Government has no control over oil...

President Obama will say today in Miami that he is doing great things for long term energy independence such as reducing use and increasing production, in the same breath he will then say that the President can do little to stem the tide of high gas prices. What President Obama will forget to mention is that the recent reduction in use and increase in production are the results of a terrible economy, of which he has been at the helm for 3 years/with a fully Dem party Congress for 2, and he will neglect to mention that oil prices are driven far more by speculation, than events. He will focus on Iran and claim that the Middle East and China are to blame, what he will neglect to recall is that he cancelled a pipeline that would have crushed speculators hopes and dreams. The sheer thought of a new oil pipeline through the US would have sent the dollar per barrel price plummeting to the basement.

Currently, oil price per barrel is a little higher than Saudi Arabia wants it. The Saudis are comfortable with 100/bbl pricing or close to, which keeps the dollar at the pump somewhere in the area of $3.20 (still absurdly high). The current price is not being driven by lack of oil, or mass consumption, it is being driven by speculation. And the only way to avoid speculation with our current system would be to create areas of hope, something this President ran on as a campaign platform.

Another item that will be glossed over is that the power of the pen could solve many speculation ills as well. If regulators made it mandatory that commodities speculators had to take receipt of their goods within 72 hours, this type of mass flux in cost would dramatically reduce. The fact of the matter is, someone working the markets doesn't really want to take delivery of 72,000 barrels of oil, though they don't mind having it on paper and increasing the cost to trade it. The other more scary method of price reduction would be a level of Nationalization (a kind way of saying market socialism), where the Government would play a hand in supplying fuel. Now for those that seem to think this approach is the way to go, consider this; if the Government lowered the price of gas to $2.00 a gallon, you'd be happy, however if they really wanted America to follow a 'Nazi-esque' environmental policy, they would simply vote to move the price of gas to $10.00 a gallon with a series of subsidies for all their banker buddies.

So when President Obama stumps around claiming what he did and what he can't do, read through the fine print.

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