Gas prices? does this theory or mine can possibly be true?

Question

okay I know this may be a little scattered, since my thought process is a little crazy...

I think the gas prices are mainly so high because somebody is trying to get people to drive more enviroment friendly cars.. like for example; trade the Suburban in for a Camry, since the gas prices are now burning up your wallet and pretty soon bank account!

I know oil may be running short, but not as much as people think , but they still wanna make as much money as they can under these conditions, since they know somthing will be coming to an end..

I think the influence of alternative fuels or vehicles, has nothing to do with the oil company... but with someone else in control that would. a deal could've even been made..but the oil company wouldn't do that unless they're cornered by someone in control to "save the inviroment" The greedy batards probably realized that money and power can't save the what would come.

atleast I hope..

Answer 1

If anybody made a deal, I thought it was the arabs  because they don't want the USA  over there in Iraq  or anywhere over there.  So they could be causing the high gas prices  to affect our elections in November

Answer 2

there could be some truth in that....i can see it

Answer 3

I think you are a little wacky with that.

Oil prices are high because gasoline is considered an inelastic commodity. That is to say, the theory is that people will keep buying it no matter how high it goes.

It doesn't help the situation that powerful people (Bush, Cheney, that entire gang) profit enormously from high oil and gas prices. Therefore they will do nothing to try to regulate or intervene.

If the crisis leads to people buying more environmentally friendly cars that would be a good thing, but that would also mean they would not buy as much gas, so don't go expecting the oilmen who run our world to want it to work out that way.

Are we running out of oil? Yes. Do the people who have power and influence over this situation consider the fate of anyone except themselves and their bank accounts? Not bloody likely.

Can people do anything about it? Damned straight they can. They can stop buying gas guzzling cars, and if they really have courage, they can stop buying cars: period.

The fact that the current situation is a deal brokered between car manufacturers and the oilmen is perfectly apparent when you see all these guaranteed locked in prices being offered if you buy certain cars. It means the oilmen are able to make a deal with the car manufacturers to set aside a certain amount of fuel at lower prices. Which in turn should reveal to the reasoning person that the prices are all manipulated beyond the laws of supply and demand.

Answer 4

oil companies are oligopolies, few sellers of a particular good. They can work together to set prices, even though this is illegal.

In general oligololists who raide their prices without a nother company following its lead, will make less money than the company who did not raise their prices.

This leads me to believe that the companies are either working together or are following the price lead of a company. Maby Exxon is the leader.

Anyway the entire green movement is actually, suprise suprise, rooting for higher prices. I don't think they are physically raising the prices though.

you see the green people are business minded like most other people. with higher prices there will be a higher demand for their green products. don't be fooled when they say all they care about is the earth- they also want to make money.

Al Gore is the perfect example of this. His new add campaign is not backed by his Nobel prize winnings and his book sales- which total a measly 10 million dollars. He searched out other companies who were interested in making money off the green craze and got their backing for the 300 million dollar add campaign.

Answer 5

I agree your thought process is a little crazy.

OPEC, not environmentalists, are currently selling oil at $140 a barrell. Simple fact. OPEC could careless what the green people think. They are simply trying to see how much Americans are willing to pay for a barrell of oil, so they can fill their greedy pockets at the expense of destroying our economy.

The only good I can see out this crisis is the acceleration of the development of alternative fuel sources. Unfortunately, we need a solution now, not 10 years from now. Short of going to war, we need to start drilling in the Gulf and anywhere else there's oil.

Answer 6

In Europe cars get 50 mpg.  Here its 20 -25.  Gas is twice as high there.  

Have you seen the new Aptera?  It won't be available for a while and it's only sold in California to Californians but it's only about $25, - 30,000.  It gets 300 mpg or you can get all electric.  Rechargeable.

www.aptera.com

Enjoy!

Peace  .... 20-12

Answer 7

There probably is a small element of truth in your theory but there is more to it.  I have things to do and don't have time to explain, but check in later on tonite and I will finish this answer.

**************************************...

Here is the finish.  It is a cut and paste of a previous answer I gave.  I don't like the way I wrote it but with a few changes, I think it answers your question -------

<<<<  The price of gas could be lowered somewhat if the Federal Reserve "props up" the value of the dollar.

World commoditity markets denominate the price of oil in US Dollars. If the value of the US dollar is weak, owners us US dollars have to pay more for the same amount of oil. If the value of the US dollar strengthens, it will by more oil per dollar (or the same amount of oil will cost less)

The US dollar is falling because tax revenue isn;t sufficient to cover the nations operating costs which has forced the US treasury to borrow money from foriegn entities.

The primary reasons that have forced the US to borrow and become a debtor nation are 1) the Iraq War and 2) the huge tax cut that Bush gave to the wealthy.

When foriegn currency is used to buy T-Bonds, T-Notes and T-Bills, the result is that that value of the dollar tend to decliine vs. the foriegn currency.

The best solution would be strengthen the value of the dollar. That can only be done if the government stops deficit spending and borrowing money from foriegn sources to cover the US Treasury cash flow shortfall.

To do this, it will be necessary to increase taxes, cut spending and or have the Fed reduce the M-1 money supply. If the Fed cuts M-1, the result will be an inflationary spike interest rates.

I think the best solution is to increase taxes on the wealthiest 1% of Americans, cut spending by getting out of Iraq , and with a modest reduction in M-1. The value of the US dollar would rise if the US Gov't didn't have to borrow money from others to fund its daily operations.

If the value of the US dollar strengthens & with Oil priced in US dollars, owners of US dollars can by more oil for the same amount of money ( or buy the same amount of oil with less money). Either way, it leaves more money in the pockets of US consumers.

The other benefit will take a while to happen but when the goverment stops borrowing money and repays its debt, the goverment won't be part of the 'demand' for dollars and interest rates will stay low.  >>>>>

and

<<<< I think that its going to h**l in handbasket. The partisan divide in the congress is deep. I think that the US is borrowing way too much money to cover the cost of the Iraq War and cover the revenue shortfall caused by the Bush Tax cuts >>>>

The GOP neocons will whine about ending the war and the eliminating the wealthy tax breaks.    The Dems will not want the Fed to cut the money supply "M-1" because it will temporarily slow the economy down and cause interest rates to increase.  BUT the dollar will strengthen, the price oil will come down and US consumers will have more money to spend on other things.  

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