I believe every administration starting with Gerald Ford has sought to demonize oil companies and oil speculators whenever oil prices rise beyond the point consumers feel comfortable paying. President Obama, not to be outdone by his predecessors, has made a fair amount of noise about getting the Attorney General to investigate the rising price of oil and the role that speculators and oil companies play in this increase. From a political point of view, the timing couldn't be better with the major oil companies such as Exxon, Chevron and Conoco-Phillips set to report dramatic increases in profits. In politics, insinuation is everything, and facts mean little. Already the mainstream news outlets have picked up the insinuation and are running with it as though it is a fact that oil companies and speculators have colluded to drive up the price of oil. One thing I can guarantee you, as in past investigations, is that no collusion will be proven and no action will result from this investigation. The other thing I can guarantee is that obvious areas will not be covered in this investigation such as:
- The oil market fear caused by the Middle East turmoil
- The three wars being waged in the Middle East right now along with the threat of more governments falling in oil-rich nations and the chaos that ensues
- The Feds weak dollar policy since oil is traded in dollars
- The staggering national deficits that are contributing to the weakening of the dollar
- The threats of the rating agencies to lower the ratings on US debt
- The threat of the IMF and other governments around the world to pull out of the dollar standard
- EPA rules severely hampering domestic production
- The drive to make "green" energy cost competitive
All the examples above are failures of political leadership in both political parties that are major factors in the rise in oil prices. But none of these will be mentioned in the Attorney General's report when it is issues. In fact, the whole purpose of this investigation is to deflect attention from the real causes of this rise in prices.
Hey as long as they don't apologize to the oil companies for doing what they are supposed to do...ReplyDelete
I'm glad our partymen are doing something!
(I can't remember the guy who apologized to BP for causing the spill..)
You mean helping to fuel the rise in oil prices through bad monetary and fiscal policy that weaken the dollar?ReplyDelete