

I thought I would never post anything I read on DailyKOS. But this guy has his act together and flat out explains what is happening and why it is happening  to food and energy prices.

"Unlimited tolerance must lead to the disappearance of tolerance. If we extend unlimited tolerance even to those who are intolerant, if we are not prepared to defend a tolerant society against the onslaught of the intolerant, then the tolerant will be destroyed, and tolerance with them." - Karl Popper

“It’s the presumption that Obama knows how all these industries ought to be operating better than people who have spent their lives in those industries, and a general cockiness going back to before he was president, and the fact that he has no experience whatever in managing anything. Only someone who has never had the responsibility for managing anything could believe he could manage just about everything.” - Thomas Sowell in Reason Magazine
It also applies to today's money printing by the central banks. The people closest to the central banks are buying assets at the "old price". These people are TBTF Wall Street bankers. You can't get any closer than being a primary dealer.

Well guess who the biggest food speculators are? TBTF Wall Street banks.

Who is manipulating energy prices? TBTF Wall Street banks.

They are standing near the Fed's money tap and using that cash to buy stuff that you need so much that you'll pay any price to get it.