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A couple of big picture visuals and a question

March 3, 2015

It is not often that you can find charts dating back to 3000 B.C. I find it interesting that interest rates are at an all time low. It wasn’t until the creation of the Federal Reserve that interest rates were subject to manipulation. In the not too distant future we will find out that our central banks really do NOT have a clue what they are doing, unless it was always their plan to destroy world currencies — in which case they will be extraordinarily effective. Regardless, what an interesting chart!

From a speech from the Bank of England's Andy Haldane.

Bank of England

And what can you expect when the correction hits? Notice the penalty for violating the following executive order back in 1933… pretty serious stuff!

Executive_Order_6102Finally, my question: so why has the price at the gas pump moved up so dramatically when the price per barrel of oil is still at a near current low of $49? Does someone know something we don’t?

While the following new headline doesn’t exactly answer my question about the rapid acceleration of gas prices, it would seem that maybe we should hold off on filling up our gas tanks until prices collapse again… or not!

US running out of room to store oil; price collapse next?

“The U.S. has so much crude that it is running out of places to put it, and that could drive oil and gasoline prices even lower in the coming months.”

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2 Comments
  1. March 16, 2015 9:23 am

    Jon, I believe strikes at many oil refineries are slowing the refining process, thus availability.

    • March 18, 2015 10:29 am

      Thanks Phil, I was just seeing if anyone was really reading my stuff. Congratulations, you passed the test! What I understood of the strike was that it only impacted about 15 of the 65 refineries so I was surprised by the size of the price surge we saw which seemed to be around a 40-45% jump. Oil prices are connected with overall demand and either oil prices have moved too low or the equities market seems to be too high. I guess time will tell.

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