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-- gas prices down that's good news for drivers this holiday weekend.
What why they're down it may not be it is because new signs a global slowdown is emerging from Europe.
To hear the solution -- someone says America.
Hi everybody I'm sharp Sony welcome the cash NN.
Our cash it -- this week Wayne Rogers Jonathan Hoenig Tracy Byrnes John late -- Also joining us this -- from the Economic Policy Institute our buddy Kristen -- it's that's good to see all of you.
I don't I thought I'd -- it what is the key here.
To our problems.
Building Keystone Pipeline that's part of it we don't have an energy policy -- said this month after month -- deadly year -- -- show we're going developed country in the world that does not have want.
Build the Keystone Pipeline are really believe President Obama is gonna okay it is the second he gets reelected if he does.
It's total politics right now.
Now this oil may not come to the United States.
But if it goes to the Pacific West Coast of Canada it's going to Asia and we will never see -- remember we don't we -- -- our -- about.
Pipeline is government has to concede to the -- trade is that going to Georgia to -- whoever goes across controls that oil why elderly feel differently about maybe no it's absolutely.
Insane it's total politics.
But -- one of the big reasons that we've seen a drop in the oil markets in the last couple of weeks in particular has been other things it's -- Slowdowns in China and India worries about Europe's so maybe we don't need the Keystone Pipeline OK but don't forget -- Oil market is -- futures market it trades on the future right and if we start to actually show some semblance of -- play and here in the US because right now as John has said many times we don't -- one.
We show some interest in doing stuff at home it actually could -- the nurse of the oil markets and the future markets and that.
Actually -- the end is a good thing.
Question do you think evident -- don't want -- -- that we would see even lower gasoline prices in this country would that be a good thing for the economy.
They would be if there where happen but it won't keystone will amount to a tear drop into a lake in terms of -- how oil -- traded on the global markets that oil was not destined.
To be sold in the United States it's destined to be put into -- world market where forces far beyond.
What keystone can produce are going to influence the price of oil and gasoline.
Is not to say that keystone is a horrible idea if it's not modified significantly but to think that this is really gonna change what Americans are feeling at the -- Is Ludacris in fact it's likely go to raise prices.
Particularly in the midwest because a lot of the -- the trans Canada storing there is going to be sent down the pipeline.
And onto the global oil market this is not something that's gonna change up for the better the way consumers feel about gas prices.
Until what do you make about you think that that's true that there's gonna be a shift.
And gasoline and oil production and -- not gonna benefit drivers -- in this country.
What could share more production will unquestionably.
Lower prices more supply -- lower price back those that thing.
I think the essential issue here is that the price of oil however.
But if the protection of liberty I mean in a free capitalist economy.
People are allowed to and by that I mean companies well invest however they want we don't have a philosopher king I was our dictator.
Who decides who gets funded and what you know who can build watched it what's ironic is the president against keystone but yet he's given out three billion dollars in energy grants.
The people associate with his own administration who got a company that wants to invest private dollars to actually build infrastructure in this country.
Then and now that doesn't fly what the -- There's a thing -- it wouldn't semantics aside what about the emotional impact Wayne.
-- finally getting more domestic oil production happening in this country we've been talking about it for decades.
It never truly happens what is this Keystone Pipeline was approved we had that kind of shift in this country when -- -- better for the country.
I don't think there's an emotional nickel in the price of oil and meet people country if you -- an emotional news about that emotional about it.
The supply and demand if we have more supply obviously the price of about this isn't going to -- Oil prices have dropped between twenty and thirty cents.
A gallon here in the last month and that a month ago was that time when -- you -- -- they made oil traders.
No longer a bad -- -- margins they have to put up.
More money for that and that's when oil prices began to come down so that would suggest to you that may be something to the fact.
That oil trend -- web creating some of this price rise.
I don't know but you know we have so much in in in the Bakken oil shale and all these various ought to shift.
We're gonna have plenty of oil for years it's just a question of of big supply and demand you go after the -- I will get it it'll come down pretty -- I worry about what Tracy here's the thing you brought that up the fact that it's a futures market.
Traders have to make their best -- to what they think is gonna happen.
If -- -- concerned about either a slowdown or a problem in the Middle East that's gonna affect the price nothing else.
Eight and and I.
And -- -- in new daddy but I take it.
-- -- This isn't good and make a difference so what we do not think we stand back and we just you know continue to rely on our barn and niece who just can't stand.
I think just even -- want.
Don't think is a star and it opens the floodgates quite frankly and more pipelines -- and more work will be done.
To mention the jobs that -- -- would create here at home let's do that why we consistently push it out and employing the people that hate us.
But you know if you all wanna talk on economics and supply and demand -- you're ignoring demands you know one of the key ways that you control of volatility and exposure to rising prices is to reduce the demand -- sport and that's something that has been the focus of that bomb administrate them based on -- ever gone out there -- the state and federal.
An issue but -- cannot ignore that that is a critical.
Chris and I -- we get devoured this week next reduce a lot of 40% of our energy calls by demand that is it but I agreed that is they separate issue.
What we're doing it right now the suppression of old prices is because demands come down because the economy has gotten works and what we had in the eighties values -- -- 2000 when all prices went down.
We quit producing oil gold prices all production has dropped dramatically from the 1970s.
And right now we're doing the same thing we've done for the past several decades were saying.
Hey let's worry about it later and that is a problem forget this pipeline this -- what is going to be approved if Obama is reelected President Obama.
Our governor Romney.
We've got to do something when -- -- comprehensive energy policy.
Wayne I do you have a look at Wayne -- we talked about a lot on the show what with a lot of energy policy in the country do you agree.
That this change of keystone will be a positive for the country.
But of course it's a positive but the country every time you find natural resource is it enhances it because it lowers the price.
There's added that some of -- a good god theology to have to go to Harvard -- army business built on land supply that is what controls primarily market.
There is a consequence if -- gives them if there's some more supply the price is gonna come down the price is good that's good for us -- of what.
Plastics are based on all.
All of the things that are based on all the homework finally on the oil still it's the whole world come to your -- so erode what the price comes down when -- a bit as Big -- does a black sure that's just stumbled but I don't I.
I don't -- always -- fifteen minutes debating it Jonathan why.
Disagree with the I disagree with their JB -- -- we.
Policy we have.
-- a policy in this country we should have it's called.
-- difficult economic freedom.
And it makes me think -- that very famous story from the early 1960s and Walt Disney began buying -- and southern Florida in what eventually became Disney World can you imagine if the president there are -- Christian was around back -- and said no no no we must protect the swamp land to let notable overcome the NFL Florida had a vacation we wouldn't have Disney World today.
That's what regulations like this to -- prevents.
Economic activity from taking place.
All right guys great discussion next week -- Rutgers Pixar topic I don't know how.
All right everybody dot com and we're debating it does wasn't -- I I think that's what it was so blatantly obvious.
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