They Told Me If I Voted For McCain, Politicized Economists Would Engage In Class Warfare Instead Of Speaking Truth To Power, And They Were Right!
Posted on | March 16, 2012 | 6 Comments
But the rise in gas prices has almost nothing to do with energy policy. It has everything to do with America’s continuing failure to adequately regulate Wall Street. But don’t hold your breath waiting for Republicans to tell the truth.
As I’ve noted before, oil supplies aren’t being squeezed. Over 80 percent of America’s energy needs are now being satisfied by domestic supplies. In fact, we’re starting to become an energy exporter. Demand for oil isn’t rising in any event. Demand is down in the U.S. compared to last year at this time, and global demand is still moderate given the economic slowdowns in Europe and China.
Regulation! It’s what’s for breakfast! Seriously, one wonders what this jackwagon would consider too much regulation. Regulation is the salvation of the #Occupation, I suppose.
How about something akin to a real-world answer, from last year about this time?
An analysis produced by the Republican staff of Congress’ Joint Economic Committee blames the falling value of the dollar and the Fed’s quantitative easing policy for inflating the price of oil, and therefore the price of gasoline.
The report explains that while many factors contribute to the market price of oil, one is the value of the “unit of exchange” – the currency in which barrels of oil are traded.
“Oil is an international commodity that trades in dollars,” the report states. “The value of the unit of exchange, in this case the dollar, plays an important role in determining the ‘headline’ price for the underlying commodity.”
In summary, if “Zimbabwe” Ben Bernanke was not excreting a blizzard of currency from wherever, oil prices wouldn’t be, you know, inflated. Alternately, one wonders what the price would be if our government wasn’t systematically abusing the money supply. Economics, Reich: would you know it if it slapped you upside the head?
Update: more good stuff at The Rio Norte Line.