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REPORT ABUSIVE REPLY
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Message Subject
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Will QE3 result in $5 gas in the US
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Poster Handle
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Anonymous Coward |
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Post Content
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qe3 is pretty much priced into the price of gas. will we see $5 gas by the end of the year? i doubt it, as transportation has been selling off. it would take a major middle east event to get it to move that far up.
if were gonna see any move it's to the downside (i'm speaking short term of course), china announced weak economic data last night, germany could rule against the esm this week (though unlikely) and the fed may not ease via another round of balance sheet expansion. most of these things are priced in, so should they not happen expect a sell off (coinciding with transports which are leading indicators)
Quoting: Anonymous Coward 5944433 If you believe anything you wrote you are an un-educated fool ! the market has moved 10% up the last few months on weak economic data on the anticipation of cb action. this move is worth ~$1 trillion in anticipated action. given that inflation is keeping china from easing and europe's easing could be ruled unconstitutional the short-run move in gas prices is to the downside. if qe3 is a trillion dollars (keep in mind there are only 540 billion dollars in 10+ years that the fed hasn't bought), the market does nothing. if any the esm is ruled unconstitutional and/or qe3 is less than 1 trillion we will most likely see a decrease in gas prices. also keep in mind that obama may tap the reserves for political purposes. please note this is all short term discussion, qe3 will not likely move gas to $5. will we ever have $5, $7, $9 gas with the current actions we keep taking? absolutely. You act as if the market got there all by itself through the "Open & Free", honest price discovery free market system with no intervention from the PPT. Everthing you see is an illusion created from a printing press. The price of oil must continue to increase through the demand of Petrodollars or the U.S. dollar will lose it's reserve currency status that it uses to influence and control the world. you're putting words into my mount, i never once said its open & free price discovery. is the ppt intervening? probably not directly. most of this run up is a melt up on low volume from algo buying the jawboning easing from bernanke and draghi's mouths. you're going to start seeing growth problems and a slowing of the economy due to high energy costs. this will keep the fed from a massive qe (1 trillion between euro and us combined is already priced in). the last thing they want is to do a shock and awe and spike the price of gas before the election. while obama could certainly tap the reserves, the move would look political and he probably does not want that publicity.
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