Consumer confidence is down because people are spending money on gasoline they would rather spend on everything from better steaks to new furniture. The price of oil could move the nation into a recession in a matter of months. BUT WHY? Every oil expert says that the fundamentals indicate the price of oil should be at $38 to $40 a barrel, yet oil futures are trading in the mid $60 range. The reason for the cost of oil has nothing to do with supply, demand or refinery capacity. The current cost of oil is driven by the "hot money" of hedge funds. A hedge fund can buy millions of dollars of oil futures contracts for just a few hundred thousand dollars. The more "hot money" that flows into futures contracts the higher the price of oil goes, despite the fact that there is actually an oil glut in the Untied States. There is so much oil the refineries can't even keep up with it and we are running out of storage space. Tankers are sitting offshore unable to unload because storage facilities are full. MEANWHILE: The same hedge funds are selling the major industrial stocks (the DOW) short. That means they are selling stocks they don't have at a high price, gambling that as they push up oil the stock market will drop and they can make money on both ends. In other words, rich gamblers are using hedge funds to make themselves huge profits by deliberately destroying the economy. THIS COULD ALL BE STOPPED IN ONE DAY AND THE PRICE OF OIL COULD DROP $20 A BARREL. How? If Treasury Secretary John Snow would hold a news conference and simply tell the truth about the oil reserves on hand and how the hedge funds are manipulating the markets, the whole pyramid scheme would collapse. Dream on ... the Administration believes solidly in the marketplace to correct what is happening. Treasury Department insiders tell me the Secretary believes the hedge funds will finally push the oil to an unsustainable level and the hedge operators will be so damaged that they will leave and not come back. Great idea Mr. Secretary .... if that happens before the economy collapses. WHAT YOU CAN DO: First and foremost don't drive anywhere on Sunday other than church. It's supposed to be a day of rest. Second, don't keep your tank full. Most people are filling their tank when they don't need to because they are afraid the price will go up. Filling the tank up takes gas off the market and drives the price up. If you are going to use ten gallons next week, then just buy ten gallons.
From the Religious Freedom Coalition