Accompanying the failure of the bailout, the price per barrel of oil fell and the dollar gained against the euro. This was the result of the realization that more money would not be poured into the system to allow for continued speculation. This speculation, that our economy will continue to grow, encourages speculation that the demand for oil and thus willingness to pay at the pump will continue to grow and so oil prices have continued to rise. The continued economic growth failed though as debt accumulated and consumers are unable to fund this economic growth due to a lag in pay wages compared to growth. This encouraged people to gain more and more debt to continue funding the growth of businesses. However, there's a limit to the cycle of debt accumulation that apparently has been reached. Instead of bailing out oil companies, giving them the price they wanted, isn't it time that the prices came down to what people can actually afford?
Read More