According To Reuters, Soaring Energy Prices Are A Good Thing
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
- "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."
...
Sigh.
(28 votes)
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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!\http://www.cnbc.com/id/46621657
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.
"what good fortune for governments that the people do not think".........
-hitler
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.
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!
Can we work in a line about no free condoms for thirty year old law school sluts?
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"
I think they'll more likely say "you can't even get a single condom for $1000, what's the big deal?"
I'm waiting for the "Foodstamps Stimulating Consumer Demand" story. You just know it's coming.
I believe Pelosi has already done this with unemployment.
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
http://www.youtube.com/watch?v=Z7BuQFUhsRM
"But how cares about details." You mean "Who" cares about details?
They say the devil is in the details right?
FWIW, condoms are already essentially free, selling for 9 cents per, a dozen for a buck at the dollar store.
How much at the second-hand store?
only if you videotape it
"How many fingers, Winston?"
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
http://www.youtube.com/watch?v=lVsMUpPgdT0
"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).
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).
http://www.kansascity.com/2012/03/03/3467416/old-mortgage-complicates-di...
Also Jefferson has something to say about Corporations owning land in this opinion.
http://avalon.law.yale.edu/18th_century/bank-tj.asp
In statistics, there is something called implicit factor or lurking variable that I think the author of this article never heard of.
http://en.wikipedia.org/wiki/Spurious_relationship
I hearby call the Bernank the "Lurking Variable"
http://en.wikipedia.org/wiki/Lurking_variable
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.
"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.
Soaring energy prices are a good thing only if you hate low energy prices.....
or you're a sheep...
I'm pretty sure sheep hate soaring energy prices.
"I'm pretty sure sheep hate soaring energy prices."
It makes the shears more expensive to operate..
or if it magically became a "Giffen good"
http://en.wikipedia.org/wiki/Giffen_good
Or if you're an Obama-protecting JournOList.
IMHO, it's mostly speculators. Obama and Bernanke definitely have to share some of the blame too though.
They are good for energy corporation shareholders who are worth more in fiat than the general public.
How is this a good thing again??
Jewellery in Canada
These buggers want us to buy in here.. naa that ain't happening! Look for your fools somewhere else.
Well ... don't forget Fox.
Bill O'Reilly is Misinforming Americans About Oil SuppliesThe 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.
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 ...
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.
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.
The background, experience and education level of the editors is very impressive, n'est ce pas?
Never realized that HeadingOut was Professor Emeritus...
What other group of fully discredited idiots has a high number of PhDs?
lol
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....
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.
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...
Two questions:
Who owns Reuters?
What makes Reuters trustworthy?
Probably some joos right? Dont they dominate media and banking considering their demographic percentage?
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
One other Reuters question: Is there any way to short those dumbshits?
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.
Reuters is owned by Thomson Financial, a Canadian company. It is now known as Thomson Reuters.
DavidC
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.
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!
They each try to add legitimacy to the other.
I didn't spend too much time looking but did anyone put their name to that article?
Yes.
DavidC
"If you control the language, you control the masses" - Saul Alinsky
"If you control the language, you control the narrative" -FoCS
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?
Remind me (and please correct me if I'm wrong). Associated Press is owned by Reuters and Reuters is owned by, who?
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.
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.
Thanks for posting the article.
Article: Diverting the Blame for "Inflation"
http://www.321gold.com/editorials/saville/saville030910.html
We jumped the shark ?
http://www.youtube.com/watch?v=qnUUCZ3AY3M
"Freedom OF Choice... (is what you got)...
Freedom FROM Choice (is what you want)..."
https://www.youtube.com/watch?v=_Bb1u8sb_qM&feature=related
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
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.
http://www.wbir.com/news/local/story.aspx?storyid=208194
Time to plan a STAYCATION!!!! Holy freaking cow I can't wait!!!!
They got it from smartmoney.com heard of the site, but think I'll stay away.
1st post on zerohedge.com. I hope it's Ok to leave you all with a lost episode of the Twilight Zone http://www.youtube.com/watch?v=TyJvMPYHLNo
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.
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.
Im unemployed, again, so... Im already on a "staycation" but think your local propaganda outlet anyway.
Ah shit, I remember that episode. I'm getting old.
Lol. Ever heard of global warming? The right wing meme of denial is becoming tiresome.
Known in the 70s as global cooling
damn, your down arrow is not working.....
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.
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.
you're making money still
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.
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.
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.
https://www.youtube.com/watch?v=yKtWMqW4ICM
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
http://www.youtube.com/watch?v=tlAPDQdHqCY&feature=player_detailpage
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
By this argument all economic indicators are pointing up because everything is getting more expensive.
unsigned article. too bad. really would have been good to have a name with that. would have been fun.
(Reporting by Stella Dawson; Editing by Leslie Adler)
Hey, Stella!
http://www.youtube.com/watch?v=S1A0p0F_iH8
Or, if you really want to say hey:
https://twitter.com/reutersstellad
http://uk.linkedin.com/pub/stella-dawson/14/317/322
http://blogs.reuters.com/stella-dawson/
http://www.zoominfo.com/people/Dawson_Stella_220795669.aspx
Thanks, Conrad. I've always depended on the kindness of strangers.
And 'decoded' by none other than...MY MAIN MAN!!
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?
"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.
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.