Cherry Creek News
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Why is gas $4 a gallon and headinghigher?Three reasons: First, basic supply anddemand. Global oil supply (current pro-duction available for consumption) has been stagnant since roughly 2004. Demand,
especially that of China and India, contin
-ues to grow. U.S. consumption, in fact isdown this year, roughly by 500,000 barrelsa day. Supply is flat, and demand grows,so fundamentally, the price will climb everhigher. Those fundamentals of supplyand demand are probably responsible for between $80-$100 of the current, roughly$135, a barrel oil.Second, is the massive commod-ity inflation stalking the world’s markets,including grains, metals and timber. Thecause of the inflation is simple. The mar-kets are denominated in dollars, and thecontracts sold for these goods are pricedin dollars. The Federal Reserve is pursuinga monetary policy in which interest ratesare slashed and money is created at anastonishing rate to ease the credit crunchplaguing our financial sector. Both poli-cies, flooding the world with dollars, andpricing them very cheaply (interest ratesare the “price” of money), are making thedollar worth much, much less. Your weak-ened dollar buys half as much gasoline asit did a year ago.Third, is the impact of “speculators”and investors on the commodity futuresmarkets. The stock market is basically flatfor a ten year period. Bonds look risky inthe shadow of a credit catastrophe borneof the collapse of the sub-prime mortgagemarket. Real estate? Foreclosures are justthe beginning of a bad market. So investors,which include pension funds, hedge funds,foreign nations and individual investorshave sought returns-- they want to makemoney. Oil and commodities have beenattractive (you could have doubled yourmoney over the past two years) so there areplenty of buyers for a finite supply, pricesrise and fall with a dizzying effect.Thus, there is a triple whammy causingyou to wince when you buy gas.But most of the media won’t tell this
story. Instead we are treated to fairy tales
about the Saudi’s juicing oil production,claims from the government (the TreasurySecretary that has been oh-so-late to thegame in the credit crisis) that “speculators”have nothing to do with oil prices skyrock-eting, and zero discussion of interests ratesand monetary policy. We get politicians blaming big oil companies, who play arole, but aren’t really the core cause. Weget other politicians calling for off-shoreand wild area drilling, factors that won’timpact fuel prices for at least a decade inthe future.Why isn’t the media more credulous inits reporting on gas prices and the energycrisis? Didn’t the blindered and blinkered
perspectives running up to the Iraq war
create lasting lessons?
In part, because there are few, if any,
honest brokers in the world of energy,synthesizing a meaningful view of theissue is very difficult. Oil companies spendmillions on public relations and advertis-ing, and most hard data passes throughtheir hands or those of their paid consul-tants. Politicians are far more interestedin scoring points than telling challeng-ing truths. And even the financial mediaappears out of its depth in reporting onthe collision between macroeconomics andgeology(with the exception of Bloomberg).But mostly, we have lived in a world withabundant, cheap energy so long, that ourold comfortable perspectives and myths
are hard to part with. Instead, we must
craft new narratives for a coming age of scarcity and uncertainty.What’s worse, the speculative bubblein oil will surely deflate at some point, andthe dollar, particularly with a new presi-dent, will eventually strengthen. But whenoil and gas come down at some point in thefuture, don’t be fooled. The age of cheapenergy is behind us.
—Guerin Lee Green, The Cherry Creek News
June 20, 2008Page 2
On May 28, 2008, members of the Denver PoliceDepartment began an investigation into a home inva-sion occurring in the 1000 block of Locust Street.This investigation found that an unknown black malesubject forced his way into the home of a 57 year oldfemale at approximately 12:30 P.M. The victim wasalone at the time. While at this location, the suspecttook a number of items from the victim’s home andthen fled the scene. The victim was not injured.On June 16, 2008, a black male suspect accosted a62 year-old female at her home in the 700 block of S.Harrison Street at the approximate time of 1:30 P.M.The suspect forced his way into the victim’s home andwhile there took a number of items from the homeincluding the victim’s tan 2007 Nissan Murano, withColorado license 523-PKG. The victim received minorinjuries during the incident.The victims in both incidents describe the suspectas a dark skinned black male, in his mid to late 20’s,6’0”, and 200 lbs. The second victim last saw the sus-pect wearing a baseball cap, white t-shirt, dark pants,and tennis shoes.
Investigators have discovered similar character
-istics in both cases. Anyone with information aboutthese cases is asked to contact the Denver PoliceDepartment at 720-913-2000 or anonymously throughCrime Stoppers at 720-913-STOP (7867).Also concerning Southeast Denver residents arefour kidnappings and robberies that have occurredover the past 10 weeks.“We’re concerned someone is going to resist,that somebody could be hurt,” said Denver PoliceSpokesman Sonny Jackson. The armed men approachedthe victims getting out of or near their vehicles.The suspects demand the victim get back in the carand drive to an ATM machine. That’s when the victimsare forced to make withdraws from their accounts.None of the victims have been harmed in these inci-dents.
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