Gas Prices Drop (Election time), page 3


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reply posted on 25-10-2006 @ 03:20 PM by mbkennel
Here is a real media discussion about this.

www.thenation.com...

The author used to be a former "managing director" of Goldman Sachs.
In Wall Street, that is one of the really really big prizes, when you get
enormous bonuses and a piece of equity (as a 'partner'). Goldman is
the top of the WS investment bank pile.

She probably made well over a million per year in that position.

Oil, globally, is hard to manipulate that much. Gasoline in the US isn't hard to manipulate, at least in the short term.

Summary: (stolen from a blog, sorry)

- Bush backed off tough talk against Iran;
- Goldman Sachs (provided the new Treasury Secretary) slashed the weighting of gas in its commodities index from 8.45% to 2.30% in July;
- Investors and hedge funds tracking the GSCI dumped long positions in gasoline;
- Big Oil imported tankers of gasoline from Europe for fall arrival;
- Purchases for the Strategic Petroleum Reserve were postponed until after the election;
- Big refinery cronies cut the "crack spread" between crude oil price and refined gasoline price from $19.13 per barrel in July to under $6.00 this month.
- Refinery maintenance and product changeovers were postponed.


reply posted on 28-10-2006 @ 12:14 PM by AlabamaCajun
It's a fear and control thing. First use the media to get people elected that have interest in all these big companies. Then have those politicos throw out the energy control commision and replace it with a mediating commission of petroleum businessmen so that they can decide what to control. Throw out environmental controls and regulation that protects the people. It's no longer under a Democracy at this point but Facisim where the people are being controled not the other way around. How do you control the media, spike the very thing they crave, news stories, movies, shows and advertising. There is no truth in any of it that is not twisted or slanted in some way or another. Anyone wonder where Jay Leno gets those people who do not even know where Canada is?

Take this forward to 2002's midterms. We are only a year since 9-11 and you have wars raging and the drums are beating, it was a shoe in to keep those midtermers in. Move forward to 2004, this one they had to fight a little more to keep the oilman in the whitehouse with the rest of those interests. Fear was being pushed hard up until the point and oil prices kept being inched up through this manipulation this thread has been talking about. In 2004, fear was more of a factor to keep people focused on wars, unrest and the potential of loss of oil imports. Never mind that other countries still have more oil to export, just focus on the mideast. Keep the ME in all the headlines and even let Moore release his documentary because it helps with the fear. People are scared now and paying higher fuel prices is just the way it is when there is war (the excuss).

2005, Katrina! No the whitehouse did not dial in thermals in the gulf and steering currents or blow up levees in NOLA. It was both an oppertunity of an excuse to raise prices and an inconvenience of lost production and this pushed prices up another 20 cents. This would have happened in 1995 just as it did in 2005. The problem is that the prices remained at Katrina levels too long after as most of the production was back on a month later. Sure it would have had some lastng effect but not that much. This also was an oppertune time to pull in extra revenue for the planned drop in 2006.

2006, the stage is different. Fear has been played out too long, and reasons for war are starting to wear on the public and a new strategy is needed. It makes not sense to use fear to get congressmen elected. It makes more sense to use the feel-good apporoach. All this time lies about winning wars and twarting terror have been burned in and it's time to use the comfort apprach. All buyers have to do is pull back a little and the prices drop. I've been in these networks with business people where they all march to the same drum. It's used in multilevel markets that are successful as is moitivates thousands of people to do the same thing. "It's your business, so supports it and you will make money" is what they professes. "Oh and buy this tape, It'll show you how to do it". I don't think the petrolium futures buyers are selling tapes but they have networks that are used. It's all numbers and it even takes a small number of people to move masses, so yes it is very probable.

Don't expect a big rise in November as the economy is teetering again and home sales are sliding. At this point they will not want to tip the economy as they have less than two years to put a replacement in the oval again.
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