That wasn't my question. I asked if you would acknowledge the fact that emerging economies have been growing and therefore demand for oil has been increasing. Your inability to admit this shows your opinion is not based on facts.
No, my contention is that this is secondary to all of the other impacts upon the price of oil. We also have to remember that the acceleration in the price of ALL commodities occurred following the 1st round of QE and that the language and tone of Bernanke's remarks only fuels further speculation of monetization and currency debasement.
Right, and you can't acknowledge that maybe, just maybe it has anything to do with dollar weakness and endless QE. You're the biggest ass clown shill on this board.
...or, it can be both. Strong demand of a limited commodity AND the weakness of the measuring currency BOTH drive the price higher. End of story...
only an idiot could say that demand for oil and food isn't increasing in the world. sheer population statistics would discount a stance arguing there's no demand increase. add in the wealth effect and of course it has a play in prices. but unless the population and "wealth effect" caused oil prices to go from 58 or so in 2006, to 147 in 2008, to 50 or so in 2009 and up to 113 today (as i write this), there is obviously another factor at play. that factor, is the US dollar. so idiots on the other side of the equation (like olias, for instance) think there is something less than massive influence from the federal reserve and it's policies.
goldman might know a thing or two about the subject since they are involved in the speculation: Gas Prices Up Because of LEGAL Speculation; Not Manipulation, Goldman Sachs released a note to clients that put a number on the impact speculators were having on the price of crude oil. The report indicated that, at the time, the speculation premium was $27 per barrel of crude oil, which hit $113.46 during early trading that same day. Gas Prices Up Because of LEGAL Speculation; Not Manipulation, Consumer Advocate Says - Yahoo! Finance
Goldman? You mean the guys that called a "top" when oil was at $108 or so recently? They're like Soros. There's probably a hidden motive for every one of their "calls" or analyses. And they certainly have no reason to question the Fed or discourage ZIRP, QE, etc.
http://www.theatlantic.com/business...mines-the-price-of-gas-a-visual-guide/237968/ (excerpt) "1. The Supply and Demand Factor. Fuel demand from China, India and Brazil -- three countries with a combined population of 2.7 billion -- is the chief factor behind rising prices. China's fuel demand increased 12 percent in 2010. Meanwhile Saudi oil production has fallen, as AEI's Steve Hayward told me. Perhaps the Saudis are pulling back after overstating their reserves, in which case we're in serious trouble. Or perhaps they're accepting higher prices in the short term to spend more money on their people to avoid a Libya-type revolution, in which case the production shortfall should be temporary. Either way, supply matters and there's less of it. 2. The Middle East. Break the past year in gas prices into three phases. First, in the summer and fall of 2010, gas prices were pretty steady around $2.80. Second, beginning in the late fall, they started to climb gradually for six months. Third, since February, they have increased dramatically. What happened in February? Revolutions swept the Middle East, then Libya descended into civil war and its oil production fell by more than 50%. Ongoing uncertainty about the region continues to push up prices. 3. The Weak Dollar. A falling dollar can be good for Americans. It makes our exports more attractive and imports less attractive, which keeps more money in the U.S. economy. Unfortunately, as the dollar loses value, oil becomes more expensive. 4. The Summer. The EIA estimates that good weather and vacations cause U.S. summer gasoline demand to be 5 percent higher than during the rest of the year. Better weather means more vacations, which means more gasoline use. Think of it as a naturally occurring demand enhancer. 5. The Speculation Factor. Oil speculation -- investors betting up the price of oil in the futures market -- is a controversial factor in rising gas prices, and Hayward doesn't believe it's a deciding factor. Burned by the bust of oil prices in the 2009, it's unlikely that oil speculators are back in the market bidding up the price of crude. But it's a possible, if marginal, factor. 6. The Drill, Drill, Drill Argument. The U.S. can drill all it wants but it's hard to find anybody who expects greater domestic production to move gas prices by more than, say, two percentage points in the next six months. The problem is that the market for oil is global and U.S. supply is too small to make an impact."
You're right; I think prices are only minimally effected by the Fed. I'm in good company by the way. To hear you call me an idiot is very, very reassuring. There's maybe two other people in this world that I would rather hear call me an idiot: Sarah Palin, and Mike 'The Situation' from Jersey Shore...but you're right up there on the list