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Monday, January 5, 2015

Celebrating the Collapse in Oil Prices

Today we're going to talk about oil..  And oil prices..

And people in positions of power and prominence not liking things as they currently stand..

And sinful, soulless greedy people in the world of finance and investment who are unhappy piggies

And these people using the media as their mouthpiece to scare the plop-plop fizz fizz out of people

But let's go back to the beginning...
~ Move it!!  F'ing Doggy Drivers.. Meowwww!

Oil prices.

Did you know since the official recession-depression began in December 2007 (the Sept 2008 market crash just sped it along over the cliff), it has been 84 months of pretty much government of both parties doing Nothing to directly help the lives of everyday people struggling to make ends meet.

Bush.. Obama..  Dem majority.. Rep majority,,     Nothing.

And if you think we're only 50% correct in that assessment, please hand your voter card to the woman in the next room so it may promptly be destroyed for all our protection.
~ I think I am lost!  Meowrrrr~

Government only creates jobs when directly hiring and we've seen a freeze especially in comparison to population growth.

In 2002 when Bush was in office, there were 2.63 mil federal workers when US population was 287.8 million, and the number of employees then was a decrease of 300k vs when Clinton was in office.

Today 2.65 mil federal workers have a job under Obama which is an increase of 20k but the population has grown by 33 million so that 20k increase is nothing, especially in a continual recession-depression

We could go down the list but for time constraint, we won't..
~ Near my destination and I didn't even need GPS..

But it is a Fact that the only thing that has occurred in the US economy, whether intentional or not which has directly benefited Americans of all backgrounds and economic stripes is the drop in oil prices!

As we said a couple weeks ago, gas has dropped by $2 a gallon in last year and currently is enjoying a 99 day continual price drop.

If a person filled their tank with 15 gallons of gas once a week, the savings of $30 per visit to the pump translates over a calendar year if prices stayed the same, to $1,560 more in every individual driver's pocket to save or re-circulate into the US economy
~  Ooh.. yumm..  an Arby's..

Remember, when you pay for gas, that money isn't staying domestic.. its going to Venezuela, Africa, Russia and the Middle East so it hurts the domestic economy when prices are higher

In early January 2014, oil was traded among the Wall Street vermin at $110/barrel with speculators seeking to try to push it even higher

Today as of this writing its being traded at $55/barrel

The Motley Fool, a financial publication predicted oil would drop a bit in 2014..  to around $104/barrel..    This is why you don't invest or waste time reading investment columns..

Fool indeed
And we're supposed to be bigger fools by accepting the propaganda that this is 'bad'?!!!

You have investment firms and Professional big-time commodity traders spreading the word that low oil prices are killing the global recovery and it will have serious global ramifications if under $40/barrel..   Etc.. Etc..

And their goal being to scare people and do whatever possible to get the prices back up so their portfolios either stop taking such a massive hit, or so they can jump in with new purchasing positions and start a new speculation wave.

No one in finance ever advises anything with a neutral non-bias
~ Get out of my way you F'ing slow kitty.. Woof!!

Did you know even with oil prices continually dropping you and I are still paying far more than we should for gas?

One barrel of oil will ultimately make 42 gallons of gasoline after all the additives and detergents are mixed to convert the oil

So in simple math, $55 per barrel divided by 42 gallons equals

$1.31 per gallon..
~ Where my bitches at?

So you add the costs to refine the oil, distribution costs, and everyone's profit margin from company to the local gas station, and you're looking at let's say $1.81 per gallon

Everything else is God-Damn taxes!

Federal.. State.. County.. City/Municipality...     Taxes!

Each state has between 38 to 69 cents in fuel taxes it collects per gallon you pump and pay..
You can click 'here' to see how much your state charges but that graph is from 2012.. It may be higher.. We know for instance Maryland and Pennsylvania raised their gas tax by 10 cents/gallon on New Years Eve

If oil ever did drop to $40/ barrel, that would mean gas would drop by an additional 36 cents per gallon and using the simple math example at the beginning based on 15 gal. fill-up per station visit, an additional $5.40 savings ($280 over 52 weeks)

Sorry Charlie, but I don't want to pay more for gas to keep greedy oil-rich nations afloat, just like I am sure foreigners would not shed a tear if the prices of corn or wheat dramatically lessened even if it meant US farmers were hurt.
~ There's my Master waving me over..  Think I will keep going..

Americans never benefited from the bailouts or the Fed's infinite QE stock market dump or even faulty lower unemployment figures which created more service and retail industry jobs than anything requiring a degree..

But Americans Are benefiting from lower gas prices..

So enjoy it..  Don't fear it.