Thursday, 19 April 2012

THE OIL SPECULATION POLICE

Ken Berwitz

In President Obama's latest move to divert attention from his abysmal record in office, he has decided to crack down on ..... oil speculators.

Yep, that's the problem.  Oil speculators.  That's why gas prices have more than doubled since he took office. 

-It has nothing to do with his stifling of new drilling for oil - while happily subsidizing drilling by other countries (Brazil immediately comes to mind). 

-It has nothing to do with appointing Steven Chu as Energy Secretary, a man who is on record as avidly wanting oil prices to go up, so we will all be forced to use alternative energy sources (you know, the ones that he gave billions of your tax dollars to, which went bankrupt, one after another). 

Nope, it isn't any of those things.  It is oil speculators.  After all, when they speculate that oil prices are going to rise, they buy oil futures contracts at higher prices, and that raises the cost of gas at the pump, doesn't it? 

Of course, when they speculate that oil prices are going to fall, they buy oil futures contracts at lower prices, and that drops the cost of gas at the pump as well.  But in the one-dimensional word of Obamanomics, that somehow doesn't count.  So forget about it...at least until after election day.

Excerpted from Steve Hargreaves' article at cnn.com:

The Obama administration proposed new measures Tuesday to limit speculation in the oil markets, seeking to draw a contrast with Republicans who have been calling for more domestic drilling during a time of near record gasoline prices.

The new proposals require oil traders to put up more of their own money for transactions, ask for more money for market enforcement and monitoring activities, and call for higher penalties for market manipulation.

 "None of these will bring gas prices down overnight," Obama said at a White House press. "But they will prevent market manipulation, and help protect consumers."

Brilliant. 

Let me again remind you that, despite Barack Obama's implied - and absolutely dishonest - claim that this can do nothing but lower gas prices, all it actually does do is make it harder to conduct business in yet another sector of the economy.  And making it harder to conduct business is one of the few things Obama & Co. are truly proficient in.

Let me end with a terrific little commentary from John Hinderaker of www.powerlineblog.com:

Next time one of your Democrat friends starts talking about speculation driving up the price of oil, ask him a few questions, like: How do you tell a speculator from a non-speculator? How, exactly, do speculators raise the price of oil? If the speculators are wrong about the fundamentals of supply and demand, wont they lose their shirts? If speculators are responsible for high oil prices, why arent they also driving up the price of natural gas, which is at a historic low?

That's worth memorizing.....


Buy Our Book Here!


Return to Current Blog
We're Hopelessly Partisan

hopelesslypartisan.com, is a web site which is dedicated to honest, blunt, debate on the issues of our time.


About Us



At “Hopelessly Partisan” we discuss all issues, big and small. In here, nothing is sacred and nothing is out of bounds.

So settle back, preferably after laughing your way through a copy of “The Hopelessly Partisan Guide To American Politics”, and let the battle begin. In this blog, your opinion counts every bit as much as anyone else's, maybe even more.

And to show that my willingness to provide all sides of the issues is sincere, here are links to a variety of web sites, from the left, the middle (more or less) and the right. Read them and either smile in agreement or gnash your teeth in anger!!