Makes a lot of politicians look stupid, doesn't it?

Question

Ye of short term memories, remember just a few short months ago when so many politicians were out ranting and raving that Bush (the Fed Gov) should be doing something about gas prices? How Bush just doesn't care about hard working people and how he should release the strategic oil reserve to ease prices? All those people look pretty dumb now, don't they, now that crude and gasoline supplies are higher than expected for this time of year and prices of both are off 10%+ from their July highs? Doesn't this just show that supply and demand do work and the artificial manipulation of of the system is a bad idea? Those people calling for Bush to do something then were so obviously just looking to get some quick points on their approval ratings.

ps I'm not saying gas at $2.70 is great, but I'm just pointing out the system works.

So you ARE against free market capitalism, Jim. The truth comes out. So what do you know? Enlighten me.

Answer 1

Bingo. Anyone here old enough to remember the last time we tried to control the free-market flow of gasoline on a large scale back in the 70's?

Answer 2

I like the idea of FINDING more oil, to lower prices through greater supply. Although my investments are taking a nose dive.

But it will take years to pry that oil out of the ground, or sands, or wherever. And Iran will be appeased, and the oil will be cheaper, for a while, until they pull a Kim on us and launch test missiles and announce they have nuclear warheads, then oil will go through the roof again (guaranteed).

We need to get off oil, faster now than in the 80's or 90's. We need to starve the radical elements in the world of their revenue sources, they need to simply NOT have the power and influence they do have, as they use it without responsibility but with proactive intent to destroy and control.

I don't like expensive gas or oil at the retail level (although the counterbalance is to invest in it). But in order to be a strong nation, you have to be LESS reliant (not more) on volatile regions, commodities and trade partners. If the U.S. kicks oil to the curb, all of the sudden Venezuela, Mexico, Russia, Iran, Iraq, Saudi Arabia and a host of other not-so-great neighbors become less bothersome (although poorer perhaps).

The capital markets and supply/demand principles do work pretty well. Let's not forget the oil/gas markets are controlled by speculators, so there's lots of artificial crap in the prices (including crazy taxation that does nothing to curb demand or address environmental effects). The producers don't necessarily control price, the speculators/traders do. They ratchet up the price on rumors and scenarios and when those pass, the prices 'fall'. So it's not strictly supply/demand, there is some distribution channel effect that adds substantial yet economically questionable premiums to fossil fuels/products.

Releasing strategic reserve is just stupid. It's strategic, in case of emergency. Emergency is $8/gallon. Maybe not even that, and at that point, the reserve won't do much, it won't do much now.

Bush CAN propose a comprehensive energy plan that has NOTHING to do with oil. Well, he could have, in 2001, but he's a lame duck and will be powerless for the next 28 months. We need to demand of ourselves a more comprehensive energy plan and consumption regimen, that reduces the oil component. Or we can expect to revert to the bicycle days of China, when larger and more economically powerful nations will suck up more of the oil supply, leaving us to pound sand.

Answer 3

I know that supply and demand can work but, come on now, elections are coming. Our gov't still has enough pull to manipulate prices by the barrel, so don't give any of that. So, I guess that we should be grateful that Bush and the oil companies are holding hands.

Answer 4

so they raise the price way up then cut it back by a 10% and this makes you happy. If i poke you in the eye with a sharp stick then get a dull one does this make you happy also.

Answer 5

I'm glad you think the system works so well,and that Bush is doing a great job.If it makes you feel better than hey,I'm all for it
(but I know better).