price trends show that consumers value gasoline over silver, stocks, and currency

silver, gasoline, and stocks markets for 5 years

As a quick introductory note, many Americans that I interact with seem not to be aware of the wide variation in fuel prices across the world. In parts of Europe, gasoline prices are above $10 per gallon, which approaches the all-time highs reached in 2008. In other parts of the world, supplies of gasoline are so high relative to the local demand that a gallon of gasoline is priced below $1.00 per gallon. Even within the U.S., the price of gasoline ranges by more than $1.00 from the most expensive states like Hawaii ($4.50) and California ($4.35) to the least expensive states like Oklahoma ($3.39) and South Carolina ($3.37).

(See http://gasbuddy.com/GB_Price_List.aspx )

Since 2004, I have forecast that fuel prices would continue their rise that started in 1999 and would eventually cause significant changes to the spending choices and economic trends of the entire world, including the US and Europe. As the price of a gallon of gasoline exceeded $10 per gallon in 2008 in parts of Europe, major behavior changes by consumers and businesses resulted in a decline in the prices of many things, including gasoline,  real estate, and stocks, with fuel prices being the last to fall (as in the purchase most favored or with the most enduring demand). That sequence is precisely the forecast that I had specified in my 2004 reference to “The DominOIL Effect.” See www.TheDominOILeffect.com

Fuel prices displayed on a seven segment displ...

Fuel prices displayed on a seven segment display board commonly found at petrol stations. (Photo credit: Wikipedia)

Now let’s back up and take an even wider view of things. We know why people value gasoline. However, why do people value things like paper currencies and chunks of a particular mineral called silver?

Does anyone disagree that governments coerce people to use a particular form of currency (at least in doing any business with that government such as the payment of taxes), just like they have been coercing people to use whatever relatively rare items for thousands of years, such as gold? Does anyone disagree that ruling interests also implement massive public relations campaigns (propaganda, indoctrination, correctional facilities, educational facilities) so as to influence behavior, to obscure simple and obvious patterns, and to confuse their “prey/hosts?”

Took the picture from the building of the BCB.

Took the picture from the building of the BCB. (Photo credit: Wikipedia)

Just as the huge surge in demand for diamonds across the last century was specifically cultivated by propaganda, so has the demand been cultivated for gold for thousands of years, including for gold coins bearing the face of the warlord or dictator. Likewise, the demand for currencies is entirely cultivated. No one has any inherent interest in little bills of colorful paper- it’s only and entirely because of the cultivated demand. Consider that the amount of demand that has been cultivated for these little bills of colorful paper is truly remarkable as in awe-inspiring.

How has all of this demand been cultivated? Governments make threats that they will take actions like arrest, seizure, invasion, and foreclosure in the event of the failure to pay certain amounts of something- whatever form of payment that they declare as acceptable to them. Further, the ruling interests implement massive campaigns of propaganda through the “private media channels” as well as the “public indoctrination channels,” such as public high schools and public colleges.

In other news, stock markets in Greece and Italy are on the verge of free fall, while silver also returns downward toward the $26 level. I assert that fuel prices (such as gasoline) have finally risen enough to slow other economic activity, and fuel prices are now falling as well, such as for gasoline (shown in the charts) and crude oil.

Note that these recent price trends may be interpreted as yet another confirmation of the ideas presented in 2004 here: www.theDominOILeffect.com

(Of course, the principles of forecasting were studied before they were given labels, such as “ordinal utility” or “Austrian Economics.”)

See also 

http://OneEyedKingsWealthClub.com

Note: wouldn’t it be devious if private parties have created institutions to sacrifice in the pursuit of their private interests? For instance, couldn’t some groups get together and create central banksto manipulate markets? If the central banks have the capacity to manipulate markets, then the rulers could guide the central banks as a way of deceiving the public or manipulating public perception.

central bank of lebanon.

central bank of lebanon. (Photo credit: Wikipedia)

The central banks can run up prices of real estate by buying lots of it, but the insiders will stay away from real estate and wait for the cultivated bubble to burst. Cartels can run up prices of diamonds or gold or oil, and as long as the timing of the manipulations is clear to the insiders, they can position themselves to benefit from the public’s reaction to the manipulations of the central banks.

Did central banks jump in to gold at the END of the 1970s boom, or at the earliest stage of the boom? Insiders knew to SELL their private holdings during what they knew would be the final spike. Who were among the final buyers left holding huge losses? Wasn’t it the central banks… which are controlled by private commercial interests?

When insiders know that they are ready to use the central banks to manipulate prices, the insiders buy when no one is paying any attention to a market, then they can guide their media outlets to feature news on the rising prices. Next, they can guide their central banks to conspicuously make various incremental buys, preferably with advance announcements to stir up a growing hysteria among the public. In the final waves (as central banks are so concentrated in the new target investment that the insiders know the manipulation is nearly complete), then the private investments of the insiders will of course be sold before the holdings of the sacrificial instruments of the central banking institutions. What else do you think that private central banks are for except for the advancement of the interest of private commercial interests?

Consider the following 2011 public relations manipulation specifically designed to influence the perceptions and behaviors of the masses through channels of mass indoctrination (highly efficient propaganda):

Clockwise from top-left: Federal Reserve, Bank...

Clockwise from top-left: Federal Reserve, Bank of England, European Central Bank, Bank of Canada (Note: Uploaded for use on Wikinews) (Photo credit: Wikipedia)


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2 Responses to “price trends show that consumers value gasoline over silver, stocks, and currency”

  1. diligent57 Says:

    Congratulations, I’ve nominated you for the Versatile Blogger Award & Versatile Blogger see instructions at:

    http://diligentprojects5.wordpress.com/awards/

  2. who predicted rising gas prices and the obvious effects? « power of language blog: partnering with reality by JR Fibonacci Says:

    [...] 2005: http://www.financialsense.com/fsu/editorials/2005/0906.html 2006 (video): http://video.google.com/videoplay?docid=3380651809187525090&hl=en. 2008: http://www.gold-eagle.com/editorials_08/fibonacci030309.html 2009: http://jrfibonacci.wordpress.com/opportunitys-last-knock/ 2010: http://jrfibonacci.wordpress.com/2010/12/30/adapting-to-rising-gas-prices/ 2011: http://jrfibonacci.wordpress.com/2011/08/07/negativity-about-gas-prices/ 2012: http://jrfibonacci.wordpress.com/2012/05/17/price-trends-show-that-consumers-value-gasoline-over-sil… [...]

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