Democrats

Rich Getting Filthy Richer, While Poor Get Taken Again

February 27, 2008 ⋅  E-Mail Article ⋅  Print Article ⋅ Post a comment

The rich will always put it to the poor and here is just one more example, the price of oil. I wrote several months ago that the geo-political events in the world were just an excuse for the high price of oil and that the reality was that big money investors were moving their money from the stock market into the oil futures and this was the main reason the average American was getting jacked for high prices at the gas pumps. Well what do you know; oil prices broke through a new intraday high of $102 a barrel Wednesday as investors pump more money into energy futures as a hedge against inflation. How many poor, working poor, and middle class even know what hedging is let alone have the ability to do this? A declining dollar value along with a stagnant stock market and faltering economy have turned rich people with money away from the traditional financial markets and has them looking to invest in oil futures to hedge their investments against the specter of inflation. Oil traders throughout the world have stated that the high cost of a barrel of oil is now being driven by financial investors moving money into commodities markets rather than any perceived oil shortage or geo-political concern. The double whammy for most Americans is that as oil prices raise so do the cost of goods and thus inflation. The U.S. Labor Department recently stated that wholesale inflation rose by 1% in January on soaring oil and producing costs. Oil used to only spike on reports of shortages in the United States but most energy analysts expect the U.S. Energy Department’s Energy Information Administrations next report to show that the United States’ crude oil stock has risen again and that the stock has risen for the past two months straight. The rich are feeding off of you and they are getting richer doing it. However, we msut remember that during this high oil price fiasco that many terrorist supporting nations are getting more financial money from you, big oil producing companies are making record profits, the rich are still getting richer, and President Bush is set to veto a bill which is calling for the roll back of tax breaks for major oil companies. You still think we don’t need alternative fuel in America? Think again. I hope the next President has a better grasp on energy policies.
You need to be politically active on this issue, do not just sit there and get screwed.

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