Common Sense

Cavuto: Gas prices aren't rising, the dollar is falling

The truth behind the pain at the pump

 

Enough.

This whole, blame the evil oil companies for this gas spiral.

Enough.

People who know better sounding like they have brains made out of butter.

I've heard the prattling on, now time for some basic facts to sink in.

Gas prices aren't rising.

The dollar is falling.

Let me explain that.

Oil is priced in dollars.

Dollars are getting cheaper.

It takes more of them to buy oil.

So oil gets more expensive.

Gas gets more expensive.

Traders can gun that.

Some can try and capitalize on that. Make bets on that.

But that….is that.

Finite product. Priced in tumbling currency.

Bad combination.

Worse mess.

And a volatile mess at that.

And a mess whose price is driven by fears in markets, more than manipulators in markets.

And certainly more than the oil companies some think control the markets.

I hate to burst your Oliver Stone bubble, but they do not.

They make a lot of money when prices are high.

But I remember a time in the 1980s when they were losing a ton of money when prices were not high.

Back then we had a lot more oil, and a lot less demand.

Now we have a lot less oil, and a lot more demand.

And the slightest uptick in the economy, all you need is a slight uptick in demand and you've got trouble.

Because this thing ain't priced for perfection.

This supply and demand equation is priced for our ruin.

Because we've not more aggressively sought out more oil here, we're vulnerable to getting more oil from over there.

Which is why the Chinese are more than happy to take from Canada, the oil we don't want from Canada.

The president says he's expanded production. He has. But not nearly enough, which he knows.

What he's blocked far exceeds what he's allowed.

And now, allowing for even a slightly improving economy, the odds are more than slightly growing for a serious energy problem.

Throw in a volatile Middle East and Iran all but threatening to blow up the Middle East and you don't need to have been much more than a middling math student to figure this out.

The math don't look good.

And Washington’s math is making it look even worse.

Because we've failed to get spending under control, we just keep piling up the debt, and keep piling up the tin cups to pass around to foreign lenders to pay off that debt.

So our dollar tumbles all the more, and our energy predicament worsens all the more.

Because, as I said, it takes all the more dollars to buy oil as this keeps happening more.

Some say oil companies welcome this move.

Many might. But oil drillers like to drill for more oil too, and at these prices, many can't, and don't. And like I said, even if they could, in a lot of places, like the gulf and up along the Alaska corridor, they can't.

So here we are…facing an oil crisis politicians like to blame on the companies that extract the stuff…

And these same politicians don't have the simple decency to extract the truth.

Oil guys aren't the problem.

They are.

Their spending is.

What it's doing to wreck the dollar is.

Cheapening it. Cheapening us.

That simple. That painful. That true.

So let others bloviate about boogeymen they just make up.

Time to focus on the very politicians and so called media pundits…who just make me want to throw up.

These deflecting idiots are the real pain in the gas.

So focus not on the folks pumping the stuff.

Focus on the fume-for-brains nim-rods pushing this stuff.