Posted on 02/21/2012 6:48:43 AM PST by SeekAndFind
Nothing drives voter sentiment like the price of gas – now averaging $3.56 a gallon, up 30 cents from the start of the year. It’s already hit $4 in some places. The last time gas topped $4 was 2008.
And nothing energizes Republicans like rising energy prices. Last week House Speaker John Boehner told Republicans to take advantage of voters’ looming anger over prices at the pump. On Thursday House Republicans passed a bill to expand offshore drilling and force the White House to issue a permit for the Keystone XL pipeline. The tumult prompted the Interior Department to announce on Friday expanded oil exploration in the Arctic.
If prices at the pump continue to rise, expect more gas wars.
In fact, oil prices are rising for three reasons — none of which has to do with offshore drilling or the XL pipeline.
The first, on the supply side, is Iran’s decision to cut in oil exports to Britain and France in retaliation for sanctions put in place by the EU and United States. Iran’s threat to this has been pushing up crude oil prices for weeks.
The second, on the demand side, is rising hopes for a global economic recovery – which would mean increased oil consumption. The American economy is showing faint signs of a recovery. Europe’s debt crisis appears to be easing. Greece’s pending bailout deal is calming financial nerves on both sides of the Atlantic, and the Bank of England and European Central Bank are keeping rates low. At the same time, China has decided to boost its money supply to spur growth there.
Neither of these would have much effect were it not for the third reason — overwhelming bets of hedge funds and other money managers that oil prices will rise
(Excerpt) Read more at businessinsider.com ...
Robert Reich is the biggest joke in economic thought in a thousand years. Actually, he’s tied with Paul Krugman for the title. Gas prices are rising because our dollar is diminished. All other factors are secondary. His boogeyman theory about ‘speculators’ is laughable, as always.
weak dollar.
I had to stop right there.
Anyone who thinks that we are experiencing a "global recovery" is delusional.
Most of the hedge fund and bond manager reports I'm reading are positioning their clients' assets for a CONTRACTION.
Keep dreaming, Robert.
Gee, Gnome Chumpski, if we drilled for offshore oil and built the XL pipeline and drilled in ANWR, wouldn’t that help offset Iran’s threats to cut off oil and help to meet the rising demand created by Obama’s bestest economy in a gazillion years?
“His boogeyman theory about ‘speculators’ is laughable, as always.”
Even if speculators are to blame, what’s the best way to beat them? Increase supply. It’s difficult to corner a market that has multiple, and prolific supply points.
Watch Obama dip into the emergency reserve supply.
Ha haaaaaa!!!
Wouldn't it be a hoot if Ukel suddenly approved offshore drilling and the XL pipeline???
Hooooo. I'd love to see the looks on those hedge funds' faces when those prices dropped through the floor.
Oh. Wait. I forgot. The pipeline and drilling have no effect on prices.
A++
I think he has a point though. When the stock market crashed in 2008, it sent the price of gasoline down sharply. The price of gas fell in the neighborhood of 40-50% in a very short time.
Nice try at a Jedi mind trick you little Ewok.
I think he has a point though. When the stock market crashed in 2008, it sent the price of gasoline down sharply. The price of gas fell in the neighborhood of 40-50% in a very short time.
If you read his article, you already see how he’s cluthcing at straws to blame the GOP for this.
In fact, he contradcits himself. He thinks readers are stupid enough to buy his argument.
He claims that drilling and the pipeline are pointless yet he says the first reason prices up is (HARUMP HARUMP ) because SUPPLY IS DOWN.
Well DUH !! Why is supply down Mr. Reichhhhh?
Isn’t it because we have all but PREVENTED more drilling in our own shores? Isn’t it because we’ve all but signalled to the world and our neighbors that we don’t want their oil flowing in?
Gas prices are just where Obama WANTS THEM to be. Of course that doesn’t fit in with what the American people want to see, so the excuses start to flow from the Left on why prices are increasing.
He wants gas prices to go up so that people will turn to his precious electric cars and green energy sources. Well, congratulations, he’s successding.
If the US drilled one billion barrels a day and shipped out to overseas markets 1 billion barrels a day, there would be no relief for the US citizen unless he was heavily invested in oil companies. How much Alaskan oil goes directly to Japan? How much of the Canadian oil will be retained here via the XL Pipeline? Not much.
Like I said,
one thing for sure about high gas prices - they aren’t 0bama’s fault,
because NOTHING is ever 0bama’s fault.
The oil markets don’t think that long term - the one thing that is true is that if the pipeline and all drilling was approved tomorrow, it wouldn’t drop oil prices, as it would be several years before any of it was on-line.
So this clown infers that the Keystone pipeline is not an oil supply line, and has nothing to do with the supply of crude.
We do not have enough refineries and not enough oil wells or we would be in charge of the world price of oil and gas, the economy would be greater than ever and we would not be supplying terrorists with billions of dollars to destroy the world system. The administration cares nothing of the American Way.
RE: When the stock market crashed in 2008, it sent the price of gasoline down sharply. The price of gas fell in the neighborhood of 40-50% in a very short time.
Let’s see where the Democrats want us to go from here -—
High Gas prices are bad for the economy.
Stock market crashes sends the price of gas down.
Therefore, to send theprice of gas down, let’s have more stock market crashes....
BRILLANT. Tell that to all holders of 401K and Pension Plans.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.