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According To Reuters, Soaring Energy Prices Are A Good Thing

Tyler Durden's picture


When it comes to reporting the news, Reuters ability to get the scoop first may only be rivaled by its ability to "spin" analysis in a way that will make a normal thinking person's head spin.  Such as the following piece of unrivaled headscrathing titled "The good news behind oil prices" whose conclusion, as some may have already guessed, is that "the surge in crude oil is looking more like a harbinger of better days." Let's go through the arguments.

From Reuters: The good news behind oil prices

  1. "the Iran-driven spike masks a broader underlying trend, and as long as military strikes are avoided, it appears to pose only a limited risk. In other words, there is a good news story."

Translation - Logic aside (namely that there is absolutely no connection between the precedent and antecedent sentences, but we'll let that slide) the fact that at least $140 billion has been removed from consumers' pockets YTD on an annualized basis (0.9% of GDP per $10 oil price increase), and has offset all the benefits from the payroll tax extension and then some, is not only irrelevant, but is apparently good news. Ignore that retail sales are abysmal for 3 months running, consumer spending has plunged and has already cost the US economy 0.3% in Q1 GDP, and all this happened even before the oil price surge, not to mention and European inflation is already above expectations on record Brent in Euros. All that matters is consumer confidence which is based on media "arguments" such as the one being deconstructed.

   2. "Equity prices have risen in lockstep with oil's advance. When the two rise together, it usually indicates a broad-based economic expansion."

Translation - Reuters appears to have forgotten those long ago days of, oh, 2011, when equity prices and oil rose in lockstep too.

Then everything came crashing down. And no, it does not indicate a broad-based economic expansion, although first-year journalism grads are excused for thinking that (if not so-called 'strategists' from Deutsche Bank) - what it does indicate is an exponentially rising central bank balance sheet which is seeping into and inflating asset prices across the board, in the process sowing even more seeds of runaway inflation when the velocity of money finally picks up.

   3. "The world's factories are churning out goods at a faster pace, a key indication of the economy's strength, meaning it is in better shape to handle a supply shock from Iran than a year ago."

Translation - ignore consistent sub-50 prints from Europe, a once again sliding Chinese economy, and a US Manufacturing ISM which was just barely above the lowest Wall Street expectation. Also ignore an abysmal Baltic Dry Index, and now sliding rail index. Just focus on the fact that the "world factories" are supposedly churning out goods at a faster pace, in some magical universe. Perhaps global channel stuffing, ala GM is considered an indication of the "economy's strength" - we are just a little more skeptical, and think it is a "key indication" that the economy is about to take the Chevy Volt out to pasture courtesy of a massive inventory glut.

   4. "We think that crude oil prices have risen more because of improving sentiment regarding global growth than because of geopolitical risk concerns," Deutsche Bank told clients."

Translation - Speaking of Deutsche Bank, here is the "The Trinity of Bull." Nuf said.

   5. "A sterner test will be whether consumers can absorb the higher costs at the gasoline pump, since their spending accounts for about two-thirds of all economic activity in developed economies. And that will depend upon wage gains."

Translation - There's myth. And then there is the truth is that in order to pad his reelection campaign, Obama has forced wage gains to be annihilated as proven yesterday, and even though the US economy has supposedly added 1.9 million people in the past 12 months, the aggregate tax withholdings - the most realistic indication of cash flow - are lower than a year ago, meaning that the low wage job additions have come at the expense of high wage losses. In other words: quantity of jobs up, quality of jobs way down. But how cares about details.

   6. "A warm winter and a 30 percent plunge over the past three months in prices for natural gas, the fuel used to heat most American homes, have cut the average household energy bill. And more people have jobs today, providing more of a cushion to absorb costlier gasoline."

Translation - a warmer than average winter has done nothing but pull consumption forward. As Goldman showed on Friday, this one-time climatic aberration will now result in a drag on the economy, as warmed weather unfortunately did not help money to grow on trees any faster.

   7. "The U.S. jobs report for February due out on Friday is expected to show 210,000 new jobs were added outside the farm sector, the third month in a row of gains above 200,000."

Translation - It is quite possible that adjusted, birth-death'ed jobs, pro forma of a labor force participation collapse will come in great. Or whether we will have another record surge in part-time workers? In fact if the LFP rate is under 58%, America will have a negative unemployment rate! The only question is just how many millions in "vapor" jobs will have to be added to the real number (2.9 million in January) to make the US economy appear to be growing on part-time fumes, 7 months ahead of the US breaching it debt ceiling again.

   8.  "Inflationary pressures would complicate the role of central banks, possibly quashing prospects for further monetary support for the recovery."

Translation - Wait, so recent journalism grads do know about the linkage between inflation and central bank balance sheets. But wait, why need monetary support? Isn't this whole article premised on the fact that the economy is in a sustainable recovery? Oh who cares...

But the best is Reuters uncontested conclusion: "But for now, rising oil prices largely are a growth story."




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Sun, 03/04/2012 - 22:51 | 2223053 djsmps
djsmps's picture

I just posted in the article below about the most bizarre CNBC article ever:

he most totally bizarre article I've ever seen on CNBC.  LET'S ALL PARTY FOR HIGHER GAS PRICES!\

Sun, 03/04/2012 - 22:54 | 2223061 Tyler Durden
Tyler Durden's picture

If it's CNBC, it would be not only understandable but accepted. Alas they are syndicating a Reuters article, which is supposed to exhibit at least some amount of rationality.

Sun, 03/04/2012 - 22:59 | 2223078 kito
kito's picture

"what good fortune for governments that the people do not think".........


Sun, 03/04/2012 - 23:09 | 2223095 economics1996
economics1996's picture

Herbert Hoover though high oil prices were the path to prosperity.  He did everything in his power to ensure consumers paid as much as possible.

Sun, 03/04/2012 - 23:21 | 2223118 hedgeless_horseman
hedgeless_horseman's picture



We could sure use a man

like Herbert Hoover again.

Didn't need a welfare state;

Everybody pulled his weight.

Gee, our old La Salle ran great.

Those were the days!

Sun, 03/04/2012 - 23:23 | 2223125's picture

Can we work in a line about no free condoms for thirty year old law school sluts?

Sun, 03/04/2012 - 23:31 | 2223137 Conrad Murray
Conrad Murray's picture

One day her children's CIAbook accounts will get flooded with comments along the lines of:

- "Your mom was such a slut she needed over $1,000/yr for condoms"
- "Your mom was such a poor skank, she used some of the condoms she spent $1,000/yr on as bubblegum. I guess that's why you're here today"

Sun, 03/04/2012 - 23:43 | 2223160 tmosley
tmosley's picture

I think they'll more likely say "you can't even get a single condom for $1000, what's the big deal?"

Mon, 03/05/2012 - 01:23 | 2223297 fockewulf190
fockewulf190's picture

I'm waiting for the "Foodstamps Stimulating Consumer Demand" story. You just know it's coming.

Mon, 03/05/2012 - 01:34 | 2223310 KickIce
KickIce's picture

I believe Pelosi has already done this with unemployment.

Mon, 03/05/2012 - 01:36 | 2223312 Conrad Murray
Conrad Murray's picture

Pelosi put it out in October of 2010:

For every dollar a person receives in food stamps, Pelosi said that $1.79 is put back into the economy. The U.S. Department of Agriculture cites an even higher figure of $1.84

Mon, 03/05/2012 - 07:52 | 2223477 TheTmfreak
TheTmfreak's picture

"But how cares about details." You mean "Who" cares about details?

They say the devil is in the details right?


Mon, 03/05/2012 - 07:28 | 2223450 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

FWIW, condoms are already essentially free, selling for 9 cents per, a dozen for a buck at the dollar store.

Mon, 03/19/2012 - 15:31 | 2270659 Saro
Saro's picture

How much at the second-hand store?

Sun, 03/04/2012 - 23:31 | 2223138 LaLiLuLeLo
LaLiLuLeLo's picture

only if you videotape it

Sun, 03/04/2012 - 23:45 | 2223162 The Big Ching-aso
The Big Ching-aso's picture



"How many fingers, Winston?"

Mon, 03/05/2012 - 00:14 | 2223218 Michael
Michael's picture

If you want to get perfectly technical about the national debt, that 15.5 trillion in debt belongs to The Corporation of the United States of America, not the American people.

We the people protected ourselves from a runaway federal government and its un-sustainable buildup of debt by passing  The Act of 1871, making the Federal government a corporation unto itself, thus absolving the non-corporate entity's, sovereign people of the USA, from being responsible to pay the Federal corporate debt.

This short film explains a lot about it;

UNITED STATES is a Corporation - There are Two Constitutions - Sovereignty

Mon, 03/05/2012 - 09:08 | 2223558 smb12321
smb12321's picture

"Awesome" used to mean inspiring fear.  Decimate, gay,momentarily have all changed meanings.  The point is - while this law may have accomplished what you claim, it has zero effect on current policies. No 19th century law will allow 21st century folks to escape the debt.

(Actually it would make a good Dirk Pitt novel - those in which an obscure paper givens Switzerland control of Russia or China owns Indiana).

Mon, 03/05/2012 - 09:18 | 2223573 Revert_Back_to_...
Revert_Back_to_1792_Act's picture

From the Declaration of Independence:

Emphasis Mine:

..."For abolishing the free system of English laws in a neighbouring province, establishing therein an arbitrary government, and enlarging it's BOUNDARIES so as to render it at once an example and fit insturment for introuducing the same absolute rule into these colonies"...

Boundaries are a very interesting subject to study, Notice how the word is used in this article...(also references a corporation).

Also Jefferson has something to say about Corporations owning land in this opinion.


Sun, 03/04/2012 - 23:57 | 2223190 Unprepared
Unprepared's picture

In statistics, there is something called implicit factor or lurking variable that I think the author of this article never heard of.


I hearby call the Bernank the "Lurking Variable"

Mon, 03/05/2012 - 03:25 | 2223370 Cadavre
Cadavre's picture

I hearby call the Bernank the "Lurking Variable"

Maybe not so much a variable as a fixed constant. Despite the "what if-ing" lame stream does every time the Bernank lifts her skirt to speak", the Bernank's moves are as predictable as a starved hound in a of dumpster fermenting spoiled meet. So are his contemporaries at the ECB. E-COLI appetizers followed by blood sharts.

Here's the shtick that will sink us into a depression beyond anything we can imagine. It has already been executed. The so called die has been set. We got about 180 days before we are form tent city choruses and pine songs like "Those were the days", as we wait for the tender sweet child meat spewed from loins of Wall Street and DC Boss Hogs, slow roasts on our spits.

It is so obvious and to be sure ZH has been drilling this info home and it went right over over my head. Then littles bits and pieces from other sources help fit it all together.

1) The EZ Bailout is not limited to just the PIIGS.

2) EZ countries get bailout cash by sailing high yield (junk) bonds to EZ banks

3) EZ Banks buy the the high yield junk bailout bonds with 0% loans from the ECB (we're talking two digit spreads between the cost of buying the junk bailout bonds and the yields offered by bailout bonds - looks too good to be true and - in this case - that is the case!).

4) The ECB is not buying bailout bonds bonds, but it is guaranteeing the bonds banks purchased with 0 percent loans offered at the ECB's "cash for junkers" windows. THE ECB IS GUARANTEEING COLLATERAL FOR THE LOANS IT MADE - just like the FED in the US - where can I get a loan like that?.

6) The ECB claims it ain't printing EUR tokens used to by the junk paper - but even a 3 day old brown clod floating on a kitty litter carpet in Tabby's pee-pee / poo-poo box blows milk out its  nose when it hears the auto-replay that same old same old song and dance.

The junk paper is worthless. It won't be any more redeemable than the UST in Chinese and Japanese Vaults. The ECB will admit to gross print omission and fess up (maybe an AL KADA clerk will be held responsible). Confession is good for the soul - but is is even better because [THEN] the dark - pool counterfeiting will the be heralded as the only thing that can save the EZ and can move out of the closet.

The operative words are unsustainable, inevitable, irrefutable, irreversible downward spiral and banker tenderloin kabob buffets at tent cities all across the planet..

SP 400 - overly optimistic if you ask me.







Mon, 03/05/2012 - 08:50 | 2223520 Bobbyrib
Bobbyrib's picture

"Herbert Hoover though high oil prices were the path to prosperity.  He did everything in his power to ensure consumers paid as much as possible."


They were...for his kind of people.

Sun, 03/04/2012 - 23:16 | 2223109 SHEEPFUKKER

Soaring energy prices are a good thing only if you hate low energy prices.....

Sun, 03/04/2012 - 23:53 | 2223179 disabledvet
disabledvet's picture

or you're a sheep...

Mon, 03/05/2012 - 00:02 | 2223204 SumSUN
SumSUN's picture

I'm pretty sure sheep hate soaring energy prices.

Mon, 03/05/2012 - 00:43 | 2223253 FlyoverCountryS...
FlyoverCountrySchmuck's picture

"I'm pretty sure sheep hate soaring energy prices."

It makes the shears more expensive to operate..

Mon, 03/05/2012 - 00:06 | 2223210 Unprepared
Unprepared's picture

or if it magically became a "Giffen good"

Mon, 03/05/2012 - 00:27 | 2223236 Van Halen
Van Halen's picture

Or if you're an Obama-protecting JournOList.

Mon, 03/05/2012 - 08:51 | 2223525 Bobbyrib
Bobbyrib's picture

IMHO, it's mostly speculators. Obama and Bernanke definitely have to share some of the blame too though.

Mon, 03/05/2012 - 09:00 | 2223548 johnnynaps
johnnynaps's picture

They are good for energy corporation shareholders who are worth more in fiat than the general public.

Mon, 03/12/2012 - 23:11 | 2249477 Silver Bug
Silver Bug's picture

How is this a good thing again??


Jewellery in Canada

Sun, 03/04/2012 - 23:18 | 2223116 Falkor
Falkor's picture

These buggers want us to buy in here.. naa that ain't happening! Look for your fools somewhere else.

Sun, 03/04/2012 - 23:40 | 2223151 Taint Boil
Taint Boil's picture



Well ... don't forget Fox.


Bill O'Reilly is Misinforming Americans About Oil Supplies

The Oil Drum is full brainiacs (Makes ZeroHedge comments look like the Romper Room) but notice how all the comments immediately dismiss Fox as a joke and not to be taken seriously.

Go figure ... Fox News makes you stupid.


Mon, 03/05/2012 - 00:53 | 2223262 Taint Boil
Taint Boil's picture



ROFL, looks like I am going to beat MillionDollarBonus_ on the down arrows ....... maybe I'll beat Trav7777,,,

The Oil Drum is loaded with Ph.D's ... 

Mon, 03/05/2012 - 07:13 | 2223444 CPL
CPL's picture

MSM trolls, they all showed up over the summer.  MillionDollar bonus is a flagship of moron's in action but he's here, it'll take about a year to convert him with strange things called facts, math and news.

Zero hedge does two things very well.


Deliver news that is untwisted and usually pretty funny.

Remove those nasty blinders that traders have put on themselves.

Mon, 03/05/2012 - 10:02 | 2223686 trav7777
trav7777's picture

naw, you can't beat me...your statement on TOD is correct.  People don't like to hear that because it makes the message there a lot harder to ignore.

Mon, 03/05/2012 - 10:58 | 2223795 Flakmeister
Flakmeister's picture

The background, experience and education level of the editors is very impressive, n'est ce pas?

Never realized that HeadingOut was Professor Emeritus...

Mon, 03/05/2012 - 12:38 | 2224127 tmosley
tmosley's picture

What other group of fully discredited idiots has a high number of PhDs?


Mon, 03/05/2012 - 13:12 | 2224268 Flakmeister
Flakmeister's picture

Based on the results on display, one discredited group of PhDs must be your university professors...  

Big difference between an Economics Ph.D. and one in Geology.... but you might not be aware of that....

Mon, 03/05/2012 - 16:32 | 2225359 tmosley
tmosley's picture

Your geologists apparently can't think of anything but geology, and that is why they all think everyone is going to die next Thursday.

IE their premise is wrong.

Mon, 03/05/2012 - 17:02 | 2225549 Flakmeister
Flakmeister's picture

Is that really the best you can do?

You used to almost add something of value here, you have slipped a loooong way...

Hell, MDB at least adds comedic relief...

Sun, 03/04/2012 - 23:53 | 2223181 clawfoot tub
clawfoot tub's picture

Two questions:

Who owns Reuters?

What makes Reuters trustworthy?

Mon, 03/05/2012 - 00:15 | 2223219 Hugo Chavez
Hugo Chavez's picture

Probably some joos right? Dont they dominate media and banking considering their demographic percentage?

Mon, 03/05/2012 - 02:31 | 2223343 Arthor Bearing
Arthor Bearing's picture

Reuters is supposed to be a front-line fact reporter similar to AP, not mainly known for its opinon pieces. This article shows why it's probably best they don't cross that line often! But Reuters is huge so anyone behind them is definitely elite, CFR etc etc

Mon, 03/05/2012 - 03:15 | 2223364 vato poco
vato poco's picture

One other Reuters question: Is there any way to short those dumbshits?

Mon, 03/05/2012 - 03:40 | 2223374 BeetleBailey
BeetleBailey's picture

I've read Reuters over the years. I don't know that answers to your questions, but I do want to know where I go to re-claim many of the minutes I spent reading their claptrap. Please update this thread when and if you do find out, so I can file a complaint.

Mon, 03/05/2012 - 10:21 | 2223719 DavidC
DavidC's picture

Reuters is owned by Thomson Financial, a Canadian company. It is now known as Thomson Reuters.


Mon, 03/05/2012 - 00:19 | 2223221 Crab Cake
Crab Cake's picture

Yeah... about the rationality thing from msm sources, not so much. I have a rule of thumb I find helpful, if they don't cover Bilderberg/Trilateral then they are surely in deep with tptb. It all goes to the Rockefeller quote about we couldnt have gotten here w/o the help of.... If they don't cover the underbelly then I assume propaganda, and must be dissuaded of that notion, from the get go. In fact I open most msm content asking myself what do they want me to believe and why.

Mon, 03/05/2012 - 00:53 | 2223263 FlyoverCountryS...
FlyoverCountrySchmuck's picture

Funny that....

I'm old enough to remember when the Magic Swauking Box in the living room told me, night after night, that high gas prices were the fault of the "EVIL OIL WHORES IN THE WHITE HOUSE!!!", with NBC Evening News doing live reports from the stations with the highest-priced stations across the nation.

Isn't it funny how things change when a Democrat is in charge?

No more stories about the evils of high gas prices,

No more stories about the homeless,

No more stories about High Food Prices,

No more stories about Food kitchens, and women's shelters

No more nightly update on the number of Soldiers killed in the wars (just ONCE on NBC Evening News since election night, 2008!)

No more stories about how bad debts and deficits are, yada, yada

Just IMAGINE all those Pulitzer Prize stories awaiting our Obama-worshipping media when a Republican becomes President again!

Mon, 03/05/2012 - 01:10 | 2223282 wee-weed up
wee-weed up's picture

They each try to add legitimacy to the other.

Mon, 03/05/2012 - 01:11 | 2223283 insidious
insidious's picture

I didn't spend too much time looking but did anyone put their name to that article?

Mon, 03/05/2012 - 10:56 | 2223793 DavidC
DavidC's picture



Mon, 03/05/2012 - 01:15 | 2223288 FlyoverCountryS...
FlyoverCountrySchmuck's picture

"If you control the language, you control the masses" - Saul Alinsky

"If you control the language, you control the narrative" -FoCS

Mon, 03/05/2012 - 01:22 | 2223296 insidious
insidious's picture

Oh wait. A Bloomberg article, just released, said that the price of crude will probably be falling soon. Is that a bad thing? Does that mean the economy is weakening? Are we really in trouble now?

Mon, 03/05/2012 - 01:52 | 2223326 Tyranny is Love
Tyranny is Love's picture

Remind me (and please correct me if I'm wrong). Associated Press is owned by Reuters and Reuters is owned by, who?

Mon, 03/05/2012 - 04:28 | 2223387 dannyboy
dannyboy's picture

7. "The U.S. jobs report for February due out on Friday is expected to show 210,000 new jobs were added outside the farm sector, the third month in a row of gains above 200,000."

Translation - It is quite possible that adjusted, birth-death'ed jobs, pro forma of a labor force participation collapse will come in great. Or whether we will have another record surge in part-time workers? In fact if the LFP rate is under 58%, America will have a negative unemployment rate! The only question is just how many millions in "vapor" jobs will have to be added to the real number (2.9 million in January) to make the US economy appear to be growing on part-time fumes, 7 months ahead of the US breaching it debt ceiling again.

Tyler, you didnt account for seasonal adjustments. Therefore obama is adding 2,000,000 jobs Q/Q, seasonally adjusted. Can't believe you over looked this.

Mon, 03/05/2012 - 09:06 | 2223556 johnnynaps
johnnynaps's picture

Ironically, substitute teacher positions in my state are outsourced to a private company. I was hired along with about 30 others. Great part-time gig with tons of flexibility but I can't imagine how this skews statistics. Especially when you stop to consider they hired 50 the week before and only require you to work 4 days a month.

Mon, 03/05/2012 - 23:25 | 2226791 djsmps
djsmps's picture

Thanks for posting the article.

Sun, 03/04/2012 - 22:56 | 2223066 Pinto Currency
Pinto Currency's picture



Article: Diverting the Blame for "Inflation"

Sun, 03/04/2012 - 23:00 | 2223079 max2205
max2205's picture

We jumped the shark ?

Sun, 03/04/2012 - 23:03 | 2223085 francis_sawyer
francis_sawyer's picture

"Freedom OF Choice... (is what you got)...

Freedom FROM Choice (is what you want)..."

Sun, 03/04/2012 - 23:29 | 2223134 Gully Foyle
Gully Foyle's picture


I study nuclear science
I love my classes
I got a crazy teacher, he wears dark glasses
Things are going great, and they're only getting better
I'm doing all right, getting good grades
The future's so bright, I gotta wear shades,
I gotta wear shades

I've got a job waiting for my graduation
Fifty thou a year -- buys a lot of beer
Things are going great, and they're only getting better
I'm doing all right, getting good grades
The future's so bright, I gotta wear shades
I gotta wear shades

Well I'm heavenly blessed and worldly wise
I'm a peeping-tom techie with x-ray eyes
Things are going great, and they're only getting better
I'm doing all right, getting good grades
The future's so bright, I gotta wear shades
I gotta wear shades

(instrumental break)

I study nuclear science
I love my classes
I got a crazy teacher, he wears dark glasses
Things are going great, and they're only getting better
I'm doing all right, getting good grades
The future's so bright, I gotta wear shades
I gotta wear shades
I gotta wear shades
I gotta wear shades

Sun, 03/04/2012 - 23:41 | 2223153 technicalanarchy
technicalanarchy's picture

Looks like someone is wanting us to love the high gas prices cause here is another with different reasons to love the high gas prices????

One of our local TV news stations had a great report on the "benefits" of high gas prices. Some of the stupidest reasons I could never imagine.

Time to plan a STAYCATION!!!! Holy freaking cow I can't wait!!!!

They got it from heard of the site, but think I'll stay away.

1st post on I hope it's Ok to leave you all with a lost episode of the Twilight Zone

Sun, 03/04/2012 - 23:58 | 2223197 Hugo Chavez
Hugo Chavez's picture

Most people can adjust to higher gas prices by less elective driving, less junkfood, and carpooling or less restaurant meals.

Gasoline is a very small part of the average budget.

Mon, 03/05/2012 - 00:22 | 2223228 GreenPlease
GreenPlease's picture

Let me guess, you do it for the lolz?

Gasoline take us ~10% of typical household income directly. Indirectly (oil is touches just about every product and service multiple times in their life cycles) it takes up a much larger share. 

Mon, 03/05/2012 - 00:23 | 2223229 Crab Cake
Crab Cake's picture

Im unemployed, again, so... Im already on a "staycation" but think your local propaganda outlet anyway.

Mon, 03/05/2012 - 06:12 | 2223414 OldPhart
OldPhart's picture

Ah shit, I remember that episode.  I'm getting old.

Mon, 03/05/2012 - 05:23 | 2223383 Pinch
Pinch's picture

"this one-time climatic aberration"

Lol. Ever heard of global warming? The right wing meme of denial is becoming tiresome.

Mon, 03/05/2012 - 08:13 | 2223490 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Known in the 70s as global cooling

Mon, 03/05/2012 - 10:28 | 2223732 Vergeltung
Vergeltung's picture

damn, your down arrow is not working.....

Mon, 03/05/2012 - 09:11 | 2223562 smb12321
smb12321's picture

In this administration, Reuters could find a silver lining in a mushroom cloud over Manhattan.  I stopped reading their "news" some time ago when it had something like "Obama holds steady" when in reality he had dropped sharply in every single poll.

Sun, 03/04/2012 - 22:55 | 2223059 djsmps
djsmps's picture

And my favorite is the CNBC sub-heading for a paragraph:

Wages Cushion the Blow

I make over 90% less what I used to make 2.5 years ago. That's some hope and change. I welcome these gas price increases.

Sun, 03/04/2012 - 22:56 | 2223067 prains
prains's picture

you're making money still

Sun, 03/04/2012 - 23:01 | 2223082 djsmps
djsmps's picture

I have a net loss every month, since I am only working part-time. I own my home (I paid cash for it 8 years ago) but taxes , utilities, food, gas and maintenance are more than what I make every month now. On the other hand, I used to work insane hours. I don't mind these hours now, as I am just about 60 yo. But, I go backwards every month. I am really hoping that these rising gas pricese will save us.

Sun, 03/04/2012 - 23:52 | 2223176 prains
prains's picture

the point i was making had less to do with your situation but really to ask what about those unable to make money (reasons excluded). the fact remains that millions go without work and most are wanting to work

but as prices rise across the board the gap grows wider, there is no amount of spin that buries hungry,cold, pissed off and future less.

Mon, 03/05/2012 - 03:47 | 2223377 Raymond Reason
Raymond Reason's picture

I'm in the same situation, as far as a drop in wages.  But i've found ways to drop the expenses down to about $1000/mo.  And i'm enjoying life like never before (no sarcasm).  You gotta stay outa that silver coin stash man. 

Sun, 03/04/2012 - 23:36 | 2223147 Gully Foyle
Gully Foyle's picture

I?m working forty hours
Six long days
And I?m highly embarrassed
Every time I get my pay

And they working everybody
Lord, they working poor folks to death
And when you pay your rent and your car notes
You ain?t got a damn thing left

Ain?t that a bitch, yes it is
Somebody doing something slick, there they are
It's got me wondering which is which
Mighty as well go out of town and dig a ditch

Ain?t that a bitch, yes it is
Now ain't that a bitch

Lemme tell you about my qualifications

I program computers
I know accounting and psychology
I took a course in business
And I can speak a little Japanese, fox on

Gotta work two years
To get one week off with pay
And when I?m on my job
I better watch every word I say

Ain?t that a bitch, oh boy
Somebody doing something slick, downtown
It's got me wondering which is which
Mighty well, go out of town and dig a ditch

Ain?t that a bitch, it's way, way to cold
Ain?t that a bitch

Make me wanna holler, Lord, Lord
Lord, have mercy to see
Won't somebody please help me to see land, Lord
I want to play the guitar, come here guitar

Somebody doing something silly

Now listen to this

Stop at the supermarket
To get myself something to eat
And when I look at the prices
They knock me off of my feet

I was in the baloney section
And I had to take myself a close look
Now [Incomprehensible] couldn't have made these prices
With a sky hook

Ain?t that a bitch, yes, it is
Somebody doing something slick, here they are
It's got me wondering which is which
Mighty well go out of town and dig a ditch

Ain't that a bitch, ain't that a bitch

Surely there?s something slick going on
Surely there?s something slick
Surely there?s something slick going on
Surely there?s something slick, ain't that a

Surely there?s something slick going on
Surely there?s something slick
Surely there?s something slick going on
Somebody's show slick, ain't that a

Surely there?s something slick going on
Surely there?s something slick
Surely there?s something slick going on
Somebody's showing slick

Surely there?s something slick going on
Surely there?s something slick
Surely there?s something slick going on
Surely there?s something slick

Mon, 03/05/2012 - 07:30 | 2223452 StychoKiller
StychoKiller's picture

White Collar Holler
(Nigel Russell)

Well, I rise up every morning at a quarter to eight
Some woman who's my wife tells me not to be late
I kiss the kids goodbye, I can't remember their names
And week after week, it's always the same

And it's Ho, boys, can't you code it, and program it right?
Nothing ever happens in the life of mine
I'm hauling up the data on the Xerox line

Then it's code in the data, give the keyboard a punch
Then cross-correlate and break for some lunch
Correlate, tabulate, process and screen
Program, printout, regress to the mean

Then it's home again, eat again, watch some TV
Make love to my woman at ten-fifty-three
I dream the same dream when I'm sleeping at night
I'm soaring over hills like an eagle in flight

Someday I'm gonna give up all the buttons and things
I'll punch that time clock till it can't ring
Burn up my necktie and set myself free
Cause no one's gonna fold, bend or mutilate me.

Copyright Nigel Russell and dedicated to the city of Bramalea,
Ontario, Canada.

Recorded by Stan Rogers on Between the Breaks - Live, Fogarty's
Cove Music, FCM-002 DC

Sun, 03/04/2012 - 22:55 | 2223064 Stuck on Zero
Stuck on Zero's picture

By this argument all economic indicators are pointing up because everything is getting more expensive.

Sun, 03/04/2012 - 22:56 | 2223065 bugs_
bugs_'s picture

unsigned article.  too bad.  really would have been good to have a name with that.  would have been fun.

Sun, 03/04/2012 - 22:58 | 2223073 Tyler Durden
Tyler Durden's picture

(Reporting by Stella Dawson; Editing by Leslie Adler)

Mon, 03/05/2012 - 00:05 | 2223206's picture

Thanks, Conrad. I've always depended on the kindness of strangers.

Sun, 03/04/2012 - 23:23 | 2223126 luna_man
luna_man's picture



And 'decoded' by none other than...MY MAIN MAN!!

Mon, 03/05/2012 - 00:21 | 2223225 Unprepared
Unprepared's picture

I believe this article falls in the category of "proof we are fair and unbiaised and cover all sides of the issue" in today's sorry state of mainstream journalism, regardless of how rediculous the argument is ante- and post-scriptum, where the article's title is the first thing to be penned.

Or did I just describe 99% of all mainstream media reporting?

Sun, 03/04/2012 - 22:58 | 2223070 lolmao500
lolmao500's picture

"the surge in crude oil is looking more like a harbinger of better days."

If you are in oil... if you're the average consumer, you're screwed.

And yeah, as Stuck On Zero... I can see his BS argument that oil is going up ``because economic activity is going back up``... which is not the case at all. That fool probably thinks that the price of oil is only clean supply/demand... no other factors... which is TOTALLY WRONG.

Sun, 03/04/2012 - 22:58 | 2223072 monopoly
monopoly's picture

I cannot believer FT came our with this gibberish. Absurd. And Bloomberg is going all out telling us how the housing market is recovering and wages are moving steadily higher along with employment.

No one mentions the "new jobs" are at 9-12 dollars an hour with 0 benefits. And no guarantees the job lasts more than 1 quarter.


Mon, 03/05/2012 - 00:09 | 2223208 Hugo Chavez
Hugo Chavez's picture

By what natural law are the wages of caucasians supposed to be higher than that of asians?
Considering who works harder, has more cohesive families, more self discipline, and fewer bastard children, and who studies harder in college there are many caucasians in america who arent worth nine bucks an hour. My mexicans are more honest and work harder (hybrid caucasians). I see a lot of unmotivated miseducated americans who are lazy but think it is their birthright to make twenty bucks an hour with full benies. People in the first world are actually gonna hae to earn their money through hard work rather than birthright.

Mon, 03/05/2012 - 00:39 | 2223250 ffart
ffart's picture

Maybe if the oppressive tax code that's actually worse than the one in "communist" china that funds our horrendous welfare state were repealed people would actually start working again. Then again you'd probably hear a lot of 60 year olds whine about how social security is their birthright instead.

Mon, 03/05/2012 - 04:18 | 2223386 AnAnonymous
AnAnonymous's picture

No. Regulations have small bearings on this situation.

The primary cause is concentration of wealth.

US citizenism economics is based on Smithian economics, whose key point is the transfer of wealth from an exterior to an interior.

This ends in different zones with different concentration of wealth.

Living on a high weath concentration zone is more expensive. The result is that certain types of activity is expelled from the zone.

People are not hired because they are low cost. People are hired because there is a demand for work.

The result of Smithian economics is also to look for the lower wages possible, which happen to be located in low wealth concentration zones.

Wage arbitration is unlikely to happen in a future as jobs are rotated, preventing the concentration of wealth.

It is expected that due to history, the West will remain the place where wealth is going to be the most concentrated.

Thejob situation is going to endure.

A new colonization wave is being triggered.

Sun, 03/04/2012 - 22:59 | 2223074 chump666
chump666's picture

The world is going insane.

That happens from time to time (throughout history), cyclical mass mental breakdowns. When reality becomes too much.

Sun, 03/04/2012 - 23:03 | 2223087's picture

Yeah, I remeber when Welcome Back, Kotter was number one in prime time.

Sun, 03/04/2012 - 23:10 | 2223097 chump666
chump666's picture

Interesting 'media' correlation I shall ponder, you could be right:

Sun, 03/04/2012 - 23:12 | 2223100's picture

Do you remember the novelty record Energy Crisis '74?

Sun, 03/04/2012 - 23:43 | 2223157 chump666
chump666's picture


I don't remember that one...but for all you ZOMBIE fans, the movie  Dawn of The Dead (1978) was made at that time.  Reflecting the oil crisis/end of the world feeling etc

Sun, 03/04/2012 - 23:50 | 2223168's picture

Dawn of the Dead was filmed at the Monroeville Mall. Some years later I worked at the Radio Shack there and used to step out to have a cigarette beside a fountain where one of the zombies fell when he got blasted.

Romero's Knightriders was filmed around my hometown. The final scene in the cemetery was shot exactly where me and my friends used to go burn one during high school days. My grandparents are now buried within feet of where Billy's (Ed Harris) grave was located.

Mon, 03/05/2012 - 00:01 | 2223202 chump666
chump666's picture

Wow! So cool.

I love the 70's doomsday flicks, pop culture being influnced by global events etc.


Mon, 03/05/2012 - 00:13 | 2223217 DeadFred
DeadFred's picture

Seem to have a good number of zombies and vampires on the screens today as well.

You know somewhere out there more than one editor had to sign off and say this article and its clones were worth publishing. Why??? Anyone who would believe this pile is probably too stupid to read so what were they thinking? Maybe a contest on who could come up with the stupidest story? The only thing I can think of is it might give the over-endowed 'journalists' on the news talking points for the morning shill line-up. Maybe Obama will quote from it in a speech or something. Did someone actually put their name on the by-line?

Mon, 03/05/2012 - 03:52 | 2223358 Tyranny is Love
Tyranny is Love's picture

more than one editor had to sign off and say this article and its clones were worth publishing. Why???


They're all owned by the same group. It seems to be a talking point for the day. Used to put an idea in to the public's collective conscious. not thought control (as such, buy influencing opinion by providing a counter idea to "oil's going up thats bad." It does not have to be true or even pass the sniff test. To paraphrase Gobals "good propaganda must be simple and repeated ofter" until it drowns out contrary thoughts. "Oil price rises are GOOD for the economy" ... it's both simple and being repeated frequently. Look for lots more of this sort of thing. They're easy to spot as they're repeated right across MSM at almost the same time and repeated over and over (target saturation). The message will also be very simple. pitched to the lowest IQ of the audience. Again something Gobals taught.

Mon, 03/05/2012 - 00:36 | 2223247 Vendetta
Vendetta's picture

Mainstream media outlets have provided me with the glasses from the movie "They Live" (1988).  I haven't had them off since summer of 2004

Mon, 03/05/2012 - 01:32 | 2223306 chump666
chump666's picture

How could we leave out They Live???  A damn classic, I f*cking love that movie.  Saw in in a busted up run down cinema back in the late 80's.  Perfect setting.

Mon, 03/05/2012 - 01:43 | 2223315 chump666
chump666's picture

and They Live came in 1988,

and 1987 history

lol, correlation trades in pop culture kicking in.

Sun, 03/04/2012 - 23:17 | 2223113 Jim in MN
Jim in MN's picture

I often mention to folks that the pinnacle of the US middle class lifestyle was exactly when people bitched about it the most--the All in the Family days.  Imagine, one income being able to save for retirement and the kids' college, maybe a vacation, decent house, some booze....THOSE WERE THE DAAAAAAAAAAYS

Mon, 03/05/2012 - 00:01 | 2223201 Seasmoke
Seasmoke's picture

so it was George Jefferson moving on up, which really fucked things up

Sun, 03/04/2012 - 23:26 | 2223129 whoopsing
whoopsing's picture

Yeah, I have a dream,now where is MY FUCKING TICKET OUT

Sun, 03/04/2012 - 23:38 | 2223150 Gully Foyle
Gully Foyle's picture

Whitey on the Moon

A rat done bit my sister Nell.
(with Whitey on the moon)
Her face and arms began to swell.
(and Whitey's on the moon)
I can't pay no doctor bill.
(but Whitey's on the moon)
Ten years from now I'll be payin' still.
(while Whitey's on the moon)
The man jus' upped my rent las' night.
('cause Whitey's on the moon)
No hot water, no toilets, no lights.
(but Whitey's on the moon)
I wonder why he's uppi' me?
('cause Whitey's on the moon?)
I wuz already payin' 'im fifty a week.
(with Whitey on the moon)
Taxes takin' my whole damn check,
Junkies makin' me a nervous wreck,
The price of food is goin' up,
An' as if all that shit wuzn't enough:
A rat done bit my sister Nell.
(with Whitey on the moon)
Her face an' arm began to swell.
(but Whitey's on the moon)
Was all that money I made las' year
(for Whitey on the moon?)
How come there ain't no money here?
(Hmm! Whitey's on the moon)
Y'know I jus' 'bout had my fill
(of Whitey on the moon)
I think I'll sen' these doctor bills,
Airmail special
(to Whitey on the moon)

Sun, 03/04/2012 - 22:58 | 2223075 Royal Fleming
Royal Fleming's picture

Reuters is a oboma schill and has been blocked from my world for months.I think its ghost written by nancy , valerie jarett  and that boob biden. only the dancin with the stars groupies believe that shit.

Sun, 03/04/2012 - 23:43 | 2223158 pashley1411
pashley1411's picture


Mon, 03/05/2012 - 00:20 | 2223224 Hugo Chavez
Hugo Chavez's picture

I am in love!

Sun, 03/04/2012 - 23:05 | 2223083 cherry picker
cherry picker's picture

Now we know how the billions the intelligence agencies have to sway public opinion is being used.

It is no secret that the Pentagon and other agenies are afraid of civil unrest and if bullshit can keep the dogs at bay for awhile, so be it

Sun, 03/04/2012 - 23:07 | 2223089 booboo
booboo's picture

Stella hangs with the big swinging dicks of international finance.

Sun, 03/04/2012 - 23:08 | 2223092 EndTheMedia
EndTheMedia's picture

There has been much said in recent times about the Federal Reserve’s actions causing the dollar to lose its status as the world’s reserve currency. Many seem to think the U.S. central bank continues on its course woefully ignorant of its own self destructive folly.

I simply do not believe they are this naive.

Mon, 03/05/2012 - 00:39 | 2223249 Vendetta
Vendetta's picture

They aren't.  They are only trying desperately to make others continue to believe the lies before 'the people' start thinking. 

Sun, 03/04/2012 - 23:09 | 2223093 Mae Kadoodie
Mae Kadoodie's picture

$5 gallon gas in NYC by next week=bullish.

Sun, 03/04/2012 - 23:14 | 2223103 chump666
chump666's picture

The oil crunch is capping all markets.  So the media is in denial and acting bizarre.  Strange times.  But the oil crunch will get worst with Iran now slapping Obama's balls around.  And he is going to take it.  Oil should hit 110 again with equities selling.  Nasty.  Defining power in the global economy is the holders of energy.  And Iran has power.


Sun, 03/04/2012 - 23:16 | 2223110's picture

Now it's really going to hurt to get kicked out of the Cash Cab.

Sun, 03/04/2012 - 23:09 | 2223094 whoopsing
whoopsing's picture

Demand collapse = higher prices = good...scratches head...

Sun, 03/04/2012 - 23:11 | 2223096 booboo
booboo's picture


Sun, 03/04/2012 - 23:10 | 2223098 pauhana
pauhana's picture

On top of the delightful rise in oil prices, we have the great news, according to the Telegraph, that Greece will default for sure this week.  Oh, happy day.  Must mean the market is going to the moon!

Sun, 03/04/2012 - 23:12 | 2223101 surf0766
surf0766's picture

When do the sheep see the vast lies of propaganda? When? I puke when I read these "news" stories from them. I cannot believe people are this stupid. I really can't believe it.

Mon, 03/05/2012 - 07:30 | 2223453 valley chick
valley chick's picture

IMO, the sheeple are too busy watching dancing with the stars or American Idol....when they finally wake from their slumbering sleep they are going to be angry...real angry and not care who or what caused it ....that would require critical thinking which they do not have.

Sun, 03/04/2012 - 23:12 | 2223102 Dow 36000
Dow 36000's picture

This means stocks are going to go up...right?

Sun, 03/04/2012 - 23:18 | 2223115 UP Forester
UP Forester's picture

Yeah.  And I'm wondering what the box stores are going to do now, with most of the items already 60% off or so.

Are they going to put everything on clearance for 90% off to get traffic and keep their numbers up?

Sun, 03/04/2012 - 23:36 | 2223149 luna_man
luna_man's picture



"UP Forester"..."And I'm wondering what the box stores are going to do now, with most of the items already 60% off or so."

Send it back where it came from!...I'm sure China has a return policy.

Sun, 03/04/2012 - 23:54 | 2223183's picture

Sure, if you got a receipt. When they say "No tickee, no laundry," they mean it.

Don't look now but I think my American citizenism is showing.

Mon, 03/05/2012 - 07:40 | 2223467 AnAnonymous
AnAnonymous's picture

Useless mix.

Americanism does it for people who like to dilute their responsibility over a large set of people as Americanism leads to.

US citizenism at least separate US citizens from the rest of the Americas...

Sun, 03/04/2012 - 23:16 | 2223104 Atomizer
Atomizer's picture



Just wait until the global economy puts away wallet/purse. The media sock puppets will say, "we never saw this coming, now is the best time to buy stocks. These stock prices are the lowest you'll ever see in decades".


You better buy stocks motherfuckers!! If you don't, Obama will withdraw a percentage of your paycheck to invest in Downjones. And while we're at it, another payroll deduction percentage will be allocated to mandatory consumer spending. Hefty fines and felony imprisonment for all non-conformist.


Sun, 03/04/2012 - 23:15 | 2223105 Jim in MN
Jim in MN's picture

Let's keep it simple for once. 

Higher prices = less disposable income

No savings = no housing market recovery

This is sorta like the period between when the shuttle explodes and when it hits the ocean.  Might even have a nice view for a while...

And of cource, the CORRUPTION waiting to sucker punch any hint of life.

Mon, 03/05/2012 - 16:20 | 2225260 Raging Debate
Raging Debate's picture

Nicely netted out.

Sun, 03/04/2012 - 23:17 | 2223111 Bugman82
Bugman82's picture

The Ministry of Plenty has just announced that ration of Victory chocolate has just been increased to 25 grammes per week!

Sun, 03/04/2012 - 23:19 | 2223117 UP Forester
UP Forester's picture

Yeah!  It was only 30 grammes last week, but who remembers anymore?

Sun, 03/04/2012 - 23:23 | 2223124 AU5K
AU5K's picture

It was never 30 grams.  It has always been 25 grams.  Clearly you need re-education.

Sun, 03/04/2012 - 23:42 | 2223156 UP Forester
UP Forester's picture

Can I have Soma instead of re-education?

Sun, 03/04/2012 - 23:56 | 2223188's picture

You're suffering from Multiple Dystopia Syndrome, my little droogie.

Sun, 03/04/2012 - 23:57 | 2223195 Ms. Erable
Ms. Erable's picture

Sounds like duelling dystopianism to me.

Mon, 03/05/2012 - 00:21 | 2223226 UP Forester
UP Forester's picture

And we're all squealin' like pigs....

Except those that are more equal....

Sun, 03/04/2012 - 23:21 | 2223121 AU5K
AU5K's picture

If $4 gas is good, $5 gas will be great !!


The obama admin is on record saying they want gas prices as high as europe.  Which of course they will 'solve' with either a tax credit, or, 'one time' check for any modest income family.

Sun, 03/04/2012 - 23:35 | 2223146 Atomizer
Atomizer's picture



Obama Insists Inflating Tires Better Than Oil Drilling 

Who thought he meant other inflation goals. LOL

Mon, 03/05/2012 - 01:08 | 2223275 Seer
Seer's picture

For the love of... is this another one of those "drill baby drill" pieces of propaganda?

1) Oil pumped ISN'T "Americans'" oil, it belongs to the international corporations.  You don't have rights to it; Obama or no Obama (as much as dumb fucks believe he's a socialist);

2) It's a global market, goes to the highest bidder- hint: folks in the US need not apply (refer to #3);

3) People in the US are dead-ass broke, no jobs, demand in the US is dropping.

And when it's gone?  When growth is dead and finished, then what?  Who will you blame it on then? (NO, I'm only defending logic and facts, not Obama or anyone else)

Sun, 03/04/2012 - 23:21 | 2223122 Gamma735
Gamma735's picture

Higher oil prices are only good if you own an oil well.

Sun, 03/04/2012 - 23:22 | 2223123 Jim in MN
Jim in MN's picture

And here's our good buddies Saudi Aramco raising their premium for US shipments this month.  Mazel tov, you sneaky shiekhs.


Sun, 03/04/2012 - 23:25 | 2223127 sablya
sablya's picture

Watching oil trade day by day it doesn't have the feel of a strong market based on economic expansion but a frenetic market like volcanic liquidity looking for an outlet, someplace to blow a bubble.  

The CNBC article is missing the obvious point that the action in the oil market and the stock market is radically different.  The stock market is lifeless and volume is anemic.  If the cause of the oil market's climb was strong economic growth, the stock market wouldn't be limping along in nearly directionless trade with no volume.  

My sentiment: Something wicked this way comes.

Sun, 03/04/2012 - 23:58 | 2223198's picture

Out, out damned oil spot price!

Sun, 03/04/2012 - 23:25 | 2223128 HD
HD's picture

Journalistic integrity is all but dead. There was a time when network news and entertainment divisions were separate - no longer. It's all about whatever drives traffic and ad revenue with little consideration for balance or accuracy.

No wonder society is increasingly uninformed and polarized.

Mon, 03/05/2012 - 16:27 | 2225318 Raging Debate
Raging Debate's picture

Good observation HD. I would further define news as event based or opinion based. The latter in overabundance is what I belive you are speaking of. As they say, 'opinions are like assholes, everybody got one.'

Sun, 03/04/2012 - 23:32 | 2223133 zebra
zebra's picture

when billions and trillions are just chump changes for politicians, u should be thankful as long as the gas price stay at single digit..

but wait, if the gas price becomes double digits, all the gas station will need to order new price signs and displays....BULLISH!!!!!!!!!!


Sun, 03/04/2012 - 23:32 | 2223139 Let them eat iPads
Let them eat iPads's picture

The 2.5 billion people in China/India are using more and more oil each day and these Reuters clowns think the price is going up because of "good times" in 'Merica?

Yeah, ok.


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