Pinched By $4 Gasoline? Blame The Big Banks

Yes, that's right! The same Big Banks that taxpayers bailed out during the financial crisis are now jacking up oil and gasoline prices (Fig. 1), thus making consumers pay yet once again at the gas pump. Don`t buy into the hype fed to the media by the Big Banks about impending global oil supply crisis due to the unrest in the MENA (Middle East and North Africa) region.

It All Started With Jackson Hole….

This run-up in oil prices started with Fed Chairman Bernanke`s Jackson Hole speech where the big banks realized they were going to get a bunch more juice in the form of POMO operations by the Federal Reserve to play around in markets with.

And what did the large financial institutions do with this newly created juice? Instead of allocating the almost zero percent money they are all borrowing to productive activities such as lending loans to small businesses which will create jobs and stimulate the economy, the big banks have decided that since the fed is electronically printing money and providing extra liquidity/juice for financial markets that this is inflationary and devalues the dollar. (read more)