Five Ft. Three

“A society that puts equality before freedom will get neither. A society that puts freedom before equality will get a high degree of both.” ― Milton Friedman


on March 15, 2012

Obama will do nothing about high gas prices until closer to the elections, so that he’ll look like some sort of hero.  So, get ready to pay $5 a gallon throughout the summer, and enjoy your staycation.


31 responses to “Prediction

  1. Dave Miller says:

    Beth, most impartial analysts from both sides of the aisle say there is little a pres can really do to affect change in the price of oil.

    The price is does not seem to be affected by the highest US production in years, but rather speculators betting on a future war and uncertainty with Iran.

    What suggestions do you, or your readers have that can bring the cost down?

    It was wrong for the Dems to make out of this with Bush, and it is wrong for the GOP to do so now, especially without addressing the real causes of the price run up.

    • Beth says:

      I am doubting that both sides of the aisle think that way, Dave, and when have our reps ever addressed the real causes of things? They really haven’t for the last 100 years or so.

  2. With the price of gas being driven up by speculation (which, incidentally, the GOP has done everything it can to DEregulate), what, exactly, would you like the President to do?

  3. Fumbled Returns says:

    Beth, ironically, I was listening to reports on oil just this morning. Supply is not an issue. We have plenty available both foreign and domestic. Having been, and still, in a recession, demand has not been a huge factor. One could argue with an improving economy and warm weather demand will go up, however, some key wholesale prices just fell this week; some by as much as 50 cents. So this should offset.

    So what is driving prices up. Fear and Speculation due to international conditions. Speculative money has never been higher and that is why prices are where they are.
    Like Dave said, most of this is out of any presidents control.

    Baring a big international event, Fear and Hype will eventually give way to market conditions and when that happens all that speculative money will sell to cover losses.

    It’s a shame that some have latched on to this as a campaign issue because the way things are now, there really is nothing anybody can do about it. Politicians, and prices, are just feeding off of fear at the moment.

    I wonder if this is the plan by the GOP to keep prices high and stall any hopes of a recovery until the election.

    • Beth says:

      LOL, you say there is nothing anyone can do about it in one sentence, then in the next you accuse the GOP of keeping prices high on purpose! So, can they control the prices or not?!?

  4. BB-Idaho says:

    The Obama administration has been making all theright moves and we should credit Bush’s administration as well.

  5. cwhiatt says:

    This is all very entertaining here this discussion about speculation and Obama not doing anything to lower the price of gasoline.

    Let me know when you all get the memo so we can discuss the real crux of the issue which is further dollar devaluation.

    The fact is that gasoline prices (when measured in gold) have actually fallen.

  6. Beth says:

    I am delighted to see my friends (plus Saty) try to help Obama have an “out”, at least Dave admits that the Democrats are hypocrites because they would say that Bush control gas prices, but now all of a sudden Obama is powerless, lol.

    Chris – seriously? If you measure anything against gold, prices have fallen.

    Anyone who says Obama can’t help gas prices are blind to the policies that he has done to not have any domestic drilling expanded, and as a matter of fact stopped some existing drilling.

  7. BB-Idaho says:

    Now, now..”Anyone who says Obama can’t help gas prices are blind to the policies that he has done to not have any domestic drilling expanded, and as a matter of fact stopped some existing drilling”. That is the exact opposite of data that
    is common knowledge. Active oil rigs were below 200 in 2000 and now there are 1050 pumping away. It is OK to blame Obama for anything and everything you want….but before calling anyone ‘blind’ you really should check the data.

    • Beth says:

      Then it’s the fact there aren’t enough refineries? Then why aren’t we pushing for that? We can work on finding other sources of energy in the meantime, but we also have needs now we need to work on.

  8. The US is actually exporting oil at this point. Speculation, and the GOP’s efforts to maintain deregulation, are what is driving prices up. Do you have any other interventions that you’d like the President to do to lower gas prices, Beth?

  9. Dave Miller says:

    Beth, do you have any evidence that oil production and drilling has fallen under Pres. Obama?

    Are BB’s links wrong?

    • Beth says:

      I never said anything about production, all I am saying is that the prices are high, and when other presidents have been in situations where prices are high, they have all been blamed for not doing something about it. Why is Obama immune to the same scrutiny? The MSM’s blind love for the man is obvious!

      • David Miller says:

        Beth, you are right, as I have acknowledged that the media did label Bush as a culprit in past gas price runups.

        Perhaps that was because war does affect the price of gas and Bush committed us to two wars…

        But that does not change the facts that a President has little direct impact on the global price of oil.

        What in your mind can a President do to affect real change in global markets?

        Even charitable estimates say we could only expect an additional 3% increase in our capacity if we gave the GOP all of their wishes for increased drilling.

        Please explain how the oil business would forgo large profits to see the price lower?

        Economically, it does not make sense, does it?

      • David Miller says:

        Beth, I brought up production for this reason… we are seeing increased production and supply in the market. That being true, why has the price continued to climb?

        Do these two facts point to some other reason behind the price increases?

        If increased supply will bring down the cost of oil, what will? Maybe the markets are being manipulated by speculators to keep prices artificially high.

      • Beth says:

        Why should any business forgo their profits for a product that is in high demand? That defies the laws of economics!

        Obama doesn’t need to worry about global markets for oil, all I am asking for is him looking at his own countries issues.

      • Beth says:

        Sorry, I didn’t see your second comment at first, Dave.

        Well according to Saty, we are exporting oil, so if that is true, then the increased production isn’t helping Americans. But there is increased demand, and if that is greater than the supply, even if that supply is increased, then prices will increase, the law of supply and demand.

    • David Miller says:

      Actually Beth, currently we are in a period of decreased demand… but also a time of instability due to concern over military action in Iran. Couple that with a devalued dollar and we got some big issues.

      And i think I’ve acknowledged that Dems have used the prices to hammer Bush in the past. And of course they are being hypocritical now.

      But that does not change the facts that there are not a lot of things a Pres. can do directly to really influence the global price of oil.

      • Beth says:

        Why do you think demand would be down? Could it be because the prices are so high?!?

        And why is the dollar devalued? Because the damned Feds keep printing more money to monetize the debt!

        This administration has proven time and time again that it doesn’t understand basic economics. I guess Community Organizers don’t need to learn those basic lessons.

  10. Doug says:

    Well, considering it takes about 10 years from design to completion to get platforms built, that might help bulster the GOP argument that they expanded oil drilling and not Obama but IMHO, it does not matter who is in charge, the accusations remain the same no matter what side of the fence one is on.

    The only thing that did happen was the ban on exploration/drilling after the BP explosion, which I believe is now lifted. Again, same thing would have happened regardless of who was in the oval office.

    • Beth says:

      I thought you all said high prices were because of speculation and fear, so if that’s true, then doing something now that could take years still should make a difference now.

  11. So, assuming 10 years from design to completion, and then another length of time before production really gets underway, even if drilling had been expanded exponentially in 2008, it would be 2018 at least before we were seeing any increased production.

    So if drilling had been expanded exponentially in 2008, Beth, we’d be 4 years into that 10 year process…. somewhere in the ‘second set of unapproved blueprints’ stage. How much lower do you think that would have made gas prices today, Beth?

    Hard to admit it’s Wall Street driving those prices up, isn’t it?

  12. Z-man says:

    It’s good the oil speculators were brought up here but I don’t recall Obama taking them to task or talking about them (I’m not a news-nerd so if I bear correction then BB can provide it). I can understand the position that a president can’t do anything about the price of gas but if this is the case then Jimmy Carter got a raw deal.

  13. BB-Idaho says:

    About 60-65% of crude is subject to financial speculation. It, like tech a few years back and
    housing more recently, leads to bubble
    conditions…about 20% of the price of crude is tied to such speculation. Under current regs,
    this is prefectly legal. The admin is doing what it can but big banking and big oil have a vested interest in avoiding any regulation….and they
    apparently have a better lobby than we who simply buy the stuff….

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