A brief look at this gasoline price index shows us that we are in a volatile state where the price of gasoline will jerk around quite a bit depending on how many oil-exporting countries the NATO regime wants to threaten plus the relative value of the dollar versus other currencies. What we see today is something rather ironic: the US oil producers are importing oil from Mexico, Canada and using oil from home fields to refine and then…EXPORT. This way, they make better profits overseas just like our manufacturing powers are doing and this causes inflation at home plus we have the burden of ever-higher trade deficits since we import a lot of oil to refine and then sell. A lose/lose for Americans but a win/win for international oil merchants! Who own our government every bit as much as AIPAC. And both work in tandem, choosing which Muslim oil exporters to attack next.
Here is a funky headline in the mainstream news that expresses surprise yet does virtually no examination about why things are happening the way they are going: U.S. exports record amount of refined fuels – latimes.com
In 2007, U.S. exports of all kinds of fuel held steady throughout the year at 1.24 million to 1.25 million barrels a day, according to Energy Department statistics. But by 2011, exports of diesel, gasoline and other products surged. In November and December, U.S. fuel exports averaged between 2.77 million and 2.89 million barrels a day, the highest ever.
The oil pipeline controversy whereby the US builds this immense multi-thousand mile line from deep inside Canada to the Gulf of Mexico is being built not to bring gasoline to US drivers but to process and then sell Canadian oil to Europe! Period. It has zero to do with servicing US consumers. The GOP inserted legislation enabling this export/import scheme into budget bills we need to run our government. So the pipeline to Europe will be built. The negative effect of importing Canadian oil will go on our trade ledgers and the sale of this gasoline to the EU will then be justified to fix our massive trade deficit but like all previous ‘fixes’ will fail to do this and we will run even bigger trade deficits over time since we ceased being a sane domestic economy and focus nearly entirely on trade profits for the top 1% of the economic mix.
Here is a graph from our own government which merrily tracks the 50 year-long trade disaster. It shows how happy we all should be because we are exporting gasoline even as prices at home shoot upwards and kills the domestic economy: Foreign Trade: Graph of the Month
The Big Bankers and the Big Exporters and Big Oil guys are happy as bugs in the bed. But we know from past experience, higher gasoline prices=bad economy for car-obsessed US consumers. The more money that burns in the tank of US cars which are ridiculously big and inefficient even after seven years of high prices, the less money is available for other things. Since the average American can’t get around without burning lots of gasoline, this dooms most people to a declining income for buying other stuff. In past years, this was fixed by importing cheap labor goods.
We see from this graph how it has worked. We have run up immense trade deficits and even after a global collapse due to too much credit from NATO bankers, we are still running very deep in the red and things are not improving at all, just not as bad as during the recent credit bubble: ALFRED Graph – ALFRED – St. Louis Fed
Despite all the saber rattling in Asia and screaming at the Chinese, look at our trade balance with them! It is, in a major global recession, still pretty immense: Foreign Trade – U.S. Trade with China
It is nearly $250 billion in the red this last year! Wow. True, it was worse in October, 2010. But it is still a yawning chasm. Our trade with Japan radically altered after March, 2011, but this was due to Fukushima and the tsunamis plus the floods in Thailand wrecked Japanese auto producers who have increasingly moved production there to exploit cheap Asian labor. Here are some screenshots from a video about the trade deficit.
A constant theme here is how self-destructive humans really are. The richest Americans like the richest Japanese, knows perfectly well, the present system isn’t working well and will lead to the destruction of their home base. Alas, many ‘American’ rich think their home base is Israel! So they really don’t care all that much about this place in the first place. The dire information inside of our trade numbers can’t be ignored forever. There is no infinity here: we cannot import to infinity.
The high cost of fuel is due to US war policies causing massive unrest and turmoil in Muslim oil exporting nations and our trade deficit is causing inflation, not stopping inflation. Hitherto, dropping US wages and cheap imports fixed monetary inflation caused by war spending and other internationalist efforts. But now, it isn’t working so well and so we have real inflation where we can’t escape it and the flood of foreign goods which gives us pleasure are now costing more and more, too. Inflation is growing greater even as we have ZIRP lending so it isn’t caused by interest overhead rates, either.
It is pure and simple money printing and the US consumer has to compete with foreigners who have ‘money’ for things we produce here in America! Our exports have shot upwards as our imports have done but this means, we can’t buy our own production!!!! A huge problem for the majority of the US population in the long run. This is not being debated by anyone in this election. Even Ron Paul is totally guilty here. The Ross Perot election was all about trade issues. Ron is correct to go after our military spending but he doesn’t understand how capitalism joined with government leads to destruction of our economic system. He thinks cheap labor at home will fix things. Well, it won’t. It can’t. Never, ever has a country survived destruction of its own economic base and worker purchasing power is very much an ‘economic base,’ and needs to be protected.
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