Came across this article with some great analysis on why the price of oil is actually rising. The inflation of the money supply will lead to massive inflation in many areas, particularly Energy and Food. The world truly has gone insane, and the voices of sanity are heard less and less. Prepare for very hard times would be my advice, stock up on food and become as energy independent as possible!
The days of man's bare minimum necessities costing him all his wages, and therefore leaving no money for things he wants such as iPads and TVs and boats and vacations may be here sooner than most expect.
Revelation 6:6 And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.
A measure of wheat was just enough to bake a loaf of bread and a Penny was wages for a whole day's work. So the days when money will be so devalued, as it was in Germany in the early 1920's, are not too far off. As Central banks engage in endless QUANTITATIVE EASING aka MONEY PRINTING, should we not expect just such results, much higher gas prices for instance? This is exactly what the author of the article quoted below contends. Amazing, isn't it how everything is lining to fulfill Biblical prophecies of the last days in our time?__________________________________________________________
By Gary Dorsch, Editor / Global Money Trends
As the price of North Sea Brent crude oil touched $125 /barrel last week, the topic of sharply higher gasoline prices suddenly caught the attention of the Main Stream Media (MSM). Spin artists for the re-election campaign of President Barack Obama were quick to deny any responsibility for soaring oil prices, and instead blamed the upward spiral on geo-political tension with Iran. However, since the days of the Yom Kippur War in October 1973, - when the OPEC cartel placed an embargo on crude oil sales and hiked oil prices by 70%, the price of gasoline has been a key variable effecting the outcome of US-presidential elections.
In nine of the last ten US-presidential elections, if the price of gasoline was higher at the end of the incumbent’s term in office, than when it began, the incumbent lost the election. The only exception to this trend was in 2004, when the average price on Election Day was $2.03 per gallon compared to $1.54 four-years earlier. George W. Bush won reelection, but just barely, 51% to 49-percent. Since Obama took office, the average price per gallon had doubled to $3.70 and is 43-cents higher than a year ago. It’s up 23-cents just in the month of February. Most analysts say gasoline prices could climb to $4 a gallon, as US-refiners switch to a more expensive blend of petrol for summer driving.
Identifying the precise threshold of pain at which a Global “Oil Shock” wrecks havoc upon the fragile Euro-zone economy is tricky, but crude oil prices are quickly approaching the danger zone. Treading above the 2008 highs is certainly as warning sign of trouble looming on the horizon, especially if prices continue to march upwards. From a strictly technical point of view, the outlook for North Sea Brent is Bullish - climbing higher along an upward sloping trend-line.
In the olden days, - before the collapse of Lehman Brothers and the financial crisis of 2008, central banks would’ve moved to tighten their monetary policies, and hike interest rates, in a concerted effort, in order to combat the inflationary impact of sharply higher oil prices. But in today’s world of “Quantitative Easing” (QE), a tighter money policy is no longer an option, especially with a US-presidential election, scheduled for Nov 6th. Nowadays, the Fed can only display its hawkish credentials, by fending off demands of the ruling politicians for a third round of QE. That still leaves the Fed looking timid and weak in the eyes of speculators.