From Bloomberg:

 “The attorney general’s putting together a team whose job it us to root out any cases of fraud or manipulation in the oil markets that might affect gas prices, and that includes the role of traders and speculators,” President Barack Obama said yesterday in Reno, Nevada. “We are going to make sure that no one is taking advantage of American consumers for their own short-term gain.

I wonder, will the Administration root out its own U.S. Treasury?

Oil prices are determined by international markets.  How could it be that anyone, except the US’s own plutocracy, is taking advantage of American consumers for their own short-term gain? 

A better way to look at crude oil prices is to look at them in reverse image.  In other words, dollars are priced in crude.  And what has the dollar been lately doing against its international trading partners?

Graph: Trade Weighted Exchange Index: Major Currencies

 

Notice how nearly perfectly the prices for “crude energy materials” (which can be taken as a proxy for oil prices) have varied with the international value of the dollar, as measured against the currencies of our major trading partners?

Graph: Producer Price Index: Crude Energy Materials

 

Indeed.  The Obama Administration needs to investigate itself, starting with the US Treasury, and its banker-owned subsidiary, the US Federal Reserve.

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