How greedy people jacked up price of gasoline for themselves.

A lot of people bitch these days about high price of gasoline in United States. In this post, I will show that in fact:

1. Gasoline is super cheap in US

2. "Peak Oil" in US happened because of "Peak Greed".

3. US consumer has lost his priorities.

4. It's going to get worse.

1. Gas is still very cheap in US. In fact, it has gotten cheaper than ever! This spring (2008), we pay about 10 cents a gallon of unleaded, how can you call this expensive? Gasoline was sold for 30 cents a gallon in 1920, and it fell threefold during last 90 years.

Get ready for another leg-down of USD

Dollar is 73.52 today. This should have allowed highly connected people to exit the dollar, and if so, then there is no reason now not to continue the devaluation as promised by Paulson.

Get ready for the dollar to slide down to 70, while oil should rise to $129 in the near term. If this will propel the Gold to recapture 1000 remains uncertain as this year gold is expected to follow it's seasonal pattern, taking off for good only in autumn.

Paulson confirmed the dollar is doomed.

'I reiterated in very strong terms our commitment to a strong dollar,' Paulson told reporters after his meetings with counterparts from the world's seven richest nations.

There. Paulson is in the position of a figure to direct the crowds to their demise. He says the dollar will be supported. This means it will go down in orderly fashion if Paulson is right, or crash if he is wrong.

FAKE BEN IS ON VACATION UNTIL THE 27TH

in

Dear Readers,

I am on vacation on the 27th. Sorry for the week-long dearth of postings and new articles.

Best wishes,
FakeBen

Short U.S. Bonds

SHORT U.S. BONDS [10-year and 30-year] (Timeframe for idea: immediate as well as longer-term trend):

While there appears to be consensus among Fed governors that inflation will moderate in the second half due to slower economic growth, the history of inflationary periods suggests that inflation ends only when interest rates rise.

Avner Mandelman: Volcker Wants To Raise Rates; Bernanke To Lower

in

FakeBen says: "An excellent article!"

Taken all together, the economic damage spells a very bad and long recession. How to fix it? No problem, say the actions of Mr. Bernanke's Fed. Let's print the missing money - and it doesn't matter if it causes inflation and tanks the dollar. Because that's not our job.

Bernanke: Nothing Fundamentally Broken On Wall Street

in

FakeBen says: "This MarketWatch article reveals the tremendous institutional bias at the Fed towards excessive credit growth. The problem was caused by excessive credit. The solution? More credit!"

WASHINGTON (MarketWatch) -- There is nothing fundamentally broken on Wall Street that a little regulation and incentives for participants to be slightly more honest couldn't fix, said Federal Reserve Chairman Ben Bernanke said Thursday.

How The Fed Causes Depressions

Brother Can You Spare 10 Grand?
by Peter Schiff

The grainy footage of Great Depression soup lines and Hoovervilles now in heavy rotation on the major news outlets has been largely counterbalanced by a parade of economists who reassure us that such a protracted downturn is currently inconceivable.

The Symptom Versus The Disease

ON RESOURCE NATIONALIZATION AND RESULTING INCREASES IN PRICES:

Philosophically, I wonder if it is worth exploring the idea that producing countries ALWAYS (as a permanent condition) have a natural bias towards nationalization. If you accept this as a permanent condition (a big if), then the question becomes: what causes situations where the political forces in the producing countries gain the upper hand (e.g. 1973-1974, 1979, today)? Conversely, what creates situations where political forces within and/or among the producing countries break rank (Saudi Arabia in the 80s)?

Why Overconsumption Requires More Overconsumption

Why Overconsumption Requires More Overconsumption

This graph shows how overconsumption ends up requiring more overconsumption. There are three lines. The first is the normal rate of consumption in an economy (assuming no inflation and no growth). If a government encourages overconsumption, then excessive debt is added. Over time, the burden of these debt payments require more overconsumption in order to keep the normal rate of consumption from declining.

Syndicate content