Comment: Re:The EU are surely better than this... (Score 1) 361
"Uh, yeah. That'll be why oil is over $100 a barrel"
No, it's not. Saudis say they would increase production if there was demand, but the truth is, there isn't. People aren't buying that much more oil, the price discovery mechanism breaks when more than 20-30% of movement on the market is speculators rather than receivers and users of the product. Traders have $1-2Trln that they're sitting on because they don't want to invest in such a rotten economy, meanwhile the massive FIs like JPMorganChase and Goldmann are desperately trying to recapitalise after losing so much money in the $8Trln housing bubble... they're doing it in the commodity futures markets, buying up food, buying up oil, buying up metals, pushing the price up so they can profit from the difference. Easy to do when you can borrow at next to nothing from the Fed (in fact the reason why JPMorgan merged with Chase Manhattan was so that they could borrow from the Fed, as only banks and bank holding companies can)
This has a bigger effect than one might realise. It's not solely responsibly, sure, but the effect shouldn't be underestimated.